© Cambridge University Press 2012 THE HUMAN RESOURCE MANAGEMENT FUNCTION AREA OF STUDY 1 UNIT 4 MANAGING PEOPLE AND CHANGE CHAPTER 8 HUMAN RESOURCE MANAGEMENT

© Cambridge University Press 2012 The importance of human resource management to business success Human resource management (HRM) is the ongoing management of people within the employer–employee relationship. It involves getting the right people in the right place at the right time.

© Cambridge University Press 2012 The importance of human resource management to business success (cont.) The HRM function must manage the organisation’s most costly and valuable asset: its employees.

© Cambridge University Press 2012 The importance of human resource management to business success (cont.) HRM has progressed from an administrative role to its current strategic role with representation at senior management levels.

© Cambridge University Press 2012 The role of a human resource manager The role of an HR manager is to translate business strategy into action. Initially, HRM objectives must be established. Pressures from the organisation’s external and internal environments influence these objectives.

© Cambridge University Press 2012 The role of a human resource manager (cont.) Strategies are then developed from related HRM activities created. Performance indicators (PIs) are used to measure the outcomes to assess how effectively the objectives have been achieved.

© Cambridge University Press 2012 The role of a human resource manager (cont.) In addition, HR managers are involved in: strategic planning, relating to forecasting demand and supply of labour and succession planning

© Cambridge University Press 2012 The role of a human resource manager (cont.) management of the employment cycle, which covers the three phases of establishment, maintenance and termination innovative strategies relating to appraisal, skill development, remuneration and flexible work practices

© Cambridge University Press 2012 The role of a human resource manager (cont.) acting as an advocate for employees when negotiating with management designing and implementing strategies to increase employee motivation, job satisfaction, productivity, employee relations and customer service

© Cambridge University Press 2012 The role of a human resource manager (cont.) acting as a change agent and providing support and education for supervisors, team leaders and line managers responsible for implementing HR policies and practices.

© Cambridge University Press 2012 The role of a human resource manager (cont.) HR managers are referred to as staff managers, providing specialist advice or assistance to line or functional managers.

© Cambridge University Press 2012 Measuring HRM effectiveness Effectiveness of HRM outcomes can be evaluated against the following: commitment and competence of employees level of cost effectiveness

© Cambridge University Press 2012 Measuring HRM effectiveness (cont.) congruence (harmony) adaptability to change performance related to productivity level of job satisfaction and employee motivation