Effective Human Resource Management Practices – Earlier, Human Resource Management (HRM) was known as Human Resources. Previously, HR departments were responsible for recruiting and recruiting paperwork and processes. It is believed that the first HR department was established in 1901 by the National Cash Register Company (NCR). The company faced a major strike, but eventually broke the union after being locked out. (Labor unions are discussed in Chapter 12, “Working with Unions.”) After this bitter battle, the company president decided to create a labor department to handle grievances, work stoppages, safety issues, and other labor problems. Relationship with our employees by organizing our departments. The department also followed the new law regarding laws affecting organizations. Many other companies realized the same that departments are needed to increase employee satisfaction and increase productivity. In 1913, Henry Ford realized that his work rate was 380% and decided to lower the rate by raising wages from $2.50 to $5.00, although $2.50 was temporary. (Lucy, 2011). Of course, this method does not work for a long time. These large companies began to realize that they needed to do more than hire and fire to meet customer needs.

But recently, the Ministry of Human Resources has been divided into Human Resource Management and Human Resource Development. These features have evolved over 100 years. Since most companies today rely on people to make a profit, HRM is not only important to the success of the organization, it should also be part of the company’s overall strategic plan. Strategic planning plays an important role in organizational productivity.

Effective Human Resource Management Practices

Effective Human Resource Management Practices

Most people would agree that the following activities generally fall under HRM: Each of these aspects plays a specific role in the overall strategic plan of the organization.

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In small organizations, managers or owners may perform HRM functions (de Kok & Uhlaner, 2001). They hire people, train them and decide how much they will pay. Larger companies ultimately do the same jobs, but because they have more employees, they can hire specialists and human resources managers to handle these parts of the business. As a result, you are more likely to perform HRM duties as a manager or entrepreneur, so understanding the strategic aspects of HRM is important.

A human resources strategy is a comprehensive and systematic action plan developed by the human resources department. From this definition, we can see that HR strategy includes HRM strategic plans and detailed methods of implementing HR plans. Think of the HRM strategic plan as the main goals the organization wants to achieve, and the HR plan as the specific activities that must be done to achieve the strategic plan. In other words, a strategic plan may have long-term goals, while a human resource plan may include short-term goals that are consistent with the overall strategic plan. As mentioned at the beginning of this chapter, the Department of Labor was once known as the Department of Labor. This term means that the department provided “support” to other parts of the organization. Human resources are more important than 20 years ago, as companies now understand that the human side of business is the most important asset in any business (especially in this global economy). Although human resource management primarily includes activities related to the hiring process and organizational compliance, human resources encompasses much more, including strategic planning, which is the focus of this chapter. Ulrich’s HR model is a popular way of thinking about HRM strategic planning and provides a comprehensive view of the role of HRM in an organization. His character is said to have started an organization that changed the way human resources were viewed. HR is no longer just a workplace; It is a big part of the partnership in the organization. Although his model has changed over the years, the current model looks at human resources activities and international business strategies as a whole to create strategic relationships (Ulrich & Brockbank, 2005). His recently revised model focuses on five key areas of HR.

According to Ulrich (2011), the implementation of this model should be done by understanding the goals, constraints, challenges and opportunities of the company. For example, HR professionals must understand the changing nature of HRM, including changes in the labor market, business culture and values, customers, stakeholders, and the economy. If this happens, HR can figure out how to meet the organization’s needs in these five key areas.

Because HR managers understand the business, they understand the needs of the business and can plan to meet those needs. They keep up with the latest events, so they know what is happening in the world that may affect their strategic plans. For example, if we know that an economic crisis is imminent, we will adjust our strategic plans. In other words, your strategic plan should be a living document, and it should change as your business and the world change.

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As discussed in Section 2.1.2, Steps in Strategic Planning, several factors are necessary for a successful HRM strategy. A distinction must be made here. HRM strategic planning is different from workforce planning. Think of your HRM strategy as the key goals your organization wants to achieve. On the other hand, human resource planning consists of detailed plans to ensure that the strategic plan is achieved. A strategic plan is often seen as just another report that needs to be done. It is better to think carefully about your plans than to start writing without thinking.

The purpose of Section 2, “Conducting a Strategic Analysis,” is to provide some basic factors to consider and evaluate before developing an HRM plan.

This step analyzes the challenges that HRM professionals must solve in the first step. For example, a department may decide that it is not aligned with the company’s strategy and values ​​and choose to change the department’s mission and values ​​based on this information.

Effective Human Resource Management Practices

Many organizations and departments use strategic planning tools that identify strengths, weaknesses, opportunities, and threats (SWOT analysis) to identify some of the problems they face. Once this research is done for the business, HR can understand the business strategy and align it with the needs of the business. See Table 2.3 “SWOT Analysis Example for Technic Corporation’s Human Resources Department”. Here is an example of how a company’s SWOT analysis can be used in an HR department’s SWOT analysis.

Human Resources Manager Job Description [updated For 2023]

Once the company’s SWOT is established, the HR department can create its own SWOT analysis to determine the gap between the HR department’s strategic plan and the company’s strategic plan. For example, if the human resources manager points out that the strength of the department is a large number of training programs, that is what the organization should do. If the weakness of the organization is the lack of consistent compensation for all positions, there is an opportunity to review and revise compensation policies. In other words, the SWOT analysis of the company provides a basis for solving specific problems in the organization, but it can also be limited to solving problems in departments.

Based on the information gathered in the last step, HRM managers should prioritize objectives and put together an action plan to solve these challenges. For example, if your organization realizes that it does not have a comprehensive training program, you should develop a plan to address this need. (The need for training is discussed in Chapter 8, “Training and Development.”) An important aspect of this step is the involvement of managers and supervisors in the organization. Once you have a list of issues to address, discuss them with your management team and management. Because they may have different views than you about other matters and important things. Remember that for HRM to be effective, it must work with the organization and help it achieve its goals. This should be considered in all aspects of your HRM program.

Once the HRM manager has met with the managers and supervisors and agreed on the priorities, they are ready to implement the plan. The detailed development of these systems is discussed in Section 2.2, “Developing an HRM System.” A company may have a good strategic plan, but once the details are created, it can be difficult to match this strategic plan with other detailed plans. HRM managers should always refer to the overall strategic plan before developing a strategic HRM and workforce plan.

Even if the company does not have an HR department, a strategic HRM plan and human resource plan should be developed by management. By building and monitoring these systems, organizations can ensure that the right processes are implemented to meet the ever-changing needs of the organization. Strategic planning covers the entire organization, HRM strategic planning covers the entire department, and human resource planning deals with specific issues within the human resources department.

The Human Resource Function In Emerging Enterprises (entrepreneurship Series): Hornsby, Jeffrey S., Kuratko, Donald F.: 9780030341618: Amazon.com: Books

De Kok, J. and Lorraine M. Uhlaner, “Organizational Context and Human Resource Management in Small Businesses” (Tenbergen Institute Discussion Papers 01-038/3,


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