CH 1

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Need To Know
1. Definition of HRM and how HRM contributes to an

organization’s performance.
2. Responsibilities of HR departments.
3. Types of skills needed for HRM.
4. Role of supervisors.
5. Ethical issues in HRM.
6. Typical careers HRM.
© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 1-2
Human Resource Management (HRM)
The policies, practices,

and systems that influence
employees:
 behavior
 attitudes
 performance
Figure 1.1
HRM Practices
Companies With Effective HRM:
Employees and customers tend to be more satisfied.
The companies tend to:

 be more innovative
 have greater productivity
 develop a more favorable reputation in the community
Human Capital
Human Capital – an The concept of HRM

organization’s employees implies that employees
described in terms of their: are resources of the
 training employer.
 experience
 judgment
 intelligence
 relationships
 insight
Figure 1.2
Impact of HRM
HRM and Sustainable
Competitive Advantage
An organization can succeed if it has sustainable
competitive advantage.
HR give organizations advantages because human
resources are valuable, cannot be imitated, have
no good substitutes and with needed skills and
and knowledge are sometimes rare.
High-Performance Work System
An organization in which technology, organizational

structure, people, and processes all work together to
give an organization a competitive advantage.
Table 1.1
Responsibilities of HR Departments
Analyzing and Designing Jobs
Job Analysis Job Design

Process of getting Process of defining the
detailed information way work will be
about jobs. performed and the tasks
that a given job requires.
Recruiting and Hiring Employees
Recruitment Selection
The process through The process by which the
which the organization organization attempts to
seeks applicants for identify applicants with
potential employment. the necessary
knowledge, skills,
abilities, and other
characteristics that will
help the organization
achieve its goals.
Top Qualities Employers
Look For in Employees
Which of the following are top qualities employers
look for in employees?
1. Teamwork skills
2. Decision making, problem solving
3. Planning, prioritizing tasks
4. Verbal communication skills
5. Gathering/processing information
6. All the above
Training and Developing Employees
Training Development
A planned effort to Acquisition of knowledge,
enable employees to skills, and behaviors that
learn job-related improve an employee’s
knowledge, skills, and ability to meet changes in
behavior. job requirements and in
customer demands.
Managing Performance
Performance Management – The process of ensuring

that employees’ activities and outputs match the
organization’s goals.
HR may be responsible for developing or obtaining

questionnaires and other devices for measuring
performance.
Planning & Administering Pay & Benefits
Administering
Planning Pay & Benefits Pay & Benefits
 How much salary, wages  Systems for keeping track
bonuses, commissions, and of employees’ earnings and
other performance-related benefits are needed.
pay to offer.  Employees need
 Which benefits to offer and information about their
how much of the cost will benefits plan.
be shared by employees.  Extensive record keeping
and reporting is needed.
Maintaining Positive Employee Relations
Preparing and distributing:

employee handbooks and policies
company publications and newsletters
Dealing with and responding to communications from
employees questions:
about benefits and company policy, possible discrimination
or harassment, safety hazards, etc.
Collective bargaining and contract administration.
HR negotiates union contracts and maintains
communication with union representatives to ensure that
problems are resolved.
Establishing and Administering
Personnel Policies
Organizations depend on HR to help establish and
communicate policies related to:
hiring
discipline
promotions
benefits
All aspects of HRM require careful and discreet
record keeping.
Workforce Analytics
Workforce Analytics - use of quantitative tools

and scientific methods to analyze data from
human resource databases and other sources to
make evidence-based decisions that support
business goals.
Ensuring Compliance with Labor Laws
Government requirements include:

 filing reports and displaying posters
 avoiding unlawful behavior
Managers depend on HR professionals to help them
keep track of these requirements.
Lawsuits will continue to influence HRM practices
concerning job security.
One reason W.L. Gore is
repeatedly named one of
the 100 Best Companies
to Work For in the United
States is the company’s
unusual corporate
hierarchy that dispenses
with titles in favor of
small teams and direct
communication among
employees.
Supporting the Organization’s Strategy
HR planning – identifying the numbers and types of

employees the organization will require to meet its
objectives.
Talent Management- a systematic, planned effort to
attract, retain, develop, and motivate highly skilled
employees and managers.
Evidence-based HR– Collecting and using data to show
that human resource practices have a positive
influence on the company’s bottom line or key
stakeholders.
Who is Responsible for HR?
In an organization, who should be concerned

with HRM?
A. Only HR
B. Only managers
C. Managers, supervisors and HR
Figure 1.4
Supervisors’ Involvement In HRM
ALERT
Ethics In HRM
Ethics – fundamental principles of right and wrong.

Ethical behavior is behavior that is consistent with
those principles.
Many ethical issues in the workplace involve HRM.
Employee Rights
freedom of
free consent privacy conscience
freedom of
due process
speech
Ethical companies act according to
four principles:
1. In their relationships with customers, vendors, and
clients, ethical companies emphasize mutual benefits.
2. Employees assume responsibility for the actions of
the company.
3. The company has a sense of purpose or vision that
employees value and use in their day-to-day work.
4. They emphasize fairness.
Figure 1.5
Standards for Identifying Ethical Practices
Figure 1.6
Median Salaries for HRM Positions
Test Your Knowledge
Which HR functions are primarily concerned with

1. ensuring employees are capable of doing their
current job and
2. ensuring that employees are satisfied with their
rewards?
A. 1) Development 2) Employee Relations
B. 1) Training 2) Legal Compliance
C. 1) Selection 2) Pay & Benefits
D. 1) Training 2) Pay & Benefits
Summary
HRM consists of an organization’s“people practices”

 policies, practices, and systems that influence
employees’ behavior, attitudes, and performance.
 influences who works for the organization and how
those people work.
 responsible for a variety of functions related to
acquiring and managing employees.
Summary (continued)
HRM requires human relations skills, including:

communicating
negotiating
team development
HR professionals also need to:
understand the language of business
be a credible with line managers and executives
be strategic partners
Summary (continued)
 Non-HR managers must be familiar with the basics

of HRM and their own role with regard to managing
HR.
 Supervisors typically have responsibilities related to
all HR functions such as analyzing work,
interviewing, training and performance appraisals.
 HR professionals should make decisions consistent
with sound ethical principles.
Summary (continued)
Decisions of HR professionals should:

result in the greatest good for the largest number of
people.
respect basic rights of privacy, due process, consent,
and free speech.
treat employees and customers equitably and fairly.
Careers in HRM may involve specialized work in fields
such as recruiting, training, or compensation

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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.

Not authorized for sale or distribution in any

1. Definition of HRM and how HRM contributes to an

The policies, practices,

Employees and customers tend to be more satisfied.

The companies tend to:

Human Capital – an The concept of HRM

An organization in which technology, organizational

Job Analysis Job Design

Performance Management – The process of ensuring

HR may be responsible for developing or obtaining

Preparing and distributing:

Workforce Analytics - use of quantitative tools

Government requirements include:

HR planning – identifying the numbers and types of

In an organization, who should be concerned

Ethics – fundamental principles of right and wrong.

Many ethical issues in the workplace involve HRM.

Which HR functions are primarily concerned with

HRM consists of an organization’s“people practices”

HRM requires human relations skills, including:

 Non-HR managers must be familiar with the basics

Decisions of HR professionals should:

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