Basics of Human Resource Management

Personnel management is concerned with the effective use of the skills of people. They may be salespeople in a store, clerks in an office, operators in a factory, or technicians in a research laboratory. In a business, personnel management starts with the recruiting and hiring of qualified people and continues with directing and encouraging their growth as they encounter problems and tensions that arise in working toward established goals.

In addition to recruiting and hiring, some of the responsibilities of a personnel manager are:

1. To classify jobs and prepare wage and salary scales.

2. To counsel employees.

3. To deal with disciplinary problems.

4. To negotiate with labor unions and service union contracts.

5. To develop safety standards and practices.

6. To manage benefit programs, such as group insurance, health, and retirement plans.

7. To provide for periodic reviews of the performance of each individual employee, and for recognition of his or her strengths and needs for further development.

8. To assist individuals in their efforts to develop and qualify for more advanced jobs.

9. To plan and supervise training programs.

10. To keep abreast of developments in personnel management.

To understand the personnel manager's job think of how you would deal with the following examples of challenging employee situations:

The firm's employees - especially the most qualified ones - can get comparable, if not better jobs with other employers.

When a firm faces a scarcity of supervisory and specialized personnel with adequate experience and job capabilities, it has to train and develop its own people. This can be time consuming and expensive.

The cost of hiring and training employees at all levels is increasing, for instance, several thousand dollars for a salesperson. A mistake in hiring or in slow and inefficient methods of training can be costly.

Personnel managers must comply with the law by employing, training and promoting women and persons from minority groups. The problem in doing so is that many of these employees have not had appropriate experience and education in the past.

Most employees, whether or not represented by labor unions, continue to seek improvements in direct compensation, employee benefits, and working conditions. All commitments must be based upon what the firm can afford, comply with current practices of other employers, and be understood and accepted by the employee. To do this, all employee policies and operating procedures should be developed and negotiated with great care.

Some employees may not perform satisfactorily simply because their firm offers competitive compensation, benefits, and working conditions. In addition to these financial or physical compensations, they want responsibility, the opportunity to develop, and recognition of accomplishment in their jobs.

The law have established requirements for pension and other benefit plans, and also bar mandatory retirement at age 65. Complying with such changes presents real challenges.

Personnel management works to achieve practical solutions to such problems. In large firms, it generally provides support to line management. In this staff capacity, the personnel department has the responsibility to develop and implement policies, procedures, and programs for recruitment, selection, training, placement, safety, employee benefits and services, compensation, labor relations, organization planning, and employee development.

Often, the owner-manager of a firm also has to be the personnel manager. In such a case it is necessary to have an overview of current trends and practices in personnel management.

All small businesses must staff their operations. This involves bringing new people into the business and making sure they are productive additions to the enterprise. Effective human resource management matches and develops the abilities of job candidates and employees with the needs of the firm. A responsive personnel system will assist you in this process and is a key ingredient for growth.

Human resource management is a balancing act. At one extreme, you hire only qualified people who are well suited to the firm's needs. At the other extreme, you train and develop employees to meet the firm's needs. Most expanding small businesses fall between the two extremes i.e., they hire the best people they can find and afford, and they also recognize the need to train and develop both current and new employees as the firm grows.

One function of personnel management deals with how to hire and train the right people and addresses the characteristics of an effective personnel system, such as:

Assessing personnel needs.

Recruiting personnel.

Screening personnel.

Selecting and hiring personnel.

Orienting new employees to the business.

Deciding compensation issues.

Another function addresses the training and development side of human resource management. A third function deals with how the personnel system and the training and development functions come together to build employee trust and productivity. These three functions stress the importance of a good human resource management climate and provide specific guidelines for creating such a climate.

Human Resource Management Audit Questionnaire

Does the business have a plan for forecasting long-term personnel needs?

Are there guidelines for hiring personnel, or are employees hired based on gut feelings?

Are there job descriptions for all positions?

What do employees like about their jobs?

What do employees dislike about their jobs?

Why do employees leave the organization?

Is there an active training program? Is it based on an assessment of where the firm is now or where it should be in the future?

Are a variety of training programs available?

How is morale in the firm?

Do employees really believe what you have to say?

Are all employees treated fairly?

Compare your financial plan occasionally with actual operations statistics. With powerful records you can accomplish this. Then,
where discrepancies appear it is possible to take corrective action before it is too late. The proper decisions for the ideal
corrective action depends upon your understanding of management methods in buying, pricing, selling, selecting and training
personnel, and handling other management issues.

You probably are thinking you can employ a bookkeeper or an Accountant to handle the record keeping for you. Yes, you can. But
remember two very important details:

1. Supply the accountant with accurate input. Should You Purchase something And also don't record the sum in your business
checkbook, the accountant can not enter it. If you sell something for money and do not record it, then the accountant won't know
about it. The documents the accountant prepares will probably be no greater than the info that you provide.

2. Use the documents to make decisions. If you went to a doctor And he told you you were sick and wanted certain medicine to get
well, you'd follow his advice. Should you pay an accountant and he tells you your earnings are down this season, don't hide your
head in the sand and pretend that the issue will go off. It won't.

Business Management Roll in Personnel Selection. If your business Will be large enough to require external help, an important duty
will be the choice and coaching of one or more workers. You may begin with family members or business partners that will help you.
But when the business grows - as you hope it will - that the time will come when you have to select and train personnel.

Careful choice of employees is essential. To select the right Employees decide beforehand what you want each one to do.

Then look for applicants to fulfill these specific needs. In a small Business you will need flexible employees who can shift from
task to task as required. Include this in the description of the jobs you would like to fill. At precisely the same time, look
ahead and plan your hiring to guarantee an organization of individuals capable of accomplishing every crucial function. At a
retail store, a salesperson might likewise do stock-keeping or accounting at the outset, but as the business grows you'll need
sales people, stock-keepers and bookkeepers.

When the job descriptions are composed, line up applicants whom To make a choice. Do not be swayed by clients who may suggest
relatives. If the applicant does not succeed, you might lose a client in addition to a worker. Some sources of possible new
employees are:

1. Recommendations by friends, business acquaintances. 2. Employment agencies. 3. Placement bureaus of high schools, business
schools, and colleges. 4. Trade and industrial institutions. 5. Help-wanted ads in local papers.

Your next task is to screen want ad responses and/or program Forms sent by employment agencies. Some applicants will be eliminated
sight unseen. For every one of the other people, the application form or letter will act as a basis for the interview that ought
to be conducted privately. Put the applicant at ease by describing your business in general and the occupation particularly. Once
you've done this, invite the applicant to talk. Picking the right individual is very important. Consult your questions carefully
to learn everything about the applicant that is pertinent to the job.

References are a must, and should be checked before making a final decision. Check through an individual visit or a telephone call
directly to the applicant's immediate former manager, whenever at all possible. Confirm that the advice given you is correct.
Consider, with conclusion, any negative remarks you hear and what isn't said.

Checking references can bring to light important Details Which may save you money and potential inconvenience.

Personnel Training. A well-selected employee is only a possible Asset to your organization. Whether he or she becomes a true
advantage is dependent on your training. Remember:

To allow sufficient time for instruction. Not to anticipate too much from The trainee in too short a time. To allow the worker
learn by performing under real working conditions, with close oversight. To follow along with your training.

Check the worker's operation after he or she was in work For a moment. Re-explain key points and short cuts; bring the employee up
to date on new developments and invite questions. Training is an ongoing process which becomes excruciating supervision.

Personnel Supervision. Supervision is the third crucial of employees control. Good oversight will reduce the cost of operating
your business by cutting down on the number of employee mistakes. If mistakes are corrected early, employees will find more
satisfaction out of their tasks and perform better.

Motivating Employees. Small businesses occasionally face special Issues in motivating employees. In a large business, a Fantastic
employee can see An opportunity to advance into management. In a small business, You're the management. One thing you Might Wish
to consider is to give good employees a Small share of their profits, either via part-ownership or even a profit-sharing plan.
Someone who has a"share of this action" is going to be more Worried about helping to make a success of the business enterprise.

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