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Chapter 1


Chapter 1 in Mondy (2014)

Learning Objectives
Define human resource management.
Identify the human resource management functions.
Identify the external environmental factors that affect
human resource management.
Explain who performs human resource management

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Human Resource Management
Utilization of individuals to achieve organizational
Concern of all managers at every level.
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HRM Functions
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Safety and
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Process of ensuring the organization always has:
Required number of employees
Employees with appropriate skills
Employees in the right jobs at the right time
Constant job analysis, human resource planning,
recruitment, and selection.

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Job Analysis
Systematic process of determining skills, duties,
and knowledge required for performing jobs in an
Impacts virtually every aspect of HRM
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Human Resource Planning
Matching internal and external supply of people
with anticipated job openings over a specified
period of time.
Sets the stage for recruitment and other HR
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Recruitment and Selection
Recruitment: Attracting individuals to apply for jobs
Must be timely
Applicants need appropriate qualifications
Need sufficient number of applicants

Selection: Choosing individual best suited for a
particular position and the organization
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Human Resource Development
Human resource development include:
Career planning
Career development
Organization development
Performance appraisal
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Training and Development
Training: Providing learners with knowledge
and skills needed for their present jobs.
Development: Offering learning that goes
beyond present job.

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Career Planning and Development
Career planning: Ongoing process.
Individual sets career goals
Identifies means to achieve them
Career development: Formal approach used by
the organization.
Ensures a pipeline of people with proper
qualifications and experiences
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Organization Development
Is a planned and systematic attempt to make
the organization more effective, typically by
creating a more positive behavioral

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Performance Appraisal
A formal system of review and evaluation of
individual/team performance.
It affords employees the opportunity to receive
feedback on their strengths and areas for

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All rewards that individuals receive as a result
of their employment.
Consists of direct financial compensation,
indirect financial compensation, and
nonfinancial compensation.
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Safety and Health
Safety: Protecting employees from injuries
caused by work-related accidents.
Health: Employees' freedom from illness and
their general physical and mental well-being.
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Employee Relations
Businesses are required by law to recognize a
union and bargain with it in good faith if firms
employees want a union to represent them
Human resource activity with a union is often
referred to as industrial relations, which handles
the job of collective bargaining.
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Interrelationships of HRM
All HRM functions are interrelated so that each
function affects the others.
For instance, a firm that emphasizes recruiting
top-quality candidates but neglects to provide
satisfactory compensation is wasting time and
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Environment of Human Resource
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External environment
Legal consideration: federal, state and local legislation, court
decision etc.
Labor market: talk about labor supply and demand
Society: involve ethics and corporate social responsibility
Political parties: the influence of political parties on HRM
Unions: group of employees who have joined together to
collectively bargain with their employer.
Shareholders: the owner of the companies may at times
challenge programs considered by management to be beneficial
to organization

Competition: in product or service and labor markets.
To fight the firms must maintain a supply of competent
Customer: People who actually use firms goods and services.
Workforce should be capable of providing top-quality goods
and services.
HR technology: Rapid technological changes provide
Ability to design more useful human resource information
systems (HRIS).
A HRIS is any organized approach for obtaining relevant and
timely information on which to base human resource decisions.
HRIS are used to obtain and track relevant information for
human resource decisions.
When economy is booming, it is often more difficult to recruit
qualified workers.
In economic downturn, more applicants are typically available.

Unanticipated events:
Unforeseen occurrences in external environment.
Require a tremendous amount of adjustment with regard to

Internal Environment Factor
Corporate culture as a major internal factor.
Gives people a sense of how to behave and what
they ought to be doing.
Each individual gradually forms such perceptions
over a period of time as the person performs
assigned activities under the general guidance of
a superior and a set of organizational policies.
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Who Performs Human
Resource Management Tasks?
Human resource managers
HR outsourcing
HR shared service centers
Professional employer organization (employee
Line managers
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Human Resource Manager
Historically, the HR manager was responsible for
each of the five HR functions.
Acts in advisory or staff capacity.
Works with other managers to help them deal
with human resource matters.
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HR Outsourcing
Transfers responsibility to an external provider
Discrete services : Single set of high-volume
repetitive functions is outsourced to a third
Business process outsourcing (BPO) :
transfer of the majority of HR services to a third

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HR Shared Service Centers
Takes routine, transaction-based activities that are
dispersed and consolidates them in one location.
Provide an alternative to HR outsourcing
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Professional Employer
Organization (Employee Leasing)
Company that leases employees to other businesses
Economies of scale
Greater job mobility for workers
Job security through leasing company
PEO can handle compliance requirements of programs

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Line Managers Performing
HR Tasks
Line managers: Individuals directly overseeing the
accomplishment of the organizations primary
Involved with human resources by nature of their
Now performing some duties typically done by HR

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