Module 1 – Resources
Intro to Human Resource Management; HRM’s Role; Strategic HRM
Introduction to HRM
Human Resource Management (HRM or simply HR) is one of the most exciting fields to study in business. It is the utilization of people to help the organization achieve its goals and objectives. Executives, managers, supervisors, and other employees are all in the organization because there is work to be done. People who work in HR departments work with constant change and challenges—staffing needs, legal compliance, special compensation issues, and technological changes, for instance.
What are some of the functions of HRM?
Staffing: ensuring that the organization has the proper number of employees with the right skills and behaviors to get the jobs done. Some of the major areas often grouped closely with the staffing function are job analysis, human resource planning, recruitment, selection, and on-boarding/new employee orientation. We will look at the staffing function in Module 2.
Talent Development: training and developing employees as well as career planning, organizational development, performance management, and performance appraisal. Talent development, along with performance management, and organizational development are the topics for Module 3.
Total Rewards: what people receive in return for performing work in an organization. This is a concern for employees and employers alike. The total of all rewards include pay (direct financial compensation), benefits (indirect financial compensation) and non-financial compensation (satisfaction from the job itself or from the psychological environment and/or the work environment itself). Employee compensation with a strong motivational component (referred to as “total rewards”) is discussed in Module 4.
Employee and Labor Relations: “Labor relations” (sometimes called “industrial relations”) pertains to the employer-union-employee relationship when a union is present. The term “employee relations” normally represents the broader scope of workplace relationships—including employee morale, corrective action, terminations, and resignations. Module 4 pertains to total rewards, employee and labor relations, and also global HRM.
Keep in mind this course is an overview course—not a how-to course. The more advanced courses in the MSHRM degree program (MGT511, MGT516, HRM520, HRM522, and HRM599) go into more detail of the how-to of these and other HRM functional areas.
HR’s Role in Organizations: The role of HR professionals is under constant change. Many changes have been made so that HR professionals play a more strategic role. Because of this strategic emphasis, the question becomes, Who will perform the usual administrative roles associated with the many HR functions listed above? Many employers have turned to outside vendors or the use of HR technology systems in-house. Some HR duties have disappeared. The focus has switched to one of cost cutting—lean budgets in a global environment. HR staffs have been reduced and operating budgets are smaller. The most efficient organizations typically spend nearly 30% less per employee on HR and operate with 25% fewer HR employees (Controller’s Report, 2011).
Please note that the following links will open in a new window and may require activation of a LinkedIn account on the first attempt. Trident students may use their student email address to access this free subscription to LinkedIn Learning as a part of this course.
Human Resources: Leadership and Strategic Impact – LinkedIn Learning
Human resources basics – LinkedIn Learning
Also, read the following on putting the “human” back into strategic HRM:
Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: Putting ‘human’ back into strategic human resource management. Human Resource Management Journal, 21(2), 93-104. Retrieved from EBSCOhost in the Trident Online Library.
Today, the following now contribute in large part to the completion of many traditional HR activities:
Line managers: Line managers using technology are performing HR processes that require approvals, record-keeping, or input. They are working on recruiting, selection, and performance appraisals through the use of automated systems, without HR’s continuous input in the process.
Outsourcing organizations: This is the process of organizations hiring external HR professionals to perform HR work that was previously performed in-house. Organizations decide what competencies they want to keep in-house and assign other activities to externals to perform. This allows HR professionals to focus on strategic initiatives.
Shared service centers: A shared service takes routine, transaction-based duties dispersed throughout an organization and consolidates them in one place. For example, a company with 15 locations might consolidate their benefits and pension administration, payroll, relocation assistance, recruitment, and training and development into one center.
Professional employer organizations (PEOs): This is a company that leases employees to other businesses. The PEO continues to be the employer (issuing pay and benefits to its leased-out employees for performing HR work for an external organization). This frees up the external organization’s HR employees to work on HR strategic plans.
So, we see that the goal today is for HR to be more focused on strategic HR—on the bottom line of the organization, leaving the administrative tasks to technology and others (Schein, 2010).
Sources used to prepare this section:
Despite Recession, World-Class HR Organizations Reduce Costs by 13 Percent. Controller’s Report 2011 (August 2011). 1-19.
Mondy, R. W. (2014). Human resource management. Upper Saddle River, NJ: Pearson.
Schein, E. H. (Fall 2010). The role of organization development in the human resource function. OD Practitioner (42) 6-11.
Optional Sources:
The following two sources may be helpful if you choose to prepare a slide presentation for your SLP 1:
Wienot Films. (2011, May 9). How to give an awesome PowerPoint presentation [Video file]. Retrieved from https://www.youtube.com/watch?v=i68a6M5FFBc
Also
Society for Human Resource Management. Browse SHRM’s monthly publication, HR Magazine (available though ProQuest in the Trident Online Library) for pertinent HR topics. Also visit the SHRM website, www.SHRM.org, for membership information as well as for information on HR topics (some do not require paid membership for access, others do).