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Human Resource Management

Introduction

Traditionally, human resources management, or HRM, has been responsive, not

proactive within the company. HRM professionals were responsible for legal matters

pertaining to personnel, staffing, benefits and payroll. Today, human resources

management sits at the executive table as a strategic partner with expectations that

HRM will contribute to the overall success and profitability of the company. HRM

maintains the same areas of responsibility but is now proactive in moving these to

competitive advantages. Two major principles—perceived customer value and

uniqueness—enable companies to formulate strategies to exploit profitable

opportunities. For example, valuing diversity brings access to a larger pool of skilled

resources.

Human Resource Strategy

Human resource strategy explicitly recognizes the impact of the outside environment,

competition, and the dynamics of the labor market. It has a 3–5 year focus and is

integrated with the overall corporate strategy and functional strategies. Even if you are

not a human resources manager, you are affected by HRM. As a business manager, you

will have occasion to ask the human resource unit for advice on hiring, pay increases,

discipline, discharge, and other personnel-related issues. All managers are human

resource managers.

Equal Opportunity and the Law

Despite the confusing array of laws and regulations on EEO, the underlying principle is

clear. EEO simply means that individuals should be given an equal opportunity in

employment decisions. Employers are now well aware of how costly violations of EEO

laws can be. Because millions of dollars are at stake, organizations are more careful

about their personnel practices, with the establishment of monitoring systems, EEO

offices, and training programs in EEO for personnel decisions makers and supervisors.

These activities are paying off, as employers are now winning a higher percentage of

discrimination cases than they were in the 1970s.

Job Analysis

Human resource professionals use job analysis as the foundation for many of the

human resource functions, including selection, compensation, performance evaluation,

and training. Job analysis is an ongoing process that updates jobs as they change over

time, and directly supports the EEO program. The results of job analysis are used to

develop job ads such as those seen on the Web.