Professional Documents
Culture Documents
HRM is the process of managing people in organizations in a structured and thorough manner.
This covers the fields of staffing (hiring people), retention of people, pay and perks setting and
management, performance management, change management and taking care of exits from the
company to round off the activities. HRM encompasses the management of people in organizations
from a macro perspective i.e. managing people in the form of a collective relationship between
management and employees. This approach focuses on the objectives and outcomes of the HRM
function.
This includes the activities of hiring new full-time or part-time employees, hiring contractors, and
terminating employee contracts
Activities include:
Utilizing various recruitment technologies to acquire a high volume of applicants (and to filter
based on experience)
Maintaining ethical hiring practices and aligning with the regulatory environment
On-boarding new employees and providing resources for continued development is a key investment for
organizations, and HR is charged with maintaining a developmental approach to existing human
resources.
Activities include:
3. Compensation Administration
Salary and benefits are also within the scope of human resource management. This includes identifying
appropriate compensation based on role, performance, and legal requirements.
Activities include:
Setting compensation levels to match the market, using benchmarks such as industry standards
for a given job function
Negotiating group health insurance rates, retirement plans, and other benefits with third party
providers
Discussing raises and other compensation increases and/or decreases with employees in the
organization
Ensuring compliance with legal and cultural expectations when it comes to employee
compensation
Achieving best practices in various industries include careful considering of safety and health concerns
for employees.
Ensuring compliance with legal requirements based on job function for safety measures (i.e.
hard hats in construction, available counseling for law enforcement, appropriate safety
equipment for chemists, etc.)
Defending employee rights, coordinating with unions, and mediating disagreements between the
organization and its human resources is also a core HR function.
Acting as the voice of the organization and/or the voice of the employees during any broader
organizational issues pertaining to employee welfare
It is advantageous to attract applicants with the highest potential for success at the organization.
Key Points
Selective hiring helps prevent the costly turnover of staff and increases the likeliness of high
employee morale and productivity.
The proper start to a recruitment effort is to perform a job analysis —to document the actual or
intended requirement of the job to be performed. This information is captured in a job
description and provides the recruitment effort with the boundaries and objectives of the
search.
Job descriptions need to be reviewed or updated prior to a recruitment effort to reflect present
day requirements. Each job description should be associated with a list of critical skills,
behaviors or attitudes that will make or break the job performance.
When screening potential employees, managers need to select based on cultural fit and attitude
as well as technical skills and competencies.
Recruiting - is beneficial to attract not only a large quantity of applicants but a group of individuals with
the necessary skills and requirements for the position. After obtaining a large, qualified applicant base
managers need to identify those applicants with the highest potential for success at the organization.
According to Pfeffer and Veiga 1998, selecting the best person for the job is an extremely critical piece of
the human resources inflow process. Selective hiring helps prevent the costly turnover of staff and
increases the likeliness of high employee morale and productivity.
1) advertising the vacancy to look for the potential applicants, the use of multiple media, such as the
Internet, general newspapers, job ad newspapers, professional publications, window advertisements,
job centers, and campus jobs fair
2) Walk-in application
3) In-house applications
4) Referrals
Managers must strive to identify the best applicants at the lowest cost. Companies have a
variety of processes available to screen potential employees, so managers must determine which system
will generate the most accurate results. The methods of selection vary both in levels of effectiveness and
in cost of application.