By Dada Adefolami
The nature of Human Resource Management
Roles Human resource management is also in the process of change with regard to the nature of the role performed, human resource management (HRM or simply HR) is the management of human resources. It is a function in organizations designed to maximize employee performance in service of an employer’s strategic objectives
Human resource management is defined by Bratton as ‘a strategic approach to managing employment relations, which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage.Human resource management (HRM) is the governance of an organization’s employees. HRM is sometimes referred to simply as human resources (HR). A company’s human resources department is responsible for creating, implementing and/or overseeing policies governing employee behaviour and the behaviour of the company toward its employees.
From this definition, we can see that human resource management has grown in importance from the traditional view of the personnel department, whose role was primarily seen as that of hiring and firing employees to a much broader role. Human resource management includes the recruitment of employees, the development of policies relating to human resources, and the management and development of employees.
It also follows that human resources management is not carried out exclusively by the HR department. Line managers are involved in managing the human resources in their departments.
Importance of human resources
The modern terms ‘human resources’ and ‘human capital’ reflect the increasing recognition of the strategic importance of employees. The terms actually refer to the qualities that people bring to the workplace, such as knowledge, intelligence, enthusiasm, an ability to learn, and so on. Employees are seen less and less as an expensive necessity, and more and more as a strategic resource that may provide an organization with competitive advantage.
Human resource management is important in organizations because it helps managers understand and motivate their employees. Human resources management also helps the organization remain compliant with employment laws.
In service industries such as restaurants, for example, where employees have direct contact with customers, having employees that are friendly and helpful has a large impact on how customers will view the business. In IT industries, having staff with good technical knowledge is essential.
The problem with human resources is that they require more management than other factors of production. We humans are complex, emotional creatures, and it can be challenging to ensure that we behave in the right way, remain motivated and give our best to the employer. William James, the 19th century American sociologist, once remarked that most people only use 15% of their combined intelligence, skills and aptitudes in their employment. Whether this still remains the case or not, it is clearly a challenge to get employees to contribute more of their abilities in the workplace.
Strategic human resource management
Given that human resources are a strategic capability, many human resource practitioners talk about ‘strategic human resource management’. This means aligning the human resource management of organisations with the organisations’ strategy.
The human resources management process should support the corporate strategy by:
1. Ensuring that the organisation has the right number of qualified employees
2. Employees have the right skills and knowledge to perform efficiently and effectively
3. Employees exhibit the appropriate behaviours consistent with the organisation’s culture and values
4. Employees meet the organisation’s motivational needs.
A low-cost Services company, for example, may have an HR policy of recruiting unskilled staff, who are prepared to work for low wages, but would not provide customers with excellent service. A more upmarket services Company on the other hand would want to provide excellent customer care. HR strategies would include the recruitment of individuals who have excellent personal skills, and training of all staff in customer care.
Recruitment and selection
Recruitment is the process of generating a pool of capable people to apply to an organization for employment. Selection is the process by which managers and others use specific instruments to choose from a pool of applicants the person or persons most likely to succeed in the job given management goals and legal requirements.
Recruitment is the first stage in the process of human resource management. The organization needs to recruit individuals with the right skills, and the right attitudes to contribute to the strategic goals of the organization. Employees should also have the personality that will fit into the culture of the organization.
From the point of view of potential employees, the recruitment process provides them with the opportunity to see if the organization matches their expectations. The organization should provide honest information about the position so that the potential employee forms the right expectations about the role that they are applying for. If not, this may lead to disappointment and high staff turnover.
When recruiting, the amount of time and effort spent in selecting the right employee depends on the amount of responsibility that the position requires. Managerial or problem-solving positions, where employees would be required to have deeper skills, a higher level of responsibility and greater commitment, thus contributing to the strategy of the organization, would merit a much greater effort in the selection process. The selection process will need to ensure that candidates should possess the ability to acquire the skills needed, and the attitude that fits the culture of the organization. Organizations may use psychometric tests to assess candidates for such positions. Psychometric tests are described later in this article.
Lower level employees would be employed if they have the right skills. Less screening would take place for this group of employees.
Competency frameworks
Competence is the ability of an individual to do a job properly. A competency is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual employees. The term “competence” first appeared in an article authored by R.W. White in 1959 as a concept for performance motivation
In many organizations, competency frameworks may be developed prior to the recruitment stage. A competency framework shows a set of behaviour patterns and skills that the candidate needs in order to perform a job with competence.
competencies are categorized into exams, experience, ethics, job profiles, technical competencies and behavioural competencies. An example of a technical competence relating to management is performance objective (Contribute to budget planning and production.)
Competency-based human resources planning serves as a link between human resources management and the overall strategic plan of an organization. Competencies are defined as observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviours needed for successful job performance.
Appraisal system
An appraisal is the analysis of the performance of an individual, which usually includes assessment of the individual’s current and past work performance. Broadly speaking, there are two main reasons for the appraisal process. The first is the control purpose, which means making decisions about pay, promotions and careers. The second is about identifying the development needs of individuals.
Control objective of appraisals
In recent Time, there has been a drive towards linking the appraisal of employees to the strategic objectives of an organization. The idea is that the organization sets its own goals and performance measures. These goals are then translated into goals for managers and employees. Measurable targets are identified and set for employees, and their performance against the targets will be used as part of their appraisal.
Appraisal is, therefore, seen as part of management control. By measuring the performance of employees against targets, management is seen to be proactively managing the performance of employees and therefore improving the performance of the organization.
While such an approach may appear rational, in practice it is very unpopular with employees, who do not like to feel they are being controlled. It can also be criticized for trying to make a complex relationship between employees and managers appear to be too simple. In practice, however, such control models are the most popular models of assessment.
Developmental objectives of appraisals
A second way in which the appraisal system can support performance management is by identifying the development needs of staff and managers. Some organizations use a development centre, where an individual is assessed, often by a qualified occupational psychologist, against the required competencies for his role. Personal development plans are then made to develop the individual in areas where weaknesses are recognized.
Difficulties in appraisal
In assessing employees, managers are required to make judgments about an employee’s performance and capabilities. Such judgments are naturally subject to potential bias in favour of some and against others. There are many statistics showing how prejudice may affect the promotional prospects of some groups. In the UK, for example, 40% of the workforce are women, but only 30% of managers are women.
Another difficulty is the effect that negative criticism can have on performance. A study carried out in the 1960s by Meyer, Kay and Frenchinvestigated the impact of the appraisal process at a factory in the US. The study concluded that where staff are given criticism, they react defensively to the criticism and try to blame others for their shortcomings. They will also become demotivated. Interestingly, praise given during the process had little impact on performance. Such reflect in Nigeria companies in resent time
One potential solution to the difficulties mentioned above in relation to appraisal is to be aware that, in addition to the formal appraisal process, employees receive continuous informal feedback from their managers on the job. Employees generally accept this informal feedback more readily, and it is more likely to lead to improvement in their performance. Placing more emphasis on this informal type of assessment, and less on the formal appraisal process, may improve the overall performance of employees.
Measurement of performance
Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering processes/jjparameters/phenomena, to see whether output are in line with what was intended or should have been achieved.
Measuring performance is a key to evaluating how well employees are doing their work and companies are meeting their targets. Performance metrics give hard data to support such evaluations. A good performance metric yields results that measure clearly defined quantities within a range that allows for improvement
When measuring the performance of employees for the purpose of appraisal, three different approaches can be used:
1. Measurement of inputs
2. Behaviour in performance
3. Measurement of results and outcomes.
Measurement of inputs
Measurement of inputs means attempting to assess the traits of an individual. Traits are those skills, knowledge and attitudes that the employee possesses. Assessment aims to identify whether the staff member has the competencies or personalities for a job, perhaps with reference to a competency framework. Attributes such as leadership, commitment, ability to work within a team and loyalty are traits that are typically desired.
Where assessment is performed by the line manager, the subjectivity of the exercise may well lead to real or perceived bias in the assessment. As a result of this, many organizations now use professionally designed psychometric tests.
Psychometric testing aims to measure’ the abilities and personal skills of an individual. An example of an ability would be the number of words per minute that the individual can type on a keyboard. Personal skills focus on areas such as emotional stability of the individual, whether the individual is reserved or sociable, and how flexible the employee is.
Some organizations hold ‘moderation meetings’ for bigger teams. The purpose of these meetings is to ensure that the various managers involved in assessing the different members of staff within a team are doing so consistently.
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