Human Resource Management

MAN101: Principles of Management Class 8

 What are Human Resources?

❖ Textbook:
❖ “The right number of the right people in the right place at the right time.”
❖ American Psychological Association
❖ “The individuals and groups whose knowledge, skills, abilities, and other
characteristics enable an organization to achieve its objectives.”
What is Human Resource Management (HRM)?
• Human Resource Management (HRM) is the term used to describe
formal systems devised for the management of people and teams
within an organization.
• The purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its teams and
employees.
• It is the HRM department’s job to find, secure, guide, and develop
employees and teams whose talents and desires are compatible with
the operating needs and future goals of the company.
 5 Key Responsibilities of HRM
• Job analysis and staffing: Determining the skills and experiences necessary
to adequately perform in a position, identification of job and industry trends,
and anticipation of future employment levels and skill requirements - followed
by selection through job postings, interviews, reference checks, testing, and
other tools.
• Organization, utilization, and maintenance of individuals and teams:
Designing an organizational framework that makes maximum use of an
enterprise's human resources and establishing systems of communication that
help everyone in the organization operate in a unified manner.
• Performance appraisal: The practice of assessing employee job
performance and providing feedback to those employees about both
positive and negative aspects of their performance.
 5 Key Responsibilities of HRM

• Reward systems: The mechanisms by which organizations provide their workers with
rewards for past achievements and incentives for high performance in the future, as well
as the mechanism by which organizations address problems within their work force,
through institution of disciplinary measures.
• Employee development: Researching an organization's training or coaching needs,
and initiating and evaluating employee development programs designed to address
those needs.
 3 Major Challenges Faced By HR Managers
1. Attracting top talent:
• Remember, the best people have
options.
2. Fostering a culture of continuous learning:
• 37% of employees leave their jobs
when they aren’t given opportunities to
learn new skills in the company.
3. Offering an ideal employee experience:
• Smart companies are now trying to offer
the best possible employee benefits and
amenities in order to create an inspiring
and encouraging work environment.
 11 Best Practices For HR Managers
1. Design a safe, healthy, and happy workplace for your workforce.
2. Find, attract, and hire the best talent within the right time frame.
3. Build high-performing, self-managed teams at work.
4. Deliver an onboarding experience, not just a process.
5. Create a fair and bias-free performance evaluation process.
6. Make conflict management safer and transparent for all parties.
7. Establish an inclusive workplace culture with employee feedback.
8. Follow an open door policy to encourage open communication.
9. Reskill employees to fill existing and future knowledge gaps.
10. Find ways to increase employee engagement and reduce turnover.
11. Offer your employees the gift of graceful exits.
• Abandon piecemeal social engineering: HRM
interventions should be disengaged from grandiose ideals and
from utopian visions of organisational, economic, and social
progress.
• Increase variation: We cannot predict the future, but
variation buys us insurance. Variation improves the probability
that within its broad repertoire, an organization will have the
resources to cope with uncertain futures.
• Random selection above a threshold: In organisations
where standardised recruitment processes are necessary, they
should randomly select individuals from a pool of qualified
applicants. This deals effectively with enhancing diversity and
acquiring talent.
• Drilling deliberate practice: The critical components of
effective practice are identifying skills and practicing them in
sustained, deliberative ways.
• Train in groups: One of the most important things one can
do to promote learning is to create or join groups where
people are engaged in the activity that interests them.
 Comparing HRM in the West and Vietnam
HRM FUNCTION THE WEST VIETNAM
PLANNING Long-term focus (on tenure, retention) Increasingly short-term focus (acceptance of
high turnover)
RECRUITMENT AND SELECTION Meritocratic; determining if candidate’s skill-set Achieving “fit” for a “corporate family”;
(AND DECRUITMENT) will deliver long-term value. management will often assess e.g. family
background
PERFORMANCE MANAGEMENT Focus on feedback and learning Focus on accountability
LEARNING AND DEVELOPMENT Focus on equal coaching and development Focus on unequal training programs
CAREER PLANNING Responsibility of HR; competency development Responsibility of individual
FUNCTION EVALUATION HR integrated into wider business strategy HR increasingly integrated into strategy
REWARDS Balance of intrinsic and extrinsic rewards Mostly focused on extrinsic rewards
INDUSTRIAL RELATIONS Unions and management are distinct entities, with Trade unions work closely with the
different motivations and incentives. management and top union positions are held
by senior executives and managers.
EMPLOYEE PARTICIPATION AND Emphasis on culture building and encouraging Mostly top-down, autocratic; employees
COMMUNICATION employee participation in HR processes usually don’t participate in HR processes
HEALTH AND SAFETY Formal codes; relatively strictly enforced Formal codes; relatively loosely enforced
PERSONAL WELLBEING High-priority HR function Low-priority HR function (but changing)
ADMINISTRATIVE HR administration highly formalized HR administration often informal
RESPONSIBILITIES