Human Resource Management
Whilst there are many different interpretations of human resources management (HRM) is at the core, people management. The main purpose of HRM is to combine all personnel activities in an organized way to meet a company’s strategic business goals. If human resource policy is integrated into a business with support from top management, it is likely that HRM goals will be achieved.
Human Resources Management Goals
The organisation will move away from “traditional” management styles with rigid hierarchies and toward managers who are skilled enablers, empowerers and facilitators.
There is a high level of commitment from employees who have goal alignment with the company’s objectives.
The organization will experience high-quality output from its employees who value the success and performance of the business.
Meaningful Human Resources Management
It is helpful to use a framework to measure the effectiveness of HRM in different organizations. The “Ten-Cs Checklist of HRM” describes key principles and their associated actions.
- Comprehensiveness – people management is organised
- Coherence – a clear link between business needs and individual performance
- Control – consistent performance and participatory management
- Communication – clear, well understood and well communicated strategies
- Credibility – employees have faith and trust in management, managers are honest
- Commitment – employees and managers are committed to their goals
- Change – flexibility and innovation are valued
- Competence – systems are in place to achieve the stated HR objectives
- Creativity – encouraging new ideas, research to develop competitive edge
- Cost-effectiveness – competitive and fair reward systems
HRM in Small and Medium-Sized Enterprises (SMEs)
HRM in SMEs can be significantly different than that in large organisations. Generally speaking, some of the distinctive characteristics of HRM in SMEs are:
Centralised control – the owner is the central figure with control, and their personal style determines the climate of the company; the owner may be the key decision maker in all personnel decisions (i.e. recruitment, termination, pay rises, etc.);
Strategy – little forward planning around employees; succession planning, career development and staff training could be inadequate; poor or ineffective performance management systems in place;
Crisis management – employees are expected to be flexible and may perform a variety of tasks without proper training;
People function – companies with less than 50 staff may not have a dedicated HR manager.
McKenzie Consulting has considerable experience in assisting SMEs improve or grow the HRM function within their business. Contact us for a confidential discussion about your HRM needs.
**Price, Alan. 2004. London, Thomson Learning. Human Resources Management in a Business Context, 2nd ed.