12.

HUMAN RESOURCES MANAGEMENT

(NARRATIVE REPORT)

REPORTERS:

CRUZ, MARINELLA B.

ESTAREZ, MARK ANTHONY

I. INTRODUCTION

As a practice, businesses and organizations depend on three key resources: physical

resources, such as materials and equipment; financial resources, including cash, credit, and debt;
and people. There can be no doubt that people play a vital role in an organization or business as a
resource.

The human resource function of every defines their success as an organization. An

organization’s HR function plays a major role in the growth of its bottom line and the success of
its business strategy. The very nature of a company is in its people, and giving direction to
people is what human resource management (HRM) is all about. HRM provides an organization
with the best services and systems drive both profit and team synergy.

II. OUTLINE:

12. Human Resources Management

12.1. Diversity and Importance of People

12.2. The HRM Process

III. LEARNING OUTCOMES:

 To have a differ understanding on Human Resource Management and its

importance.
 To demonstrate an understanding of the diversity and importance of people in
an organization
 To list down the human resource management process.
 IV. DISCUSSIONS:
“The basic mission of human resources will be to acquire, develop, & retain talent;
position the workforce with the business; & be an excellent backer to the business.
Those three challenges will never change.”

- Edward L. Gubman noticed in the Journal of Business Strategy

Human resource management (HRM) is the practice of recruiting, hiring, deploying, and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the organization
with its employees. The term human resources were first used in the early 1900s, and then more
widely in the 1960s, to describe the people who work for the organization, in aggregate.

HRM is employee management with an emphasis on those employees as assets of the

business. In this context, employees are sometimes referred to as human capital. As with other
business assets, the goal is to make effective use of employees, reducing risk and maximizing
return on investment (ROI).

Human Resource

 The science and the practice that deals with the nature of the employment relationship
and all the decisions, actions and issues that relate to this relationship.
 The process of attracting, developing, and maintaining a talented and energetic workplace
to support organizational mission, objectives, and strategies.
 It involves an organizational acquisition, development and utilization of employees, well
as the employee relationship to an organization and its performance.
 The resource that lies within employees and how they are organized is critical to strategic
success and competitive advantage.
 The overall purpose of HRM is to ensure that the organization can achieve success
through people.
 Managers must find ways to get the highest level of contribution from their workers. And
they will not be able to do that unless they are aware of the many ways that their
understanding of diversity relates to how well, or how poorly, people contribute.
Diversity and Importance of People

People make the difference in every organization. They can generate ideas, solving problems,
making decisions, and generating learning that improve the organization.

The term diversity often generates controversy, confusion, and tension. What does it mean? Is it
the same as affirmative action?

When people refer to diversity, they may be thinking first of ethnicity and race, and then, of
gender; however, diversity is much broader than that. Diversity is “otherness or those human
qualities that are different from our own and outside the groups to which we belong, yet
present in other individuals and groups.” In other words, diversity can apply to anyone you
perceive to be different from yourself. Dimensions of diversity include, but are not limited to
age, ethnicity, ancestry, gender, physical abilities/qualities, race, sexual orientation, educational
background, geographic location, income, marital status, military experience, religious beliefs,
parental status, and work experience.

What Is Diversity in the Workplace?

Diversity in the workplace means that there is an array of differences among employees such as
race, ethnicity, gender, age, religion, and education. Over the past few decades, increasing
diversity within various business industries has become more common. It continues to be an
important factor in many company cultures and values.

How Can Organizations Benefit?

Diversity in the workplace brings many benefits to a company as a whole. It’s known to create a
competitive advantage for businesses, meaning it allows them to differentiate themselves from
their competitors. Many companies desire employees who have different backgrounds and
experiences. Here are four amazing benefits and reasons why you should consider implementing
or enhancing employee diversity.

1. Fresh Opinions

Businesses constantly must be responsive to social changes. Employee diversity can allow
businesses to be exposed to a variety of backgrounds and knowledge. Embracing various
employee experiences is important because companies should have people with individual
opinions. A variety of perspectives benefits a company, especially in strategic planning and
decision-making.

2. Enhanced Company Culture

As employee diversity increases within a company, employee collaboration and innovation grow
too. A company’s culture is one of the core aspects of a business and, for that reason, it is
important to have a safe and healthy work environment. Diversity enhances and is the main
driver of organizational culture. Maintaining a positive organizational culture isn’t easy, but
more variance in employee backgrounds and traditions can allow employees to feel accepted.

3. Company Efficiency

When employees have different backgrounds and experiences, individuals are better able to take
on various tasks. By delegating certain roles to employees in relation to their background, a
company can be more efficient in the production of a good, for example. Teamwork with diverse
groups of people in a company is proven more efficient in problem-solving. Solutions to
problems can be analyzed with various viewpoints, which allow problems to be solved faster.

4. Employee Innovation

Managing a business requires new ideas and constant innovation. Employees often are able to
provide their thoughts and relay ideas through meetings and everyday tasks. One simple idea or
thought can greatly impact a business, whether it is related to how to solve a specific problem
better or how to market the business, etc. Idea generation may be difficult, but it can be easier
when there is a diverse group of people expressing and listening to each other’s thoughts.

Role of Human Resource Management

When it comes to the workplace, the human resource department has a great deal of
responsibility in managing the overall diversity of the organization. Human resources should
consider diversity within the following areas:

 Hiring  Employee policies

 Promotion  Legal regulations

 Compensation equality  Ensuring accessibility of important

documents (e.g., translating human
 Training resource materials into other
languages so all staff can read them)

The role of human resources is to ensure that all employee concerns are being met and that
employee problems are solved when they arise. Human resource professionals must also pursue
corporate strategy and adhere to legal concerns when hiring, firing, paying, and regulating
employees. This requires careful and meticulous understanding of both the legal and
organizational contexts as they pertain to diversity management.

Importance of HRM

HR plays a key role in developing, reinforcing and changing the culture of an organization. Pay,

performance management, training and development, recruitment and onboarding and

reinforcing the values of the business are all essential elements of business culture covered by

HR.

GOOD HR PRACTICES HELPS:

 Attract & retain talent

 Train people for challenging roles
 Develop skill & competencies
 Promote team spirit
 Develop loyalty & commitment
 Increase productivity & profits
 Improve job satisfaction
 Enhance standard of living
 Generate employment opportunity
 Great trust and respect

Processes in Human Resource Management

1. Recruitment
 It aims at attracting applicants that match a certain Job criteria. It is a positive
process of posting job openings and attracting prospective employees to apply for
their desired job openings in an organization so that the eligible candidate can be
selected.
2. Selection
 Selection is quite a necessary process in HRM. It involves eliminating the
unsuitable candidates through the process of tests or interviews and identifying the
suitable ones, which are the best fit for the positions. Aims at short listing
candidates who are the nearest match in terms qualifications, expertise and
potential for a certain job.
3. Hiring
 This entails to the process of officially offering the job to the ideal candidate and
giving them the date of joining.
4. Training and Development
 The hired candidates are given training and their skills are brushed so that they
become more efficient in their work and handle future challenges. Those processes
that work on an employee onboard for his skills and abilities upgradation
5. Performance Management
 Performance management refers to appraising the performance of the employees
and enhancing it. For such a management, it is necessary to encourage the
employees so as to raise their confidence levels. It is meant to help the
organization train, motivate and reward workers. It is also meant to ensure that the
organizational goals are met with efficiency. The process not only includes the
employees but can also be for a department, product, service or customer process;
all towards enhancing or adding value to them.
6. Remuneration to employees and benefits
 Fair salary or remuneration plays a very important role in motivating an employee
to accomplish organizational goals. If the employees get rewards for their best
performance, they will get job satisfaction. Involves deciding upon salaries and
wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime
motivator in any job.
7. Employee Relation
 There should be a sound relation between the employee and the organization.
There are various factors which motivate as well as demotivate the employees to
stick with the organization.
V. CONCLUSION

Therefore, human resource management is meant for proper utilization of available

skilled workforce and to make efficient use of existing human resource in the organization.
Today many experts claim that machines and technology are replacing human resource and
minimizing their role or effort. However, machines and technology are built by the humans
only and they need to be operated or at least monitored by humans and this is the reason why
companies are always in hunt for talented, skilled, and qualified professionals for continuous
development of the organization.

Therefore, humans are crucial assets for any organization, although today many tasks
have been handing over to the artificial intelligence, but they lack judgement skills which
cannot be matched with human mind.

VI. REFERENCES

https://coreaxis.com/insights/blog/the-importance-of-diversity-in-organizations

https://www.slideshare.net/padawan3001/engineering-management-32704598
 https://www.hrdconnect.com/2019/05/22/what-is-hr-management-in-an-organisation/

https://www.breathehr.com/en-gb/blog/topic/business-process/why-is-human-resources-
important?fbclid=IwAR2bWy_MBYVjriHOYXh1bWljaaEtR7-
zTzKyNcM7S2V8EpsAefYiFa5Y46A

https://blog.mitsde.com/processes-in-human-resource-management-hrm/

https://www.managementstudyguide.com/processes-in-human-resource-management.htm