8 Steps in the HR Management Process

An effective HR management process helps a business ensure the consistency needed to achieve its overall operating goals. Below are the 8 steps you can't skip in the HR management process.

8 steps in the HR management process

1. What is HR management?

HR management, also known as human resource management, is the position of managing human resources, staffing teams, and managing people at companies and businesses to help the organization's operations run smoothly and effectively.

So what is the purpose of HR management?

2. The purpose of HR management

Human resource management is not easy - it's a complex process because it involves many different functional departments within a business. Not having a standardized HR management process will make things difficult for the HR department, leading to inconsistency. Therefore, with an effective and detailed HR management process, a business can achieve the following goals:

• Limit errors in the interaction between employees and the HR department
• Improve the response time and quality of the HR department to employee requests.
• Increase work performance and customer service quality.
• Raise the sense of responsibility within the business.

With skillful employee management skills, managers and HR staff can build a team of dedicated, skilled employees with solidarity and a desire to contribute.

Overall, the HR management process includes steps such as: human resource planning, training, managing employee pay and benefits; performance management, and more.

3. 8 steps in the HR management process

Below are the steps in the HR management process:

Human resource planning

HR Planning is the activity of determining and managing a business's recruitment needs. This process includes calculating the supply of human resources and forecasting future personnel needs and trends, from which to build and implement an appropriate strategy. An effective HR planning process requires the HR department to balance long- and short-term staffing needs with business goals and the practical situation within the business. Today, many businesses have been and are applying HR analysis and management software and SWOT forecasting - to more accurately assess human resource needs.

Recruiting and selecting the right candidates

Recruitment is the activity of finding potential candidates who meet a business's job needs. HR staff need a detailed recruitment plan to attract candidates. This process starts from the planning stage, recruitment sources, and recruitment methods to optimize costs for the business. Based on that, HR will post on job-related websites about the position to be filled and build interview scripts and compensation policies to attract talent and potential candidates.

Training and human resource development

In reality, competition between businesses is essentially competition in human resource quality. For that reason, training and human resource development activities are considered a long-term investment strategy carried out in a planned, consistent way.

Through training courses on skills, expertise, software, and more, a business's HR team can improve their work performance and raise their capability and qualifications. The HR manager needs to make a specific plan regarding budget, timing, duration, and the number and type of staff who will participate in training and coaching staff.

Pay and benefits

Fair pay and bonuses are the key to retaining employees and creating long-term motivation and loyalty. Therefore, HR management also needs to be fair in allocating benefits and welfare to the business's HR team. Through performance management, the HR manager needs to make appropriate reward proposals for employees.

>>>Payroll accounting and salary-based contributions

Performance management

Human Resource Management is responsible for managing the work performance of the business's employee team. Typically, employees are assigned tasks or KPIs for the week, month, quarter, or year. By monitoring and managing employee performance, the HR department can understand the workflow, thereby helping everyone complete their work better.

Based on annual performance management, leadership can evaluate and classify staff by high or low performance, or high or low potential. Successful performance management is built from the effort of the entire HR department, in which the manager plays a direct role as the head, guiding and supporting the entire HR department. Through work performance, a business can classify employees, reward capable staff, and remove weak staff who don't meet job requirements.

Human resource contingency planning

Personnel changes commonly happen at every business, such as transfers, sudden leave, and more. Therefore, HR managers at businesses need to make a detailed personnel contingency plan, and need to prepare replacements in advance to ensure the business's activities are not disrupted. Managers need to have a reserve pool of quality candidates ready, to fill gaps and senior positions within the business.

Building corporate culture

Corporate culture is an indispensable factor for any business. A strong workplace culture is one where every individual is aware of the business's core values and spirit, in order to achieve the business's shared goals. HR directors, and HR departments in general, need to nurture this culture through training sessions and regular company meetings.

Analyzing and evaluating HR data

Along with the digital transformation trend for businesses in the 4.0 era, the digitized office model brings many benefits to HR management work. Through dedicated HR data storage and analysis software, managers can track and evaluate employees within the business anytime, anywhere. In addition, this data also helps managers make the right strategies and achieve better results, thanks to intelligently analyzed figures.

To help businesses manage HR effectively, SIS MAC*HRM software comes with 2 modules: payroll and HR. Tracking and evaluating employees is automated within the software.

HR: Recruitment management (recruitment plan, candidate profiles), training management, employee management (labor contracts, personal records, work history), reporting to the Board of Management on the recruitment/training plan and HR matters (increases, decreases).

Timekeeping - Payroll:

• Flexible declaration of working days, regular days off, public holidays, and leave within the period (month/quarter/year).
• Flexible declaration of working hours by shift
• Updating timekeeping data: attendance data taken from a timekeeping machine or entered directly in the software, plus output-based timekeeping data (pay-per-piece).
• Salary parameters (base salary, salary coefficient, health/social insurance coefficients, personal income tax coefficient, etc.) are all designed and configured flexibly, letting users update them themselves whenever there's a change while using the software.

Contact S.I.S for consulting support on the software via the following methods:

Hotline: 0912.929.785 or register for a consultation: