HRM Activities: Key Players and External Factors
Who Performs Human Resource Management Activities?
Human Resource Management (HRM) activities are carried out by various individuals and groups, both internal and external to an organization.
Key Players in HRM
- Human Resource Management Professionals: Individuals who typically act in an advisory or staff capacity, collaborating with other managers to assist them in addressing human resource matters.
- Line Managers: Managers at every level are inherently involved in HRM as they manage their teams.
External HR Support
- Human Resources Outsourcing (HRO): The process of engaging external HR professionals to perform HR tasks that were previously handled internally.
- Human Resources Shared Service Centers (SSC): A centralized unit that consolidates routine, transaction-based HR activities from across the organization. Also known as a center of expertise.
- Professional Employer Organizations (PEO): Companies that lease employees to other businesses, taking on HR responsibilities.
External Factors Influencing Human Resource Management
Numerous external factors significantly impact HRM practices:
- Legal Considerations: Federal, state, and local legislation, along with court decisions interpreting these laws, significantly affect HRM. These legal considerations impact virtually all aspects of human resource policies.
- Labor Market: The pool of potential employees within the geographic area from which employees are typically recruited. The skills and capabilities of a firm’s employees largely determine the organization’s ability to achieve its mission.
- Society: Societal pressure influences HRM. The public increasingly scrutinizes and questions business actions.
- Political Parties: The Democratic and Republican parties, the two major political parties in the United States, often hold differing views on HRM practices.
- Unions: Unions negotiate with management on behalf of employees regarding wages, benefits, and working conditions.
- Shareholders: The owners of a corporation. They have a vested interest in the company’s performance, which is influenced by HRM.
- Competition: Organizations face intense global competition in both product/service markets and labor markets.
- Customers: The individuals who use a firm’s goods and services are a crucial part of its external environment.
- HR Technology: Rapid technological advancements create new roles for HR professionals and require them to stay updated.
- Economy: The overall economic condition of the nation and the world significantly impacts HRM.
- Unanticipated Events: Unforeseen occurrences in the external environment.
Corporate Culture and Employer Branding
- Corporate Culture and Human Resource Management: Corporate culture refers to the system of shared values, beliefs, and habits within an organization. It interacts with the formal structure to shape behavioral norms.
- Employer Branding: A firm’s corporate image or culture, designed to attract and retain the desired type of employees. It represents the company’s values and identity, making it increasingly important in the public eye.