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Prepared By: Syed Nazim-Ud-Daula BBA 15th BATCH Dept. OF MARKETING University of Dhaka
What is Human Resource Management?
Human Resource Management (HRM) is the integrated use by an organization of systems, policies and management practices to recruit, develop and retain employees who will help the organization meet its goals. HRM plays an important role in assuring employee satisfaction, improving performance and productivity. This can further an organization's competitive advantage, and directly contribute to the organization's success. HRM is not just an issue for an organization's HRM department or for HR professionals. It is also the responsibility of leaders and managers, who exercise HR functions with their staff every day. HRM provides managers with skills and tools to enhance their own performance and the performance of their employees. By using these tools and working closely with HR professionals, managers can help build their employees' capabilities and strengthen employee commitment to the organization. This in turn will strengthen individual and organizational performance, and further the organization's ability to meet its goals according to performance objectives and standards. Why is Human Resource Management important? An effective HRM system allows organizations to address human resource issues strategically. This helps the workforce deliver high quality health services, despite internal and external challenges to the organization. A strong human resource management system helps organizations prioritize their organizational and business strategies while effectively managing the changes inherent in health sector reform and decentralization. HRM helps attract and retain competent employees, assists employees and managers in adapting to organizational change, and facilitates the use of technology to determine how and where work is done. HRM is perhaps one of the most misunderstood, but most important management systems. Employees are an organization's most important asset, as well as its most expensive: personnel costs often consume 70-80% of an organization's budget.
How HRM is related to the management process?
With a strong and equitable HRM system, employees:
Receive compensation that reflects their level of responsibility. Feel more motivated and understand how their work relates to the organization's mission and values. Are more satisfied with their jobs.
With a strong and equitable HRM system, organizations:
Are better equipped to achieve their goals. Increase the level of employee performance. Save costs through the improved efficiency and productivity of workers. Improve their ability to manage change.
At the organizational level, HRM and HR professionals play many important roles. They include: 1. acting as a strategic partner with senior managers and leaders by aligning HR strategies and practices with overall organizational strategies; 2. acting as an administrative expert for recruiting and hiring staff, evaluating employee performance, staff development and training, rewarding, supervising and delivering other HR processes that contribute to an organization's smooth operations; 3. representing and supporting employees; and, 4. acting as a change agent to prepare employees and implement processes for change within an organization. At the national level, HRM can help to support and enhance health-sector policies and practices to ensure a workforce whose staff, qualifications and placement are appropriately allocated. Organizations need to be able to accurately predict the HR needs to maintain service delivery and improve access to care and quality of care. Staff training and development are driven by the need to bolster staff skills according to organizational competencies, goals and directions. Relationships with union officials need to be established and well maintained. HRM is responsible for participating in organizational capacity building; instituting new employee incentives; and re-shaping HRM policies, processes and procedures, supervision systems and job descriptions.
Give several example of how hr manager concept can be of use to all managers.
Performance Improvement through Human Resource Management A solid HRM system provides the foundation for employee performance improvement. Performance improvement is a process for achieving individual and organizational results by identifying the key elements of strong performance, and then making sure that these elements are in place. Since an organization is a complex system, plans for organizational improvement must address all the different parts of the system, in an integrated way. HRM can help to identify and coordinate different performance improvement interventions, even if they are not directly related to human resource issues. Further, HRM should always be considered an important part of any performance improvement process, to make sure that each management system complements and facilitates the smooth operation of the other. Using the Human Resource Development Tool Management Science for Health (MSH) has developed the Human Resource Development (HRD) Tool to assess the following six areas of a HRM system: 1. Human resource capacity: budgets and staff. 2. Planning: organizational mission and goals. 3. Personnel policies and practices: job classification system; compensation and benefits system; recruitment, hiring, transfer, and promotion; orientation program; policy manual; discipline, termination, and grievance procedures; relationships with unions; and labor law compliance. 4. Data: employee data; computerization of data; and personnel files. 5. Performance management system: job descriptions, supervision; and work planning and performance review. 6. Training: staff training; management and leadership development; and links to external pre-service training. The use of the HRD tool will help an organization address these six areas in an integrated way. Below are several examples of how the HRD tool has been applied in different contexts.
In Albania, the Ministry of Health, with 24,000 employees nationwide, used the HRD tool to assess its HR capacity before beginning to decentralize management responsibilities for the public health system to the district level. In Zambia, the Society for Family Health, a family planning NGO with 80 employees in five offices used the same tool to assess its HR capacity as part of a strategic organizational effort. And in Bolivia, the Center for Research, Education, and Services, an NGO with 124 employees providing reproductive health services throughout the country, used the HRD tool to plan for strengthening its overall HRM system. Assessing at your Human Resource Management system Within your own organization, use the following quiz to begin thinking about some HRM system issues. This will help you start the process of strengthening your organization's HR capacity to improve staff productivity and allow your organization to provide higher quality services to your clients.
Do employees understand how their work specifically contributes to the mission and goals of the organization? Do employees consider their performance reviews to be a chance to discuss current work, skills and competencies and discuss future professional opportunities? Are employees routinely considered for openings and promotions within the organization? Do employees understand the policies on salaries and benefits and consider them fair and equitable? Do employees come to work on time and work productively for the full workday? Is the supervisor's role valued and supported by the organization? Does your organization have a clear system for managing volunteers? Are job descriptions up-to-date and readily available to all employees? Can your organization take on new objectives or tasks with cooperation from everyone? Does your organization have strategies to provide meaningful jobs? Does your organization have a spirit of achievement and high performance? Can your organization engage in long-range planning, knowing that it has or can develop the human resources required? Do managers spend less than 10% of their time dealing with grievances?
If you answered "yes" or "sometimes" to the questions above, you are to be congratulated! If you answered "no" to many of the questions above, perhaps you should re-examine your approach to HR and consider how to improve it. Questions that employees frequently ask themselves, concerning their work and workplace, include the following:
Am I being treated fairly? What am I supposed to do? How well am I doing my work? Does my work matter to the organization? How can I develop myself within the organization?
A carefully planned and implemented HRM system addresses these employee concerns, recognizing that they may affect employees and the quality of their performance. Human Resource Management is every leader and manager's business Senior leaders and managers need to become "human resource champions" in their organizations, becoming skilled themselves in managing their staff and promoting broader roles for HRM, increasingly pertinent in today's organization. Leaders and managers are responsible for producing results not only for the organization's clients, donors and investors, but for its employees. To achieve these organizational results, effective management of human resources is essential. Leaders and managers must expect high performance from their employees and at the same time must also provide the necessary resources and support for their employees to achieve it.
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