HUMAN RESOURCE MANAGEMENT (HRM):Importance of Human Resource, Recruitment

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Introduction To Public AdministrationMGT111

LESSON 22

HUMAN RESOURCE MANAGEMENT (HRM)

At the end of the lecture the students will be able to understand the following:

Concept of Staffing (Human Resource Management)

Importance of HRM to the organization

Process of HRM

What is Human Resource

The most important resource of any organization is the human resource. All organizations have

three important resources. These are:

Material

Capital

Human

Human resource is the most vital resource in an organization

Why is Human Resource Vital

This resource is vital because it drives or moves all the other resources in the organization. This

resource can increase the efficiency, economy and effectiveness of other resources. It is this resource that is

most difficult to control because human beings are most unpredictable. However, if you are able to manage

it properly, it can give wonderful results which no other resource can give.

Human Resource Management (HRM) is the management function and it is also staff function,

through which managers recruit, select, train, and develop organization members. We will begin by

discussing the importance of human resource management and point out how HRM can assure the

organization of an adequate and constant supply of skilled and right employees.

Importance of Human Resource

HRM is a staff function. HRM managers advise line managers throughout organization about what

Figure 1

Human Resource

Recruitment

Selection

Planning

Training and

Socialization

Development

Performance

Promotions, Transfers, Demotions,

Appraisal

and Separations

Introduction To Public AdministrationMGT111

people to recruit for different departments of the organization. In addition, organization may need

employees and managers from time to time. Therefore, the HRM becomes important function

The HRM process is an ongoing procedure that tries to keep the organization supplied with the

right people in the right positions, when they are needed. The HRM process is shown in Figure 1. It

includes seven basic activities which are: 1) human resource planning, 2) recruitment, 3) selection, 4)

socialization, 5) training and development, 6) performance appraisal and 7) promotion, transfers and

demotion.

Human Resource Planning

Human resource planning is the first step in HRM. It deals with the future requirements of human

asset for the organization. The need for human resource planning may not be readily apparent. However,

an organization that does not do planning for human resources may find that it is not meeting either its

personnel requirements or its overall goals effectively.

How is Human Resource Planning done? It has following components:

1. Planning for future needs: The organization must decide how many people it will need in the future.

What kind of skills those people will possess. In other words organization should be able to

forecast its future human requirements for planning for its future needs.

2. Planning for future balance: organization should be able to determine the future balance of its human

resource. It has to see how many people will retire or the likely hood of people leaving the

organization. HRM should compare the number of employees needed to the number of present

employees who can be expected to stay with the organization, which leads to

3. Planning for recruiting or laying off employees: This will determine how many employees will be recruited

and how many will be laid off.

4. Planning for the development of employees, Once new employees are recruited there need to train these

employees for the jobs in organizations.

Recruitment

The purpose of recruitment is to provide a group of candidates that is large enough to let managers

select the qualified employees they need.

Recruitment is defined as the development of a pool of job candidates in accordance with a human resource

plan.

Job and Position Descriptions

Before employees can be recruited, recruiters must have some clear ideas regarding the activities

and responsibilities and qualifications required for the job being filled. Job analysis is therefore an early step

in the recruitment process. In Job analysis each job in the organization is categorized. For each job the

activities and responsibilities are enumerated and then qualification, experience, knowledge and skills

required to perform the job are written down. Following are the three components of job analysis which are

discussed below:

1. Job description: A written description of a non-management job, covering title, duties, and

responsibilities, and including its location on the organization chart.

2. Position description: A written description of a management position, covering title, duties,

and responsibilities, and including its location on the organization chart.

3. Hiring specification: A written description of the education, experience, and skills needed to

perform a job or fill a position effective.

Once a specific job has been analyzed, a written statement of its content and location is included in

the organization chart. This statement is called either a job description or a position description. Job

analysis which comprises hiring specification and job description is important before recruitment is done.

Introduction To Public AdministrationMGT111

Sources for Recruitment

Recruitment takes place within the labour market that is, the pool of available people who have

the skills to fill vacant positions. The labour market changes over time in response to environmental

factors.

The labour market for different jobs would be different. For example labour market for doctors,

accountants, financial managers, history teacher, clerks, messengers, cleaners, etc. will be the from

respective group

Selection

The selection process ideally involves mutual decision. The organization decides whether to make

a job offer and how attractive the offer should be made so that right people join the organization. The

candidate has to decide whether the organization and the job offer fit his or her needs and goals, whether it

is just the income or there are is challenge in the job etc.

In reality, the selection process is often more one-sided because it is the organization that has upper

edge. Also, in situations when the job market is extremely tight, several candidates will be applying for each

position, and managers at the organization will use a series of screening devices to identify the most suitable

candidates.

On the other hand, when there is a shortage of qualified workers, or when the candidate is a highly

qualified executive or professional, the organizations will have to make the offer attractive to the candidate.

Concepts

Human resource management:

it is also called staffing. It involves the seven steps of

recruitment,

selection,

socialization,

training,

performance appraisal, compensation and promotion,

transfers

Job description:

A written description of a non-management job,

covering title, duties, and responsibilities, and including

its location on the organization chart.

Position description:

A written description of a management position,

covering title, duties, and responsibilities, and including

its location on the organization chart.

Hiring specification:

A written description of the education, experience, and

skills needed to perform a job or fill a position effective.

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