Human Resources Management (HR) Key Terms

recruitment in human resources management (HRM)

attracting, screening, and hiring employees with the right skills, experience, and attitudes for the organization

process where company identifies needs, creates job descriptions, search for candidates, screen applicants, interviewing, checking preferences, making offers, and on-boarding new hires

bring skilled individuals who fit the company culture

ex: using LinkedIn and university fairs to recruit people; using employee referral program

training and development in HRM

to provide employees with training, skill development, and career growth opportunities to improve performance and adaptability

involves programs like onboarding for new hires, technical skills workshops (e.g., new software), and leadership development for future managers

onboarding

the action or process of integrating a new employee into an organization or familiarizing a new customer or client with one’s products or services

compensation and benefits in HRM

designs fair wage systems, incentives, and benefits to attract & motivate employees and retain talent

salary/wages

base pay for work performed

incentives

strategic rewards beyond base pay used to motivate employees, boost performance, increase engagement, and align actions with company goals, ranging from financial bonuses & stock options to non-monetary perks

bonuses, commissions, profit sharing, stock options (short-term & long term)

benefits of incentives

boosts performance & productivity: directly links effort to rewards, focusing employees on key tasks

improves employee engagement: makes staff feel values

increases retention: reduces turnover by increasing loyalty, especially w/ long-term incentives like stock options

benefits in HRM

non-wage rewards (health insurance, PTO, retirement, perks) that attract, retain, and engage employees - crucial for competitive advantage, reducing turnover, and boosting mroale

includes:

retirement - 401(k)s, pensions, stock options, life insurance, financial counseling, student loan help

time off - paid time off (PTO), sick leave, parental leave

work-life balance - flexible hours, remote work, commuter benefits (transit passes)

perks & discounts - employee discounts

nature of human resources management

focused on integrating employees with organizational goals by managing recruitment, development, motivation, and retention to achieve overall success; requires:

• recruitment & selection

• training & development

• compensation & benefits

• performance management

• employee relations

• health & safety

human resources

an organization’s entire workforce and the department that strategically manages them

• to coordinate human resources to meet business priorities, ensure that managers assign the right employees to the right tasks, provide training, and schedule work to maximize productivity and meet operational needs

capital resources

man-made assets, like machinery, buildings, tools, and money, used to produce goods and services, boosting productivity and generating revenue, distinct from NATURAL resources (land)

• to coordinate capital resources to meet business priorities, physical and technological assets such as buildings, machinery, tools, and IT systems are acquired, maintained, and used efficiently to support operations

fiscal (financial) resources

the monetary assets, funds, and financial capabilities an organization uses to fund operations, investments, and growth, encompassing cash, profits, loans, investments, and even access to credit

• to coordinate fiscal resources to meet business needs, budgets are created and monitored to control costs, fund priority projects, and ensure sufficient cash flow

hiring needs

the specific roles, skills, and number of employees an organization requires to meet its strategic goals, fill skill gaps, handle increased workload, or replace departing staff

to determine hiring needs:

evaluate when, why, and what type of employees are required to meet its goals

• review business goals & priorities: what is the business trying to achieve?

• analyze current workload

• evaluate productivity & performance data

screen job application/resumes

• review the job requirements first: identify required skills, education, experience, and availability

• check for minimum qualifications: eliminate applications who do NOT meet basic requirements such as certifications, education level, or legal eligibility

• evaluate relevant experience: look for past roles, internships, volunteer work, or skills that directly relate to the position

• use a scoring/checklist system

interview job applicants

1. prepare interview questions based on the job requirements, focusing on skills, experience, and behavior

2. assess skills & qualifications by verifying technical skill, problem-solving abilities, communication skills and job knowledge

3. evaluate cultural and team fit determine whether the candidate’s attitude, work style, and values align with the organization

4. allow candidates to ask any questions because it shows interest and helps assess their understanding of the role

maintain human resources records

involves accurately collecting, organizing, updating, and protecting employee information to support operations, legal compliance, and effective management