HRM-2

Business Dictionary: Human Resources Management (HRM)

Sponsored Links
HR Management
How to retain your best talent and recession-proof your business.
SAP.com/Malaysia
MBA in HR Management
Learn MBA Courses While You Earn. Achieve the Height of Your Career!
RDIHongKong.com/Malaysia
Home > Library > Business & Finance > Business Dictionary
Term that is replacing personnel management and implying that personnel managers should not merely handle recruitment, pay, and discharging, but should maximize the use of an organization's human resources.


English▼

•
•
Search unanswered questions...


• Browse: Unanswered questions | Most-recent questions | Reference library
Enter question or phrase...
Search: All sources Community Q&A Reference topics

• Browse: Unanswered questions | New questions | New answers | Reference library

5min Related Video: Human resource management

Top

Business Encyclopedia: Human Resource Management

Top
Home > Library > Business & Finance > Business Encyclopedia
Humans are an organization's greatest assets; without them, everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media, and dealing with customers could not be completed. Humans and the potential they possess drive an organization. Today's organizations are continuously changing. Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness, human potential—individuals' capabilities, time, and talents—must be managed. Human resource management works to ensure that employees are able to meet the organization's goals.
"Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise" (Cherrington, 1995, p. 5). There are seven management functions of a human resources (HR) department that will be specifically addressed: staffing, performance appraisals, compensation and benefits, training and development, employee and labor relations, safety and health, and human resource research.
Generally, in small organizations—those with fewer than a hundred employees—there may not be an HR department, and so a line manager will be responsible for the functions of HRM. In large organizations—those with a hundred employees or more—a human resource manager will coordinate the HRM duties and report directly to the chief executive officer (CEO). HRM staff in larger organizations may include human resource generalists and human resource specialists. As the name implies, an HR generalist is routinely involved with all seven HRM functions, while the HR specialist focuses attention on only one of the seven responsibilities.
Prior to discussing the seven functions, it is necessary to understand the job analysis. An essential component of any HR unit, no matter the size, is the job analysis, which is completed to determine activities, skills, and knowledge required of an employee for a specific job. Job analyses are "performed on three occasions: (1) when the organization is first started, (2) when a new job is created, and (3) when a job is changed as a result of new methods, new procedures, or new technology" (Cherrington, 1995).
Jobs can be analyzed through the use of questionnaires, observations, interviews, employee recordings, or a combination of any of these methods. Two important tools used in defining the job are (1) a job description, which identifies the job, provides a listing of responsibilities and duties unique to the job, gives performance standards, and specifies necessary machines and equipment; and (2) the job specification, which states the minimum amount of education and experience needed for performing the job (Mondy and Noe, 1996).
Staffing
Both the job description and the job specification are useful tools for the staffing process, the first of the seven HR functions to be discussed. Someone (e.g., a department manager) or some event (e.g., an employee's leaving) within the organization usually determines a need to hire a new employee. In large organizations, an employee requisition must be submitted to the HR department that specifies the job title, the department, and the date the employee is needed. From there, the job description can be referenced for specific job related qualifications to provide more detail when advertising the position—either internally, externally, or both (Mondy and Noe, 1996).
Not only must the HR department attract qualified applicants through job postings or other forms of advertising, but it also assists in screening candidates' resumes and bringing those with the proper qualifications in for an interview. The final say in selecting the candidate will probably be the line manager's, assuming all Equal Employment Opportunity Commission (EEOC) requirements are met. Other ongoing staffing responsibilities involve planning for new or changing positions and reviewing current job analyses and job descriptions to make sure they accurately reflect the current position.
Performance Appraisals
Once a talented individual is brought into an organization, another function of HRM comes into play—creating an environment that will motivate and reward exemplary performance. One way to assess performance is through a formal review on a periodic basis, generally annually, known as a performance appraisal or performance evaluation. Because line managers are in daily contact with the employees and can best measure performance, they are usually the ones who conduct the appraisals. Other evaluators of the employee's performance can include subordinates, peers, group, and self, or a combination of one or more (Mondy and Noe, 1996).
Just as there can be different performance evaluators, depending on the job, several appraisal systems can be used. Some of the popular appraisal methods include (1) ranking of all employees in a group; (2) using rating scales to define above-average, average, and below-average performance; (3) recording favorable and unfavorable performance, known as critical incidents; and (4) managing by objectives, or MBO (Mondy and Noe, 1996).
Cherrington (1995) illustrates how performance appraisals serve several purposes, including:(1) guiding human resource actions such as hiring, firing, and promoting; (2) rewarding employees through bonuses, promotions, and so on;(3) providing feedback and noting areas of improvement; (4) identifying training and development needs in order to improve the individual's performance on the job; and (5) providing job related data useful in human resource planning.
Compensation and Benefits
Compensation (payment in the form of hourly wages or annual salaries) and benefits (insurance, pensions, vacation, modified workweek, sick days, stock options, etc.) can be a catch-22 because an employee's performance can be influenced by compensation and benefits, and vice versa. In the ideal situation, employees feel they are paid what they are worth, are rewarded with sufficient benefits, and receive some intrinsic satisfaction (good work environment, interesting work, etc.). Compensation should be legal and ethical, adequate, motivating, fair and equitable, cost-effective, and able to provide employment security (Cherrington, 1995).
Training and Development
Performance appraisals not only assist in determining compensation and benefits, but they are also instrumental in identifying ways to help individuals improve their current positions and prepare for future opportunities. As the structure of organizations continues to change—through downsizing or expansion—the need for training and development programs continues to grow. Improving or obtaining new skills is part of another area of HRM, known as training and development.
"Training focuses on learning the skills, knowledge, and attitudes required to initially perform a job or task or to improve upon the performance of a current job or task, while development activities are not job related, but concentrate on broadening the employee's horizons" (Nadler and Wiggs, 1986, p. 5). Education, which focuses on learning new skills, knowledge, and attitudes to be used in future work, also deserves mention (Nadler and Wiggs, 1986).
Because the focus is on the current job, only training and development will be discussed. Training can be used in a variety of ways, including (1) orienting and informing employees, (2) developing desired skills, (3) preventing accidents through safety training, (4) supplying professional and technical education, and (5) providing supervisory training and executive education (Cherrington, 1995).
Each of the training methods mentioned has benefits to the individual as well as to the organization. Some of the benefits are reducing the learning time for new hires, teaching employees how to use new or updated technology, decreasing the number and cost of accidents because employees know how to operate a machine properly, providing better customer service, improving quality and quantity of productivity, and obtaining management involvement in the training process (Cherrington, 1995). When managers go through the training, they are showing others that they are taking the goals of training seriously and are committed to the importance of human resource development.
The type of training depends on the material to be learned, the length of time learners have, and the financial resources available. One type is instructor-led training, which generally allows participants to see a demonstration and to work with the product first-hand. On-the-job training and apprenticeships let participants acquire new skills as they continue to perform various aspects of the job. Computer-based training (CBT) provides learners at various geographic locations access to material to be learned at convenient times and locations. Simulation exercises give participants a chance to learn outcomes of choices in a nonthreatening environment before applying the concept to real situations.
Training focuses on the current job, while development concentrates on providing activities to help employees expand their current knowledge and to allow for growth. Types of development opportunities include mentoring, career counseling, management and supervisory development, and job training (Cherrington, 1995).
Employee and Labor Relations
Just as human resource developers make sure employees have proper training, there are groups of employees organized as unions to address and resolve employment-related issues. Unions have been around since the time of the American Revolution (Mondy and Noe, 1996). Those who join unions usually do so for one or both of two reasons— to increase wages and/or to eliminate unfair conditions. Some of the outcomes of union involvement include better medical plans, extended vacation time, and increased wages (Cherrington, 1995).
Today, unions remain a controversial topic. Under the provisions of the Taft-Hartley Act, the closed-shop arrangement states employees (outside the construction industry) are not required to join a union when they are hired. Union-shop arrangements permit employers to hire non-union workers contingent upon their joining the union once they are hired. The Taft-Hartley Act gives employers the right to file unfair labor practice complaints against the union and to express their views concerning unions (Cherrington, 1995).
Not only do HR managers deal with union organizations, but they are also responsible for resolving collective bargaining issues—namely, the contract. The contract defines employment related issues such as compensation and benefits, working conditions, job security, discipline procedures, individuals' rights, management's rights, and contract length. Collective bargaining involves management and the union trying to resolve any issues peacefully—before the union finds it necessary to strike or picket and/or management decides to institute a lockout (Cherrington, 1995).
Safety and Health
Not only must an organization see to it that employees' rights are not violated, but it must also provide a safe and healthy working environment. Mondy and Noe (1996) define safety as "protecting employees from injuries caused by work-related accidents" and health as keeping "employees free from physical or emotional illness" (p. 432). In order to prevent injury or illness, the Occupational Safety and Health Administration (OSHA) was created in 1970. Through workplace inspections, citations and penalties, and on-site consultations, OSHA seeks to enhance safety and health and to decrease accidents, which lead to decreased productivity and increased operating costs (Cherrington, 1995).
Health problems recognized in the workplace can include the effects of smoking, alcohol and drug/substance abuse, AIDS, stress, and burnout. Through employee assistance programs (EAPs), employees with emotional difficulties are given "the same consideration and assistance" as those employees with physical illnesses (Mondy and Noe, 1996, p. 455).
Human Resource Research
In addition to recognizing workplace hazards, organizations are responsible for tracking safety- and health-related issues and reporting those statistics to the appropriate sources. The human resources department seems to be the storehouse for maintaining the history of the organization— everything from studying a department's high turnover or knowing the number of people presently employed, to generating statistics on the percentages of women, minorities, and other demographic characteristics. Data for the research can be gathered from a number of sources, including surveys/questionnaires, observations, interviews, and case studies (Cherrington, 1995). This research better enables organizations to predict cyclical trends and to properly recruit and select employees.
Conclusion
Research is part of all the other six functions of human resource management. With the number of organizations participating in some form of international business, the need for HRM research will only continue to grow. Therefore, it is important for human resource professionals to be up to date on the latest trends in staffing, performance appraisals, compensation and benefits, training and development, employee and labor relations, and safety and health issues— both in the United States and in the global market.
One professional organization that provides statistics to human resource managers is the Society for Human Resource Management (SHRM), the largest professional organization for human resource management professionals. Much of the research conducted within organizations is sent to SHRM to be used for compiling international statistics.
Bibliography
Cherrington, David J. (1995). The Management of Human Resources. Englewood Cliffs, NJ: Prentice-Hall.
Mondy, R. Wayne, and Noe, Robert M. (1996). Human Resource Management. Upper Saddle River, NJ: Prentice-Hall.
Nadler, Leonard, and Wiggs, Garland D. (1986). Managing Human Resource Development. San Francisco: Jossey-Bass.
[Article by: CHRISTINE JAHN]
Sponsored Links
The Economist Magazine
12 Week Subscription for MYR109 & Receive a Complimentary 2GB USB.
www.EconomistAsia.com
Human Resource Management
Free HR HRM software comparisons of the top systems for your business.
HR.SoftwareResearchTools.com
Blogs: Related blogs on: human resource management

Top
Home > Library > Miscellaneous > Blog Topics
• Tune Up Your EQ The definitive Emotional Intelligence blog
Sponsored Links
Human Resource Management
HR Tools and Presentation Slides Manage Better Talents Effectively
GlobalManagerGroup.com/HRM
Human Resource Training
Soft skills training materials to teach human resource training.
SoftSkillsCourseware.com
Wikipedia: Human resource management

Top
Home > Library > Miscellaneous > Wikipedia

This article's tone or style may not be appropriate for Wikipedia. Specific concerns may be found on the talk page. See Wikipedia's guide to writing better articles for suggestions. (December 2007)

Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.[1] The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations.[1] In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement.
Contents
[hide]
• 1 Features
• 2 Academic theory
• 3 Business practice
• 4 Careers and education
• 5 Professional organizations
• 6 Functions
• 7 See also
• 8 References

Features
Its features include:
• Organizational management
• Personnel administration
• Manpower management
• Industrial management[2][3]
But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even employee and industrial relations are confusingly listed as synonyms,[4] although these normally refer to the relationship between management and workers and the behavior of workers in companies.
The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.
HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations.[5]
Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. So if we move to actual definitions, Torrington and Hall (1987) define personnel management as being:
“a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and, secondly, ensures that the agreement is fulfilled" (p. 49).
While Miller (1987) suggests that HRM relates to:
".......those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" (p. 352).
Academic theory
The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989).
The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management.
One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:[6]
• Strategic business partner
• Change management
• Employee champion
• Administration
However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value.[7]
Business practice
Human resources management comprises several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company.[8]
• Workforce planning
• Recruitment (sometimes separated into attraction and selection)
• Induction and Orientation
• Skills management
• Training and development
• Personnel administration
• Compensation in wage or salary
• Time management
• Travel management (sometimes assigned to accounting rather than HRM)
• Payroll (sometimes assigned to accounting rather than HRM)
• Employee benefits administration
• Personnel cost planning
• Performance appraisal
Careers and education


Cornell University's School of Industrial and Labor Relations was the world's first school for college-level study in HRM
The sort of careers available in HRM are varied. There are generalist HRM jobs such as human resource assistant. There are careers involved with employment, recruitment and placement and these are usually conducted by interviewers, EEO (Equal Employment Opportunity) specialists or college recruiters. Training and development specialism is often conducted by trainers and orientation specialists. Compensation and benefits tasks are handled by compensation analysts, salary administrators, and benefits administrators.
Several universities offer programs of study pertaining to HRM and broader fields. Cornell University created the world's first school for college-level study in HRM (ILR School).[9] University of Illinois at Urbana-Champaign also now has a school dedicated to the study of HRM, while several business schools also house a center or department dedicated to such studies; e.g., Michigan State University, Ohio State University, and Purdue University.
Professional organizations
Professional organizations in HRM include the Society for Human Resource Management, the Australian Human Resources Institute (AHRI), the Chartered Institute of Personnel and Development (CIPD), the International Public Management Association for HR (IPMA-HR), Management Association of Nepal (MAN) and the International Personnel Management Association of Canada (IPMA-Canada), Human Capital Institute (HCI)
Functions
The Human Resources Management (HRM) function includes a variety of activities, and key among them is deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.
Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, eg, career development, training, organization development, etc.
There is a long-standing argument about where HR-related functions should be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?"
The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner.
See also
• Human resources
• Enterprise Feedback Management (EFM)
• E-HRM
References
1. ^ a b Armstrong, Michael (2006). A Handbook of Human Resource Management Practice (10th ed.). London: Kogan Page. ISBN 0-7494-4631-5. OCLC 62282248.
2. ^ "personnel management". The Columbia Encyclopedia (Sixth Edition ed.). Columbia University Press. 2005. http://www.bartleby.com/65/x-/X-personne.html. Retrieved 2007-10-17. "personnel management - see industrial management".
3. ^ Encyclopædia Britannica (kl ed.). "Personnel administration is also frequently called personnel management, industrial relations, employee relations".
4. ^ Encyclopædia Britannica.
5. ^ Towers, David. "Human Resource Management essays". http://www.towers.fr/essays/hrm.html. Retrieved 2007-10-17.
6. ^ Ulrich, Dave (1996). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press. ISBN 0-87584-719-6. OCLC 34704904.
7. ^ Smit, Martin E.J.H. (2006). HR, Show me the money; Presenting an exploratory model that can measure if HR adds value.
8. ^ The Strategic Impact of High Performance Work Systems
9. ^ "About Cornell ILR". Cornell University School of Industrial and Labor Relations. http://www.ilr.cornell.edu/about/. Retrieved 23 August 2009.
• Wilkinson, A. (1988). "Empowerment: theory and practice". Personnel Review 27 (1): 40–56. doi:10.1108/00483489810368549. http://hermia.emeraldinsight.com/vl=2601464/cl=84/nw=1/fm=docpdf/rpsv/cw/mcb/00483486/v27n1/s3/p40. Retrieved 2007-10-17.
• Legge, Karen (2004). Human Resource Management: Rhetorics and Realities (Anniversary ed.). Basingstoke: Palgrave Macmillan. ISBN 1-403-93600-5. OCLC 56730524.

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
Donate to Wikimedia

Sponsored Links
Hr Management Tool
Download powerful HR software. Free to evaluate. Available from $399.
www.successionwizard.com
HR Jobs
Malaysia's Largest Database of HR Jobs. Check out and register now.
www.JobStreet.com

Learn More

Barrett Business Services


Caribbean Cafe Business Plan (Location Site Analysis) (business plan)

Acacia (technology)



What is the difference between Human Resource Management and Human Resources Management? Read answer...


How a Human resource manager will formulate an effective Human resource process? Read answer...


What is the difference between human resource maintenance and human resource management? Read answer...


Help us answer these

Who can be a human resource manager What is the academic qualification of a human resource manager?


Is it necessary for a human resource manager to be a major in human resource management?


Who can be a human resource manager what is the accademic qualificatin of a human resource manager?


Post a question - any question - to the WikiAnswers community:



Copyrights:


Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more



Business Encyclopedia. Encyclopedia of Business and Finance. Copyright © 2001 by The Gale Group, Inc. All rights reserved. Read more



Blogs. © 1999-2009 by Answers Corporation. All rights reserved. Read more



Wikipedia. This article is licensed under the Creative Commons Attribution/Share-Alike License. It uses material from the Wikipedia article "Human resource management". Read more



Related answers
• What is the process of human resource management?
• What does human resources management do?
• History of human resources management?
» More
ADVERTISEMENT

Answer these
• How can be same human resource management and human resources management?
• Uses of human resource inventory to human resource management?
» More
Mentioned in
• Barrett Business Services
• Caribbean Cafe Business Plan (Location Site Analysis) (business plan)
• Acacia (technology)
• Human Resource Management and the Law
• Caribbean Cafe Business Plan (Proposed Profit) (business plan)
• Caribbean Cafe Business Plan (Source of Financing) (business plan)
• Caribbean Cafe Business Plan (Type of Ownership) (business plan)
• Caribbean Cafe Business Plan (Human Resource Management) (business plan)
• Caribbean Cafe Business Plan (Summary) (business plan)
• Caribbean Cafe Business Plan (business plan)
• Industrial Relations (American history)
• Human Resource Policies
• Caribbean Cafe Business Plan (Resume) (business plan)
• Caribbean Cafe Business Plan (Credit Policy) (business plan)
» More» More
Site
• Help
• Sitemap
• ReferenceAnswers
• WikiAnswers
Company
• About
• Press Room
• Blog | What's New
• Investor Relations
Legal
• Terms of Use
• Privacy Policy
• IP Issues
• Disclaimer
Webmasters
• AnswerTips
• Widget Gallery
• Fan Flare
• More…
Downloads
• 1-Click Answers
• Browser Toolbar
• More…
Updates
• Email
• Watchlist
• RSS
• Twitter

International Sites English Deutsch Español Français Italiano Tagalog
Copyright © 2009 Answers Corporation