What is Human Resource Management?
- Human Resource Management (HRM) defines how companies plan, organize and manage the tasks and assets related to the people who make up the organization.
- As we will see below, human resources management is an area with increasing weight within the executive committees of companies, regardless of their size.
- This Management involves remuneration, talent management, and training in companies, selection, and international mobility of workers.
- It manages the work environment, performance evaluation, Management of organizational changes that affect staff, resolution of labor disputes.
- It has the implementation of personnel policies and many other functions, including the administrative tasks derived from these areas.
- Effectively managing the aspects mentioned above is a challenge for organizations.
- They will depend significantly on having adequate personnel at the competence and training level.
- It remains motivated to carry out their daily functions and is actively involved in the company walking the right direction.
What is HRM, and why is it so important?
- The impact of HR management can be noticeable in the company if its policies manage properly.
- We take into account that this area is the link between the company’s mission, vision, and values and the employees who work in it.
- If getting employees and management goals on the same page are complex, getting employees engaged and motivated by those goals is even more difficult.
- And also, human resource management functions with policies and worries about promoting the organization’s values in employees.
- For this, it is crucial to analyze the leadership models that exist in the organization.
- The existing communication channels, the address or addresses in which communication between Management and employees travels.
- In short, human resource management covers all the areas necessary for employees to stop having the feeling that it is “the payroll department.”
- And also to constitute a department that cares about each of the people within the organization.
- Achieving this implies an improvement in the work environment, a greater sense of belonging to the organization, a greater degree of organizational awareness.
- Consequently more excellent performance and productivity data that greatly facilitate the company’s daily operations.
What are HRM duties?
- As we have already seen, human resource management is the link between the company’s central values and its employees.
- However, in its functions, we cannot have human resource management from other company areas.
- HR must be an active part of the business and, therefore, must know first-hand the different departments of the organization and their needs to provide effective solutions.
- In addition to being in permanent contact with the business and the rest of the departments, human resources management involves an indeterminate number of areas within the company.
- Human resources management also has different competencies depending on the type of company in question.
- Human resources management is in charge of establishing policies, baselines of action, and behavior guidelines to be followed by employees at a general level.
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What are critical areas that HR management deals?
In more depth, some of the most critical areas that HR management deals with are:
1. Establish the personnel selection policy
- Through the competency management system, Cloud based document management system
and using different tools such as the job description (DPT), human resources management defines the company’s selection and reception process.
- Some of the tasks are curriculum screening, interviews, entrance examinations, candidate evaluation, and welcoming of new employees.
2. Establish training policy
- Human resource management is in charge of preparing the company’s training plan.
- For this, it must consider the needs of the organization, the departments, and the employment situation of each employee within the talent map.
- She is also in charge of managing the budget that the company invests in training and managing the State Foundation for Training and Employment credit.
3. Establish the performance evaluation policy
- Human resources management is the one that designs the employee evaluation processes: what evaluates, who evaluates.
- It is also essential to define what feedback employees get from their superiors about their performance at work, how often, etc.
4. Establish the remuneration policy
- The remuneration policy is one of the most sensitive policies within the organization.
- Not having a well-defined and structured approach can lead to daily chaos in managing conflicts produced by comparative grievances or perceptions of injustice.
- Human resource management defines salary levels or bands, the compensation package (fixed, variable compensation, and other benefits).
- It is for each position, social services, the flexible compensation system, or any other incentive system.
5. Talent management
- An essential task within human resource management is the definition of talent in the organization.
- The talent map will be structures that will define where each employee is within the organization based on their performance and their potential.
- This aspect is essential in internal promotion situations.
6. Working environment
- HR is the area in charge of fostering a good work environment among colleagues in the organization.
- We can launch events or actions to improve the work environment and disseminate the company’s values about this aspect.
- The administrative part of the HR department could not be absent.
- The area includes the most administrative tasks such as the preparation of payroll, the legal aspects in hiring.
- The necessary documents in case of dismissals, the Management and updating of the employee file, etc.
What are human resources by competencies?
- Competencies are the qualities that people have.
- It is the set of knowledge, motivations, expectations, attribution models, and personality traits that a specific person presents.
- Human resource management by competencies consists of translating the company’s values into a series of transversal competencies that all organization members should share.
- These competencies constitute the starting point for the rest of the areas since they are the competencies that bring together the company’s behaviors in its workers.
- And also, it is based on this basis, policies for selection, training, promotion, remuneration, etc.
What is human capital management?
- Human capital we understand as the conception of the company’s human resources from a more economic perspective.
- The personnel expense of a company is usually among the main costs of the same, whatever its main activity.
- For this reason, it is essential to analyze the impact of human resources from an economic point of view.
Examples of this would be
- The cost analysis of a generalized increase in salaries, the cost that absenteeism entails for the company,
- And also, investment in training and the costs derived from not implementing adequate training.
- It can be the economic impact of a high rate of employee turnover, the expense of firing someone, etc.
What are the objectives of human resource management (HRM)?
- Previously we have detailed the objectives that emanate from the functions in which human resources management is involved.
- In general terms, we can define that the main aim of good human resources management is to align the company’s objectives with the people who work in it.
- It can be always ensuring that the company achieves its goals while ensuring the well-being of all workers.
- Human Resource Management is a vast subject of knowledge.
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Review Human Resource Management – Functions, Resources, Duties, and Objectives.