Introduction to human resource management (HRM)

Human resource management (HRM) is a broad and in-demand field that ensures the effective management of an organisation’s most valuable asset – its people. At the core of HRM is the goal of aligning human resources with the strategic objectives of the organisation. Human resource practitioners are responsible for creating a workplace environment that fosters employee engagement, satisfaction and productivity.

In this article, we will look at how HRM has evolved in recent years to play an increasingly important role in the running of an organisation. We will also detail the different core functions of HRM, such as recruiting skilled people, training them, managing their performance, handling their monthly payrolls and managing any conflicts that arise.

Lastly, we talk about the fully online Postgraduate Diploma in Human Resource Management offered by Tshwane University of Technology (TUT), which provides a comprehensive foundation in these HRM principles to prepare graduates to excel in this dynamic field.

 

Definition and importance of HRM

Human resource management (HRM) can refer to the activity of managing human resources or to the department within an organisation that is responsible for doing so. While there are some differences, the term HRM is often used interchangeably with that of human resources (HR).

In relation to an organisational department, Investopedia defines HR as “the division of a business responsible for finding, recruiting, screening and training job applicants”. For the overarching activity, Wikipedia defines HRM as “the strategic and coherent approach to the effective and efficient management of people in a company or organisation so that they help their business gain a competitive advantage”.

As we will discuss in the next section, HRM has evolved over the years from the more administrative-based HR definition as given by Investopedia to a more strategic managerial function.

HRM’s importance goes beyond merely “hiring and firing” personnel. It involves a strategic approach to managing people effectively for performance enhancement, ensuring the organisation can achieve its goals. Effective HRM aims to create a well-managed and satisfied workforce by fostering a positive workplace culture and promoting employee engagement and retention.

 

Evolution of HRM practices

The early stages of human resources were characterised by a purely transactional approach, where workers were seen as mere tools and there was little focus on employee welfare or its link to productivity. This gradually gave way to the “industrial betterment” and “scientific management” eras in the early 20th century, when businesses started recognising the importance of worker loyalty and established personnel departments to handle labour relations and compensation.

The mid-20th century saw a shift towards “behavioural HRM”, with a greater emphasis on employee motivation, communication and leadership development. Performance management systems, training programmes and team-building initiatives became more common. In the 1980s and 90s, HRM further evolved to become more strategic, aligning HR practices with overall business objectives and focusing on high-performance work culture, talent management and workforce planning.

More recently, increasing globalisation and digital advancements have transformed HRM practices. Multinational organisations now need to develop global HR policies that balance standardisation and local adaptation. Digital tools such as human resource information systems, online recruitment and HR analytics have enhanced HR operations, improved decision-making and optimised employee experience.

Looking ahead, the future of HRM is poised for further transformation with the integration of Artificial Intelligence (AI) and automation in various HR processes. There is also an increasing emphasis on sustainability and ethical practices, ensuring businesses contribute positively to society and the environment. TUT’s Postgraduate Diploma in Human Resource Management provides graduates with the skills to meet the challenges and opportunities of this evolving field.

 

Core functions of human resource management

Human resource management encompasses a wide range of core functions that contribute to the success of an organisation. HRM’s primary responsibility is to attract, develop and retain the right talent to drive business objectives. By effectively managing the employee lifecycle from recruitment to retirement, HR professionals ensure that the workforce is engaged, productive and aligned with the company’s values and goals.

 

Recruitment and selection

The recruitment and selection process is the first step in building a high-performing team. HR personnel must carry out the following tasks when recruiting new employees.

 

Job analysis and job descriptions

Before recruitment begins, it is first necessary to determine what type of people need to be recruited and for which tasks. Job analysis is the first step in the recruitment and selection process. It involves studying the tasks, duties and responsibilities of a particular job to determine the qualifications, skills and abilities required to perform it successfully.

This information is then used to create detailed job descriptions that serve as a blueprint for not only recruitment but also for training and performance management further down the line. Clear and detailed job descriptions ensure transparency and consistency in the recruitment process.

 

Sourcing and attracting candidates

Once the recruitment needs have been determined and job descriptions are drawn up, the next step is to find people with those skills and encourage them to apply for the position or positions. HR professionals have a variety of channels at their disposal to source and attract qualified candidates, such as job boards, social media, employee referrals, campus recruitment and recruitment agencies.

Attracting the best candidates, however, requires more than just posting job notices. Those who are very good at what they do will usually have many options and will pick the opportunities most attractive to them. As such, sourcing and attracting candidates also involves creating a strong employer brand and value proposition. Candidates can be attracted to a position by strong company culture, good career development opportunities and positive employee testimonials.

 

Interviewing and selection processes

Once suitable candidates have been sourced and job applications received, the next step is to screen all the applications and invite the best candidates to interview for the role. This typically includes screening resumes and assessing candidates’ skills, experience and cultural fit. A thorough selection process should also include background and reference checks of short-listed candidates.

Once at the interview stage, structured interviews can include behavioural and situational questions to help assess candidates. The selection process can also include practical assessments and psychometric testing to further ensure a candidate’s suitability for the role.

A thorough and well-organised interviewing and selection process enhances the likelihood of hiring well-suited people who will best contribute to organisational success.

 

Onboarding new employees

Onboarding is the process of integrating new employees into the organisation and providing them with the necessary knowledge, skills and support to become effective members of the team. A structured onboarding programme includes orientation sessions, training on company policies and procedures and introductions to key team members and stakeholders.

Effective onboarding helps new employees to fit in with the organisational culture and to properly understand their responsibilities. It also fosters an environment where they can build relationships with colleagues, setting the foundation for a positive and productive work experience that improves employee retention and engagement.

 

HR training and development

Sourcing and recruiting are only part of the HR job. Organisations do not operate in a static environment and most industries evolve with new technology. This means that employees will often require training to do their jobs better. This dynamism within organisations isn’t limited to their industry as employees will also seek personal growth and development and opportunities to progress up the organisational hierarchy.

Companies must invest in employee training and development to keep a competitive edge and retain their best employees. HR professionals work closely with managers to carry out the following tasks.

 

Identifying training needs

Before training employees, HR personnel must first identify what training needs to be done. This involves assessing the skills and competencies required for employees to perform their jobs effectively and identifying any gaps. This process can include performance appraisals, feedback from managers and self-assessments by employees. By understanding the training needs, organisations can develop targeted training programmes that address specific areas for improvement.

Training needs analysis is a continuous process that aligns with organisational goals and strategies. It ensures that employees have the necessary skills to adapt to changing job requirements and advancements in technology.

 

Designing effective training programmes

While the actual training is likely to be outsourced or carried out by other employees who are experts in that specific field, HR professionals are responsible for setting up employee training programmes. Designing an effective training programme involves creating a structured learning experience tailored to address the training needs of the employees and the organisation.

HR staff are responsible for setting clear learning objectives and selecting appropriate training methods. Training programmes can range from classroom-based sessions to online courses and on-the-job training.

 

Implementing training initiatives

As mentioned, while HR professionals are unlikely to provide the training themselves, they are responsible for implementing the organisation’s training initiatives. This process can include scheduling training sessions, coordinating with trainers and providing employees with the necessary resources and materials. Successful implementation requires careful planning and organisation to ensure the training is accessible and convenient for participants and that employees do not resist any organisational or workflow changes that new training may bring.

Training initiatives should also include mechanisms for tracking attendance and participation, as well as providing support for employees during and after the training. Effective implementation ensures that employees receive the full benefits of the training, enhancing their skills and performance.

 

Evaluating training effectiveness

Training programmes must always be relevant and should improve efficiency towards the organisation’s goals. HR professionals must evaluate the effectiveness of training interventions to ensure that the investment yields tangible results in terms of improved skills, knowledge and job performance.

This process is often carried out together with managers and involves collecting and analysing data on various aspects of the training, such as participant feedback, learning assessments and performance metrics. Evaluations can include pre- and post-training assessments, surveys and follow-up interviews. By doing this, organisations can identify areas for improvement and make necessary adjustments to improve future training initiatives.

 

Performance management

Performance management is aimed at aligning individual employee goals with organisational objectives. It involves a continuous process of planning, monitoring and reviewing employee performance to ensure optimal productivity and growth.

Next, we will show how effective performance management begins with the setting of performance standards. These standards are then used to measure performance through performance appraisals and to offer feedback and coaching that ideally is aligned with the employee’s own development plans.

 

Setting performance standards

The first step in performance management is to set performance standards and clearly define the expectations for each role within an organisation. This involves establishing goals that are measurable, achievable and relevant to the company’s overall objectives. These standards should be communicated clearly to employees, serve as benchmarks for evaluating employee performance and provide a basis for feedback and further development.

Performance standards should align with organisational goals and objectives to ensure that employees are working towards the same priorities. When performance standards are clearly communicated and understood, employees will understand what is expected of them and how their performance will be assessed.

 

Conducting performance appraisals

Performance appraisals involve the systematic evaluation of employee performance. Appraisals provide an opportunity for managers and employees to discuss achievements, identify areas for improvement and set goals for the future.

While performance appraisals can be viewed negatively by employees, an effective performance management process should avoid this by ensuring the appraisals are based on objective criteria and involve a two-way dialogue between the manager and the employee. Appraisals are also opportunities for managers to discuss opportunities for employees to grow professionally.

Regular performance appraisals help to ensure that employees receive ongoing feedback and support, promoting continuous development and engagement. They also provide valuable insights for making decisions on promotions, compensation and training needs.

 

Providing feedback and coaching

An effective performance management programme fosters a culture of continuous learning and improvement within an organisation by providing employees with constructive feedback. This feedback should also involve coaching or mentorship opportunities for them to build on their skills and strengthen their areas of weakness.

Feedback should be specific, timely and constructive, focusing on both strengths and areas for improvement. This is where good communication skills come into play, as HR professionals must master the art of delivering constructive and actionable feedback in a way that does not unduly undermine or upset employees. Effective coaching involves guiding employees to enhance their skills, overcome challenges and achieve their full potential.

 

Managing employee development plans

As we mentioned at the start of the article, the field of HR has evolved greatly to place much more emphasis on employee welfare and development. Part of that is to assist employees with personalised development plans to help them further their careers and grow their skills in alignment with the organisation’s own goals.

Development plans can include a variety of activities such as training courses, mentoring and job rotations. Effective management of employee development plans requires regular monitoring and support, ensuring employees have the resources and opportunities that they need to achieve their development goals. This process promotes employee growth and retention, while also contributing to the long-term success of the organisation.

 

Compensation and benefits

For a company to remain competitive, it needs to provide employees with attractive compensation and benefits. While most people focus on the monthly or annual salary, there are other benefits such as health insurance, work-from-home flexibility and additional paid leave that are important considerations for people seeking new employment.

HRM personnel need to carry out the following responsibilities related to employee compensation and benefits.

 

Designing compensation structures

Well-designed compensation structures not only attract and retain talent, they also keep employees motivated to perform at their best. HR managers must design compensation packages to be fair and competitive, with incentives linked to performance. They also need to keep up with job market trends and ensure that pay packages do not exceed the company’s financial capacity.

Administering employee benefits

In addition to competitive salaries, a comprehensive benefits package can make a company more attractive to potential employees and keep existing employees from leaving. Common benefits include health insurance, retirement plans, paid time off and other perks such as staff discounts.

Providing additional benefits to employees can in some cases be more compelling than their base salary. For example, someone working at a bank might get preferential rates on home and car loans that provide more financial benefit than they would get earning a higher monthly salary elsewhere.

 

Ensuring compliance with legal standards

Failure to comply with labour laws and employment standards can be immensely damaging to a company, resulting in costly penalties and fines as well as potential reputational damage. Although uncommon, company owners and managers could even face criminal prosecution for employee abuse.

HRM practitioners must ensure their organisation adheres to general labour laws and any additional regulations that might apply to the organisation’s industry. This includes laws related to minimum wage, working hours, employment equity and health and safety.

Labour laws and regulations can also change from time to time and the HR department needs to keep up with any changes and update any affected policies or procedures to maintain compliance.

 

Conducting compensation benchmarking

Compensation benchmarking involves comparing the organisation’s pay and benefits with those of other organisations in the same industry or region. By collecting data from salary surveys, industry reports and other sources, HR staff can ensure that the organisation is neither underpaying nor overpaying any of its staff.

Benchmarking helps inform decisions on pay adjustments and benefit offerings. This helps to maintain a competitive edge in the labour market and supports the organisation’s overall talent management strategy.

 

People also ask

 

 

Study human resource management with TUT

TUT’s fully online Postgraduate Diploma in Human Resource Management is aimed at HR practitioners who want to advance their careers through specialisation or taking on more managerial positions. As a postgraduate programme, it caters for students who have already completed a previous undergraduate human resource management course.

 

Accredited 100% Online Postgraduate Diploma

The Postgraduate Diploma in Human Resource Management is set at Level 8 on the National Qualifications Framework and is accredited by the South African Qualifications Authority.

The online learning format provides the flexibility to study when and where it suits you, which also provides an online environment that encourages interaction and engagement with your student peers. To learn more about how the online form works, please see our other articles on the way to learn online and on how to best engage with the virtual classroom.

 

Study a Postgraduate Diploma in Human Resource Management

TUT’s online Postgraduate Diploma in Human Resources Management takes two years to complete and can be studied part-time while maintaining other responsibilities. Applications are open all year round to those with a Bachelor’s degree or an advanced diploma in HR. Successful applicants can begin their studies at any of four different entry points each year, offering further flexibility and easy accessibility.

To learn more about the programme and how to apply, please go to the Postgraduate Diploma in Human Resources Management page.