HRM Funda Sense

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serve.

The adoption of HRM is


both a product of and a cause of a
significant concentration of power
in the hands of management’,
while the widespread use ‘of the
language of HRM, if not its
practice,
is a combination of its
intuitive appeal to managers
and, more importantly, a
response to the
turbulence of product and financial
markets’. HRM is about the
rediscovery of management. HRM
policies and practices are applied
within a firm as a break from the
past and are often associated
with words such as
commitment, competence,
empowerment, flexibility,
culture, performance,
assessment, reward, teamwork,
involvement, cooperation,
harmonization, quality and
learning.
h) Focus on business values
The concept of HRM is largely
based on a management and
business-oriented philosophy. It is
concerned with the total
interests of the organization –
the interests of the members
of the
organization are recognized but
subordinated to those of the
enterprise. Hence the importance
attached to strategic integration and
strong cultures, which flow from
top management’s vision and
leadership, and which require
people who will be committed to
the strategy
1.5 Review questions
1. Define the term HRM
2. Briefly discuss the history of
HRM
3. Explain four aims of HRM
4. Explain the differences and
similarities between HRM and
Personnel management
TOPIC 2
2.0 ROLE OF
HUMAN RESOURCE
FUNCTION IN AN
ORGANIZATION
By the end of this topic, the trainee
should be able to:
-Explain the structure of human
resource department
-Discuss the functions of human
resource department in an
organization
-Explain the role of the human
resource practitioner in an
organization
2.1 The Structure of Human
Resource Department
The organization and staffing of
the HR function clearly depends on
the size of the business, the
extent to which operations are
decentralized, the type of
work carried out, the kind of
people
employed and the role assigned to
the HR function. There are,
therefore, no absolute rules for
organizing the HR function, but
current practice suggests that the
following guidelines should be
taken into account:
 the head of the
function should report directly to
the chief executive and should be
on the
board, or at least be a member of
the senior management or
leadership team, in order to
contribute to
the formulation of corporate
strategies and play a full part in the
formulation and integration of HR
strategies and policies.
 in a decentralized
organization, subsidiary
companies, divisions, or
operational units should
be responsible for their own HR
management affairs within the
framework of broad strategic and
policy
guidelines from the Centre.
 The central HR
function in a decentralized
organization should be slimmed
down to the
minimum required to develop
group human resource strategies
and policies.
 The HR function
has to be capable of delivering the
level of advice and services
required the
organization. Delivery may be
achieved the direct provision of
services but may be outsourced.
 The HR department
is organized in accordance with the
level of support and services it is
required to give and the range of
activities that need to be catered
for, which could include
resourcing,
management development,
training, reward management,
employee relations, knowledge
management and HR services in
such areas as health and safety,
welfare, HR information systems
and employment matters generally.
In a large department, each of these
areas may be provided for
separately, but they can be
combined in various ways.
 The organization
and staffing of the HR department
needs to take account of its role
in
formulating HR strategies and
policies and intervening and
innovating as required. But the
department
also has to provide efficient and
cost-effective services.
 The HR
department should design to
fit the needs of the business
which results to
considerable variations in in HR
departments in various
organizations.
The following figure illustrates the
various sections that may be in a
simple HR department as well
as some responsibilities of those
sections

2.2 Functions of Human


Resource Department in an
Organization
One of the first HRM concepts
called the matching model of HRM
made the Michigan School argues
that HR systems and the
organization structure should be
managed in a way that is congruent
with
organizational strategy (hence the
name ‘matching model’). They
further explained that there is a
human resource cycle, which
consists of four generic processes
or functions that are performed in
all organizations. These are:
1. Selection – matching available
human resources to jobs;
2. Appraisal – performance
management;
3. rewards – ‘the reward system is
one of the most under-utilized and
mishandled managerial
tools for driving organizational
performance’; it must reward short
as well as long-term achievements,
bearing in mind that ‘business must
perform in the present to succeed
in the future’;
4. Development – developing high
quality employees.
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