Lesson 1: Role of Human Resources retention, which means that these issues fall

under both management and HRM.

What Is Human Resources?

Every firm, no matter how big or little, utilizes The Role of HRM
different types of capital to operate. Cash, valuables, Despite the chosen career route, this information is
and items used to produce revenue for a business crucial because many HRM duties are also carried
are all considered capital. For A retail store, for out by other department managers
instance, employs registers and inventories,
whereas a consulting firm can have its own Staffing
software or facilities. All businesses, regardless of You need people to perform tasks and get work
industry, have one. They all have one thing in done in the organization. Even with the most
common: they need employees to put their money sophisticated machines, humans are still needed.
to work. Our attention will be on this throughout
the text: generating income by using people's Within the staffing function, there are four main
abilities and capabilities. steps:
1. Development of a staffing plan. This plan allows
What Is Human Resources Management? HRM to see how many people they should hire
based on revenue expectations.
▫ Human resource management (HRM) is the 2. Development of policies to encourage
process of hiring individuals, providing them multiculturalism at work. Multiculturalism in the
with the necessary training and compensation, workplace is becoming more and more important,
creating policies pertaining to them, and as we have many more people from a variety of
creating retention plans. Over the past 20 backgrounds in the workforce.
years, HRM has undergone a great deal of 3. Recruitment. This involves finding people to fill
development as a field, making it even more the open positions.
crucial in today's enterprises. abilities and 4. Selection. In this stage, people will be
capabilities. interviewed and selected, and a proper
compensation package will be negotiated. This step
▫ HRM used to be more of an administrative is followed by training, retention, and motivation.
function than a strategic one that was essential
to the organization's performance. It involved Development of Workplace Policies
processing payroll, sending birthday gifts to Every organization has policies to ensure fairness
employees, planning company outings, and and continuity within the organization. One of the
ensuring sure forms were accurately filled out. jobs of HRM is to develop the verbiage surrounding
Get out of the celebrations, birthdays, and these policies. In the development of policies, HRM,
enrollment papers. Keep in mind that HR is management, and executives are involved in the
defined in difficult times and crucial in good process.
times. Some examples of workplace policies might be the
following:
▫ It’s necessary to point out here, at the very • Discipline process policy
beginning of this, that every manager has some • Vacation time policy
role relating to human resource management. • Dress code
For example, most managers deal with • Ethics policy
compensation, motivation, and retention of • Internet usage policy
employees—making these aspects not only
part of HRM but also part of management. Compensation and Benefits Administration
HRM professionals need to determine that
▫ It is important to emphasize that every compensation is fair, meets industry standards, and
manager has a responsibility in human is high enough to entice people to work for the
resource management. Even though we do not organization. Compensation includes anything the
hold the title of HR manager, we still carry out employee receives for his or her work. In addition,
all or at least some of the HRM duties. For HRM professionals need to make sure the pay is
instance, the majority of managers deal with comparable to what other people performing
employee compensation, motivation, and similar jobs are being paid. This involves setting up
pay systems that take into consideration the
number of years with the organization, years of Human resource people must be aware of all the
experience, education, and similar aspects laws that affect the workplace. An HRM
professional might work with some of these laws:
Examples of employee compensation include the • Discrimination laws
following: • Health-care requirements
Health Benefits • Compensation requirements such as the minimum
Pay 401(k) (retirement plans) wage
Vacation time • Worker safety laws
Sick leave • Labor laws
Bonuses The legal environment of HRM is always changing,
Tuition reimbursement so HRM must always be aware of changes taking
place and then communicate those changes to the
Retention entire management organization
▫ Human resource people must be aware of all
the laws that affect the workplace. An HRM Worker Protection
professional might work with some of the HRM Safety is a major consideration in all organizations.
Retention involves keeping and motivating Oftentimes new laws are created with the goal of
employees to stay with the organization. setting federal or state standards to ensure worker
Compensation is a major factor in employee safety.
retention, but there are other factors as well.
▫ Ninety percent of employees leave a company Worker protection issues might include the
for the following reasons: following:
1. The job they are performing • Chemical hazards
2. Challenges with their manager • Heating and ventilation requirements
3. Poor fit with organizational culture • Use of “no fragrance” zones
4. Poor workplace environment • Protection of private employee information
▫ Despite this, 90 percent of managers think
employees leave as a result of pay. As a result, Communication
managers often try to change their Besides these major roles, good communication
compensation packages to keep people from skills and excellent management skills are key to
leaving, when compensation isn’t the reason successful human resource management as well as
they are leaving at all. general management.

Training and Development Outside/External Factors

▫ Once we have taken the time to hire new
employees, we want to ensure that they not
only receive the necessary training for the
position, but also continue to develop and
learn new skills while working. The
organization's production increases as a result.
Another important factor in employee
motivation is training. Employee retention is
higher when workers feel their talents are
being developed at work because they are
happier there.

Training program examples could include the

following:
• Job skills training, such as how to run a particular
Awareness of External Factors
computer program
▫ In addition to managing internal factors, the
• Training on communication
HR manager needs to consider the outside
• Team-building activities
forces at play that may affect the organization.
• Policy and legal training, such as sexual
Outside forces, or external factors, are those
harassment training and ethics training
things the company has no direct control over;
however, they may be things that could
Dealing with Laws Affecting Employment
 positively or negatively impact human human resource department or a manager
resources. with HR skills
The industries and job titles are so varied that it is
possible only to list general job titles in human
resources:
1. Recruiter
2. Compensation analyst
3. Human resources assistant
4. Employee relations manager
5. Benefits manager
6. Work-life coordinator
7. Training and development manager
8. Human resources manager
9. Vice president for human resources

Skills Needed for HRM

▫ The first skill needed is organization. The need

for this skill makes sense, given that you are
managing people’s pay, benefits, and careers.
Having organized files on your computer and
good time-management skills are crucial for
success in any job, but especially if you take on
a role in human resources.
▫ Multi-tasker
▫ Being able to manage a variety of personalities,
deal with conflict, and coach others are all in
the realm of people management. The ability to
communicate goes along with people skills.
The ability to communicate good news (hiring
a new employee), bad news (layoffs), and
everything in between, such as changes to
policy, makes for an excellent manager and
human resource management (HRM)
professional
Having said that, for those of you wanting a career
in HRM, there are three exams you
can take to show your mastery of HRM material:
▫ Professional in Human Resources (PHR). To
take this exam, an HR professional must have
at least two years’ experience.
▫ Senior Professional in Human Resources
(SPHR)
▫ Global Professional in Human Resources
(GPHR)
▫ The benefits of achieving certifications are
great. In addition to demonstrating the abilities
of the HR professional, certification allows the
professional to be more marketable in a very
competitive field. Most companies need a