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Human resource management is an essential function of both private and public sector organizations. In this lesson, you'll learn what human resource management is, as well as its objectives and responsibilities in an organization.
Human Resource Management Defined
Alvin is the vice president of human resources for a large kitchen appliance company headquartered in Colorado. Human resources are people, and human resource management (HRM) is the process an organization undergoes to manage people in order to achieve its goals.
Objective of HRM
Every organization has goals. As a for-profit company, Alvin's organization's overarching goal is to make a profit for the company's owners. In order to make this profit, the company wants to make the best appliances possible at the lowest cost for the greatest profit margin. The company also wants to capture the greatest share of the kitchen appliance market as possible. And it needs human resources to accomplish these goals.
Alvin's company needs engineers, researchers, marketing professionals, accountants, production workers, managers and sales people just to name a few different types of employees necessary to accomplish his company's goals. The objective of any human resource department is to make sure the company has and retains people with the skills necessary to accomplish the company's goals. Let's see how Alvin does this.
Alvin's responsibilities are broad. You can break human resource management's responsibilities down to five general categories:
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Staffing is about making sure you have the right number of people with the right types of skills at hand to achieve the goals of the organization. In order to do it right, Alvin's department must engage in job analysis, planning, recruitment and selection of employees.
Human resource development is about developing your people to maximize their effectiveness. Alvin's team accomplishes this function by engaging in training, organizational development, as well as performance appraisals.
Compensation is essential because pretty much everyone demands pay in exchange for their labor. The human resources department is responsible for designing the organization's compensation system. A compensation system includes direct financial compensation, such as wage or salary, and indirect financial compensation, commonly referred to as benefits, such as paid vacations, personal leave and health insurance. Human resources is also concerned with non-financial compensation, such as designing a work environment that is satisfying to employees.
Safety and health is also a responsibility of human resource management. Human resource departments help ensure that state and federal health and safety regulations are followed and often are responsible for health and safety training.
Employee and labor relations is also a vital responsibility of Alvin's human resource department. When employees have work-related issues, the human resources department is often one of the primary points of contact. If employees are represented by a union, the human resource department may be involved in representing the company during the collective bargaining process and the administration of the collective bargaining agreement.
One way to remember these human resource responsibilities is to think of the game of chess. Chess involves moving pieces with unique abilities across a board to achieve an objective - just like human resources is about managing people with differing skills across an organization to achieve a goal. The primary responsibilities of human resources are:
C - Compensation
H - Human resource development
E - Employee and labor relations
S - Safety and health
S - Staff
If you take the first letter of each of these responsibilities, you get the word 'CHESS.'
Let's review what we've learned. Human resource management is the process of managing people across an organization in order to achieve the organization's goals. The objective of human resource management is to ensure that the company has the right people with the right skills in the right places within the organization to accomplish the organization's goals. The responsibilities of human resource management within an organization include staffing, human resource development, compensation, safety and health and employee and labor relations.
Upon completing this lesson, you should be able to:
Define human resource management
Identify the goal of human resource management
Describe the responsibilities of human resource management
Recall a mnemonic that will help you remember these responsibilities
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