👥 Functions of Human Resource Management
Big Idea: Human Resource Management (HRM) is the strategic approach to managing a business's most valuable asset -- its people. HRM covers everything from hiring to retiring.
Key HRM functions
- Workforce planning -- forecasting how many employees the business needs and what skills they require
- Recruitment and selection -- attracting and choosing the right candidates for job vacancies
- Training and development -- improving employees' skills, knowledge and abilities
- Performance management -- monitoring and appraising employee performance against targets
- Compensation and benefits -- designing pay structures, bonuses and non-financial rewards
- Employee relations -- managing relationships between the business and its workers, including handling grievances and disputes
- Dismissal and redundancy -- managing the end of employment relationships legally and ethically
In the DA case study, Ben was the HRM director. He was concerned about the impact of outsourcing on DA's employees -- showing that HRM must consider how business decisions affect the workforce, not just the bottom line.
HRM is not just about hiring people. It covers their entire journey through the business: from recruitment to training, appraisal, rewards and eventually leaving.
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Two levels of HRM
- Strategic HRM -- long-term planning that aligns HR policies with overall business objectives. Example: planning workforce needs for a new factory opening in 2 years
- Operational HRM -- day-to-day management of people. Example: processing payroll, handling a grievance, conducting an interview
Why HRM matters for business success
- Right people in right roles = higher productivity and quality
- Good training = more skilled, adaptable workforce
- Fair rewards = motivated, loyal employees with lower turnover
- Strong employee relations = fewer disputes, better workplace culture
- Legal compliance = avoids costly lawsuits and fines
HRM links to almost every other topic in the syllabus: motivation (2.4), leadership (2.3), organizational structure (2.2), and even finance (employment costs). 🔗