2.1 Intro to HRM

• Human resources (HR) are people that constitute the workforce of an organisation.
• An organisation can be a business of any size and type, a country, a region, an educational institution, etc.
• Very often HR also refers to the human department in an organisation.
• HR management (HRM) is one of the four business functions that corresponds to the process of organising people and maximising their efficiency.
• HRM is argued to be the most important business function and the most important type of business inputs, especially for service industries.
• One of the main tasks for people who work in HR department is making sure the workplace allows employees to be as productive and efficient as possible.
• HRP is a link between HRM and the strategic goal of an organisation.
• HRP is influenced by internal factors such as leadership styles, and strategies and objectives, and by external factors like demographic change, labour mobility, and professional immigration.
• HR planning does not necessarily imply expansion of workforce, it can also refer to downsizing, including redundancies and dismissals.
• HRP is really important and inevitable, because without it an organisation is unable to achieve its goals and objectives.
• HR planning is a systematic process of anticipating the staffing needs of an organisation.
• All organisations, regardless of their size, from small traders to huge MNCs, do HRP.
• One thing that HR specialists do is HR planning.
• HRM maintains the appropriate levels of staff retention, which means it makes sure there are always enough employees hired at any time.
• Negotiation involves reconsideration of the current incentives together with employees and trying to make mutual concessions for the benefit of implementing change.
• Education and communication is the most smooth and nice way to deal with change: prepare employees to it, train them, and let them be the drivers of change.
• Coercion is the least nice strategy to overcome resistance to change. It implies more dramatic effects such as dismissals and loss of certain benefits. This strategy does not really overcome the resistance, it mainly pushes change through. In the long term, this strategy will not work, if the change was not actually necessary.
• Kotter and Schlesinger "change theory" is an overview of reasons for resistance to change and strategies to overcome this resistance.
• Co-optation and manipulation involve finding employees who have influence over others and trying to appoint them a certain role that helps to promote and implement the desired change.
• Facilitation and support means being supportive and caring to employees because they might be afraid to change their working routines.
• Participation and involvement in decision-making empowers employees and reduces resistance to change.
• The opposite of retention is staff turnover.
• HR department is in charge of creating organisation charts that help employees understand where they belong in the company, who their line manager is, who they are responsible for, etc.
• HRM develops employees via professional development workshops and training.
• HRM keeps employees motivated by designing appropriate financial and non-financial rewards.
• HRM helps to drive change smoothly.
• Kotter and Schlesinger's change theory identifies four causes of resistance to change: self-interest, misunderstanding, low tolerance for change, and different assessments of the situation. It also proposes six approaches/strategies for reducing the impact of change and resistance to change.
• Strategies for reducing the impact of change and resistance to change include education and communication, participation and involvement of employees, facilitation and support, negotiation, co-optation and manipulation, and coercion.
• Some common reasons for resistance to change include self-interest, misunderstanding, low tolerance for change, and different assessments of the situation.
• The gig economy is characterized by flexible working arrangements such as short-term contracts, freelancing, and temporary work. It lacks strong commitments and offers more flexibility compared to traditional employment practices.
• HR management involves organizing people and maximizing their efficiency. It is considered one of the most important business functions, especially for service industries that rely heavily on people.
• Flexitime refers to the practice of allowing employees to plan their own work hours as long as they meet deadlines. It has become more popular, especially after the pandemic, as companies realized that employees can be productive without adhering to traditional office hours.
• HR management plays a crucial role in managing change by designing appropriate strategies, providing professional development workshops and training, and keeping employees motivated through financial and non-financial rewards.
• Employees often resist change because it requires them to step out of their comfort zones and disrupts their familiar routines. Additionally, they may not fully understand how the change will benefit them personally.
• Demographic change, such as an aging population or changes in birth rates, can significantly influence HR planning. Organizations need to consider these trends when anticipating their future staffing needs.
• Staff retention is important because it ensures that there are always enough employees hired at any given time. It helps maintain the appropriate levels of workforce and reduces the need for constant recruitment.
• HR management is responsible for organizing professional development workshops and training to ensure that all employees are adequately trained and equipped with the necessary skills for their roles.
• When employees are actively involved in the decision-making process and feel that their opinions are valued, they are more likely to support and adapt to change, reducing resistance.
• HR management minimizes risk through HR planning, which involves anticipating future staffing needs and being prepared for potential difficulties. It also ensures that redundancies and dismissals are handled as smoothly as possible.
• Providing support and assistance to employees during times of change helps alleviate fears and concerns. It creates a supportive environment where employees feel comfortable adapting to new ways of working.