MGT 101 - Module 9

• 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
• Human Resource Management (HRM)


  The management of various activities designed to enhance the effectiveness of organization's workforce in achieving organizational goals
• Human Resource Management (HRM)


  Formal systems for the management of people within the organization
• 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
• Activities in Attracting an Effective Workforce

  • Human resource planning
  • Recruitment
  • Selection
• Developing an Effective Workforce


  Provide employees with up-to-date knowledge and skills through orientation and training
• Activities in Developing an Effective Workforce

  • Orientation
  • Training
• Maintaining an Effective Workforce


  Ensures that competent and high performing employees are retained
• Activities in Maintaining an Effective Workforce

  • 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
• Employee Labor Union


  A representation of workers that protects workers interests through collective bargaining agreement (CBA)
• Demographic trends


  Characteristics of the labor market
• Strategic Importance of HRM

  • Supports companies' strategic objectives
  • Actively pursues an ongoing, integrated plan for furthering the organization's performance
  • Has a positive impact on strategic performance, including higher employee productivity and stronger financial results
• 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


  The process of determining future human resource needs relative to an organization's strategic plan and devising steps necessary to meet those needs
• Human Resource Planning


  Process by which management ensures that an organization is supplied with the right number of capable people in the right places at the right time
• Human Resource Planning


  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 enlargement


  Broadening the scope of a job by expanding the number of different tasks to be performed
• Job enrichment


  Increasing the depth of a job by adding the responsibility for planning, organizing, controlling and evaluating the job
• Job rotation

  The process of shifting a person from job to job
• 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 (existing employees in the organization)
  • Outside Recruits (internet, employee referrals, company websites, college recruitment, professional recruiting organizations)
• Derecruitment


  • Firing - permanent involuntary termination
  • Layoffs - temporary involuntary termination
  • Attrition - not filling of openings created by voluntary resignations or retirement
  • Transfers - lateral or downward movement of employees
  • Reduced workweeks - having employees work fewer hours per week, or perform jobs on a part-time basis, or share jobs
  • Early retirement - provision of incentives to older or more senior employees for retiring before their compulsory retirement age
  • Job sharing - employees sharing one full-time position
• Selection


  Screening job applicants to ensure that the most appropriate candidates are hired
• Selection


  Mutual process – organization makes decision in offering the job; candidate decides whether to accept the job or not
• 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
• Types of information given during orientation

  • General information about work routine
  • Organization information – history, purpose, products and services, etc.
  • Detailed presentation of organizational policies, work rules and employee benefits
• 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