The Importance of Human Resource Management

The Importance of Human Resource Management

BUS303

Human Resources Management

The Importance of Human Resource Management

Human Resources Management is a position within a company that can easily be overlooked, but it is an intricate part of the day-to-day operation if the business has employees. Recruitment and Selection, Employee Benefits, Compensation and Evaluations, Training and Development, Employee Incentives, Compliance, and Terminations are all responsibilities that fall under Human Resources Management. You do not have to hold the title Human Resources Management to be responsible for these activities, but they are still Human Resources Management duties.

My goal is to start a successful Real Estate business; it is a business that requires some a multitude of things. ” Building name recognition, hiring talent, offering attractive benefits and competing against industry gorillas are but a few of the daunting tasks required when starting a new real estate company. ” (Marsh, 2006) This is where the management of human resources comes in to play. But through blood, sweat, and tears-plus a sound business model starting a company from scratch can be quite a successful and rewarding endeavor. The Human Resources Management needs to plan, recruit, and select its resources. In the planning process, Human Resources Management will figure out compensation and benefits. Health, safety, even employee, and labor relations, will all be ongoing processes before and after the business is up and running. The most vital position in most companies is the Human Resources Manager.

The planning process is a strategic one built for a well-managed and productive workforce. The corporate strategy or long-term goal of this new Real Estate Brokerage has to be planned out and researched immensely. A business plan should be written with expansion in mind. Since the Real Estate Brokerage is starting out relatively small; human resources will be a key component, in the expansion process.

The business unit strategy would be to incorporate additional Real Estate jobs; Real Estate listing, Real Estate Sales, Real Estate Mortgage, Title Escrow, and Property Management just to name a few. After a couple of years of satisfactory operation, I will expand each revenue stream into individual independent companies that work together yet have outside clients as well. Initially, I will list and sale Real Estate and slowly roll out the additional Revenue streams listed above. It will be apart of the Human Resources Managers process to plan for this expansion. For example, the Human Resources Manager will need to consider the new staffing schedule, Planning, recruiting, and selection will all be repeated, to compensate for this new growth within the business.

The operational goals and strategies will be an ongoing process once the brokerage is in operation. Some of the short-term processes an Human Resources Managers will need to concentrate on our employee scheduling, on-time payroll, and employee relations. The scheduling has to be planned out so that there full is coverage during business hours. Human resource planning is the beginning stage of the management of an organization’s most valuable asset, its employees. In the planning stage, the Human Resources Management must consider several factors. One example of this would be an environmental scan this involves considering factors that will influence the direction and goals of your organization.

“Job analysis is critical to the successful completion of tasks and responsibilities and, ultimately, to the success of the entire organization” (Youssef, 2012). A job analysis creates, reviews, and updates job descriptions and specs. When the human resources manager creates a job analysis, he/she considers what skills and knowledge will be required based on the positions. However, figuring out recipes in large quantities requires more than just basic math. The minimum qualifications and educational requirements for a bakery employee may require minimum age, and high school graduation/GED certificate.

During the outlining process, compensation and benefits are also analyzed and chosen. The Human Resources Manager will have to evaluate, not only cause and effect of additional spending, on different benefits to be offered but also whether or not these benefits are going to attract adequate candidates to the business. The value of the position must also be weighed when figuring compensation.

In the Real Estate Industry training will be simple, because most of the positions require state licensing. Most of the training will have been completed before the employee comes to my firm. The support staff, on the other hand, will require some on the job training if they are not familiar with the industry. Most of the training will be software training as Real Estate has special industry-specific software.

Once the job design and analysis are complete, then the recruitment process can begin. Advertising for the positions is the initial step in the recruitment process. A well thought out, and accurate job description is required to attract the right applicants. Due to the design and analysis process, the job description should already be developed.

The Human Resource Manager needs to figure out the best selection methods for hiring employees in certain areas of the Real Estate Brokerage. A common selection process is the interview process that can be done one on one or with several managers or employees. For the Human Resources Manager, these steps will need to be taken in the hiring process.

Advertising: in-house, newspapers, online, and in select locations, such as a Business Schools. Chances are most of the hiring done for the Brokerage will be advertised on craigslist, in-house hiring, and at businesses and schools such as Real Estate Trainers.

Resume/application: online applications and resumes, in person, by email, or fax applications and resumes. The selection of the most qualified candidates will come from the application process as well as a combination of in-house applicants and resumes either emailed or faxed.

Interview process: face-to-face interviews, one interviewee and several interviewers, video/Skype-style interviews, group interviews, and phone interviews. The most likely candidates will be invited to a one on one interview followed by an interview with the manager of the hiring section. And If needed performance records from previous jobs could also be requested. It is also imperative that all candidates receive an Equal Employment Opportunity “It is illegal for employers to discriminate in pay based on gender, religion, national origin, race, color, disability, or age”(Youssef, 2012) no if’s and’s or but about it!

It is also important to note that discrimination laws protect members of the majority as well as minority groups” (Youssef, 2012). One example is discussed in chapter 5.6 of our Human Resources Management book. In the context of affirmation action, some organizations may consider hiring less qualified women and minorities in an attempt to appear less discriminatory and more diverse. However, these attempts can be found discriminatory against more qualified white male applicants, who have traditionally constituted the majority of the working population. This “overcompensation” effect is referred to as reverse discrimination and is illegal” (Youssef, 2012).

The Human Resource Manager should regularly acquire the most up to date EDD (Employment Development Department). This will be needed to keep employees up to date on these same rules and regulations. It is also important for the Human Resource Manager to attempt to foresee possible health and safety issue before they arise. Therefore providing the proper policies and training for prevention purposes. “HR Managers have the role of creating programs to proactively mitigate job-related accidents” (Youssef, 2012). It is the Human Resources Management’s job to write, distribute, and provide training of regulatory policies to help anticipate dangers and thwart accidents.

Employee relations are the bigger part of Human Resources Management positions. The job of relations with the management’s human resources is essential. Human Resources Management is in many businesses referred to as an impartial third party. They must learn to protect both the company and the employees. They are similar to the counselor available to students at the school. Keeping the employees happy to the best of your ability, this may also mean that sometimes the Human Resources may have to be the go-between for both the manager and employee should there be an issue.

After completion of this human resources management class, I have learned just how in-depth the inner workings of planning, recruiting, development, placement, benefits, and compensation are. Human Resources Managers must have strong organizational skills, decision-making skills, and communications skills. The job of HR manager is, absolutely, vital to the survival of any business, especially one with expansion in mind. I do look forward to opening, and I know that with proper Human Resources Managers the Brokerage’s foreseeable future is positive.

References:

Bacal, R. (2011) Work 911. What Is An Environmental Scan? Retrieved September 17, 2012 from http://work911.com/planningmaster/faq/scan.htm

Brown, S. (1983). Real estate brokers starting their own companies in Dallas. The Washington Post.

Christensen, R. (2006). Roadmap to Strategic HR: Turning a Great Idea Into a Business Reality. New York: AMACOM.

Fleischer, C. H. (2005). HR for Small Business: From Hiring to Firing and Everything in Between. Naperville, Ill: Sourcebooks, Inc.

Marsh, A. (2006). Management matters; Starting anew: building a new real estate company. (Leadership). Commercial Property News, (12).

RAFTER, M. V. (2014). PERKS at WORK. Workforce, 93(9), 40-43.

Youssef, C. (2012) Human Resources Management. San Diego: Bridgepoint Education, Inc.