What is Human Resource Management? | From A Business Professor
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
😀 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.
📚 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)
💡Organizational Culture
💡Staffing
💡Workplace Policies
💡Compensation and Benefits
💡Retention
💡Training and Development
💡Laws Affecting Employment
💡Worker Protection
💡Small Business Managers
💡Productivity
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.
Transcripts
hello everyone welcome to business
school 101 every Organization no matter
the industry and size has one thing in
common they must have people work for
them to create products or services for
example tech companies need skilled
Engineers hospitals need qualified
doctors universities need knowledgeable
professors restaurants need good chefs
therefore it's often said that human
resources are an organization's greatest
capital and human resource management is
considered critical to the success of
any business so what is human resource
management how did it become a
discipline and what are its major
functions in this video I will discuss
these questions with you
Section 1 definition human resource
management or HRM involves creating
Personnel policies and procedures that
support business objectives and
strategic plans Central to this mission
is fostering a culture that reflects
core values and empowers employees to be
as productive as possible as we know
behind the production of every product
or service there is a human mind effort
and working hours no product or service
can be produced without the help of
human beings the human being is the
fundamental resource for making or
constructing anything every organization
desires to have skilled and competent
people to make their organization
competitive and the best
section 2 modern HRM history the birth
of modern Human Resource Management can
be traced back to the 18th century the
British Industrial Revolution giving
rise to many large factories created an
unprecedented spike in worker Demand
with many of these laborers putting in
long hours often clocking in around
16-hour work days it became increasingly
apparent that the happiness of workers
had a strong positive correlation with
productivity seeking to maximize return
on investments worker satisfaction
programs started to be introduced
furthermore Factory labor conditions
brought worker safety and rights to the
Forefront of legal attention early HR
departments within organizations in the
20th century were often known as
personnel management departments the
personnel management departments dealt
with legal compliance and employee
related issues and also implemented
worker satisfaction and safety programs
within the workplace following World War
II in the United States personnel
management departments looked to the
Army's training programs and started to
make employee training a point of
emphasis HR departments started to
assume the name of Human Resources in
the 1970s the primary factor that
differentiates HR from personnel
management is the technological
enablement of better Communications and
access to individual employee
information
3 major functions in general Human
Resource Management has seven major
functions in the organizations which
include Staffing development of
workplace policies compensation and
benefits Administration retention
training and development dealing with
laws affecting employment and worker
protection let's discuss them
individually number one Staffing even
with the most sophisticated machines
humans are still needed because of this
one of the major tasks in HRM is
Staffing Staffing involves the entire
hiring process from posting a job to
negotiating a salary package within the
Staffing function there are four main
steps first development of a staffing
plan this plan allows HRM to see how
many people they should hire based on
Revenue expectations second development
of policies to encourage
multiculturalism at work
multiculturalism in the workplace is
becoming more and more important as we
have many more people from a variety of
backgrounds in the workforce third
require recruitment this involves
finding people to fill the open
positions fourth selection in this stage
people will be interviewed and selected
and a proper compensation package will
be negotiated this step is followed by
training retention and motivation
number two workplace policy development
every organization has policies to
ensure fairness and continuity within
the organization and the development of
policies the HRM professional will
likely recognize the need for a policy
or a change of policy seek opinions on
the policy write the policy and then
communicate that policy to employees
please keep in mind that HR departments
cannot work alone everything they do
needs to involve all other departments
in the organization some examples of
workplace policies include discipline
process policy vacation time policy
dress code ethics policy and internet
usage policy
number three compensation and benefits
Administration HRM professionals need to
determine that compensation is fair
meets industry standards and is high
enough to entice people to work for the
organization this involves setting up
pay systems that take into consideration
the number of years with the
organization years of experience
education and similar aspects
compensation includes anything the
employee receives for his or her work
examples of employee compensation
include the following pay and bonus
stock purchase plans health benefits
retirement plans vacation time and sick
leave
number four retention retention involves
keeping and motivating employees to stay
with the organization compensation is a
major factor in employee retention in
the real business World managers think
90 of employees leave as a result of pay
therefore managers often try to change
their compensation packages to keep
people from leaving however there are
other factors as well other reasons make
employees leave a company include issues
around the job they are performing
challenges with their manager poor fit
with organizational culture poor
workplace environment
number five training and development
once companies spent the time to hire
new employees they want to make sure
they not only are trained to do the job
but also continue to grow and develop
new skills in their job this results in
higher productivity for the organization
training is also a key component in
employee motivation employees who feel
they are developing their skills tend to
be happier in their jobs which results
in increased employee retention examples
of training programs might include the
following job skills training such as
how to run a particular software or
machine training on communication team
building activities policy and legal
training such as sexual harassment
training and ethics training
number six dealing with laws affecting
employment human resource people must be
aware of all the laws that affect the
workplace an HRM professional might work
with some of these laws discrimination
laws Health Care requirements
compensation requirements such as the
minimum wage worker safety laws labor
laws Please be aware that the legal
environment of HRM is always changing so
human resource managers must always be
aware of changes taking place and then
communicate those changes to the entire
organization
number seven worker protection safety is
a major consideration in all
organizations human resource managers
should be aware of worker protection
requirements and ensure the workplace
meet both Federal and Union standards
worker protection issues include the
following chemical hazards Heating and
ventilation requirements use of no
fragrance zones protection of private
employee information
section 4 tips for small business
managers while human resource management
is important to all businesses the
stakes may be higher for smaller
organizations for example one
incompetent employee in an office of 10
people can be much more detrimental than
one in a Workforce numbering in the
thousands to improve their people
processes here are four tips for small
business owners number one assess
current operations to determine if new
hires are needed or if existing
employees and production methods can be
utilized more effectively number two
take an active role in the recruitment
process and write job descriptions that
match prospective talent to business
needs number three create an employee
handbook or an official document that
clearly outlines company policies number
four provide continuing education
opportunities as needed by the
particular industry number five maintain
a work environment where employees are
treated fairly and can be productive all
right that's all for today's topic if
you have any questions regarding this
video please leave your thoughts in a
comment below I hope you guys have
enjoyed this video and if you did make
sure you give it a thumbs up and
subscribe to my channel thanks for
watching and I will see you next time
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