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Unit 6: Human Resource Management

6.1.3 Business Practice Notes

Human resources management involves several processes. Together they are supposed to
achieve the above mentioned goal. These processes can be performed in an HR department,
but some tasks can also be outsourced or performed by line-managers or other departments.
When effectively integrated they provide significant economic benefit to the company.
• Workforce planning
• Recruitment (sometimes separated into attraction and selection)

• Induction, orientation and on boarding
• Skills management

• Training and development
• Personnel administration
• Compensation in wage or salary

• Time management
• Travel management (sometimes assigned to accounting rather than HRM)
• Payroll (sometimes assigned to accounting rather than HRM)

• Employee benefits administration
• Personnel cost planning
• Performance appraisal

• Labor relations.

6.2 HRM Strategy

An HRM strategy pertains to the means as to how to implement the specific functions of
Human Resource Management. An organization’s HR function may possess recruitment and
selection policies, disciplinary procedures, reward/recognition policies, an HR plan, or learning
and development policies; however all of these functional areas of HRM need to be aligned
and correlated, in order to correspond with the overall business strategy.

Notes An HRM strategy thus is an overall plan, concerning the implementation of specific
HRM functional areas.

An HRM strategy typically consists of the following factors:
• “Best fit” and “best practice” meaning that there is correlation between the HRM strategy
and the overall corporate strategy. As HRM as a field seeks to manage human resources
in order to achieve properly organizational goals, an organization’s HRM strategy seeks
to accomplish such management by applying a firm’s personnel needs with the goals/
objectives of the organisation. As an example, a firm selling cars could have a corporate
strategy of increasing car sales by 10% over a five-year period. Accordingly, the HRM
strategy would seek to facilitate how exactly to manage personnel in order to achieve the
10% figure. Specific HRM functions, such as recruitment and selection, reward/recognition,
an HR plan, or learning and development policies, would be tailored to achieve the
corporate objectives.
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