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Hello, and welcome to this tutorial on human resource management overview. Now, as always with these tutorials, please feel free to fast forward, pause, or rewind as many times as you need in order to get the most out of the time that you're going to spend here.
So let me ask a question right off the bat. What is it you think human resources do? Do they manage human resources like money, or clothing, or things like that? Well, what we're going to be talking about in this particular lesson is going to be an overview of human resource management. We're also going to be looking at something called forecasting and turnover management.
Now, the key term for this lesson is going to be human resource management. Let's go ahead right off the bat and define that key term-- human resource management. Now, this is the area of management that is focused on the selection and coaching of employees to amplify employee performance. Well, what exactly does that mean? Let's take an overview of the human resource management function.
Well, human resource management, or HRM, increases motivation, reduces turnover, and helps save money, or at least that's the goal of any human resource department within an organization. Now, human resources has been gaining significance and emphasis in business since the 1960s. In fact, it used to be called something like staffing or the personnel department. But it's grown much more than that. And these terms can be a little misleading, because human resource management is not just filling jobs. It's a lot more than that.
Organizations spend a lot of time and money in order to find employees. They also spend a lot of energy doing it, too. Now, this is a very good reason why it's beneficial to help maintain that current staff, and human resources can help you do that. Generally, you see, it's less expensive to maintain your current staff than to constantly replace them with new employees.
And what you're going to find is poor HRM, or human resource management, has a lot of costs-- for instance, poor morale, it has a higher turnover. You have poor productivity because your staff isn't being managed as well as they could, and you also are going to have lower quality staff, resulting in higher absenteeism among the employees. You may also see counterproductive behaviors among the employees, and especially management when it comes to dealing with HR issues. And all of this because you human resource function isn't up to par with where it should be.
Now, human resource management has three different phases. First of all, we're acquiring new personnel. We're planning on how to acquire these folks. We're doing a job analysis and seeing exactly what it takes to do that job. Then we're recruiting, selecting, and orienting those new employees into the jobs that they're going to be filling to make sure we get the best match from person to the job that we're trying to fill.
Next, we're going to be maintaining that employee. We're going to be helping with the employee relations-- making sure they're well compensated, make sure their benefits are all in order, and generally making sure that the employees have a positive feeling about the organization. A positive employee is going to be a more productive employee.
Next, we're going to be developing the employee. We're going to be doing training and onboarding. We're also going to be doing performance appraisals throughout the lifespan of the employee at the organization. Next, we're going to take a look at forecasting. Now, forecasting is using creative and effective strategies by using current and historical information and applying that to the company's future plans. What's the future plan for the company, and how are we going to help from a human resources side to fulfill that particular plan or strategy?
Now, human resources responds to that forecasting, and it develops hiring plans accordingly to make sure we're getting the right people on time to fill the right jobs. Human resources is going to analyze the corporate and the functional strategic plans to determine what those needs are. They're also going to be using that to estimate what the costs are going to be for these new employees and to hold them and to train them, and lastly, going to begin filling those particular needs.
Next, we'll be developing an action calendar for future needs, making sure that our timing is right and the actions that we take are hitting the mark as far as timing is concerned for hiring, and also meeting the future needs of the company. It does no good for a company to grow and build new products if we don't have the staff or the personnel or the manpower-- or in this case, the human resources-- to put that plan into place.
Now, turnover management is something a little bit unique about human resources. This is creating effective strategies to deal with what's called turn and churn. Turn and churn is basically the loss or restructure of employees, losing employees to the outside world, or churning, getting these employees moving up and around the different positions within the organization. Very rarely will you see employees stand in one particular spot anymore. They're going to be moving around at least inside the company.
And human resources have to anticipate what the level of turnover is going to be. In some cases, you'll have a replacement chart, and this is a very, very good thing to have. What this can do is help them plan for that turnover rate and make sure we're hiring new employees to fill those positions as they turn over.
Human resources is always going to have an anticipated rate of turnover. And what this is going to be based on is the organization and that particular person's role within that organization. You see, some organizations or business sectors will have higher turnover than other sectors, and certain positions within an organization, even, are going to have higher or lower turnover simply because of that position in the organization. Turnover management is also going to include internal promotions and lateral moves, that churn we were talking about earlier. So this is going to be in addition to the new hires that we're looking at within that replacement chart we mentioned before.
And lastly, human resources is going to maintain a skill inventory as part of their turnover management. And what a skill inventory is is making sure we know what employees have what skills. And this is going to help facilitate internal movements and hiring goals when we go to replace someone. What skills am I looking to replace when someone moves somewhere else? Or in order for someone to move into another position, what skills am I looking for to make sure that they're the right fit for that particular job?
So what did we talk about today? Well first we looked at a human resources management overview. Next, we looked at forecasting, and lastly, we took a look at turnover management, that turn and churn within an organization.
As always, I want to thank you for spending some time with me today. And you folks have a great day.
The area of management that is focused on the selection and coaching of employees to amplify employee performance.