Chapter 8 - HUMAN RESOURCES MANAGEMENT

Human Resources Management (HRM)

The system a company uses to attract, develop, motivate, and retain employees to support organizational goals.

Strategic HRM

Planning and aligning talent needs with the company's long-term goals and strategy.

Why Talent Is Strategic

It builds competitive advantage, takes time to develop, and directly affects performance.

Five HR Functional Activities

Recruitment & Selection; Training & Development; Performance Appraisal & Feedback; Compensation & Benefits; Employee Relations.

Recruitment

Activities related to attracting qualified job candidates.

Selection

Activities related to choosing which candidates to hire.

Internal Recruiting

Filling jobs with existing employees inside the organization.

External Recruiting

Attracting candidates from outside the organization.

Recruitment Ethical Issue: Shortcut Hiring

Choosing a preferred candidate before running a fair hiring process.

Background Checks

Verification of candidate information to reduce hiring risk.

Training

Teaching employees skills needed for their current jobs.

Development

Preparing employees for future roles or expanded responsibilities.

Examples of Training Methods

Classroom training, online modules, supervisor coaching, peer training.

Performance Appraisal

Evaluating employee performance to improve alignment and development.

Performance Feedback

Communicating evaluation results to guide improvement.

Compensation

Pay, wages, bonuses, and monetary rewards.

Benefits

Indirect rewards such as insurance, retirement plans, and paid time off.

Employee Relations

Activities that maintain positive relationships between employees and management.

HR Legal Compliance

Ensuring employment practices follow laws about equal opportunity, pay, and safety.

Equal Employment Opportunity (EEO)

Laws preventing discrimination in hiring, promotions, and pay.

Compensation & Benefits Laws

Regulations on equal pay, overtime, retirement, and healthcare.

Health & Safety Regulations

OSHA and related rules ensuring safe working conditions.

Why Employers Give Minimal References

To avoid legal liability from negative comments.

Succession Planning

Identifying and developing employees for future key roles.

Why Succession Planning Matters

Ensures leadership continuity and preparedness.

Training vs Development Difference

Training is for current job skills; development is for future roles.

Recruitment vs Selection Difference

Recruitment attracts candidates; selection chooses among them.

Strategic Importance of HRM

Organizational goals cannot be achieved without the right talent.

Job Analysis

The process of identifying tasks, responsibilities, and qualifications for a job.

Job Description

A document describing duties and responsibilities of a role.

Job Specification

A document describing skills, knowledge, and qualifications needed for a role.

Orientation (Onboarding)

Introducing new employees to the organization, culture, and expectations.

Performance Appraisal Problems

Bias, unclear standards, and inconsistent ratings.

Types of Compensation

Base pay, incentives, bonuses, commissions.

Types of Benefits

Healthcare, retirement, paid time off, employee assistance programs.

Employee Relations Activities

Conflict resolution, communication programs, employee surveys.

Workforce Planning

Forecasting talent needs and planning hiring or development.

Turnover

The rate at which employees leave an organization.

Retention

Strategies to keep employees engaged and reduce turnover.

Labor Market Conditions

External availability of qualified workers affecting recruiting difficulty.

HR Metrics

Measures such as time-to-fill, turnover rate, training ROI.

Ethical HR Practices

Fair hiring, honest job previews, nondiscriminatory evaluation.

Employee Engagement Link to HRM

HR practices influence motivation, commitment, and performance.

HR's Role in Strategy Execution

Aligning people, skills, and capabilities with organizational goals.