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The Basics of Human Resource Management

Avatar photoHeon Jeong Yi

The traditional functions of Human Resource Management

The stages of Human Resource Planning

Difference between Human Resource Management and Personnel Management

Personnel Management

Personal management can divide into two categories: operation and direction. And mainly mean an efficient operation of an organization through the management of relationships with employees and organizations, development, maintenance, workforce, and recruitment.

Management function: Basic personnel management, activities such as motivation, instruction, control, planning, organization, etc.

Operation Function: Activities related to collective bargaining and maintenance, job evaluation, employee welfare, procurement, development, and compensation.

Human Resource Management

Human resource management organizes systematically and is mainly responsible for selecting human resources, training, compensation, and performance evaluation. Organizational and professional management carry out on employees, focusing on the development, utilization, and coordination of employees. HRM covers the following activities:

  • Working condition
  • Health and Safety
  • Recruitment and selection
  • Employment
  • Salary and wages
  • Training and Development

Personnel Management vs Human Resource Management

  • The management department that handles employees in the company is called personnel management. A department that focuses on making the most of a company’s workforce is human resource management.
  • Personnel management has a fragmentary distribution of initiatives. However, human resource management involves the integrated distribution of industries.
  • The basis of job design in personnel management is work sharing, and in personnel management, employees are divided into groups or teams to perform their duties.
  • In personnel management, salaries are paid according to job evaluation. While HRM pays the wages based on performance evaluation.
  • In human resource management, salaries are determined through performance evaluation, and PM pay according to job evaluation.

Effective recruitment and selection techniques

Recruitment

Recruitment is an important part of personnel management and can affect a company’s long-term profits. The hiring process generally consists of finding, selecting, and final recruiting job seekers who have applied for a specific field and department. In this process, which conducts with the support of people specializing in recruitment management, the company promotes company development by hiring applicants with skilled and professional knowledge and skills.

Recruitment techniques

  • Retained recruitment

Hire a third party with reserved recruitment to fill the vacancy. Companies can pay a prepayment fee for the recruitment process and an additional fee when an applicant hires.

  • Reserve recruitment

Similarly, this option includes hiring a third party as a proxy, but only if a qualified applicant is employed.

  • Temporary recruitment specialist

Instead of hiring full-time employees, hiring temporary staff or consultants.

  • Job fairs

These events provide organizations to meet qualified candidates and sell their employer brands, whether real or virtual.

  • Internal recruitment

Post job openings on the company’s recruitment website to allow current employees to apply.

  • Outsourcing the hiring process (RPO)

To minimize the hiring process costs, all courses of recruitment outsource to a third party.

  •  Social media

Twitter, Facebook, LinkedIn, and other search engine advertising are also ways to reflect current trends in hiring.

  • Selection

Employee selection can vary depending on the role, available resources, recruitment budget, seniority, and organizational needs. It requires a strategic candidate selection process to make the final decision with a variety of accurate information about the candidate.

Selection techniques

  • Evaluation cognitive abilities

Cognitive evaluation tests the applicant’s mental acuity and learning ability. It can include everything from analytical testing to pattern recognition. They are common after research results show that cognitive ability is one of the most influential factors in job performance.

Knowing the applicant’s cognitive abilities is important in all industries. We can predict how well applicants will acquire training materials, how to understand the guidelines, how efficiently they can solve problems during business hours, and how easily they can communicate.

The advantages of this method include the correlation between evaluation and performance and the ease of automatically managing and determining well-designed tests.

  • Job/Role Knowledge Assessment

Job knowledge evaluation is an important test to assess the applicant’s professional knowledge and skills test to evaluate the applicant’s job knowledge in the same way as cognitive evaluation. Within the company, it is necessary to test applicants by creating tests suitable for roles and positions according to various organizational locations.

  • Personality Evaluation

Personality evaluation is the most used evaluation in the entry-level role. Although the applicant’s experience is not required, skills can train, and personality and characteristics are more important factors.
Personality evaluation can succeed in selecting high-quality applicants if used correctly. Still, it can harm the recruitment process like cognitive evaluation because it is often too general and does not properly evaluate role-related characteristics.

  • Learning to Evaluate Agility

Agility refers to the ability to learn, and use new tasks, and skills in the rapidly changing digital world. As software, technology, and tools development accelerate, this issue becomes increasingly important. These tests evaluate how quickly candidates can adapt to changing situations and learn and use the skills they need to succeed.

These evaluations can be very powerful, but they are best suited for fast-paced industries and roles, not for subordinates or slow-moving organizations. It can also be very difficult to develop and manage to achieve tangible results.

  • Past Performance Analysis

Applicants can elect by analyzing past performance, that is, the experiences and interpretations of the applicant in the relevant or the same role, to determine how well they have performed the tasks. Usually, it is a method of looking in the middle stage rather than at the entry level that does not require experience.

  • Interviews with colleagues

A peer interview is conducted by a team of potential employees who work together, not by department heads or personnel managers.
Peer interviews can give you deep insight into how well applicants are suited to corporate culture, how well they know their roles, and how well they get along with others in the office, rather than studying for interviews and evaluations.

Role and responsibilities of human resource managers

The traditional functions of Human Resource Management

  • Recruitment and Selection

Recruitment and selection are arguably the most noticeable factors in personnel management.

It is the primary responsibility to recruit applicants and select the best applicants to work at the company. The company’s success can be determined by who comes in, so it is important to find the right person for the company.

Generally, a request for a new job begins when a new job creates, or an existing position opens. Then, the manager in charge sends the explanations related to the work to the HR department, and the HR department starts recruiting candidates for each department based on the job. HR can use various recruitment tools to find the best person for each department. It mainly includes interviews, reference checks, multiple evaluations, and other hiring methods.

Successful applicants will move on to the next interview round and a more detailed evaluation.

  • Performance Management

Performance management is important once appropriate employees select for each department, which is the second most important part of HR. The goal is to increase the company’s return by helping them achieve the best performance in their jobs in their respective positions.

Usually, a company conducts an annual performance management cycle that plans, monitors, reviews, and maintains employee performance. The results of this process allow employees to categorize into high performance, low performance, high potential, and low potential.

HR and management have almost the same responsibility for successful performance management. Usually, a direct manager takes the lead and supports HR. Excellent performance management is important – employees who can increase business efficiency, sustainability, and return and maximize their potential. 

  • Learning and Development

The learning and development of L&D, helps employees to improve their skills and expertise in depth so that they can be applied to their work and greatly helps them achieve long-term organizational goals.

Many companies are budgeting in advance for research and development. The budget is then allocated among employees and provides various training programs for trainees, future leaders, and other high-potential people.

  • Succession Plan

Succession planning is planning emergencies in case key employees leave the company. For example, if an important senior manager leaves the company, preparing a replacement ensures continuity and drastically reduces costs.

When an important senior manager leaves the company, the succession plan, which is the process of finding and preparing a suitable successor, is an important process of planning an emergency to ensure work continuity and a significant reduction in company costs.

In general, succession plans are often based on performance evaluation and L&D efforts and are created naturally through human resource pipelines. The key to managing good human resources is to build and nurture a pipeline with qualified and prepared human resources if a senior in an important position retires.

  • Rewards and Benefits

Compensation and benefits can be a very important factor in personnel management in motivating employees and maintaining them to work passionately. It is necessary to pay fairly and fairly depending on the business department and location of employees. Moreover, the cost of this part should balance with the company’s budget and profit margin. HR also needs to monitor salary increases and set performance standards while conducting audits as necessary.

Compensation is a monetary reward divided into primary and secondary, consisting of labour costs and bonuses. Still, subsidies include other holidays, company vehicles and laptops, and flexible working hours, not monetary compensation.

  • Human Resources Information System

In personnel management, various tools can manage employees more efficiently. First, HRIS, or Human Resource Information System, is used primarily in recruitment and selection and uses the Applicant Tracking System (ATS) to track applicants and recruiters.

In performance management, performance grades assign according to each performance result through a performance management system that tracks the individual target performance of each employee.

L&D uses personnel systems to track budget and training approvals, a Learning Management System (LMS) for the internal distribution of necessary content. It uses digital tools for effective succession and salary systems for efficient compensation systems.

  • Personnel data and analysis

System data using a data input system can make more efficient and information-based decisions. These are very useful data in that HR metrics and KPI measurements, which are the basis of HR reports, can show how the company is working and predict the future through the current and past conditions of the company. These data are very objective, so they can greatly help when analyzing and reviewing this data to make important decisions.

The importance of human resource planning

How to monitor employee performance in an organization

  • Using Monitoring Software

Using software designed to monitor staff performance is one of the most effective ways to monitor staff performance. This feature allows you to track and verify each employee’s activities for the day and to compare and analyze data about tasks completed by employees in one day. With this platform, you can not only figure out who’s struggling and what support you need but also catch up on the work you’ve assigned and improve the team’s productivity.

  • Monitoring employees at work visually.

Depending on the job and location of the employees, direct observation of their work processes may be an efficient way to grasp their work performance. If there are employees in need of help and the concept of surveillance may improve work performance by helping them faster.

  • Setting goals

Sit with team members of each department and set the team members’ respective goals and the overall goals of the department and team. It is a good way to derive productive results through motivation by establishing and sharing each other’s goals and the goals of departments and groups.

  • Asking an employee directly

It is also important to communicate directly with employees so as to first explain what they have monitored their performance, share opinions on it, and find a better direction. While sharing detailed work processes, employees themselves can find more efficient and productive ways to proceed with work.

The process of job evaluation & other factors determining pay

The method of job evaluation

Job evaluation is a systematic process that allows a fair salary structure, a fair rating design, and a job to be graded and to manage the relativity between salary and position. Largely, to establish internal relativity, the size and relative value of the job are defined within the organization.

At the beginning of this process, the management of the enterprise must clarify the reasons and importance of these programs and go through a systematic and extensive process. After personnel experts with relevant knowledge select staff from each department to be evaluated, the evaluation conducts through the Committee’s investigation.

Job evaluation includes analytical methods, that is, exclusive brands, point ratings, and factor comparisons, and non-analytic strategies include job classification, job ranking, and dual comparison.

  • Other factors determining pay

Rewards, which are rewards for work, can be influenced by various factors, which make some differences between roles and organizations. These factors include:

  • Employee performance
  • Organizational profitability
  • Technology and experience
  • Seniority
  • The size of the organization
  • The industrial sector

Performance management

  • Performance management process

By making periodic plans and managing employee performance appropriately, companies can help all employees understand the goals of each department and the goals of the larger organization and ensure that they achieve.

  • Planning

Corporate executives should prepare for the planning phase by pre-setting the year’s organizational goals and the company’s big goals before talking to employees. It includes not only overall business strategies but also development objectives and specific work objectives, including personal plans for all employees and teams.

It is essential to set specific goals and tasks because employees need to know the exact plans to form a process that allows them to collaborate.

  • Monitoring

monitoring is important in achieving the goals set during the planning phase.

However, if you monitor it only once or twice a year, it will be less effective. Executives are advised to meet employees monthly or quarterly to check their progress, help, if necessary, help with possible problems, and adjust their goals if necessary.

Segmenting the objectives into monthly sub-objectives allows the process to run smoothly, making it easier for employees to do things that are easier to manage.

Management and employees will review together at the end of the year to see if the previous year’s goals are achieved. The more management and employees periodically check their performance, the more motivated they will be to make efforts to achieve their organizational goals, and executives will be able to assess their work processes and results.

  • Rewarding

The final step in the performance management cycle plan is compensation. It is the most important step for employees’ motivation. It cannot overlook.

Employees who have not received adequate compensation after a year of trying to achieve their organizational goals lose their motivation for the next year. They may lose confidence in their organization, feel their talents are not recognized, and start looking for other jobs.

These rewards must be performance-based. Employees will know which of them tried, and if they see colleagues reward for no reason, they may lose motivation. On the contrary, when employees see a highly accomplished person receiving a good reward, it shows the value of making that extra effort.

  •  Performance management’s impact on motivation

Successful performance management processes can motivate employees and exceed expectations. It also enables executives and employees to achieve the company’s goal that they initially set together.

The positive consequences of a robust performance management system are tremendously beneficial to the enterprise.

Continuous feedback provides the insight needed to recognize and address knowledge gaps, blind spots, and bottlenecks, resulting in a surge in individual employee performance. In addition, a thorough development process provides opportunities for employee awareness and improves employee engagement to boost, maintain, and ultimately reduce organizational turnover.

In other words, continuous performance management is an important factor in realizing the organization’s potential, with employees continuously supported to make the greatest contribution to the company’s success.

Reward system

  • A top-down compliment

The first is the personal recognition given to employees by supervisors or leadership positions. It is mainly given personally through direct report delivery and has a weaker impact than other perceptions.

  • Public praise with no reward or bonus

The model, known primarily as ‘zero-point recognition,’ refers to public praise based on comments and likes on social channel activities and digital activity feeds. It acts more effectively on employees’ motivation than private perceptions received only within companies and departments, and even financial rewards.

  • Public Praise Through General Compensation

This model, which gives general rewards such as gift cards, bonuses, and certificates, makes recognition more effective by adding prizes or prizes based on public praise. These rewards further increase the value of recognition perceived by employees. This compensation scheme also means that all employees are the same.

  • Public praise with points and strong and meaningful rewards

Customized rewards that meet individual employees’ needs can increase employees’ contributions to their activities and companies, and their satisfaction with their tips can also increase. In other words, by invoking the compensation system required by each employee, one can receive a gift card as a reward. In contrast, another can receive a gift card as a reward for charitable donations or overseas travel. The compensation system optimized for these individuals can increase their loyalty to the company.

References

By Heon Jeong Yi

She is a student of Concordia International University student.

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