SLIDE 1: Chapter 2 HRM Functions and Strategy

HR is a subset of management. It’s the part of management that works with people to get things done.
No matter how large or small the organization is, if there is even one employee, HR plays an important
role. In this chapter, we’ll learn the role of HR in management, the functions HR performs, and how HR
empowers people to accomplish the objectives of the organization.

SLIDE 2: Importance of HRM

HR activities support organizational strategy through human capital–related areas such as building,
developing, and maintaining a productive and talented workforce that has the skills necessary to
accomplish organizational goals. Research has shown that companies that link strategy with human
resources show increased profitability and shareholder value. Not only that, but the higher the emphasis
on practices that value human capital, the more profitable they seem to be. Superior HR practices,
including hiring the right people to support company strategy.

SLIDE 3: The HRM Functions

HRM is the part of the organization concerned with the “people” dimension. HRM can be viewed in one
of two ways. First, HRM is a staff or support function in the organization, providing strategic, tactical,
and transactional HR services to everyone in the organization. Second, HRM is every manager’s job,
whether you work in the HR department or you supervise a crew of young part‐timers. All managers
have HRM responsibilities. HRM can be divided into four basic functions: (1) staffing, (2) training and
development, (3) motivation, and (4) maintenance. In other words, we might say that HRM is made up
of four activities: (1) hiring people, (2) preparing them, (3) encouraging them, and (4) keeping them.

SLIDE 4: staffing

Staffing Function are Activities in HRM concerned with seeking and hiring qualified employees.

After the organization’s mission and strategy have been fully developed, human resource managers
begin the staffing function to determine human resource needs necessary to support the strategic plan.
The search begins to find individuals who possess specific skills, knowledge, and abilities directly linked
to specific jobs. Many organizations assist in recruiting efforts by developing and promoting an
employment “branding” strategy much the same way that consumer products have a distinct brand
image. The image needs to fit the organizational strategy, mission, and values.

As an organization’s jobs are analyzed, specific skills, knowledge, and abilities are identified that the job
applicant must possess to succeed. Through the job analysis process, HRM identifies the essential
qualifications for a particular job and includes them in the job description.

Almost all activities involved in HRM revolve around an accurate description of the job. Knowledge of
the critical skills required, performance standards, and pay rates all stem from an accurate job analysis.

Strategic Human Resource Planning

It is a process that identifies current and future human resources needs for an organization to achieve its
goals. At its most basic level, strategic human resource planning ensures adequate staffing to meet your
organization's operational goals, matching the right people with the right skills at the right time.
Recruiting

Once these critical competencies have been identified thru strategic HR Planning, the recruiting process
begins. Recruiters reach out to find qualified applicants in a variety of ways from personal contacts to
extensive use of online recruiting, including social media. Recruitment is a process which entails
searching for candidates.

Selection

Once applications have come in, it is time to begin the selection phase. The selection process screens
applicants and develops a pool of qualified applicants who move on to an interview process and possible
testing. Selection is a process of picking the candidates from the qualified ones.

SLIDE 5: Exhibit 2.2

Exhibit 2.2 is part of a job description for a registered nurse. The job summary section provides an
overview of the job. We have the Job Summary, which is the overview of experience, responsibilities of
a job, skills, and accomplishments. Then we have the qualifications, which is the highlight of relevant
education, experience, accomplishments, and skills that the applicants possess.

SLIDE 6: Google and Starbucks

Many organizations assist in recruiting efforts by developing and promoting an employment “branding”
strategy much the same way that consumer products have a distinct brand image. When we say
branding, it is the process of creating a distinct identity for a business in the mind of your target
audience and consumers. At the most basic level, branding is made up of a company's logo, visual
design and mission and vision.

Google, for instance, has promoted an employment brand that promotes its culture of creativity and
innovation, plus employee perks such as free food, games, and lots of social interaction.

Another example class is Starbucks. Starbucks made a strategic decision to provide health insurance to
all staff, even part‐time employees, and recently added college tuition assistance to their benefits
package.

This type of branding creates an image of the workplace and assists candidates in selecting an employer
that they perceive to be a good fit with their values, personality, and work ethic. Branding also allows
candidates who do not feel that they would be a good fit with the organization to decide not to pursue
employment.

SLIDE 7: Training and Development

Training and Development function are Activities in HRM concerned with assisting employees to develop
up‐to‐date skills, knowledge, and abilities.

Because class let’s face it, employees often take months to adjust to their new organizations and
positions. To accomplish this, HRM typically embarks on four areas in the training and development
phase:
First, Employee training - is designed to assist employees in acquiring better skills for their current job.
Give them the necessary training, seminars and workshops in-house or the company to develop his/her
abilities.

Second, Employee development – The focus of employee development is on a future position within
the organization for which the employee requires additional competencies.

Third, Organization development – The focus of organization development is to change the attitudes
and values of employees according to new organizational strategic directions. Because class, sabi nga,
change is the only constant in life. It means that the world is always changing and so are people. And
even cultures and directions. Say for example, Letran, before we are only doing face to face classes. But
nowadays, we have adopted new teaching modalities or mas kilala natin sa tinatawag natin na Blended
learning or Hyflex learning. HyFlex combines the terms “hybrid” and “flexible.” Hybrid learning refers to
learning that integrates complementary face-to-face (synchronous) and online learning (asynchronous)
experiences in service of intended learning objectives. So in relation doon sa sinasabi kong changes or
organizational development, the employers harness the power of technology and internet for daily
operations, transactions and activities.

and lastly Career development - Career development programs are designed to assist employees in
advancing their work lives. The focus of career development is to provide the necessary information and
assessment in helping employees realize their career goals.

So Class, training and development function tends to be a continuous process. The goal of training and
development is to have competent, adapted employees who possess the up‐to‐date skills, knowledge,
and abilities needed to perform their current jobs more successfully.

SLIDE 8: Motivation

Motivation are the Activities in HRM concerned with helping employees exert themselves at high energy
levels.

Managers must be sure that the performance evaluation system is designed to provide feedback to
employees regarding their past performance to know if the employee accomplish their targets or not.
And to assess ano ano ang strength and weaknesses ni employee. Employees like to know that their job
has a point or purpose and to be recognized for their contribution. Well-designed jobs help create
motivation because the employee seeks intrinsic rewards that come from feeling appreciated and
having a sense of responsibility. Extrinsic rewards such as pay and benefits provide motivation too.

SLIDE 9: Maintenance

Maintenance function are Activities in HRM concerned with maintaining employees’ commitment and
loyalty to the organization.

The maintenance function puts into place activities that will help retain productive employees. HRM
must ensure a safe and healthy working environment and assist employees in achieving a healthy work–
life balance, as discussed in Chapter 1. Many organizations do this by creating a package of family–
friendly benefits and work practices such as limiting overtime work, providing family health benefits,
flexible scheduling, wellness programs, and counseling. Employees appreciate these programs, reducing
stress, job dissatisfaction, and employee turnover.
HRM must also develop effective communications programs in the organization. HRM communication
programs designed to provide information to employees. Improving workplace communication is one of
the most effective and least costly ways to combat the problem of a disengaged workforce.

SLIDE 10: Structure of the HR Department

The typical HRM department usually includes four distinct areas: (1) employment, (2) training and
development, (3) compensation/benefits, and (4) employee relations.

Employment: promotes staffing activities such as recruits new employees.

Training and Development: The training and development section of an organization helps employees
maximize their potential and create greater organizational productivity

Compensation and Benefits: pays employees and administers their benefits packages

Employee Relations: ensures open communication within the company by fostering top management
commitment, upward and accurate communication, feedback, and effective information sources

SLIDE 11: Careers in HR

Positions include the following:

• Assistant: provides support to other HR professionals.

• Generalist: provides service to an organization in all four of the HR functions.

• Specialist: is typically concerned with only one of the four functions.

• Executive: reports directly to the organization’ s top management with responsibility for all HR
functions and linking HR with organizational strategy.

SLIDE 12: HR Trends and Opportunities

Difference between Outsourcing and PEO.

Human Resources Outsourcing (HRO) is a contractual agreement between an employer and a third-party
provider whereby the employer transfers the management of, and responsibility for, certain HR
functions to the external provider. Outsourcing may be as simple as hiring a contractor to take
responsibility for one HR function, such as benefit and pension administration. It’s also possible to
contract with a private staffing agency to perform the recruiting and selection activities, several
consulting firms to provide training programs, and yet another financial organization to handle the
majority of a company’s benefits administration.

Outsourcing Agency is not a co-employer, so you not assume any risk or liability for your business.

On the other hand, a professional employer organization (PEO) provides comprehensive HR solutions for
small and mid-size businesses. Payroll, benefits, HR, tax administration, and regulatory compliance
assistance are some of the many services PEO companies provide to growing businesses across the
country.”
Partnering with PEO companies allows businesses of all sizes to outsource almost all of their human
resource functions, share employment liability, and, oftentimes, gain economies of scale to bring an
improved benefits package to employees. A PEO is an extension of your business and engages with your
management team to address complex employee-related matters.

When you choose to work with a PEO, you are entering a partnership in every sense of the word. Not
only do you have the support of the PEO, but you are legally entering a co-employment relationship,
which means you are both liable for the employment decisions and actions of the company. 

Shared Services

Shared services are when a business consolidates its support functions to better serve the corporation
and its business units, operating as a business within a business, utilizing a well-defined infrastructure to
enable higher value service delivery. Typically, this includes services such as human resources, finance
and accounting, information technology, supply chain, and other front and back-office services.

The goal is to achieve cost savings by combining some HR functions, achieving economies of scale,
eliminating duplicated services, and standardizing how some services are delivered. By consolidating HR
functions into one department, businesses can achieve efficiencies in areas such as employee
onboarding, benefits administration, and payroll processing.

SLIDE 13: What are the 4 HRM Functions

 STAFFING
 TRAINING AND DEV’T
 MOTIVATION
 MAINTENANCE

SLIDE 14: What are the 4 HR Department Areas

 EMPLOYMENT
 TRAINING AND DEV’T
 COMPENSATION AND BENEFITS
 EMPLOYEE RELATION

SLIDE 15: What are the 4 Major HR Positions

 HR ASSISTANT
 HR GENERALIST
 HR SPECIALIST
 HR EXECUTIVE