HRM

• Human Resource Management (HRM)


  Design and applications of formal systems in an organization to ensure the effective and efficient use of human talents to accomplish objectives
• Three major concerns in HRM

  • Attracting an Effective Workforce
  • Developing an Effective Workforce
  • Maintaining an Effective Workforce
• Attracting an Effective Workforce

  • Competent employees are identified and selected through recruitment and selection
  • Human resource planning
• Developing an Effective Workforce


  • Provide employees with up-to-date knowledge and skills through orientation, training
• Maintaining an Effective Workforce


  • Ensures that competent and high performing employees are retained through performance appraisal, pay and other compensation systems, career development, workforce reductions
• Factors affecting the HRM process

  • Employee Labor Union
  • Government laws and regulations
  • Demographic trends
• Strategic importance of HRM

  • Important strategic tool
  • Builds human capital who have good leadership qualities and who can manage across geographical and cultural boundaries
  • An organization's HRM practices has been found to have significant impact on organizational performance
• HRM process


  An on-going procedure that tries to keep the organization supplied with the right positions when they are needed
• Basic activities in the HRM process

  • Human Resource Planning
  • Recruitment
  • Selection
  • Socialization/orientation
  • Training and Development
  • Performance Appraisal
  • Promotion, Transfer, Demotion, Separation
• Human Resource Planning


  • Determining future human resource needs relative to an organization's strategic plan and devising steps necessary to meet those needs
  • Accomplished through assessing current human resources and forecasting future HR needs
• Job analysis


  Systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities required for a particular job
• Job description


  Statement of duties, working conditions, work requirements, etc.
• Job specification


  Statement of skill, abilities, education and previous work experience required for the job
• Job design


  • Job enlargement
  • Job enrichment
  • Job rotation
• Human resource planning activities

  • Planning for future needs
  • Planning for future balance
  • Planning for recruiting and laying off of members
  • Planning for training and development of employees
• Recruitment


  Locating, identifying and attracting capable applicants
• Sources of Recruits


  • Internal Recruits
  • Outside Recruits
• Decruitment is reducing an organization's workforce
• Selection


  • Screening job applicants to ensure that the most appropriate candidates are hired
  • Mutual process - organization makes decision in offering the job; candidate decides whether to accept the job or not
  • Managers make use of selection devices which are valid and reliable
• Steps in the selection process

  • Job application
  • Initial interview
  • Testing
  • Background investigation
  • In-depth selection interview
  • Physical Examination
  • Job offer
• Orientation/Socialization


  Program designed to help employees fit smoothly into an organization
• Training


  Designed to maintain or improve current job performance
• Development


  Designed to develop skills necessary for future work activities
• Ways to determine training needs

  • Performance appraisal
  • Analysis of job requirements
  • Organizational Analysis
  • Employee Survey
• Performance Appraisal


  The process through which an organization gets information on how well an employee is doing his or her job
• Major Purpose of Performance Appraisal

  • Lets the employees know formally how their current performance is being rated
  • Identifies employees who deserve merit raises
  • Locates employees who need additional training
  • Identifies candidates for promotion or demotion
• Approaches to Performance Rating

  • The manager rating an employee
  • A group of managers rating an employee
  • Peer evaluation
  • The employees rating the manager
  • The employee rating himself
  • Outside sources
  • Multisource (360° feedback) appraisal
• Compensation


  Reward systems attract, motivate and retain people
• Three decisions related to designing a pay plan


  • Pay level
  • Pay structure
  • Individual pay
• Employee Incentives and Benefits

  • Individual Incentive Plans
  • Group Incentive Plans
  • Employee Benefits
• Labor relations


  The system of relations between workers and management
• Reasons for unionization


  • Economic reasons
  • Job dissatisfaction
  • The belief that the union can obtain desired benefits
  • Image of union
• Collective Bargaining


  A periodic ritual of negotiating an agreement between over wages, hours and working conditions
• Maintaining an Effective Workforce

  • Labor Management Relations
  • Effective Compensation and benefit system
  • Valuing and managing diversity
  • Terminating poor performers
• Four Cs model of Evaluating Human Resources

  • Competence
  • Commitment
  • Congruence
  • Cost Effectiveness
• Current Issues in HRM

  • Downsizing
  • Workplace romances
  • Sexual Harassment
  • Drug and Alcohol Abuse
  • Employees Rights to Privacy
  • Family Issues
  • Glass Ceiling
• The Wealth of Nations was written in 1776