Human Resource Management: Purpose/Definition, Advantages, Disadvantages, Outsourcing, Recruiting/Selection, Improving Organizational Performance and how these benefit the organization.
Human resource management is basically a way of managing humans at their work place in search of performance and rating it well in order to also remunerate them well. According to Boxallet al (2007), HR is management of work and people in order to meet a desired end. In other words HRM is a systematic approach that consists of processes that are basically in all organizations, for example, selection, appraisal, rewards and development.
Armstrong, Michael and Boxall et al have similar views on the description of what HRM is all about. They both cover issues of selection and recruitment, reward management, learning and development, employee relations and many more. Armstrong, Michael also adds issues of the roles of line managers and the function of HR.
Selection is the process of finding the right people for the right positions available or vacant in the organization. HR department is responsible for the recruitment and selection of these employees and they work together with the relevant department. These people or employees are selected with the basis of their resume and experience they have had. Also a background check on the experience should be done by the HR department and also by the manager.
Employment agencies or outplacement firms are used to help organizations recruit. There are quite a number of ways that an organization can use to recruit like open houses, newspaper inserts, online job placement sites, airplane banners and more. Arthur, Diane (2006) have in their book suggested some guidelines to use during recruitment. They suggest the organization should present itself as a conducive place for one to work and state all benefits and these have to be believable benefits. Also the organization must be specific on the attributes it seeks from the applicant and also use different sources to increase the chances of getting the right person. There should be no time to waste; once there is an opening whatever is needed should be done immediately. Lastly but not least show enthusiasm as this attracts applicants.
Appraisal involves performance management per employee. Managers and HR experts can work together to achieve greater results for the organization. For example some employees need to be identified first before being assigned jobs or a new task. Most employees can be qualified but without any long term goals or strengths to be in a certain place. Therefore the HR experts and the managers can work together to mentor and train in order to achieve great profits and results.
Employee rewards are some of the things that some organizations take for granted as even in the short term period or long term period employees still need to be appreciated and this is one great way of incentivizing the employees and growing the business performance. Development entails the development of high quality employees.
HRM aims at achieving goals through its employees hence good planning and the right talented people selection, good rewards, employee development, performance development are some of the attributes to be considered in the business in order to achieve favorable results. Armstrong, Michael state that HRM is there to help the organization achieve its goals through its employees. In other words the organization needs people to achieve its goals hence the necessity of HRM.
Armstrong also says HR is there to help the organization, this basically means that there is a direct attachment between the organization departments like the HR and the finance department. This is where issues of making profits, compensation and benefits are done by HRM expects working together with the finance department.
HRM is mainly concerned with people who are also the backbone of the organization. Strategic HRM monitors its people through observing and collecting, analyzing and reporting information that would give value to the people. HRM regards managing people as taking care of assets and emphasizes that it is important to invest in these assets through various programs like development programs. HRM can only achieve its goals through other departments of the business therefore a good business strategy must be put in place. HRM highly regards people as a strategic way and means to achieve its set goals and make value for money.
Armstrong, Michael in their book quote Nalbantianet al(2004) how he defines the importance of HCM. They say human capital as “the stock of accumulated knowledge, skills, experience, creativity and other and that it involves managing the organization effectively once the necessary are put into place”.
HCM is about creating value for the organization. Human Capital Management is there to see the value that the people bring to the organization and what impact they have as well. “Its purpose as well is to show that there is value for money like return of investment and it gives information that will inform strategies/practices designed to improve effectiveness of people management in the organization”, also to guide the HRMs future of strategies”. This shows that there is a close link between departments and HR. Armstrong, Michael also quote (Donkin, 2005), he says, “the prime purpose of human capital management is to establish an employment proposition that links the work of employees to strategy and profits”. Therefore the link here is that both departments can look into the business results and find out how they can relate them to HRM so as to find out how best they can improve performance if necessary.