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Lesson 01: An Overview of Human Resource Management

Who Performs HR Functions?

Before we move on, watch the brief video below titled "Human Resource Management." This clip does a nice job highlighting some of the key responsibilities of HRM professionals.

Video  Length: 00:02:01, Human Resource Management Transcript

SPEAKER: When sporting teams and work teams have plans to improve themselves, or simply have a vacancy, the coach or manager usually calls in a specialist to find new talent. In companies, that specialist is the HR or Human Resources manager. HR staff kick into action and start the search for interested recruits.

Recruiting is a huge part of making great teams. From the group of wannabes, HR staff use their knowledge and experience to find the best person for the job. HR managers are a vital link in the company's overall structure, making sure that the people match the company's purpose.

But human resources staff do much more than find stars for the team. They provide expert advice to managers about how they can improve their team's performance, and suggest training options to optimize staff potential. HR staff also monitor well being, look after safety needs, and sometimes act as intermediaries.

Both sides need HR when differences arise. And importantly, they make sure people get paid fairly. They then follow up to ensure when jobs change, so does the pay. Keeping capable staff saves time and money in the long run, so HR managers play a big part in staff retention. In a big company, helping people along a successful career path is part of this responsibility.

HR managers can make a big difference when they connect the right people. They help shape the business by facilitating change. Then everyone benefits. HR experts are employed all over the world, which allows for great overseas employment opportunities.

So in summing up, human resources recruit team members, advise on team performance, oversee staff training options, monitor well-being, facilitate change, organize salary payments, and resolve grievances. Your training starts here. Recruit yourself into HR by enrolling in a business course at Monash University.

Now that you have a better understanding of what HRM entails, it would be logical to ask, “Who performs all these tasks? Who is responsible for these functions?”

Let’s begin by exploring potential members of an HR department. In larger organizations, an HR executive is the person responsible for overseeing all of the HR professionals. The executive supervises those within HR who help to accomplish all of the necessary functions. Two other job classifications include the HR Generalist--who is knowledgeable in a variety of areas within HR, and the HR Specialist—who is usually concerned with only one specific HR function (such as staffing or compensation). In smaller organizations, the HR Generalist may be the only person employed in a human resource capacity. In these instances, line managers may share some of the human resource responsibilities, such as hiring and training, while the HR Generalist oversees all other HR duties.

Variations in HR Departments

The answer to, “Who performs HRM functions?” can vary greatly based on the point of history in which one is living. Traditionally, HRM has been a staff function advising and supporting line managers.  It used to have a more prominent role in many large organizations, but there has been a significant shift in recent years. While some organizations still have HR departments within their operations, others outsource these functions to firms that specialize in providing HR support from the outside (such as ADP and Accenture). Typically, some control of HR is maintained by the organization.

For companies that have retained their HR departments, many are smaller than they have been in the past. In these instances, the role of the HR professional has become more strategic. No longer is the focus solely on the management functions discussed in this lesson. HR professionals assume a more active role, participating in and contributing to a wide-range of business decisions.

Outsourcing HRM Functions

Outsourcing of HR functions is now quite common. Two options include Shared Service Centers (SSC) and Professional Employer Organizations (PEO). SSCs are also known as “centers of expertise” as they strive to consolidate routine tasks that are performed in a variety of areas into one location. The more common examples for SSCs include payroll, training and development, and benefits administration.

PEOs are different in that these organizations lease employees to other businesses for the purpose of handling their HR needs. This type of employee leasing arrangement creates a beneficial situation because HR needs are met by professionals without having a dedicated HR department within the organization. SSCs and PEOs have become more common with the recent streamlining of organizations and the downturn in our economy.

The role of the HR professional continues to evolve and will likely continue to develop and respond to the changes in the global business world.


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