Fundamentals of Human Resource Management

Chapter 2: Fundamentals of HRM

People. . make a company successful. not buildings. Organizational goals cannot be done Without human resources.

.Management Essentials Management is the process of efficiently achieving organizational objectives with and through people. Leading: A management function concerned with directing the work of others (ensure that the right people are on the job with the appropriate skills and motivate them to high productivity). and people. Planning: A management function focusing on setting organizational goals and objectives. limited resources. 2. 4. where decisions are to be made. Organizing: A management function that deals with determining what jobs to be done. 3. The primary functions of management: 1. Common to any effort to achieve objectives are three elements: goals. by whom. Controlling: A management function concerned with monitoring activities to ensure goals are met. and how to group employees.

Thus. and planning retirement parties. enrolling workers for health-care coverage. and law. laws have placed on employers many new requirements concerning hiring and employee practices. Jobs have changed. to attract new applicants. sociology. to ensure that the employees maintain their productive affiliation with the organization. organization and work design. Their primary job activities involved planning for company picnics. to train and develop employees. scheduling vacations. « etc. Now. Professionals in HR are important to the organization success and today they serve on the executive board and participate in the development of the overall organizational strategy. job boundaries become blurred.Importance of HRM Prior to the mid-1960s. . personnel departments in the organizations were often perceived as the ³health and happiness´ crews. The HRM professionals are required to ensure that the organization abides to the legislation in hiring the best-qualified candidate without any discrimination. more technical employees with greater skills are required. and global competition has increased the importance of improving workforce productivity and looking globally for the best qualified-workers. organizations need HRM specialists trained on psychology.

. It involves working with line managers in analyzing organizational designs. the culture. Representing and advocating for the organization¶s employees. Setting HRM policies and practices that attract and keep employees. HRM must serve the organization by determining lowercost strategies to its HRM practices. and recommending and implementing changes where necessary. Assisting the organization in its strategic direction. performance systems. Moreover. 2.The Strategic Nature of HRM HRM must balance two primary responsibilities: 1.

HRM is a function of every manager¶s job.Viewpoints to HRM Views to HRM: 1. not just those who work in human resources. or those directly involved in producing organization¶s goods and services. . 2. HRM is a staff or support function in the organization that provides assistance in HRM matters to line employees. HRM is a function of every manager¶s job.

Training and development (preparing them). 3. Motivation (stimulating them). 2. 4.HRM Activities HRM primary activities are: 1. . Staffing (hiring people). Maintenance (keeping them).

Followed is the selection process. Staffing (hiring people): Staffing: Activities in HRM concerned with seeking and hiring qualified employees. Staffing Function 1.HRM Activities 1. Job analysis is required to identify the KSAs the job applicant must possess to succeed. It attempts to thin out the large set of applications and to select an applicant(s) who will be successful on the job. Then the recruiting process begins. It starts with employment planning which requires knowing the organization strategic plans. . The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage the unqualified from applying.

regulations. and career development. employee development.HRM Activities 2. Socialization allows employees to adapt to their new surroundings. Training and Development Function 2. and abilities. . knowledge. and goals of the organization. and work unit. The focus is on orienting the new employees to the rules. Training then begins. organization development. There are four areas in the training and development phase: employee training. Training and development (preparing people): Training and development: Activities in HRM concerned with assisting employees to develop up-todate skills. department.

Employee compensation must be established in light of performance. Performance standards must be set and performance evaluation system is designed to provide feedback to employees and address any performance weaknesses. this involves employees participation in the decisions affecting them. . Job design plays a role in motivation. and implementing their suggestions where appropriate. Motivation requires understanding to the implications of motivational theories. Motivation Function 3. A level of respect is required between management and the workers.HRM Activities 3. listening to them. managerial. Performance evaluation must also be easy for managers to use. Motivation (inspiring people): Motivation: Activities in HRM concerned with helping employees exert at high energy levels. Motivation is a multifaceted process ± one with individual. and organizational implication.

Maintenance (Keeping people): Maintenance: Activities in HRM concerned with maintaining employee¶s commitment an d loyalty to the organization.HRM Activities 4. Maintenance aims to retain productive employees. Maintenance Function 4. caring for employees wellbeing. This requires HRM to ensure a safe and healthy working environment. . applying employee assistance programs and communication programs (designed to provide information to employees).

These influences are grouped in four areas: 1. The dynamic environment Governmental legislation Labor unions Current management practices . 3. 4.External Influences on HRM Environmental influences. directly or indirectly. 2. affect HRM processes.

HRM Primary Activities Staffing Staffing ‡HRM Planning ‡HRM Planning ‡Recruiting ‡Recruiting ‡Selection ‡Selection Maintenance Maintenance ‡Safety & health ‡Safety & health ‡Communications ‡Communications ‡Employee relations ‡Employee relations Training & Development Training & Development ‡Orientation ‡Orientation ‡Employee training ‡Employee training ‡Employee development ‡Employee development ‡Career development ‡Career development HRM HRM Goals Goals Motivation Motivation ‡Job design ‡Job design ‡Performance appraisals ‡Performance appraisals ‡Rewards & compensation ‡Rewards & compensation ‡Employee benefits ‡Employee benefits External Influences .

Yet. The focus is to enhance the employees¶ personal qualities that lead to greater organizational productivity. effective upward communication. immediate supervisor. Employment promotes staffing activities. and (4) employee relations. the HRM functions are found in four distinct areas: (1) employment. . providing security. making childcare arrangements. or operating in-house medical or food services.Translating HRM Functions into Practice More than half of the HR departments offer administrative services to the organization. and employee relations department ). Training and development helps the employees to maximize their potential. It includes top management commitment. and information sources (the HRM department. (3) compensation/benefits. Employee relations are concerned with ensuring effective communications among organizational members. These might include: operating the company¶s credit union. allowing for feedback. (2) training and development. in a typical organization. It also includes career development activities and employee counseling. Compensation management is concerned with paying employees and administering their benefits package. determining what is to be communicated.

. work friendly environment with properly recruited and trained quality workers.HRM Value Quality HRM services improved both the financial well-being of the organization and shareholder value. and created a flexible.

high-quality HR services). are offered by the centralized unit and provide more cost-effective. Top management has made a decision to outsource some of the work HRM professionals once handled. Another trend is the shared services: sharing HRM activities among geographically dispersed divisions. (Few generalists handle the routine local matters. HRM professionals are assigned to strategic business units or marketdriven units to handle all HRM operations. Specialized services.The Changing Nature of HRM As organizations change structures. such as organization development and compensation and benefits. grievances. the HRM representative is expected to perform all the HR functions. movement has been away from centralized functional areas towards more self-contained units. Accordingly. the movement is toward generalist positions in HRM. While a headquarters HRM staff remains to coordinate the activities. and employee training. . such as recruiting. policy implementation.

small-business human resource departments are staffed with one individual and possibly a full-time secretary. There is no specialized staff. handling all HR activities. In other situations. Hence. they are forced to be HRM generalists. there may be a tendency to use outside consultants to assist in performing all HRM activities.HRM in an Entrepreneurial Enterprise The owner-manager often is responsible for and performs the HR activities. .

HRM in a Global Village The HR function must adapt to a changing and far more complex environment. HRM should properly prepare employees for international assignments. . and additional human management activities often are necessary that would be considered invasions of employee privacy in domestic operations. HRM activities become more complex when organization¶s employees are located around the world.

. HRM must make sure that employees know about corporate policies and train employees and supervisors on how to act ethically in organizations.HR and Corporate Ethics HRM¶s role is to ensure that ethics exist in an organization and are adhered to. As keepers of corporate policies and employee documents.

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