Saturday, 4 December 2021
Human resource management
Human resource management – refers to the design and application of formal
systems to ensure the effective and efficient use of human to accomplish
organisational goals.
Includes activities undertaken to attract, develop, and maintain an effective
workforce within an organisation.
Hiring and keeping high-quality employees with the right set of skills is one of
the most urgent concerns for today’s organisations.
Employees give a company its primary source of competitive advantage. Good
managers make talent management a top priority.
Decisions that need to be made:
- The aggregate size of the organisations labour force
- How much to spend on training the workforce
- The desirability of establishing relations with trade unions
- Human asset accounting
All managers need to be skilled in the basics of human resource management:
• Recruitment, selection, training programmes, performance appraisal, etc. are no
longer the role of HRM professionals, may be pushed out to managers across
the organisation
Human resource managers must find, recruit, train, nurture and retain the best
people.
Human capital, and the ability to manage it:
• Human capital is the economic value of the knowledge, experience, skills and
capabilities of employees
• HRM strategy for the workforce – recruit the best talent, enhance skill and
knowledge with training programmes and opportunities for personal and
professional development, reward with compensation and benefits
1
, Saturday, 4 December 2021
HRM:
- Seeks proactively to encourage flexible attitudes and to accept new methods
- Prescriptive and concerned with strategies, the initiation of new activities and the
development of fresh ideas
- Determines general policies for employment relationships within the organisation
- Has long-term perspectives; seeking to integrate all the human aspects of the
organisation into a coherent whole and to establish high-level employee goals
HRM and competitive advantage
• The more satisfied workers are with their jobs, the better the company is likely to
perform in terms of subsequent profitability and particular productivity
• Organisational structure significantly affects company performance
• The practices which seem to be the most important in affecting performance are
job design and the acquisition and development of skills.
• HRM practices have a crucial and significant role in how successful a company
will be
The strategic role of HRM
Employees provide the competitive edge; company needs:
- Right people to become more competitive on a global basis
- Right people for improving quality, innovation and customer service
- Right people to retain during mergers and acquisitions
- Right people to apply new information technology for e-business
The strategic approach to HRM
3 key elements:
1. All managers are involved in managing HR
2. Employees are viewed as assets
3. HRM is a matching process integrating the organisations strategy and goals
with the correct approach to managing human capital
2
, Saturday, 4 December 2021
Building human capital to drive performance
• Human capital refers to the economic value of the combined knowledge, experience, skills
and capabilities of employees
- Strategies for finding the best talent
- Enhancing skills and knowledge with training programmes
- Opportunities for personal and professional development
- Rewards (compensation) and benefits that support knowledge sharing
Innovations in HRM
• An employer brand is similar to a product brand except that it promotes the organisation
as a great place to work, rather than promoting a specific product or service
• Contingent workers are people who work for an organisation, but may not be permanent
of full-time, including temporary placements, independent contractors, freelancers, and
part-time employees.
• Telecommuting means using computers and telecommunications equipment to perform
work from home or another remote location.
3
Human resource management
Human resource management – refers to the design and application of formal
systems to ensure the effective and efficient use of human to accomplish
organisational goals.
Includes activities undertaken to attract, develop, and maintain an effective
workforce within an organisation.
Hiring and keeping high-quality employees with the right set of skills is one of
the most urgent concerns for today’s organisations.
Employees give a company its primary source of competitive advantage. Good
managers make talent management a top priority.
Decisions that need to be made:
- The aggregate size of the organisations labour force
- How much to spend on training the workforce
- The desirability of establishing relations with trade unions
- Human asset accounting
All managers need to be skilled in the basics of human resource management:
• Recruitment, selection, training programmes, performance appraisal, etc. are no
longer the role of HRM professionals, may be pushed out to managers across
the organisation
Human resource managers must find, recruit, train, nurture and retain the best
people.
Human capital, and the ability to manage it:
• Human capital is the economic value of the knowledge, experience, skills and
capabilities of employees
• HRM strategy for the workforce – recruit the best talent, enhance skill and
knowledge with training programmes and opportunities for personal and
professional development, reward with compensation and benefits
1
, Saturday, 4 December 2021
HRM:
- Seeks proactively to encourage flexible attitudes and to accept new methods
- Prescriptive and concerned with strategies, the initiation of new activities and the
development of fresh ideas
- Determines general policies for employment relationships within the organisation
- Has long-term perspectives; seeking to integrate all the human aspects of the
organisation into a coherent whole and to establish high-level employee goals
HRM and competitive advantage
• The more satisfied workers are with their jobs, the better the company is likely to
perform in terms of subsequent profitability and particular productivity
• Organisational structure significantly affects company performance
• The practices which seem to be the most important in affecting performance are
job design and the acquisition and development of skills.
• HRM practices have a crucial and significant role in how successful a company
will be
The strategic role of HRM
Employees provide the competitive edge; company needs:
- Right people to become more competitive on a global basis
- Right people for improving quality, innovation and customer service
- Right people to retain during mergers and acquisitions
- Right people to apply new information technology for e-business
The strategic approach to HRM
3 key elements:
1. All managers are involved in managing HR
2. Employees are viewed as assets
3. HRM is a matching process integrating the organisations strategy and goals
with the correct approach to managing human capital
2
, Saturday, 4 December 2021
Building human capital to drive performance
• Human capital refers to the economic value of the combined knowledge, experience, skills
and capabilities of employees
- Strategies for finding the best talent
- Enhancing skills and knowledge with training programmes
- Opportunities for personal and professional development
- Rewards (compensation) and benefits that support knowledge sharing
Innovations in HRM
• An employer brand is similar to a product brand except that it promotes the organisation
as a great place to work, rather than promoting a specific product or service
• Contingent workers are people who work for an organisation, but may not be permanent
of full-time, including temporary placements, independent contractors, freelancers, and
part-time employees.
• Telecommuting means using computers and telecommunications equipment to perform
work from home or another remote location.
3
