The Basic Concepts of Human Resource Management

Human Resource Management

The practice of managing people in order to achieve better performance is called human resource management. The effective management of people in an organization in a way that they help their business gain a competitive advantage is a part of HRM. It is designed to maximize employee performance.

Basic Concepts of HRM

Several elements in HRM are considered cornerstones for framing effective HRM policies. These are:-

Recruitment and Selection

The most visible element of HR is recruitment and selection. Selecting the best candidates to work for the company is a key responsibility. When a job is created or an existing job opens up the request for new hires usually starts. HR receives the job description and starts the recruitment of candidates. Different selection instruments like interviews, assessments, reference checks, and other recruitment methods are put to use. Pre-selection tools may also be used by HR.

Performance Management

Performance management is about helping people to perform better at their jobs. Employees normally have a defined set of responsibilities. Performance management enables employees to get feedback on their performance. The entire exercise revolves around reaching better performance. Some examples of performance management are formal one-on-one performance reviews or 360- degree feedback instruments. Organizations, normally, work with an annual performance management cycle. This involves planning, reviewing, monitoring, and rewarding employee performance.

Learning and Development

Learning and development can be really helpful in advancing the organization towards its long term goals. It helps employees improve their performance. Many organizations have defined budgets for learning and development efforts The 9- Box grid is an excellent framework that connects performance management with learning and development activities.

Succession Planning

The process of planning contingencies in case key employees leave the company is called succession planning. This is often based on learning and development efforts and performance ratings. A talent pool of candidates, who are qualified and ready to fill positions in case of a person leaves, is created. Good people management is about building and nurturing this pipeline.

Compensation and Benefits

The key to retaining and motivating employees is fair compensation. There are two types of compensation - primary and secondary. Directly paid money is the primary composition. All non-monetary rewards comprise secondary benefits.

Human Resource Information System (HRIS)

HRIS supports all the above-mentioned concepts. For recruitment and selection, an applicant tracking system (ATS) is used to keep track of applicants and hires. A performance management system is used to keep track of individual goals and put in performance ratings for performance management. For learning and development, a learning management system(LMS) is used for the distribution of content internally. A payroll system is often used for compensation. It is important to note that a significant digital element works in HR.

 HR Data and Analytics

HR Metrics or HR KPIs help to keep track of critical data. They specify how a company is doing on a given measurement and is known as HR reporting. More data-driven decisions can be made by HR through data analytics.

Certified HRM courses & HRM online courses

There is a lot more to learn in HRM. Certified HRM courses are the best solutions. Several HRM online courses are also available. The Post Graduate Diploma in Human Resource Management from XLRI is a highly recommended hr management certificate.

How the 4th Industrial Revolution & Emerging Technologies are Changing the Face of HR

In today's rapidly evolving environment, also known as the fourth industrial revolution, digital transformation and employee development are ongoing components of a company's ability to become and remain competitive over the long-term. The 4th industrial revolution is characterized by disruptive technologies, artificial intelligence, virtual reality, robotics and the internet of things, all of which are dramatically changing the way we work and live.

The Impact of the 4th Industrial Revolution

Organizations, to be more successful in this new era will have to adapt learning environments. They will have to shift from development programs to an employee demand-based activity in order to address the adaptive challenges thrown up by the industrial revolution and emerging technologies. The biggest challenge would be a multigenerational workforce. Employers are presented with the challenge of developing and upskilling the workforce with a broad spectrum of knowledge about new and emerging technologies. The interest of this workforce in and acceptance of these technologies would also vary widely.

Transformation in the area of HR

Prior to the 1980s HR was better known as Personnel Management and was mainly associated with hiring, training, and administration. Today HR cumulates a wide range of tactical and strategic responsibilities which extend from talent management to business partnerships and shared operational services.

This transformation has been the result of external pressures like globalization, technology, socio-economic changes and changes in beliefs and value systems. Organizations have become more focused on the impact of people, motivation and engagement as a differentiating factor in the race for success and sustainability.

Evaluating the Impact of AI

The workspace has been redefined by AI. There is a need for a new set of skills to be defined and made available to the organizations of the future. This challenges the HR function to operate in a more complex, interconnected, unpredictable, and evolving environment. AI impacts HR from three core perspectives:

●       AI used within HR itself

●       AI used in the business HR services

●       AI used in wider society/ in a global context

 HR talent management channels have already been disrupted. Obsolete traditional training models have caved in. Workforce diversity is greater than ever before and includes people between the ages of 23 to 70. An unprecedented mix of culture and values is what challenges globalization which can be achieved only through the blending of established norms of the organization with those of local, remote and dispersed teams.

HR and Technology

As of now HR already uses technology for:

●       Workplace decisions supported by people analytics by using big data

●       Mobile 24/7 access through listening devices, personal productivity measurements, and personalized learning

●       Selection and recruitment processes: These have been redesigned as individually targeted vs socio-economic group targeted, targeted norms vs generic norms, localized validity vs generalized validity.

HRM Online Courses

To understand the impact of the 4th Industrial Revolution and emerging technologies on HR it is advisable to sign- in for HRM online courses. Certified HRM online courses like the one offered by XLRI would give a lot of clarity on the subject. A certified online course from XLRI is most suited for working professionals.

The aim of HR in the future is to realize the full potential of the partnership between knowledgeable, intelligent, fully engaged, and motivated employees with the power of technology and artificial intelligence.