IMPORTANTS ABOUT HRM. (Chapter-02)

 

 HOW DOES HRM WORK?

Human resources managers plan, coordinate, and direct an organization's administrative functions. They oversee the recruiting, interviewing, and hiring of new staff, consult with top executives on strategic planning, and serve as a link between an organization's management and its employees. 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. Human resource management is organising, coordinating, and managing employees within an organisation to accomplish its mission, vision, and goals. This includes recruiting, hiring, training, compensating, retaining, and motivating employees. HRM staff also develops and enforces policies and procedures to help ensure employee safety. The HRM team manages adherence to federal and state laws that may work to protect employees’ private information and ensure their physical safety and mental and emotional well-being. Organisations of varying sizes and industries rely on HRM to keep business running smoothly and efficiently. 

5 Basic Elements of Human Resource Management (HRM)

https://youtu.be/UfY4qt6jLio

HRM includes:

• Recruiting new hires 

• Evaluating employee performance

• Ensuring fair compensation and benefits

• Training employees and supporting education and development

• Protecting the health and safety of all employees 

These are critical cornerstones of the work of HRM professionals. From crafting a job posting to providing continuing education options, HRM functions at all stages of an employee's journey with an organization. 

1. Recruitment 

An effective recruitment process is at the foundation of HRM. If you can recruit good talent, you can build on their skills and invest in employees for years to come as they add value to the organisation. Equally important is company culture. You want employees who add to the culture of the organisation. Some common recruiting tools HRM may use include job aggregators like Naukri, Indeed or Foundit, video interviewing, or even social media sites like LinkedIn. 

2. Evaluation and Performance Management  

HRM uses data to track employee performance to ensure a highly trained and capable workforce. The data compiled can also be used to change staff training methods, implement a merit-based system for raises, and more. HRM professionals use formal measures like performance reviews and informal techniques like interviews or surveys. 

3. Compensation 

Compensation means salary, commission, benefits, time off, and other non-monetary benefits. HRM uses the industry standard to set salary, commission rates, and benefits. This ensures fairness and allows for a consistent company standard. Some organizations may use performance reviews to adjust an employee’s salary. 

4. Employee Development and Learning 

Engaged employees are effective employees. HRM understands the importance of a workforce that is challenged but also supported. Most employees want opportunities for advancement and to feel competent and valued in what they bring to an organization. 

Part of HRM is providing employees with these learning opportunities. This might include tuition reimbursement programs, on-the-job training options, conferences, conventions, or certification programs. Aside from individual learning, HRM can also use employee development and knowledge to help employees adapt to organizational changes, such as system upgrades, technology shifts, and new policies. 

5. Employee Health and Safety

The safety and well-being of an organization’s employees are critically important aspects of HRM. Employee health and safety covers a lot, such as safety against harassment, discrimination, or bullying in the workplace. It can mean physical security that would involve building fire code compliance. It can also mean adherence to labor laws that protect an employee's rights in the workplace and cybersecurity or safeguarding an employee’s personal information.

What Is an HRMS?

An HRMS, or human resources management system, is a suite of software applications used to manage human resources and related processes throughout the employee lifecycle. An HRMS enables a company to fully understand its workforce while staying compliant with changing tax laws and labor regulations.

HR leaders and staff are the primary users, given that they run day-to-day workforce operations and are responsible for compliance and performance reporting. However, HR isn’t the only department that benefits. Companies can empower managers and employees with self-service for common tasks—an important selling point for younger hires. Executives can use an HRMS to generate data on workforce trends and their business implications.

And given that HR-related costs are some of the largest expenses incurred by a company, HRMS integration with the accounting system is invaluable for finance teams. Leading providers will go beyond basic accounting to help a company wring more financial insights out of HR data.

https://youtu.be/uu-j7zXGEPA

History of HRMS

In the 1970s, as companies looked to automate management of their people, payroll became the first HRMS function to be computerized. But it took mainframe technology to calculate a worker’s earnings, withhold deductions, print a paper check and track payroll liabilities. It wouldn’t be until the early 2000s, with widespread adoption of direct deposit and employee self-service, that the payroll process became wholly electronic.

PeopleSoft(opens in new tab) was among the first to pioneer a more complete HRMS system in the late 1980s. In addition to payroll, it offered employee record management, recruiting, time and attendance, benefits administration, compensation, compliance reporting and other features to help HR professionals automate more of the employee lifecycle and make better workforce decisions.

The rise of the internet in the late 1990s brought the benefits of automation to even more HR processes. For example, paper-based help-wanted ads were replaced by electronic job boards, giving recruiters and candidates new ways to connect. By the 2010s, cloud technology was mainstream—now, HR teams at all-size companies could afford a suite of applications without investing in expensive computer hardware or IT staff to operate and maintain the system.

Why HRMS is important

While HR expenditures, especially office space, are in flux now given shifts to a work-from-home model, companies must still accurately calculate labor costs to keep revenue per employee KPIs current. Joseph Hadzima, a senior lecturer at the MIT Sloane School of Management, estimates(opens in new tab) that base pay plus employment taxes and benefits typically add up to 1.25 to 1.4 times annual salary. Thus, a $50,000 per year worker might actually cost $62,500 to $70,000, not including real estate and equipment, like PCs and phones.

Moreover, companies with overstretched human resources departments should be rolling out self-service capabilities. There’s no reason for an HR specialist to spend time assisting a manager with routine updates to hours worked, for example, or helping employees access forms like W-2s.

Fortunately, accurate financial data reporting and secure self-service are just two benefits of a modern human resources management system.

What are the Benefits of an HRMS?

Here are a few of the top benefits of using HRM software:

• Simplifies file management. Having one location for all your people data makes it easier to find, access, and share information across your organization. 
• Empowers employee self-service. Employees can access information from anywhere, allowing them to self-serve and significantly cutting down the amount of time your HR team spends replying to employee inquiries. 
• Automates manual tasks. Setting up automated workflows can streamline repetitive tasks and free up time for your HR department to focus on strategy. 
• Streamlines compliance. HRMS systems have built-in compliance rules and guidance, making it easier for your organization to stay on top of state, federal, and country-specific requirements and deadlines, as well as up to date on any new compliance developments. 
• Improved decision-making. With a centralized view of your people data, your business can make better, employee-centric decisions based on real-time data. 
• Increased security. Only authorized users can access employee data, so you don’t have to worry about personal information falling into the wrong hands.

Reference

• 0administrative%20functions,organization's%20management%20and%20its%20employees.
• https://www.skillscaravan.com/post/the-evolution-of-hrm-understanding-its-features-objectives-and-characteristics#:~:text=This%20feature%20involves%20creating%20and,engagement%2C%20and%20well%2Dbeing.
• https://www.bls.gov/ooh/management/human-resources-managers.htm#:~:text=team%20of%20specialists.-,Human%20resources%20managers%20plan%2C%20coordinate%2C%20and%20direct%20the%20administrative%20functions,organization's%20management%20and%20its%20employees.
• https://www.coursera.org/in/articles/human-resource-management
• https://www.adp.com/resources/articles-and-insights/articles/h/human-resource-management.aspx#:~:text=Human%20resource%20management%20is%20the,and%20development%2C%20and%20employee%20relations.
• https://www.netsuite.com/portal/resource/articles/human-resources/human-resources-management-system-hrms.shtml
• https://www.ukg.com/hr-basics/what-hrms-exactly-and-why-you-might-need-it#:~:text=An%20HRM%20software's%20primary%20focus,positive%20work%20culture%2C%20and%20more.