Are you, as the owner, spending your time appropriately? As Rossiter noted, "any personnel change should be considered an opportunity for rethinking your organizational structure. Small businesses also need to match the talents of prospective employees with the company's needs. Efforts to manage this can be accomplished in a much more effective fashion if the small business owner devotes energy to defining the job and actively taking part in the recruitment process.
But the human resource management task does not end with the creation of a detailed job description and the selection of a suitable employee. Indeed, the hiring process marks the beginning of HRM for the small business owner. Small business consultants strongly urge even the most modest of business enterprises to implement and document policies regarding human resource issues. To hold problems to a minimum, specific personnel policies should be established as early as possible.
These become useful guides in all areas: recruitment and selection, compensation plan and employee benefits, training, promotions and terminations, and the like. In any case, a carefully considered employee handbook or personnel manual can be an invaluable tool in ensuring that the small business owner and his or her employees are on the same page. Moreover, a written record can lend a small business some protection in the event that its management or operating procedures are questioned in the legal arena.
Some small business owners also need to consider training and other development needs in managing their enterprise's employees. The need for such educational supplements can range dramatically. A bakery owner, for instance, may not need to devote much of his resources to employee training, but a firm that provides electrical wiring services to commercial clients may need to implement a system of continuing education for its workers in order to remain viable.
Finally, the small business owner needs to establish and maintain a productive working atmosphere for his or her work force. Employees are far more likely to be productive assets to your company if they feel that they are treated fairly. The small business owner who clearly communicates personal expectations and company goals, provides adequate compensation, offers meaningful opportunities for career advancement, anticipates work force training and developmental needs, and provides meaningful feedback to his or her employees is far more likely to be successful than the owner who is neglectful in any of these areas.
Armstrong, Michael. Kogan Page Limited, Green, Paul C. Jossey-Bass, Gubman, Edward L. November-December Phillip, Harris. Managing the Knowledge Culture. Human Resource Development Press, March Mathis, Robert L. Human Resource Management. Thomson South-Western, Rossiter, Jill A.
Upstart Publishing, Solomon, Charlene Marmer. June Ulrich, Dave. Harvard Business School Press, Small Business Administration.
Editorial Disclosure: Inc. These articles are editorially independent - that means editors and reporters research and write on these products free of any influence of any marketing or sales departments. Human resource development consists of training, organization, and career-development efforts to improve individual, group, and organizational effectiveness. There are several categories of stakeholders that are helpful in understanding employee development: sponsors, managers and supervisors, participants, and facilitators.
The sponsors of employee development are senior managers. Senior management invests in employees in a top-down manner, hoping to develop talent internally to reduce turnover, increase efficiency, and acquire human resource value. Line managers or direct supervisors are responsible for coaching employees and for employee performance and are therefore much more directly involved in the actual process.
The participants are the people who actually go through the employee development, and also benefit significantly from effective development. The facilitators are human resource management staff, who usually hire specialists in a given field to provide hands-on instruction.
Each of these stakeholder groups has its own agendas and motivations, which can cause conflict with the agendas and motivations of other stakeholder groups. Human resource professionals should focus on aligning the interests of every stakeholder in the development process to capture mutual value.
Talent development, part of human resource development, is the process of changing an organization, its employees, and its stakeholders, using planned and unplanned learning, in order to achieve and maintain a competitive advantage for the organization.
What this essentially means is that human resources departments, in addition to their other responsibilities of job design, hiring, training, and employee interaction, are also tasked with helping others improve their career opportunities.
This process requires investment in growing talent. It is often more economical in the long run to improve on existing employee skill sets, as opposed to investing in new employees.
Therefore, talent development is a trade-off by which human resources departments can effectively save money through avoiding the opportunity costs of new employees. Career-path management requires human resource management to actively manage employee skills in pursuit of successful professional careers. The results of successful career planning are personal fulfillment, a work and life balance, goal achievement, and financial security.
A career encompasses the changes or modifications in employment through advancement during the foreseeable future. There are many definitions by management scholars of the stages in the managerial process.
The following classification system with minor variations is widely used:. Human resource development HRD is the central framework for the way in which a company leverages an effective human resources department to empower employees with the skills for current and future success. The responsibility of the human resources department in regard to employee development primarily pertains to varying forms of training, educational initiatives, performance evaluation, and management development.
This is achieved through two specific human resource objectives: training and development TD and organizational development OD. Training and development, as stated above, is primarily individualistic in nature and focused on ensuring that employees develop throughout their careers to capture more opportunity.
Organizational development must be balanced during this process, ensuring that the company itself is leveraging these evolving human resources to maximum efficiency. Depending too heavily upon TD may result in an organization incapable of capitalizing on employee skills, while focusing too much on OD will generate a company culture adverse to professional development.
Therefore, human resources departments are central to empowering employees to take successful career paths while maintaining an organizational balance. The first step of career management is setting goals. Before doing so the person must be aware of career opportunities and should also know his or her own talents and abilities. All these functionalities can often be done in one single system — the HRIS. Sometimes, however, the management of these functionalities is split up into different HR systems.
The bottom line here is that there is a significant digital element to working in HR which is why the HRIS is the final element when we talk about the HR basics.
The last of the HR fundamentals revolves around data and analytics. In the last half-decade, HR has made a major leap towards becoming more data-driven. The Human Resource Information Systems we just discussed is essentially a data-entry system.
The data in these systems can be used to make better and more informed decisions. These are specific measurements that answer how a company is doing on a given measurement.
This is referred to as HR reporting. This reporting focuses on the current and past state of the organization. Using HR analytics, HR can also make predictions. Examples include workforce needs, employee turnover intention, the impact of the recruitment candidate experience on customer satisfaction, and many others.
By actively measuring and looking at this data, HR can make more data-driven decisions. These decisions are often more objective, which makes it easier to find management support for these decisions. You now know the 7 Human Resource Management basics. None of these HR fundamentals are isolated. They all interact and affect each other.
Think of these 7 basics as building blocks — strong management of each fundamental element contributes to the strength of the next. Collectively, these HR fundamentals enable a workforce not only to perform better but to perform at its very best.
There is a lot more to learn when it comes to HR. For more advanced HR reading, check our articles on HR best practices , talent management , employee experience , and HR innovation.
These people can be full-time employees, contractors, freelancers, or any other kind of contingent worker. Future-proof your career in HR by continuously expanding your skill set with the latest and most relevant HR skills. Erik van Vulpen is an expert in shaping modern HR practices by bringing technological innovations into the HR context. Which has since become the 1 leader in online training courses for HR professionals across the globe. Related free resource ahead!
Download Free PDF. Download Syllabus. Those who've earned associate's degrees and certificates in human resources are primed for entry-level positions as a human resources clerk, HR assistant, recruiter, training and development coordinator, payroll specialist or HR generalist. Entering the field with a bachelor's degree gives you access to more options, including working in employee relations, HR information systems, training and development, labor relations or as a compensation or benefit analyst.
The U. Bureau of Labor Statistics' current Occupational Outlook Handbook places employment of human resources managers at nine percent through , a little faster than average for all occupations. Love business but want to keep your feet on the ground? Explore similar career options in business administration , finance and accounting. Skip to content.
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