HUMAN RESOURCE MANAGEMENT
MEANING AND FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Human resource management has been defined as all management decisions and actions that affect the relationship between the organisation and employees.
In most organisations human resource management is grouped under several functions:
- Human Resource Planning.
- Recruitment, Selection, Placement and Induction
- . Training and Development.
- Performance Appraisal.
- Employee Compensation.
- Welfare Services and Benefits.
- Industrial Relations.
- HUMAN RESOURCE PLANNING
Human Resource planning as mentioned in section is the process of forecasting future human resource needs of an organization so that steps can be taken to ensure that these needs are met (Stone and Meltz 1983). It is the process by which managers ensure that they have the right number and kind of capable people in the right place and at the right time (Robbins, S. P. & Coulter, M. 2007). Human Resource planning involves the following activities:
- Detailed analysis of the organisation‟s work force.
- Analyzing and recommending policies and procedures for effective utilization of the organisation labour resources.
- Forecasting future human resources needs.
- Developing strategies to meet the organisation‟s human resources needs
- Providing conditions that will enable employees grow in their jobs and advance their careers.
- RECRUITMENT, SELECTION, PLACEMENT AND INDUCTION
Recruitment refers to all activities carried out to attract qualified applicants to fill vacancies in an organisation. Selection has to do with the process of identifying applicants who meet the requirements of the job. Recruitment and selection activities cover:
- Identifying sources of recruitment.
- Short-listing applicants.
- Identifying and developing and administering selection methods.
- Determining the position that suits the individual‟s strengths and weakness.
- Planning and implementing programmes to help new employees to adjust to the new job and organisation.
- TRAINING AND DEVELOPMENT
This has to do with all activities related to giving employees knowledge, skills and attitudes they need to perform their jobs effectively and preparing them for future careers. Training and development involves:
(a) Identifying an organisations training and development needs.
- Design appropriate training programme that will fill the identifying knowledge, skills and attitude gap.
- Running training programmes.
- Evaluating the impact of training on the employees‟ performance and the organisation.
- Preparing employees for careers in the organisation.
- PERFORMANCE APPRAISAL
Performance appraisal has to do with the process of monitoring an employee‟s performance on the job and his/her potential for development. Activities often included in this function are:
(a) Developing and administering appraisal systems.
(b) Counselling employees on their career plans.
- EMPLOYEE COMPENSATION
Employee compensation, simply put refers to rewards given to employees in return for the services they offer to the organisation. Core activities carried out under this function are:
(a) Developing and implementing compensation policies and procedures.
(b) Designing wages and salary structure for the organisation.
(c) Designing and implementing incentive schemes.
(d) Job evaluation.
- EMPLOYEE WELFARE SERVICES AND BENEFITS
To induce employees to contribute their best to organizational objectives management must provide the right working conditions in the organisation.
These working conditions include the following:
(a) Welfare facilities e.g. accommodation, canteen facilities etc.
(b) Health and safety programmes.
- INDUSTRIAL RELATIONS
This has to do with coordinating relations between the organisation and employee groups. Major activities carried out in this function are:
(a) Collective Bargaining.
(b) Implementing Collective Agreements.
(c) Designing and implementing grievance handling and trade dispute settlement systems.
(d) Designing and implementing disciplinary procedures.
(e) Enforcing relevant provisions of the labour laws in the organisation.
- HUMAN RESOURCE PLANNING
Adelad Company Ltd runs a small ICT business which focuses on developing software, ICT training and business plan preparation for Small businesses. It has thirty employees most of whom are graduates with degrees or professional qualifications in computer science, training, accounting, marketing and law. In spite of the high level of salary the company pays and the excellent fringe benefits it offers to employees, staff turnover is extremely high. In a number of cases Adelad has not been able to meet deadlines of customers because of shortage of staff. During exit interviews carried out most of the ex-employees complained of not having a clear idea of where the company was going; lack of promotions and training programme. Some complained about poorly defined job descriptions and training not consistent with the latest trends in the industry.
STEPS IN THE HUMAN RESOURCE PLANNING PROCESS
- Identify organizational objectives
- Estimate human resource needs
- Analyze existing human resources
- Calculate net human resource needs for the period: This is derived by deducting its existing workforce from the estimated workforce needed to achieve its objective.
- Develop a plan: The stage consists of developing policies and procedures to meet the net human resource requirement.
IMPORTANCE OF HUMAN RESOURCE PLANNING
- Importance of human resource planning guides management in making the right decisions relating to the type of employees to recruit.
- It also helps the organisation to adapt to changing trends in the labour market and forecast employees needed to achieve its objectives.
WORKER PARTICIPATION IN MANAGEMENT
Worker participation may be defined as any arrangements in which employees either individually or collectively become involved in organizational decision-making. The main objective of worker participation in management is to promote worker/management cooperation in the implementation of the organisation‟s objectives.
There are the two main forms of worker participation – Direct and Indirect.
- In direct participation, the worker takes a direct part in taking the decisions. Examples of direct participation are staff meetings.
- In indirect participation the worker participates indirectly through his/her representatives. Examples of this method are the appointment of worker directors and collective bargaining.
Record keeping is a very important activity necessary for the success of any business. In most organizations, records relating to Human Resources activities are handled by the Human Resources or Personnel Department. Some of HR records kept by most organizations include:
- Personal details about individual employees which includes: career history, skills and qualifications, leave, absence records and referees‟ reports
- Details about employees‟ jobs: This includes grade, pay and benefits, hours, location, job description or role definition.
- Employees‟ disciplinary records.
- Employees‟ appraisal reports.
- Training and development activities of employees etc.
USES OF HUMAN RESOURCES RECORDS
- Human Resources Planning: Information obtained from HR records are key input into Human resources planning. For example, HR records provides information about existing skills within the organization and thus making it possible for the HR Manager to identify future HR need of the organization after considering the organisation‟s objectives and strategies.
- Employees Turnover Monitoring and Control: Accurate record keeping provides valuable data on rate of employee turnover, including its causes. This will form the basis for the design of the organisation‟s staff retention strategy.
- Employee Scheduling: Information provided by HR record is used to provide an integral system of matching the numbers of employees to business needs.
- Employee Profiling: This is concerned with matching staff to workloads thus making sure that requisite manpower for optimum productivity is available over fluctuating activity levels of the organization.
- Skills and Inventory Audit: Accurate HR records is requisite to effective skills and inventory audit.
- Appointment, Promotion and Training Decision in HR records informs Managers on appointment and promotion decisions. It is also a valuable input for effective Training Needs Analysis.
- Reward Management: Information provided by HR records are used in effective administration of salaries, compensations, benefits etc. It is also used as a basis for disciplinary action. (h) Career Management: Information obtained from accurate records keeping is used for implementing career management policies and procedures.
CONFIDENTIALITY IN HR RECORD KEEPING
Human Resources Managers must ensure that HR records are available only to authorized personnel by taking adequate security measures. It is the practice in most organizations that HR records are kept in fire proof cabinets where access is restricted only to authorized personnel within the HR department.