HUMAN RESOURCE MANAGEMENT/HUMAN CAPITAL MANAGEMENT
OBJECTIVES
• Definition of Human Resources
• Definition of Human Resources Management
• Understand the functions of Management
• Human Resources Practitioner Strategic Roles.
Definition of Human Resources
These are people and their characteristics at work either at the national level or organizational level. At the
national point of view, human resources attributes are knowledge, skills, creative abilities, talents and
attitudes obtained in the population. At the view point of the individual enterprise they represent the total
of the inherent abilities, acquired knowledge and skills as exemplified in the talents and aptitudes of its
employers.
Definition of Human Resource Management
It’s the strategic and coherent approach to the management of an organizations most valued assets the
employees, Staff or people working there who individually and collectively contribute to the achievements
of its objectives.
Goals of Human Resource Management
• To manage staff as assets that are fundamental to the competitive advantage of the
organization.
• To align HRM policies with business policies and corporate strategies.
• To develop a close fit of HR Policy, procedures and systems with one another.
• To create a flat and more flexible organization structure capable of responding morequickly
to change.
• To encourage team work and cooperation across internal organizational boundaries.
• To create a strong customer –first philosophy throughout the organization.
• To empower employees to manage their own self-development and learning.
• To develop reward strategies designed to support a performance –driven culture.
• To improving employee involvement through better internal communication.
• To build greater employee commitment to the organization.
Human Resource Functions
Recruitment & Selection
Attracting, hiring and retaining skilled workforce is one of the most basic human resource functions. It
entails developing a job description, interviewing candidates, making offers and negotiating salaries and
benefits.
Training & Development
The Human Resources Management is responsible for both on-job and off-job training to enhance the skills
of its employees. The training function is amplified when the organization is running global operations in a
number of different locations.
Professional Development
Closely related to training but whereas training needs are centered on the organizations’ process and
procedures, professional development is about providing employees with opportunities for growth and
education on an individual basis. Many human resource departments offer professional development
opportunities to their employees by sponsoring them to visit conferences, external skills training days or
trade shows.
Benefits & Compensation
The HRM is responsible for providing non-traditional benefits such as flexible working hours, paternity
leave, extended vacation time and telecommuting to motivate existing employees and toattract as well as
retain new skilled employees. A part from the non-traditional benefits the HR department can also
provide; medical, pension and Shopping voucher benefits to staff. Balancing compensation and benefits
for the organization’s workforce is also an important HR functionbecause it requires a sensitive wants
and needs of a diverse group of people.
Reward Management
It is a function of HRM that is concerned with formulation and implementation of strategies and policies
aimed at rewarding people fairly, equitably and consistently in accordance with the value they bring to the
organization.
Labor Relations
It is a function of HRM that fosters good employer & employer relationships, employee & fellow employee
relationship. These relationships include agreement of terms and conditions of employment. When this
relationship incorporate the trade unions and the government through the industrial court it then becomes
industrial relations.
Performance Management
It is a function of HRM that involves the continuous process of improving organizational performance by
monitoring performance of individual employees throughout the year. It involves setting goals and standards
as well as giving the framework within which the set goals will be achieved.
Ensuring Legal Compliance
Compliance with labor laws & Tax Laws is a vital part of ensuring the organizations continued existence.
The government imposes mandates on companies regarding the working hours of employees, tax
allowances required break times & minimum wage amounts and policies on discrimination. Being aware of
these laws and policies, working to keep the organization completely legal at all times is an essential role of
Human Resource Department.
HR PRACTITIONER STRATEGIC MAIN ROLES
HR practitioners take on a variety of roles depending on their position in the organization, expectations of
the management on the contribution HR should make and the HR practitioners’ capacity to make an
impact. The main roles include:-
1. Reactive/Proactive roles
2. Business partner role
3. Strategist role
4. Interventionist role
5. Innovation role
6. Internal Consultancy role
7. Monitoring role
1. REACTIVE/PROACTIVE ROLES
In a reactive role, HR practitioners do what they are told or asked to do. They respond to requests for
service or advice, they provide the administrative systems required by management. This is a non-
interventionary role and entails provision of service to meet demands of the line managers.
At a strategic level, HR specialists take on a proactive role. They help develop HR strategies and volunteer
guidance to ensure consistency in the organization.
2. BUSINESS PARTNER ROLE
Here, the HR practitioners share responsibility with their line management colleagues for the success of the
enterprise. HR practitioners in this role have the capacity to identify business opportunities, to see the
broad picture and to see how their HR role can help to achieve the company’s business objectives.In this
role, the HR practitioners are aware of the business strategies, the opportunities and threats facing the
organization. They are capable of analyzing organizational strengths & weaknesses and their HR
implications. They are aware of the critical success factors and know that HR has the ability to give an
organization competitive advantage.
3. STRATEGIST ROLE
As strategists, HR practitioners address long-term issues concerning the management & development of
people and the employment relationship. The HR practitioner ensures other managers focus on the HR
implications of their plan. The HR strategists strive to achieve strategic integration and fit. Integration
means the strategies are linked together to form a coherent whole. Vertical integration occurs when HR
strategies are linked to and support business strategies. Horizontal integration occurs when a range of
coherent, interconnected and mutually reinforced are established. Strategic fit means that both the business
and HR strategies meet the needs of theorganization.
4. INTERVENTIONIST ROLE
HR specialists are expected to have a holistic approach to understanding organizational issues and their
effect on people. Following their analysis, the HR specialists can produce a diagnosis of any problems and
their causes and formulate proposals on what should be done about them. Intervention can be concerned
with organizational processes such as interaction between departments and people, teamwork and structural
change. It may be necessary to intervene with proposals on job design, team building, training,
communication, introduction of new technology etc.The practitioners may also intervene when they believe
that existing people management processes need to be improved or changed. Other areas of intervention
include performance, productivity, competence, motivation and commitment.
5. INNOVATION ROLE
HR practitioners are expected to introduce new processes and procedures towards improving
organizational processes and effectiveness
6. INTERNAL CONSULTANCY ROLE
HR practitioners work like external management consultants, working alongside their colleagues their
clients in analysing problems, diagnosing issues and proposing solutions.The practitioners are concerned
with the development of HR processes or systems performance management, personal development, new
pay structures. This role requires skill and credibility.
7. THE MONITORING ROLE
HR practitioners monitoring role entails ensuring that the policies and procedures of the organization are
implemented with a reasonable degree of consistency. They act as regulators through formulation and
monitoring of employment rules. E.g. the line managers may be given responsibility over salary levels, but
the practitioner may monitor proposals made and question unusual awards. When a disciplinary case arises,
the HR practitioner has the right to insist that the standard disciplinary procedure is followed.The HR
practitioners also act as guardians of the organizations’ values concerning people. They point out when
behavior conflicts with those values or where proposed actions will be inconsistent with them.The
practitioner also ensures that organizational policies and procedures comply with the necessary
employment legislation and are implemented correctly by the manage
