Introduction to Principles of HRM
Human Resource
Management is an emerging concept all over the world and organizations have
already started to invest on establishing strong HRM initiatives regardless of
the size, domain of business/services, geographical location and various other aspects
of an organization. Human Resources are considered as invaluable assets
in today's world after realizing the fact that humans create wonders when they
are managed well and they create a mess when they are not handled
well.
The
HRM has evolved from a task-oriented administrative nature to a strategic view
for productivity with the emerging of key HRM principles.
07 KEY PRINCIPLES OF HUMAN RESOURCE
MANAGEMENT
Human Resource Management have several aspects that are considered
key for effective HRM policies ( icehrm.com, 2021) .
These key areas are:
- Recruitment and selection
- Performance Management
- Learning and development
- Succession planning
- Compensation and benefits
- Human Resources Information Systems
- HR Data and Analysis
(
icehrm.com, 2021)
Human Resource
Management is an emerging concept all over the world and organizations have
already started to invest on establishing strong HRM initiatives regardless of
the size, domain of business/services, geographical location and various other aspects
of an organization. Human Resources are considered as invaluable assets
in today's world after realizing the fact that humans create wonders when they
are managed well and they create a mess when they are not handled
well.
The
HRM has evolved from a task-oriented administrative nature to a strategic view
for productivity with the emerging of key HRM principles.
07 KEY PRINCIPLES OF HUMAN RESOURCE
MANAGEMENT
Human Resource Management have several aspects that are considered
key for effective HRM policies
These key areas are:
- Recruitment and selection
- Performance Management
- Learning and development
- Succession planning
- Compensation and benefits
- Human Resources Information Systems
- HR Data and Analysis
1. RECRUITMENT AND SELECTION
Recruitment and selection are probably the
most visible elements of HR. Recruiting candidates and selecting the best ones
to come and work in the organisation is a key HR responsibility. Recruitment
is defined as the process of attracting qualified candidates for a job role
while Selection is defined as the process of identifying and selecting the right
candidate for that job (Empxtrack, Inc, 2013) .
This
is a vital role of HR in any organization to ensure timely sourcing of best
fitting and qualified employees through a competitive process. Use of head
hunting approaches can be considered when there are limitations in terms of
time, resources, scarcity for skilled labour and etc.
Recruitment and selection are probably the
most visible elements of HR. Recruiting candidates and selecting the best ones
to come and work in the organisation is a key HR responsibility. Recruitment
is defined as the process of attracting qualified candidates for a job role
while Selection is defined as the process of identifying and selecting the right
candidate for that job
This
is a vital role of HR in any organization to ensure timely sourcing of best
fitting and qualified employees through a competitive process. Use of head
hunting approaches can be considered when there are limitations in terms of
time, resources, scarcity for skilled labour and etc.
2. PERFORMANCE MANAGEMENT
Performance management is a continuous process of reviewing,
evaluating, improving and recognizing the tasks performed by the existing
employees. It is an important aspect of HRM as it is about helping people to
perform at their best at work, in order to improve how tasks are delivered.
“An effective performance management system seeks to align with the
goals, values and initiatives of the organisation” (Caldwell,
2000) .
In light of the above, we can understand that employees need to be
consistent with their performance to achieve the expected results at the
expected quality. Inconsistency in performance may lead to inconsistency in
achieving results.
Performance management is a continuous process of reviewing,
evaluating, improving and recognizing the tasks performed by the existing
employees. It is an important aspect of HRM as it is about helping people to
perform at their best at work, in order to improve how tasks are delivered.
“An effective performance management system seeks to align with the
goals, values and initiatives of the organisation”
In light of the above, we can understand that employees need to be
consistent with their performance to achieve the expected results at the
expected quality. Inconsistency in performance may lead to inconsistency in
achieving results.
3. LEARNING AND DEVELOPMENT
Learning and development ensures that employees adapt to changes in
processes, technology and societal or legal developments ( icehrm.com,
2021) .
L & D is considered to be an equally important pillar of HRM
compared to performance management. In fact L & D is a key factor to ensure
performance and organizations which stimulate its employees on learning, has a
great advantage of building a skilled and confident Labour force.
Learning and development activities make a major contribution to
the successful attainment of the organization’s objectives and investment in it
benefits all the stakeholders of the organization. Learning and development
plans and programmes should be integrated with and support the achievement of
business and human resource strategies (Taylor, 2014) .
Learning and development ensures that employees adapt to changes in
processes, technology and societal or legal developments
L & D is considered to be an equally important pillar of HRM
compared to performance management. In fact L & D is a key factor to ensure
performance and organizations which stimulate its employees on learning, has a
great advantage of building a skilled and confident Labour force.
Learning and development activities make a major contribution to
the successful attainment of the organization’s objectives and investment in it
benefits all the stakeholders of the organization. Learning and development
plans and programmes should be integrated with and support the achievement of
business and human resource strategies
4. SUCCESSION PLANNING
Succession planning is the process of making contingency plans for
the departure of key employees from the company. If, for example, a key senior
manager leaves, having a replacement ready will ensure continuity and can
result in significant savings for the company.
Succession planning is often based on performance evaluations and
continuous training efforts. This results in the creation of a talent pool.
This is a pool of qualified candidates who are ready to take up (senior)
positions in the event of someone's departure. Building and maintaining this pool
is essential for good human resource management ( icehrm.com, 2021) .
Succession planning is the process of making contingency plans for
the departure of key employees from the company. If, for example, a key senior
manager leaves, having a replacement ready will ensure continuity and can
result in significant savings for the company.
Succession planning is often based on performance evaluations and
continuous training efforts. This results in the creation of a talent pool.
This is a pool of qualified candidates who are ready to take up (senior)
positions in the event of someone's departure. Building and maintaining this pool
is essential for good human resource management
5. COMPENSATION MANAGEMENT
Management of Compensation is a process of strategic utilization of
the available funds with equity. Impartial and transparent compensation
management policies are fundamental to motivate and retain employees. This element
of HR management is employees’ main area of interest along with the benefits they
may get by contributing to the mandate of the organization.
Compensation
management is typically carried out by HR professionals, who are responsible
for ensuring that salaries and bonuses remain competitive and benefits change
with the needs of the workforce. The HR leaders in this role must gather and
analyze internal and external salary figures, demographic and economic
statistics and other relevant information (Patrick Thibodeau, Senior News
Writer, 2021) .
(Patrick Thibodeau, Senior News Writer, 2021)
Management of Compensation is a process of strategic utilization of
the available funds with equity. Impartial and transparent compensation
management policies are fundamental to motivate and retain employees. This element
of HR management is employees’ main area of interest along with the benefits they
may get by contributing to the mandate of the organization.
Compensation
management is typically carried out by HR professionals, who are responsible
for ensuring that salaries and bonuses remain competitive and benefits change
with the needs of the workforce. The HR leaders in this role must gather and
analyze internal and external salary figures, demographic and economic
statistics and other relevant information
6. HUMAN RESOURCE INFORMATION SYSTEM
The last two fundamental HR elements are not HR practices, but
tools for improving HRM. The first is the human resources information system,
or HRIS. An HRIS supports all of the cornerstones discussed above. For example,
for recruitment and selection, HR professionals often use an applicant tracking
system, or ATS, to track applicants and hires ( icehrm.com, 2021) .
For performance management, a performance management system is used
to track individual objectives and implement performance reviews. In the area
of training and development, a learning management system (LMS) is used for
internal content distribution, and other HR systems are used to track training
budgets and approvals. Payroll specialists often use a payroll system, and
there are also digital tools that enable effective succession planning ( icehrm.com,
2021) .
(Erik van Vulpen, 2021)
The last two fundamental HR elements are not HR practices, but
tools for improving HRM. The first is the human resources information system,
or HRIS. An HRIS supports all of the cornerstones discussed above. For example,
for recruitment and selection, HR professionals often use an applicant tracking
system, or ATS, to track applicants and hires
For performance management, a performance management system is used
to track individual objectives and implement performance reviews. In the area
of training and development, a learning management system (LMS) is used for
internal content distribution, and other HR systems are used to track training
budgets and approvals. Payroll specialists often use a payroll system, and
there are also digital tools that enable effective succession planning
7. HR DATA AND ANALYTICS
The last of the HR fundamentals revolves around data and analytics.
Over the past fifty years, HR has taken a big step forward in becoming more
data-driven.The HR information systems we have just discussed are essentially
data capture systems. The data in these systems can be used to make better and
more informed decisions. An easy way to track critical data is through the use
of HR indicators or HR KPIs. These are specific measures that address the
situation of a company in relation to a given measure. This is called HR
reporting ( icehrm.com, 2021) .
By actively measuring and reviewing this data, HR can make more
data-driven decisions. These decisions are often more objective, which makes it
easier to find management support for these decisions.
CONCLUSION
As I
discussed 7 fundamental principles of HR management, it is important to note
that these principles of HRM are interconnected and not driven independently by
HR Professionals. They do not stand alone and help to take informed organizational
decisions concerning employees by being interactive among each of them. We may
compare these 7 principles to a building blocks - effective management and application
of these principles influence the organization to empower and reinforce its
workforce by contributing to each other similar to how a building is strengthened
by letting its pillars to support each other. Eventually, these HRM principles establishes
empowered teams within an organization and takes the whole organization from
better to the best of its ability. In my upcoming blog articles, I will be discussing each of these HRM principles in detail.
The last of the HR fundamentals revolves around data and analytics.
Over the past fifty years, HR has taken a big step forward in becoming more
data-driven.The HR information systems we have just discussed are essentially
data capture systems. The data in these systems can be used to make better and
more informed decisions. An easy way to track critical data is through the use
of HR indicators or HR KPIs. These are specific measures that address the
situation of a company in relation to a given measure. This is called HR
reporting
By actively measuring and reviewing this data, HR can make more
data-driven decisions. These decisions are often more objective, which makes it
easier to find management support for these decisions.
CONCLUSION
As I discussed 7 fundamental principles of HR management, it is important to note that these principles of HRM are interconnected and not driven independently by HR Professionals. They do not stand alone and help to take informed organizational decisions concerning employees by being interactive among each of them. We may compare these 7 principles to a building blocks - effective management and application of these principles influence the organization to empower and reinforce its workforce by contributing to each other similar to how a building is strengthened by letting its pillars to support each other. Eventually, these HRM principles establishes empowered teams within an organization and takes the whole organization from better to the best of its ability. In my upcoming blog articles, I will be discussing each of these HRM principles in detail.
REFERENCES
icehrm.com, 2021. IceHrm. [Online]Available at: https://icehrm.com/blog/7-basic-principles-of-human-resource-management-that-every-hr-professional-should-know/[Accessed 05 04 2023].Caldwell,
C. M., 2000. Performance Management. s.l.:American Management
Association.
Empxtrack,
Inc, 2013. empxtrack. [Online]Available at: https://empxtrack.com/blog/recruitment-and-selection-the-most-important-hr-function/[Accessed 06 04 2023].Erik
van Vulpen, 2021. What is a Human Resources Information System (HRIS)? An HR
Practitioner’s Guide. Academy to Innovate HR.
Patrick
Thibodeau, Senior News Writer, 2021. Compensation Management. [Online]Available at: https://www.techtarget.com/searchhrsoftware/definition/compensation-management[Accessed 07 April 2023].Taylor,
M. A. a. S., 2014. Armstrong’s Handbook of Human Resource Management_13th
Edition. London: www.koganpage.com.
Caldwell,
C. M., 2000. Performance Management. s.l.:American Management
Association.
Erik
van Vulpen, 2021. What is a Human Resources Information System (HRIS)? An HR
Practitioner’s Guide. Academy to Innovate HR.
Taylor,
M. A. a. S., 2014. Armstrong’s Handbook of Human Resource Management_13th
Edition. London: www.koganpage.com.
The possible drawbacks of HR data analytics include issues with privacy, scope limitations, prejudice, cost, and resistance to change. While HR data analytics can offer insightful information and enhance decision-making, it's crucial to be aware of these potential risks and take precautions to reduce them
ReplyDeleteThanks for the comment.
DeleteNowadays, organizations have thier own data protection policies and big scale organizations even use technologies specialized on data protection. Scope limits are there and it is addressed by using the most recent HRIS systems to meet the expectations to some extent. Cost is unavoidable unfortunately as good systems are costly. Human mind does not like change until they see real outputs. So, I agree with you. The potential risks are there and HR professionals are expected to tackle these concerns.
Well structured.
ReplyDeleteHRM and its principle contents are a crucial part of any organisation. How do you think the 'new normal' or the post pandemic situation had impacted these key areas ?
Online interviews, online trainings, system based performance management, home based work and many more technology based initiatives are actually the response from managements and HR professionals to the new normal. Thanks for the question and for your supportive comment.
Delete From a Human resource perspective, there are seven principles we can observe, and the author has highlighted those seven within this article, "HUMAN RESOURCE INFORMATION SYSTEM" and "HR DATA AND ANALYTICS" are modern concepts, because data, information, and data assessment is highly important for modern business concepts. Further HR principles contribute to the business in different ways, such as enhancing employee commitment and morale and maintaining a motivational workforce within the business.
ReplyDeleteYes. The contribution of HRM principles to business world is immense and indirect sometimes. For an example, you can't measure the motivation level of a sales employee in figures. It is hidden but very powerful to run the business. This is just one example. HRM brings in lots of soft impacts to business which cannot be shown in figures accurately at all times.
DeleteThe article highlights the importance of Human Resource Management (HRM) in organizations worldwide. HRM is evolving from an administrative task-oriented function to a strategic view for productivity. The seven key principles of HRM include recruitment and selection, performance management, learning and development, succession planning, compensation and benefits, human resources information systems, and HR data and analytics.
ReplyDeleteRecruitment and selection are critical functions in HRM that involve attracting and selecting qualified candidates for job roles through a competitive process. Performance management is about evaluating, improving, and recognizing employees' tasks continuously, which helps employees perform their best at work. Learning and development ensure that employees adapt to changes in processes, technology, and societal or legal developments.
Succession planning helps organizations make contingency plans for the departure of key employees and maintain a talent pool of qualified candidates for senior positions. Compensation management is a strategic process of utilizing available funds with equity and transparency, fundamental to motivating and retaining employees.
Human resource information systems (HRIS) are tools for improving HRM that support all the cornerstones discussed above. HR data and analytics are the last of the HR fundamentals that revolve around data-driven decision making.
Overall, organizations invest in establishing strong HRM initiatives because humans are considered invaluable assets, creating wonders when managed well and creating a mess when not handled well.
Thank you for summarizing the article and good luck with your blog posts
DeleteWell structured article. As concluded, although we segregate HRM by 7 key principles, a collaboration of all only leads to the company achieving its goals and objectives quickly.
ReplyDeleteExactly. These 7 key areas together drive the organization to success.
DeleteThis is a good article for a new joiner into the field of HR to get an understanding on some of the principles on HR Management.
ReplyDeleteThat's exactly my objective and thanks for capturing that in your comment. For more detailed information on these principles, I kindly request friends to refer to my articles that were published after this one.
Delete