Human Resource Management

Purposes of HRM

Traditionally, the primary purpose of HRM has been administrative, which includes designing and administering programs, such as recruiting, training, performance evaluations, payroll, and benefits. A second purpose of HRM is being an employee advocate. Human resource professionals need to voice employee concerns and protect their rights by acting as liaisons. Third, HRM must serve as a change agent by helping organizations adapt to the constantly changing business environment. For example, HR professionals can enact family-friendly policies in response to the increased number of women in the workforce. Finally and most important, HRM should be strategic by aligning all HR functions with organizational goals. For example, if a company's mission includes providing excellent customer service, HR professionals must hire and train workers with good customer service skills, provide feedback on customer interactions, and reward those displaying superior service.

HRM Functions

The field of HRM covers many functions, which are briefly described in the following text:

• Equal employment opportunity laws prohibit discrimination against applicants and current employees based on their demographic characteristics—such as race, gender, religion, national origin, age, and disability—in all terms and conditions of employment. Human resource professionals must ensure that all employment decisions are based on merit or other nondiscriminatory reasons.
• Job analysis is the process of describing the essential tasks, duties, knowledge, skills, and abilities needed to successfully perform a job. The outcome of this process is a job description that can be used to determine what skills applicants need, what type of training should be conducted, what to evaluate employees on, and so forth.
• Human resource planning entails forecasting the number of employees who will be needed (demand) and the availability of workers (supply) as well as creating programs to remedy any mismatch between demand and supply. To resolve an employee shortage, HR professionals can recruit new employees, hire temporary workers, outsource, require overtime, or reduce turnover. Likewise, when there is a surplus HR can conduct layoffs, implement job sharing, reduce work hours or pay, or transfer workers.
• Recruitment involves identifying and attracting a large pool of applicants for a job. Internal recruitment is hiring from within organizations by identifying internal job candidates through performance evaluations, job postings, or manager recommendations. Conversely, external recruitment seeks candidates from outside organizations through newspaper ads, Internet job boards, employment agencies, college career centers, job fairs, or word of mouth.
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• Selection refers to matching job candidates to the appropriate job. In other words, it involves hiring the most qualified people in the hope that they will successfully perform the job. Many methods are used to identify the best candidates—including applications, résumés, interviews, assessment centers, background checks, and tests such as cognitive (intelligence) or physical ability, personality, and integrity.
• Orientation programs introduce new employees to the organization, job, and individuals within the company. These programs typically discuss company history and mission, policies, procedures, pay, and benefits.
• Training provides employees with the knowledge and skills needed to perform their jobs. Training can be conducted on the job where employees learn as they go, often while supervised by a manager or senior employee. It can also be off the job where employees learn away from the actual work setting using classroom lectures, videos, role-playing, simulations, or computer-based training.
• Performance appraisal is the process of observing, evaluating, giving feedback, developing, and rewarding job performance. Typically, supervisors evaluate performance, but 360-degree feedback in which multiple raters (supervisors, subordinates, coworkers, customers, and self) evaluate performance is gaining popularity. Performance can be rated based on results such as number of sales or behaviors including teamwork, as well as in comparison to coworkers or predetermined standards.
• Compensation and benefits are used to attract and retain employees. Compensation is monetary payments employees receive from their employer and can include base pay, cost-of-living adjustments, and merit or incentive pay. Benefits are a form of indirect compensation that may be required by law—including workers' compensation, unemployment insurance, or unpaid family and medical leave—or voluntarily offered by companies—such as paid leave, retirement or pension plans, child care, educational assistance, or medical insurance.
• Health and safety programs protect employees'psychological and physical well-being. Employee health can be enhanced through wellness—including exercise facilities, health screenings, or educational programs—or employee assistance programs that help manage personal problems such as substance abuse and stress. The Occupational Safety and Health Act (OSHA) of 1970 requires that organizations provide a workplace that is free from recognized hazards. Compliance can be achieved through safety programs that include safety policies, training, protective equipment, and inspections.
• Labor relations are important because organizations are required by law to recognize and bargain in good faith with unions. Human resource professionals can participate in collective bargaining, facilitate union–management relations, and ensure that management does not engage in unfair labor practices, such as threatening to fire employees who vote for a union.
• Employee relations cultivate relationships that balance employer needs and employee rights regarding issues such as electronic communication monitoring, drug testing, and termination. Management should be accountable for upholding these rights, and employees abusing them should be disciplined according to company policy.

Society for Human Resource Management and HR Certification

The Society for Human Resource Management (SHRM) was established in 1948 and represents more than 190,000 HR professionals. It strives to advance the profession by providing resources, networking, and professional development. SHRM also advocates the key role HR professionals can play in formulating and implementing organizational strategy. SHRM founded the Human Resource Certification Institute, which offers three types of HR certification. First, the professional in human resources is for those with less HR experience and jobs that are technical or operational. Individuals with more HR experience and jobs that are strategic or policy oriented can attain the senior professional in human resources. Finally, HR professionals operating in multinational organizations can receive the global professional in human resources. To become certified, individuals need at least two years of HR experience and must pass an exam covering the field of HRM.

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