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Select your languageSuggested languages for you: Human Resource Management I am convinced that nothing we do is more important than hiring and developing people. At the end of the day, you bet on people, not on strategies." - Lawrence Bossidy Human resource management (HRM) makes sure that the organisation functions smoothly. The process begins with the formulation of correct policies for job postings and finishes with a successful growth for the organisation. Hence, HRM is an imperceptible agent that joins all the aspects of the organisation ensuring smooth growth. Human Resource Management MeaningHuman resource management (HRM) is the strategic management of people and processes within an organization. HRM was initially recognized as people’s management. Previously, its role was confined, however, over time it has become a primary part of organisational management. The key responsibilities of this department are recruitment, procurement assessment, integration, training and development, and compensation of the workforce. The human resource department takes care of any issues faced by the employees in their working capacity in the company. Human resource is related to particular work practices and how they impact a company’s performance. The following represent the principles of HRM:
Role of Human Resource ManagementLet's take a look at what some of the main roles of HRM. StaffingA business needs people to accomplish certain tasks even when there are high-tech machines present. Due to this, one of the key tasks of HRM is staffing. This comprises the hiring process from a job post to the negotiation of a salary package. Creation of policiesEach company has policies that ensure fairness and steadiness. Therefore, one of the roles of HRM is to create such policies. In the creation of policies, HRM, management, and executives are included in the process. Some of the policies are:
Compensation HR managers should define if compensation is fair, matches market standards, and is high enough to attract individuals to work for a company. Compensation comprises anything the employee gets as an exchange for their work. HRM managers should ensure that the pay is equivalent to what other companies are paying their employees for similar jobs. Some of the compensation examples include the following:
Retention This includes keeping and encouraging employees to continue with the company. One key contributor of retention is compensation, however, there may be other elements as well such as organisational culture or work flexibility. Training and development Training ensures that employees are not just trained to perform their job but also persistently progress and develop new skills, hence resulting in higher productivity, employee motivation, and employee retention. Strategic human resource management Strategic human resource management is the connection between a business’s human resources and its overall strategies, aims, and objectives. The Goal of Strategic Human Resource ManagementThe goal of strategic HRM is to: 1. Enhance business performance, 2. Create a fit for organisational culture 3. Enhancement of flexibility innovation 4. Develop a competitive edge For strategic HRM to be efficient and effective, human resources should play an essential part as a strategic partner when an organisation’s policies are developed and employed. Strategic HR can be exhibited via diverse activities including recruiting, training, and rewarding. It involves searching for methods in which human resources can make a direct influence on the organization’s growth. Human resource managers should embrace a strategic approach to develop and retain employees to achieve the organisation’s long-term objectives. Organisations will succeed when all the teams are performing for a similar goal. Strategic HR conducts an analysis of employees and establishes the actions needed to amplify their value to the organization. The outcome of this analysis can be used to create human resource approaches to tackle employee weaknesses. The benefits of strategic HRM are as follows:
Human Resource Management SystemHRM systems (HRMS) are software applications employed to manage HR and processes linked to the lifecycle of employees. HRMS allows an organization to completely understand its workforce whilst conforming to the varying tax laws and labor regulations. Functions of Human Resource ManagementThe functions of HRMS include: Candidate ManagementIt associates employment offers to candidates and promotes positions both internally to the present employees who might want to apply for internal positions and externally to the world. It is crucial for organisations for which the experience of the participants is their main concern. Employee ManagementThis function is often considered the main human resource function. It delivers a primary portal for supporting analysis, reporting, and fulfilling processes. This is where the workforce is structured into units such as departments/locations, it outlines reporting relationships among the managers and the employees, and personal information is stored. PayrollThis is a main function of HRMS, calculation of earnings from gross to net, holding back employee deductions, and giving out payments are routine tasks. Some of the benefits of HRMS include the following:
Human Resource Management - Key Takeaways
Frequently Asked Questions about Human Resource ManagementHuman resource management (HRM) is the strategic management of people and processes within an organization. Better hiring practices, comprehensive onboarding, tracking employee performance, and promptly responding to employee feedback are the techniques for improving human resources management. The best fit in human resource management is an approach that advocates that HRM practices must be aligned with the organisation's culture. Candidate management, employee management, and payroll are HRM functions. Talent management in human resource management is a practice that focuses on hiring, developing, motivating, and retaining top-performing employees. Final Human Resource Management Quiz
Question What is labour turnover in simple terms? Show answer Answer Labour turnover is the rate at which employees leave an organization. Show question
Question What is not an avoidable cause of high labour turnover? Show answer
Question What are two types of causes of labour turnover? Show answer Answer Avoidable Causes & Unavoidable Causes Show question
Question Name some unavoiable causes for employee turnover Show answer Answer
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Question What is not an unavoidable cause for labour turnover? Show answer
Question What are some positive effects of labour turnover? Show answer Answer Opportunity to develop company culture Show question
Question What are the consequences for labour turnover? (You can choose more than one) Show answer
Question What are two main types of labour turnover? Show answer Answer Voluntary and involuntary Show question
Question What does voluntary labour turnover mean? Show answer Answer A staff member is leaving at will. Show question
Question What does involuntary labour turnover mean? Show answer Answer The management dismisses the employee due to reasons like not complying with the company. Show question
Question What is an example of voluntary labour turnover? (You can choose more than one) Show answer Answer Employee find a better opportunity elsewhere and decide to leave Show question
Question How to reduce labour turnover? Show answer Answer Monitor and benchmark labour turnover Show question
Question How conducting exit interview can reduce labour turnover? Show answer Answer You can find out the underlying cause of the employee's resignment and resolve the issue or pass on the information to HR team. Show question
Question What does benchmarking labour turnover mean? Show answer Answer Benchmarking means to set a specific standard of labour turnover goals and assess they are performing compared to the standard. Show question
Question What is the reason for onboarding and training new employees? Show answer Answer Help employee understand the process of the company Show question
Question What is labour productivity? Show answer Answer Labour productivity is the amount of output each employee in a business produces. Show question
Question Why is labour productivity so important? Show answer Answer Because labour is one of the firm's most considerable costs, firms want to ensure they're gaining as much work and productivity from the labour cost as they can. Show question
Question Does new technology have an impact on labour productivity? Show answer Answer Yes, new technology can make the production process more efficient and increase labour productivity. Show question
Question Suppose labour productivity increases, would the firm need more or fewer employees to produce the same level of output? Show answer Answer Fewer employees as people are working more efficiently. Show question
Question What is labour cost per unit? Show answer Answer Labour cost per unit is the average cost of labour per unit of output produced. Show question
Question How does labour cost per unit linked to labour productivity? Show answer Answer As labour productivity increases, the labour cost per unit decreases. Alternatively, the decrease in the labour cost per unit will lead to an increase in labour productivity. Either way, your organization will benefit from lower costs and more competitive prices on the market. Show question
Question Why do we need to reduce labour costs? Show answer Answer Increase labour productivity Show question
Question How to reduce labour costs and increase productivity? (Choose the wrong answer) Show answer Answer Make sure employees are sufficiently trained Show question
Question What aspect of a business that labour productivity has the most impact on? Show answer Answer Profitability and efficiency Show question
Question What problems can arise when the company tries to increase labour productivity? Show answer Answer Resistance from employees due to change and fear of automation replacing their jobs. Show question
Question What happens to labour productivity if the labour cost per unit decreases? Show answer Answer The labour productivity will increase if the labour cost per unit decreases. Show question
Question What is the unit for labour productivity? Show answer
Question What is the employee retention rate? Show answer Answer The rate of staff that stays with the company during a period of time. Show question
Question What is the opposite of employee retention? Show answer Answer employee turnover: the rate of employees who leave the company Show question
Question Why is employee retention important? Show answer
Question What are the problems with too low a retention rate? (You can choose more than one answer) Show answer Answer High recruitment and selection costs Show question
Question What is a cause of low retention rate? Show answer
Question How does poor management decrease the retention rate? Show answer Answer Leaders play an important role in keeping people's morale. Poor management such as favouritism, inconsistent policies and lack of recognition for the employee's effort can put employees off and decrease the retention rate. Show question
Question How to improve employee retention rate? Show answer Answer Build a value-based company culture Show question
Question Why money is not always an answer to retention problems? Show answer Answer Money is not always the answer because in many cases staff only wants to know if the company appreciates what they do or whether their job contributes positively to the society. Show question
Question What is the benefit of employee engagement and involvement? (Choose the wrong answer) Show answer
Question Why is it important to reward employees for their hard work/achievements? Show answer Answer The reason for rewarding employees is to make them feel appreciated, which can boost their morale and performance. Show question
Question What do talent development tasks include? Show answer Answer Develop, manage and retain employees Show question
Question What kinds of costs are associated with low retention rates? Show answer Answer
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Question How can a high retention rate help to save the company time and money? Show answer Answer If the company can get and keep its retention rate high, it allows the organization to focus on its goals and critical path, instead of having to constantly find new staff and train them. This will save the company time and money. Show question
Question What does the retention rate indicate in general? Show answer Answer The retention rate can indicate how content the workforce is in a firm. Show question
Question What are important factors influencing labour productivity? Show answer
Question What is labour productivity? Show answer Answer Labour productivity can be defined as the amount of output each employee in a business produces. Show question
Question How is labour cost linked to labour productivity? Show answer Answer As labour productivity increases, the labour cost per unit decreases. Alternatively, the decrease in the labour cost per unit will lead to an increase in labour productivity. Either way, your organization will benefit from lower costs and more competitive prices on the market. Show question
Answer Labour cost can be defined as the total costs incurred by an organisation for employing its employees. It includes their wages, payroll taxes, employee benefits, etc. Show question
Question What is employee cost as a percentage of turnover? Show answer Answer Employee cost as a percentage of turnover consists of measuring the percentage of turnover needed to cover labour costs. Show question
Answer A benchmark is a point of reference and comparison for the organisation. Show question
Question What are the two main benefits of measuring employee costs as a percentage of turnover? Show answer Answer
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Question What would you do if employee cost is too high but profit is relatively low? Show answer Answer Increase labour productivity and reduce labour costs. Show question
Question What does the low rate of employee costs against turnover indicate? Show answer Answer Your employees are being underpaid or the company experience a shortage of qualified workers. Show question Discover the right content for your subjectsNo need to cheat if you have everything you need to succeed! Packed into one app!Study PlanBe perfectly prepared on time with an individual plan. QuizzesTest your knowledge with gamified quizzes. FlashcardsCreate and find flashcards in record time. NotesCreate beautiful notes faster than ever before. Study SetsHave all your study materials in one place. DocumentsUpload unlimited documents and save them online. Study AnalyticsIdentify your study strength and weaknesses. Weekly GoalsSet individual study goals and earn points reaching them. Smart RemindersStop procrastinating with our study reminders. RewardsEarn points, unlock badges and level up while studying. Magic MarkerCreate flashcards in notes completely automatically. Smart FormattingCreate the most beautiful study materials using our templates. Sign up to highlight and take notes. It’s 100% free. What are the procurement functions of HRM?(i) Procurement – It is concerned with obtaining the proper kind and right number of personnel at the right time and at the most economical rates. It deals specifically with the determination of manpower requirement, recruitment, selection, induction and placement.
What are the main functions of human resource development?HRD functions as a “human resource wheel” The HR wheel identifies three primary HRD functions: 1)Training and development 2) Organization development 3) Career development. Training and development (T&D) focuses on changing or improving the knowledge, skills, and attitudes of individuals.
What is personnel function in HRM?Personnel management includes the function of employment, development and compensation- These functions are performed primarily by the personnel management in consultation with other departments. Personnel management is an extension to general management.
Which Organisational function is concerned with the procurement development compensation integration and maintenance of the employees in the Organisation?Human Resource Management as planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved.
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