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Assignment Management HRM

Human resource management (HRM) involves employing people, training them, developing policies, and retaining talented employees while letting go of those who do not meet goals. HRM is important for all organizations as employees are their most important asset. Proper HRM includes activities like recruiting, selecting, training, developing and evaluating employees. Studies show organizations that implement high-performance work practices like extensive training and employee involvement can increase their market value by up to 30%. The HRM process consists of eight key activities to staff the organization and sustain high performance, including identifying qualified candidates, providing skills and ensuring retention of top performers.

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106 views

Assignment Management HRM

Human resource management (HRM) involves employing people, training them, developing policies, and retaining talented employees while letting go of those who do not meet goals. HRM is important for all organizations as employees are their most important asset. Proper HRM includes activities like recruiting, selecting, training, developing and evaluating employees. Studies show organizations that implement high-performance work practices like extensive training and employee involvement can increase their market value by up to 30%. The HRM process consists of eight key activities to staff the organization and sustain high performance, including identifying qualified candidates, providing skills and ensuring retention of top performers.

Uploaded by

khalil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

Subject : Management

Topic: HRM

Back Ground:

Every organization, large or small, uses a variety of capital to make the business work. Capital includes
cash, valuables, or goods used to generate income for a business. For example, a retail store uses
registers and inventory, while a consulting firm may have proprietary software or buildings. No matter
the industry, all companies have one thing in common: they must have people to make their capital
work for them. If we consider the definition of organization “ Organization is a deliberate arrangement
of people for the accomplishment of specific purpose or objective so HRM Is the Processes through
which these arrangements of people are effectively controlled, hired, managed, utilized and sustained .

What is HRM

Human resource management (HRM) is the process of employing people, training them, compensating
them, developing policies relating to them, and developing strategies to retain them and firing those
which are in excess or not complying the required results expecting from.

If an organization doesn't take its HRM responsibilities seriously, work performance and goal
accomplishment may suffer.

Getting and keeping competent employees are critical to the success of every organization, whether the
organization is just starting or has been in business for years

Why Human Resource Management Is Important

Our people are our most important asset." Many organizations are using this phrase, or something close
to it, to acknowledge the important role that employees play in organizational success. These
organizations also recognize that all managers must engage in some human resource management
activities—even in large organizations that have a specialized HRM department. These managers
interview job candidates, orient new employees, and evaluate their employees' work performance.

As per study 71 percent of CEO’s Says that their “ Human Capital is the key source of sustained economic
value.

What is human capital ?

Human capital is an intangible asset or quality not listed on a company's balance


sheet. It can be classified as the economic value of a worker's experience and
skills. This includes assets like education, training, intelligence, skills, health, and
other things employers value such as loyalty and punctuality.

The concept of human capital recognizes that not all labor is equal. But
employers can improve the quality of that capital by investing in employees—the
education, experience, and abilities of employees all have economic value for
employers and for the economy as a whole.
Human capital is important because it is perceived to increase productivity and
thus profitability. So the more a company invests in its employees (i.e., in their
education and training), the more productive and profitable it could be.

Studies that have looked at the link between HRM policies and practices and organizational
performance have found that certain policies and practices have a positive impact on performance.3
What type of positive impact? One study reported that significantly improving an organization's HRM
practices could increase its market value by as much as 30 percent.4 The term used to describe these
practices that lead to such results is high-performance work practices. High-performance work practices
can lead to both high individual and high organizational performance. Exhibit 12.1 lists examples of high-
performance work practices. The common thread in these practices seems to be a commitment to
improving the knowledge, skills, and abilities of an organization's employees, increasing their
motivation, reducing loafing on the job, and enhancing the retention of quality employees while
encouraging nonperformers to leave.
● Self-directed work teams
● Job rotation
● High levels of skills training
● Problem-solving groups
● Total quality management procedures and processes
● Encouragement of innovative and creative behavior
● Extensive employee involvement and training
● Implementation of employee suggestions
● Contingent pay based on performance or achievements
● Coaching and mentoring
● Significant amounts of information sharing
● Use of employee attitude surveys
● Cross-functional integration
● Comprehensive employee recruitment and selection procedures

Cross-functional integration refers to the close collaboration of personnel who


represent different functional organizations through cross-functional teams or
other organizational vehicles. A cross-functional team contains members who
possess various essential perspectives and expertise required for reaching a
common team goal.

No single functional organization is the repository of all the knowledge required


to successfully complete activities such as designing a new product.
Consequently, it is thought that activities and decisions rendered by cross-
functional teams are superior to those rendered by individuals or groups who
represent only one functional viewpoint. For example, a product design team
that includes representatives from marketing, engineering, manufacturing,
distribution, sales, purchasing, suppliers, customers and after-sales support
functions is more likely to create a design that simultaneously meets the varied
requirements of the different organizational functions...

Whether an organization chooses to implement high-performance work practices or not, there are
certain HRM activities that must be completed in order to ensure that the organization has
qualified people to perform the work that needs to be done. These activities constitute the human
resource management process

External Factor That Affect the HRM Process:

The Human Resource Management Process

Exhibit 12.2 introduces the key components of an organization's human resource management process,
which consists of eight activities necessary for staffing the organization and sustaining high employee
performance. The first three activities ensure that competent employees are identified and selected; the
next two activities involve providing employees with up-to-date knowledge and skills; and the final three
activities entail making sure that the organization retains competent and high-performing employees
who are capable of sustaining high performance.

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