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What Is Human Resource Management?
What Is Human Resource Management?
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.
Human Resource Management is the organizational function that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.
What HR does?
Create/update Employee Handbook
Ensure proper handling of business processes, policies, and procedures
Advice employees and management
Ensure HR department is running smoothly
Create/update internal forms
Payroll
Process benefits
Process Worker's Compensation, or other state work-related paperwork
Workforce assessment
Handles hiring, reprimanding, negotiations, terminations
Processes and ensures timely evaluations
Orientations
Sponsorships
Have unbiased assessments of suggestions, issues, staff
Keep conscious of company staffing requirements and financial means
Continuously try to improve work relations and environment
Continuously try to keep up-to-date with HR advances (Software implementation)
Manage important records
Maintain workplace health and safety practices
There are different types of organization structure. They can be created on the basis of
arrangement of activities in the organization. There are three types of structural forms in the
organization and they are:
1. Functional Structure
2. Divisional Structure
3. Adaptive Structure
1. Functional Structure: It is the organizational structure that is based on the functions of the
units and sub-units of activities. Every organization has specialized functions and they constitute
as separate units of the organization. The entire activities that are connected with such functions
are placed in the same unit. The increase in volume of activity results in addition of number of
persons under each manager at various levels. It also results in the increase of sub-units that are
created at lower levels in each unit. It finally results in the inter-related positions taking the shape
of a pyramid. Its major significance is that there is functional specialization in each unit. It leads
to operational efficiency of the persons engaged in the organization. The organization also gets
the benefit of specialized operations. This type of arrangement is well suited for small and
medium size organization. It becomes incompetent while handling problems of an organization
as it grows in size and complexity. When there are diverse trends of activities performed in large
number of sub-units, it become difficult to manage. In such type of arrangements, the probability
of lack of communication and coordination and control arises that leads to problems in the
organization.
2. Divisional Structure: This type of structure is well suited for large enterprise. It works
effectively to those large enterprises that deal in multiple products serving many distinct markets.
The division of organization takes place into small business units that are entrusted with business
related to difficult products or different market territories. All the divisional managers are given
authority and autonomy to run all function relating to their respective products or marketing
segments or regional markets. Each division contributes planned profits to the organization but
works as independent business. Managers head the functional units while divisional managers
take the final authority. In this type of arrangement, top management determines the
organizational goals and formulates policies. This type of structure is characterized by the
decentralization of authority. It enables managers to take decision promptly and helps them
resolve problems that are related to their respective divisions. Divisional managers are provided
with opportunities to take initiative in matters that are within their jurisdiction. Its demerits are
that it involves heavy financial costs due to the duplication of supporting functional u nits for the
divisions. It also demands adequate number of potential managers taking charge of their
respective divisions and their respective functional units.
3. Adaptive Structure: This type of structure is designed as to cope with the unique nature of
undertaking and the situations in the organization. There are two types of adaptive structure they
are:
a) Project organization
b) Matrix organization
Activities of HR manager:
Responsibility
Major Responsibilities That Cannot Be Delegated:
Authority of HR
As part of its role in the management of human resources, HRM is responsible for certain aspects
of conflict management processes, including:
Environmental Analysis
o The first step in the human resource planning process is to understand the context of
human resource management. Human resource mangers should understand both internal and
external environments. Data on external environments includes the following: the general status
of the economy, industry, technology and competition; labor market regulations and trends;
unemployment rate; skills available; and the age and sex distribution of the labor force. Internal
data required include short- and long-term organizational plans and strategies and the current
status of the organization's human resources.
Analyzing Supply
o Organizations can hire personnel from internal and external sources. The skill
inventories method is one of the techniques used to keep track of internal supply. Skill
inventories are manual or computerized systems that keep records of employee
experience, education and special skills. A forecast of the supply of employees projected to join
the organization from outside sources, given current recruitment activities, is also necessary.