What is Human Resource Management? | From A Business Professor

Summary

This 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.