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Hi, I'm Jeff. And in this lesson, we'll discuss human resource management and how they use forecasting and turnover management to better handle staffing issues. So let's get started.
Human resource management is the area of management that is focused on the selection and coaching of employees to amplify employee performance. It is often referred to as HRM. And we'll do so for the remainder of this lesson.
Since the 1960s and the shift to greater employee involvement in organizations, HRM has gained greater significance. It may also be called staffing and personnel management, but those terms are misleading, since HRM is more than just filling jobs. HRM is important for an organization, since it increases motivation among employees, helps reduce turnover from employees leaving the organization, and saves money since hiring new employees can be quite costly.
It is much more effective to maintain and grow the employees than an organization already has. The cost of poor HRM is weak morale, high turnover, poor productivity, and lower quality staff, all elements that can lead an organization to failure. In order to avoid these issues, HRM operates with employees in three phases.
Acquiring, this includes planning the workforce load needed for a company, performing a job analysis and recruiting, selecting, and orienting, new employees. Maintaining, this includes employee relations, the management of compensation, and the development and management of employee benefits. HRM will also deal with employee issues such as absenteeism or counterproductive behaviors that may impact the morale of other employees. And developing, which includes the on-boarding of new employees and the training of new and existing employees and the management of performance appraisals and the actions needed based on those appraisals.
In order to understand the size of workforce and organization might need, HRM also performs forecasting. This is using current and historical staffing information to predict future staffing needs and then develop an effective strategy to deal with the changes. HRM will use the results of forecasting to create hiring plans. HRM will also analyze the corporate and functional strategic plans to determine and estimate the need and begin to fill any positions necessary to fulfill those plans.
As part of the process, HRM must develop a timing and action calendar for hiring. In addition to hiring management, HRM must also develop plans to avoid or deal with the turn, otherwise known as loss of employees, or with employees lost or moved based on restructuring also called churn. Turnover management is a critical area for HRM. And they must have replacement charts in effect for these situations.
HRM should anticipate the level of turnover based on the organization's historical data and break it down by role within the organization. When considering turnover and the replacement chart, HRM must also consider positions that need filled due to internal promotions or lateral movements within the organization. And finally, HRM should maintain a skills inventory of employees so that promotions and other internal movements can be better handled. These will also assist when establishing job descriptions and hiring goals when replacing someone in the organization.
All right, nicely done. In this lesson, we learned about the role of human resource management often referred to as HRM. We reviewed the benefits of HRM.
We went through the HRM process. We talked about the way HRM uses forecasting to prepare for future hiring needs. And we discussed the ways HRM deals with employee turnover. Thanks for your time, and have a great day.