What is Human Resource Management? | From A Business Professor

Business School 101

22 Jan 202308:54

Summary

TLDRThis video script from 'Business School 101' delves into the critical role of Human Resource Management (HRM) in any organization's success. It defines HRM, traces its history from the Industrial Revolution to modern practices, and outlines its seven key functions: staffing, policy development, compensation and benefits, retention, training and development, legal compliance, and worker protection. The script also offers practical tips for small business managers to optimize their HR processes, emphasizing the importance of a skilled workforce and fair workplace practices for business growth and sustainability.

Takeaways

😀 Human Resources (HR) are considered an organization's greatest capital, and HR management is critical to business success.
🏭 The modern HRM discipline originated from the 18th-century Industrial Revolution, with a focus on worker satisfaction and productivity.
📚 The transition from 'personnel management' to 'human resources' in the 1970s was influenced by technological advancements that improved communication and access to employee data.
📝 HRM involves creating personnel policies and procedures that support business objectives and strategic plans, with a focus on fostering a culture that empowers employees.
🔍 Staffing is a major HR function, encompassing the entire hiring process from job posting to salary negotiation.
📋 Workplace policy development is essential for ensuring fairness and continuity within an organization, and involves recognizing policy needs, seeking opinions, and communicating policies to employees.
💰 Compensation and benefits administration is about ensuring fair pay that meets industry standards and attracts employees, including pay, bonuses, stock purchase plans, health benefits, and more.
🔑 Retention is vital for keeping and motivating employees, with compensation being a major factor, but also considering job satisfaction, management relations, and organizational culture.
🎓 Training and development are crucial for ensuring employees are not only trained for their current roles but also continue to grow and develop new skills, enhancing productivity and motivation.
👮 Dealing with employment laws is a key HR function, requiring awareness and compliance with discrimination laws, health care requirements, compensation laws, worker safety laws, and labor laws.
🛡 Worker protection and safety are significant considerations, with HR managers ensuring the workplace meets federal and union standards regarding chemical hazards, ventilation, and privacy of employee information.

Q & A

What is the significance of human resources in an organization?
-Human resources are considered an organization's greatest capital because they are essential for creating products or services. Effective human resource management is critical to the success of any business by fostering a culture that reflects core values and empowers employees to be as productive as possible.
How did the concept of modern Human Resource Management (HRM) emerge?
-The concept of modern HRM can be traced back to the 18th century during the British Industrial Revolution, which created a spike in worker demand. It became clear that worker happiness correlated with productivity, leading to the introduction of worker satisfaction programs. The term 'Human Resources' came into use in the 1970s, reflecting technological advancements that improved communication and access to employee information.
What are the seven major functions of HRM in an organization?
-The seven major functions of HRM include staffing, development of workplace policies, compensation and benefits administration, retention, training and development, dealing with laws affecting employment, and worker protection.
What are the four main steps involved in the staffing function of HRM?
-The four main steps in the staffing function are: 1) Development of a staffing plan to determine hiring needs, 2) Development of policies to encourage multiculturalism at work, 3) Recruitment to find suitable candidates, and 4) Selection, where candidates are interviewed and a compensation package is negotiated.
Why is workplace policy development important in HRM?
-Workplace policy development is important to ensure fairness and continuity within the organization. HR professionals identify the need for policies, seek opinions, write them, and communicate them to employees. It involves collaboration with all departments to ensure comprehensive coverage.
What does compensation and benefits administration involve in HRM?
-Compensation and benefits administration involves determining fair compensation that meets industry standards and is attractive enough for potential employees. It includes setting up pay systems considering factors like years with the organization, experience, education, and includes various forms of compensation such as pay, bonuses, stock purchase plans, health benefits, retirement plans, vacation time, and sick leave.
How does retention fit into the HRM strategy?
-Retention involves keeping and motivating employees to stay with the organization. While compensation is a major factor, other reasons like job satisfaction, manager relationships, organizational culture, and workplace environment also play significant roles in retaining employees.
What role does training and development play in HRM?
-Training and development are crucial for ensuring that employees are not only trained to do their jobs but also continue to grow and develop new skills, leading to higher productivity and increased employee motivation and retention.
Why is it important for HR professionals to be aware of laws affecting the workplace?
-HR professionals must be aware of laws affecting the workplace to ensure legal compliance and protect the organization from potential legal issues. This includes discrimination laws, health care requirements, compensation requirements, worker safety laws, and labor laws.
What are some tips for small business managers regarding HRM?
-Tips for small business managers include assessing current operations to determine hiring needs, actively participating in the recruitment process, creating an employee handbook outlining company policies, providing continuing education opportunities, and maintaining a fair and productive work environment.
How has technology impacted the evolution of HRM?
-Technology has significantly impacted HRM by enabling better communication and access to individual employee information. This has allowed HR departments to be more strategic and efficient in their management of human resources.

Outlines

00:00

😀 Introduction to Human Resource Management

The video script introduces the concept of Human Resource Management (HRM) as a critical component for any business's success. It emphasizes the importance of HRM in creating policies and procedures that align with business objectives and strategic plans. The script also highlights the significance of cultivating a culture that reflects core values and empowers employees. The history of modern HRM is traced back to the 18th century, with the British Industrial Revolution, and it discusses the evolution of HRM from personnel management to its current form, which includes technological advancements that have improved communication and access to employee information.

05:01

📚 Major Functions of HRM

This paragraph delves into the seven major functions of HRM within organizations, which include staffing, policy development, compensation and benefits administration, retention, training and development, legal compliance, and worker protection. Each function is broken down to explain its role in the HRM process. For instance, staffing involves the hiring process, from job posting to salary negotiation. Workplace policy development ensures fairness and continuity, while compensation and benefits administration aims to set fair pay that meets industry standards. Retention strategies focus on keeping employees motivated, training and development programs aim to increase productivity and job satisfaction, legal compliance requires HR professionals to be aware of and adapt to changing laws, and worker protection ensures safety and adherence to federal and union standards.

Mindmap

Keywords

💡Human Resource Management (HRM)

Human Resource Management, often abbreviated as HRM, refers to the strategic approach of acquiring, training, appraising, and compensating employees in ways that align with an organization's goals. In the context of the video, HRM is portrayed as a critical function for any business, emphasizing the importance of creating personnel policies and procedures that support business objectives and foster a culture of productivity and empowerment.

💡Organizational Culture

Organizational culture refers to the shared values, beliefs, behaviors, and norms within a workplace. The script discusses how HRM aims to foster a culture that reflects core values, which is essential for empowering employees and enhancing their productivity. A positive culture can significantly influence the overall success of an organization by shaping employee attitudes and behaviors.

💡Staffing

Staffing in HRM involves the process of attracting, selecting, and appointing the right people to the right jobs within an organization. The video script outlines the staffing function, which includes developing a staffing plan, encouraging multiculturalism, recruitment, and selection. It is a crucial aspect of HRM as it ensures that organizations have the right talent to meet their strategic goals.

💡Workplace Policies

Workplace policies are formal guidelines that govern employee behavior and decision-making within an organization. The script mentions that HRM professionals are responsible for recognizing the need for policies, seeking opinions, writing them, and communicating them to employees. These policies ensure fairness, continuity, and legal compliance within the organization.

💡Compensation and Benefits

Compensation and benefits are the financial and non-financial rewards provided to employees for their work. The video explains that HRM professionals need to ensure that compensation is fair, meets industry standards, and is attractive enough to entice and retain employees. Examples given in the script include pay, bonuses, stock purchase plans, health benefits, and retirement plans.

💡Retention

Retention in HRM is about keeping and motivating employees to stay with the organization. The script highlights that while compensation is a major factor, other factors such as job satisfaction, manager relationships, and organizational culture also play a significant role in employee retention.

💡Training and Development

Training and development in HRM involves activities aimed at improving the skills and competencies of employees. The video script emphasizes the importance of continuous learning and skill development for increasing productivity and employee motivation. Examples from the script include job skills training, communication and team-building activities, and policy and legal training.

💡Laws Affecting Employment

Laws affecting employment are legal regulations that govern the workplace and the relationship between employers and employees. The script points out that HRM professionals must be aware of and comply with these laws, which include anti-discrimination laws, health care requirements, minimum wage laws, worker safety laws, and labor laws.

💡Worker Protection

Worker protection refers to the measures taken to ensure the safety and well-being of employees in the workplace. The video script discusses the role of HRM in being aware of worker protection requirements and ensuring compliance with federal and union standards, including chemical hazards, heating and ventilation, and protection of private employee information.

💡Small Business Managers

Small business managers are individuals who oversee the operations of smaller organizations. The script provides specific tips for these managers to improve their HRM processes, such as assessing current operations, actively participating in recruitment, creating an employee handbook, providing continuing education opportunities, and maintaining a fair and productive work environment.

💡Productivity

Productivity in the context of HRM refers to the efficiency and effectiveness with which employees perform their tasks. The video script mentions that fostering a culture that empowers employees and implementing worker satisfaction programs can lead to increased productivity, which is a key goal for any organization.

Highlights

Human resources are considered an organization's greatest capital and HR management is crucial for business success.

Human Resource Management (HRM) involves creating personnel policies and procedures to support business objectives and strategic plans.

HRM aims to foster a culture that reflects core values and empowers employees to be as productive as possible.

The birth of modern HRM dates back to the 18th century, with the British Industrial Revolution and the rise of large factories.

Worker satisfaction programs were introduced to maximize return on investments and correlate happiness with productivity.

Early 20th-century HR departments were known as personnel management departments, focusing on legal compliance and employee issues.

Post-World War II, personnel management departments began emphasizing employee training, influenced by the Army's programs.

HR departments started to be named as such in the 1970s, differentiated by technological advancements in communication and information access.

HRM has seven major functions in organizations: staffing, development of workplace policies, compensation and benefits, retention, training and development, legal compliance, and worker protection.

Staffing involves the entire hiring process, including developing a staffing plan and encouraging multiculturalism in the workplace.

Workplace policy development is crucial for ensuring fairness and continuity within the organization.

Compensation and benefits administration must be fair, meet industry standards, and attract employees to the organization.

Retention involves strategies to keep and motivate employees, with compensation being a major factor.

Training and development are key for ensuring employees are not only trained for their jobs but also continue to grow and develop new skills.

HR professionals must be aware of all laws affecting the workplace, including discrimination, health care, compensation, worker safety, and labor laws.

Worker protection and safety are major considerations, with HR managers ensuring the workplace meets federal and union standards.

Small business managers can improve their HR processes by assessing operations, actively participating in recruitment, creating an employee handbook, providing continuing education, and maintaining a fair and productive work environment.