Introduction

Purpose of Human Resource Management

Human resource management is the strategic approach to nurturing and supporting employees and
ensuring a positive workplace environment. Its functions vary across different businesses and industries,
but typically include recruitment, compensation and benefits, training and development, and employee
relations.

The Mission of Human Resource Management

Human resource management's mission is to coordinate people within an organization to achieve the
organization's goals.

Human resource management (HRM) views people as organizational assets and internal customers and
works to create job satisfaction and employee efficiency and effectiveness.

HRM concentrates on internal sources of competitive advantage. It regards people as an organization 's
most important asset.

The department of human resources (HR) communicates with employees and adapts the organization's
culture and structure to their needs—for example, in negotiating with unions or re-engineering
processes.

HR leads the employment life cycle, from attracting and hiring the right employees to facilitating
performance reviews and eventually processing terminations.

human capital: The stock of competencies, knowledge, and social and personality attributes, including
creativity, embodied in the ability to perform labor so as to produce economic value.

Human resource management (HRM) is the coordination of an organization's people to achieve specific
business objectives, fulfill staffing needs, and maintain employee satisfaction. HRM accomplishes this
through the use of people, processes, and technology that focus on the internal parts of the
organization rather than on the external environment. HRM draws from many diverse fields—such as
psychology, business management, process management, information technology, statistical analysis,
sociology, and anthropology—to achieve these objectives.

Strategic human resource management (strategic HRM) provides a framework linking people
management and development practices to long-term business goals and outcomes. It focuses on
longer-term resourcing issues within the context of an organisation's goals and the evolving nature of
work. It also informs other HR strategies, such as reward or performance, determining how they are
integrated into the overall business strategy.

This factsheet looks at how thinking on strategic HRM has developed since the early 1990s and describes
strategic HRM in relation to business strategy, human capital management and business performance.
Seven steps to strategic human resource management

Strategic human resource management is key for the retention and development of quality staff. It’s
likely that employees will feel valued and want to stay with a company that places a premium on
employee retention and engagement. Before you implement strategic human resource management,
you will need to create a strategic HR planning process using the steps below:

1. Develop a thorough understanding of your company's objectives

Since the success of strategic HR is dependent on how well it links to your company’s goals, you need to
have a thorough understanding of your aims, objectives, and mission. You’ll need to be able to articulate
both your short and long-term plans for growth to the relevant HR personnel. Ensuring clear
communication of your company’s goals will make it easier for HR personnel to formulate an effective
resource management strategy.

2. Evaluate your HR capability

Evaluating your current HR capabilities will enable you to understand the employees you have and how
they contribute to fulfilling your goals and objectives. Additionally, you should also undertake a skills
inventory for every employee. Skills inventories help you to discover which employees are experts in
particular areas.

It also helps you to identify the employees who have an interest in being trained in a particular aspect of
your company. A great time to asses skills is during a performance review. However, the traditional
performance review is dying.

3. Analyze your current HR capacity in light of your goals

An assessment of your HR capacity will help you to recognize barriers and implement a plan of action to
capitalize on opportunities and effectively deal with threats. Strategic HR personnel will analyze the
number of employees as well as their skills and will work with senior leadership to identify ways to
better equip employees to serve the needs of your company.

4. Estimate your company's future HR requirements

After an analysis of your company’s employees and skills has been done in relation to your objectives,
it’s time to forecast your HR needs. The forecast should be done in relation to:

Demand – A prediction needs to be made in relation to the number of employees with the associated
skills that will be required in order for your company’s future needs to be met.

Supply – Looks at the employees and skills that are currently available to help your company achieve its
strategic goals.

Forecasting your company’s future HR requirements also determines the following:

New jobs and roles required to secure the future of the company.
Skills required by current employees to undertake the responsibilities of new jobs and roles.

Whether your employees’ expertise are being sufficiently utilized.

Whether current HR personnel and practices can accommodate the company’s growth.

5. Determine the tools required for employees to complete the job

HR personnel need to liaise with the appropriate departments to find out how the tools used by
employees impact on their ability to perform their roles. For example, an audit of hardware and
software can be undertaken jointly with the I.T department to identify gaps in tools that will facilitate a
more organized workforce.

For example, where a company employs hourly staff, it’s crucial to utilize workforce management
software. This software manages important HR functions such as scheduling, holiday entitlement, and
sick leave management.

Deputy provides the functionality to effortlessly manage your employees’ hours and time. This enables
your employees to focus on the tasks identified in the strategic HR plan that have a direct impact on
growing your company. Sign up for a free trial and see how Deputy can support your strategic human
resources management.

6. Implement the human resource management strategy

After the analysis and forecast of your company’s HR requirements have been completed, it’s time to
start the process of expanding your workforce and developing current workers to equip your company
for future growth. You can achieve the implementation of your human resource management strategy
by doing the following:

Start with the recruitment stage – At this point, HR professionals begin searching for candidates who
possess skills that have been identified during the HR strategic planning process.

Organize a selection process – Interviews and other selection criteria take place at this time. Interview
questions such as “what are your salary requirements?” and relevant tests will be used to assess
whether the candidate is suitable to carry out the role.

Begin hiring applicants – Your company will make the candidate a job offer after all appropriate checks
have been carried out.

Design onboarding and training – Employee Onboarding is a key determining factor as to whether an
employee remains with a company. A comprehensive onboarding and training package must be put in
place to increase employee retention. Once you have onboard your employees well, another important
step to retaining them is to keep them engaged! Easier said than done.

7. Evaluation and corrective action

HR personnel should decide on a timeline to carry out a strategic HR management review. This review
will track the progress made and also identify areas for improvement. The review should be measured
against whether changes are helping your company to achieve their goals. Corrective action must be
taken if strategic human resource management is failing to meet its objectives.

10 Essential HR Policies and Procedures

It may be tempting to put off the task of writing up your official HR policies and procedures, especially if
you manage a startup or a small business. You may have other, more pressing things to take care of – or
maybe you just have a small team and want to keep things friendly and informal.

But while trust between the employer and the employees is important, not having clear and transparent
guidelines is guaranteed to eventually lead to misunderstandings. Don't wait for issues to arise to
formalize your policies. Set out clear ground rules for your employees, protect your rights as the
employer, and ensure your team.

What are HR policies and procedures?

Human resource policies are formal rules and guidelines that businesses put in place to manage their
employees. HR procedures, on the other hand, are step-by-step instructions that specify what actions
should be taken to comply with these policies. Defining these policies and procedures is one of the core
functions of human resource management.

HR procedures often take the form of standard operating procedure (SOP) documents. Here's an
example of what a documented HR policy looks like in Nuclino, a unified workspace for all your team's
knowledge, docs, and projects – create an account and start documenting your HR policies in one
central place:

HR policies cover a variety of different aspects of human resource management, such as:

JimRecruitment

Dress code

Overtime compensation

Vacation

Sick days and personal leave

Performance evaluation

Termination

The purpose of human resource policies

While some HR policies are required by law, it's not the only reason they are necessary. In addition to
protecting your organization from legal claims, policies play an important role in fostering a culture of
trust, fairness, and inclusion.

The benefits of having clear and comprehensive HR policies include:

-HR policies provide legal protection to your company

-They transparently communicate the conditions of employment

-They set employee expectations with regard to their career growth

-They help you address employee grievances and disputes

-They speed up the decision-making process on various HR matters

-They help ensure all employees are treated equally and fairly

-They help create a safe and healthy working environment

How to write an effective HR policy

Keep the structure and formatting of your HR policies consistent. While every company has its own
internal templates for writing HR policies, the content is usually quite similar and includes the following
elements:

-Policy name

-Effective date of the policy (and dates of any revisions or updates)

-Name of the person responsible for updating the policy and answering questions about it

-Purpose of the policy

(Optional) Definitions of special terminology used in the policy

-Main policy statement

-Scope and applicability (including permissible exceptions)

To be effective and deliver on the goals mentioned above, the HR policies also need to be searchable
and easily discoverable by employees. Publish the HR policies in your employee handbook or company
intranet portal and share it with the entire team.

10 HR policies
1.Code of conduct

2.Recruitment policy
3.Termination policy

4.Working hours and overtime policy

5.Attendance and remote work policy

6.Performance evaluation and promotion policy

7.Health and safety policy

8.Expense policy

9.Benefits and compensation policy

10.Leave policy

Environment in Human Resource Management: Internal and External Environment!

What is environment? In simple words, environment comprises all those forces which have their bearing
on the functioning of various activities including human resource activities. Environment scanning helps
HR manger become proactive to the environment which is characterised by change and intense
competition. Human resource management is performed in two types of environments- internal and
external.

Internal Environment:

These are the forces internal to an organisation. Internal forces have profound influence on HR
functions. The internal environment of HRM consists of unions, organizational culture and conflict,
professional bodies, organisational objectives, polices, etc. A brief mention of these follows.

Unions

Trade unions are formed to safeguard the interest of its members/workers. HR activities like
recruitment, selection, training, compensation, industrial relations and separations are carried out in
consultation with trade union leaders.

Organisational Culture and Conflict:

As individuals have personality, organizations have cultures. Each organisation has its own culture that
distinguishes one organisation from another. Culture may be understood as sharing of some core values
or beliefs by the members of the organisation “Value for time” are the culture of Reliance Industries
Limited. The culture of Tata conglomerate is “get the best people and set them free”.

HR practices need to be implemented that best fit the organisation’s culture. There is often conflict
between organizational culture and employee’s attitude. Conflict usually surfaces because of dualities
such as personal goal vs. organisational goal, discipline vs. autonomy, rights vs. duties, etc. Such conflicts
have their bearings on HR activities in an organisation.
Professional bodies

Like other professional bodies, the NIPM as the HR professional body regulates the functions of HR
practitioners in India. For this the NIPM in of ethics which the HR practitioners are expected to declare
their allegiance to the code. Thus, professional bodies also influence HR functions of an organization.

External Environment:

External environment includes forces like economic, political, technological, demographic etc. these
exert considerable influence on HRM. Each of these external forces is examined here.

Economic:

Economic forces include growth rate and strategy, industrial production, national and per capita
incomes, money and capital markets, competitions, industrial labour and globalisation. All these forces
have significant influence on wage and salary levels. Growing unemployment and reservation in
employment also affect the choice for recruitment and selection of employees in organisations.

Political:

Political environment covers the impact of political institutions on HRM practices. For example,
democratic political system increases the expectations of workers for their well being.

Technological:

Technology is a systematic application of organised knowledge to practical tasks.

Technological advances affect the HR functions in more than one way:

First; technology makes the job more intellectual or upgraded.

Second, it renders workers dislocated if they do not equip themselves to the job.

Third, job becomes challenging for the employees who cope with the requirements of technology
Fourth, technology reduces human interaction at the work place. Finally job-holders become highly
professionalized and knowledgeable in the job they perform.

Demographic:

Demographic variables include sex, age, literacy, mobility, etc. Modem work force is characterized by
literate, women and scheduled caste and scheduled tides workers. Now, workers are called knowledge
workers’ and the organisations wherein they work are called ‘knowledge organisations’.

As such, the traditional line of distinction between manual and non-manual workers is getting blurred.
Employees are demanding parity in remuneration and responsibility among various categories and levels
of employees.

5 Human Resources Model

HRM model (or HRM framework) is the term for an organizational framework of an enterprise designed
to aid in the management and planning in the Human Resources functions of a Business.

The goal of creating HRM model is to manage the workforce in most effective and efficient way
possible,in order the achieve the most established objectives.

Human Resource Management is often defined as a concept that can be defined by two sides of this
function. One side focuses on fulfilling the soft goals such as Inculcating a sense of team spirit, teamwork
and inter-team collaboration. The other side focuses on the more strategic and long term goals such as
ensuring effective utilization and maximum development of human resources.

The Harvard Model :

The Harvard Model was postulated by Beer et al (1984) at Harvard University. The authors of the model
also coined it the map of HRM territory. The Harvard model acknowledges the existence of multiple
stakeholders within the organization. These multiple stakeholders include shareholders various groups
of employees, government and the community at large.

The recognition of the legitimacy of these multiple stakeholders renders this model a neo - pluralist
model.This model emphasizes more on the human/soft side of HRM. Basically this is because this model
emphasizes more on the fact that employees like any other shareholder are equally important in
influencing organizational outcomes. In fact the interest of the various groups must be fused and
factored in the creation of HRM strategies and ultimately the creation of business strategies.

A critical analysis of the model shows that it is deeply rooted in the human relations tradition.Employee
influence is recognised through people motivation and the development of an organization culture
based on mutual trust and team work.The factors above must be factored into the HR strategy which is
premised on employee influences, HR flows, reward system etc.The outcomes from such a set up are
soft in nature as they include high congruence, commitment, competencies etc

The Warwick Model:

The Warwick model takes cognisance of business strategy and HR practices (as in the Guest model), the
external and internal context (unlike the Guest model) in which these activities take place, and the
process by which such changes take place, including interactions between changes in both context and
content. The strength of the model is that it identifies and classifies important environmental influences
on HRM. It maps the connection between the external and environmental factors and explores how
human resource management adapts to changes in the context. Obviously, those organizations
achieving an alignment between the external and internal contexts will achieve performance and
growth.

The 5P's Model :

As formulated by Schuler (1992) the 5-P model of HRM describes how HRM operates under the five
headings of:
1. HR philosophy – a statement of how the organization regards its human resources, the role they play
in the overall success of the business, and how they should be treated and managed.

2. HR policies – these provide guidelines for action on people-related business issues and for the
development of HR programmes and practices based on strategic needs.

3. HR programs – these are shaped by HR policies and consist of coordinated HR efforts intended to
initiate and manage organizational change efforts prompted by strategic business needs

The Ulrich Model

In his popular book,Human Resources champion,Ulrich sets an opinion that,to be succesful, HR

professionals need play at least four different roles namely strategic partner,administrative expert,
employee champion and change agent. He also proposes that,HR managers should focuses on what they
can deliver before they look at the activities or works of HR.

The ATSD competency model :

The American Society for Training & Development (ASTD), an association for learning and development
professionals, has updated its competency model to guide training professionals’ career development.
The ASTD Competency Model provides two sets of actionable paths. First, it offers a broad inventory of
topics—such as business acumen, global mindset and industry knowledge—that training professionals
need to understand in today’s rapidly changing business environment. Second, it provides specific
actions these professionals should take within functional areas—including change management,
coaching, integrated talent management, and training design and delivery—to improve their skills and
performance.