Functions of Human Resource Management – WGU D351 v2 (2025 Edition) Full Study Guide with All Topics Solved, Step-by-Step Explanations, and Key HR Concepts to Support Learning and Exam Readiness

What role does the planning function of human resource management play within organizations?

The planning function of human resource management involves two major activities: strategic planning, and short- and medium-range planning. Such strategic objectives may include increasing market share, revenue growth, product or service diversity, and profit margins, as well as planning for financial obligations and other eventualities.

What role does the staffing function of human resource management play within organizations?

recruiting job applicants (also known as candidates), and then selecting the most appropriate applicants for the available jobs.

What are the types of employee compensation?

direct and indirect compensation

What is the role of performance appraisals?

A performance appraisal (also known as a performance review, performance evaluation, or career development discussion) is a method by which an employee's job performance is evaluated.

How does HRM enhance human potential?

HRM field has seen a substantial interest in both formal and informal training and development.

HRM's work on improving the workplace environment focuses on what two environments?

implementing productivity improvement programs as well as improving health and safety at work

What must management be aware of in order to maintain effective work relationships?

After an organization has hired the employees it needs, it must foster a positive workplace environment. In addition to compensation and a healthy and safe environment, firms must provide conditions that will make it attractive for employees to stay.

What impact has globalization had on HR practices?

organizations become more global, it is essential that organizations develop and implement HRM policies with international applicability, also making them relevant to employees from diverse cultures and backgrounds

What are the four implicit HR objectives?

improve productivity, improve quality of work life,ensure legal compliance, and foster ethical behavior.

How can HR managers make a significant contribution toward productivity improvements?

work organization and design

How do organizations improve the quality of work life? How have employees' attitudes regarding involvement with their work shifted?

most employees today desire more autonomy and a chance to make a greater contribution to the organization. employees today prefer a greater level of involvement with their work

Why is it important that HR mangers and personnel be familiar with the laws and regulations?

laws impact nearly all functions and activities with which HRM is involved, HR managers and personnel must be familiar with regulations affecting hiring and pay decisions, promotion activities, health and safety considerations, and labor relations.

Define the term "moral philosophy."

refers to the principles, rules, and values that individuals use in deciding what is right or wrong.

How can HR professionals create a culture where ethical behavior is encouraged?

"creating a positive work environment, hiring ethical individuals, providing ethical training, labeling and modeling ethical behavior, creating a well-defined code of ethics, establishing an open-door policy, and providing an employee assistance program (EAP)."

Define the term "business ethics."

the values and principles that are used to evaluate whether the collective behavior of members of an organization is appropriate

What are the six major trends have been identified as influencing the work environment?

increased competition, the costs and benefits associated with HR utilization, productivity changes (resulting from changes in technology, capital investment, the 2008-2014 recession, capital utilization, outsourcing, and government policies), the increasing pace and complexity of social, cultural, legal, demographic, and educational changes, the symptoms of dysfunction in the workplace, and societal trends of the 21st century

Internal Environment: Define "culture" and identify who shapes an organization's culture.

represents the organization's value system. Top management shapes a companies culture

Internal Environment: Define technology.

generally refers to the equipment and knowledge used to produce goods and services, and the definition of technology may vary greatly by industry

Internal Environment: How does technology influence an organization's structure?

with technology and computers, close supervision of employees is unnecessary. Furthermore, technology allows work to be performed during non-traditional hours, away from physical manufacturing plants and offices. With technology we can see a reduction in the work force.

Internal Environment: Organizational size is an important factor in determining ________________.

HR activities

External Environment: How does the economy influence HR activities?

A strong economy tends to decrease unemployment, increase wages, make recruitment more competitive, and increase the desirability of training. On the other hand, a weak economy tends to increase unemployment, diminish wage demands, make recruitment less competitive, and reduce the need for training and development of current employees.

External Environment: How does international competition influence HR activities?

Corporations forced to be more competitive, HR policies and practices change significantly

Define the term "SWOT".

SWOT is an acronym that stands for strengths, weaknesses, opportunities, and threats.

What is the purpose of a SWOT analysis?

Used to establish a level of understanding needed for a successful plan

What are the six HR competencies?

provide transformational leadership, collaborate and resolve strategic challenges within the firm, encourage real employee involvement, empower and facilitate learning as well as change and decision-making, design process and performance systems, maintain a global business perspective

HR Characteristics: What knowledge of the Business and Industry must an HR professional possess?

must acquire an understanding of the firm's business objectives and the means that must be employed to attain them

HR Characteristics: Why is it important for an HR professional to have an understanding of the economy?

The globalization of markets, internationalization of corporations, and ever-growing insistence on quality require HR professionals to be more familiar with economic issues, such as cost-of-living indices and the unemployment rate.

HR Characteristics: Why is it important for an HR professional to have analytical abilities?

Due to increases in technology use and the emerging roles that businesses wish to assign HR professionals, these professionals are increasingly being asked to manage processes rather than activities. Consequently, HR managers must develop good analytical skills so that they can diagnosis and solve problems.

HR Characteristics: Why is the ability to influence others a critical characteristic of an HR professional?

Knowing how to influence decision makers without having formal authority and being able to sell and defend a position will continue to be important skills of HR professionals.

HR Characteristics: Why is a propensity for action needed by an HR professional?

HR managers must be proactive in approaching people to discover the problems that already exist. HR managers can no longer afford to remain secluded in their own territory; rather, they must engage with everyone within the organization.

HR Characteristics: Why is meant by "engagement?"

Being intimately involved in the structural changes of the organization - help develop plans and strategies - assist in motivation and retention of employees - manage succession by creating contingency plans for key employees

HR Characteristics: Why is it important for HR professionals to have political awareness?

to integrate all resources and rallying employees and colleagues in support of the organization's strategy

HR Characteristics: Why is it important for HR professionals to be customer focused?

must be attentive to the needs of customers and the community

Define the term: HR generalist.

Knowledgable or works with all functional areas of HR (Training & Development, Compensation & Benefits, Employee and Labor Relations, Recruiting and Selecting Employees, and Health Safety and Security)

Define the term: HR specialist.

responsible for specific human resource management functions within the organization. may concentrate in employment and recruiting, labor and employee relations, training and development, job analysis, compensation and benefits, or other specialty areas.

Why is it important that the HR managers be at the top of the organizational hierarchy?

allows the HR manager to play a critical role in HR policy formulation and provides the power necessary for fair and consistent implementation of HR policies

What is the expectation of the HR department regarding change?

to provide up-to-date application of current techniques and developments within the field - pushes organizations to explore innovative approaches to personnel problems and concerns

How does the HR department help line mangers?

Empowers them to make things happen, keeps them up-to-date about legislation that may affect employees as well as health and safety standards

What is the Civil Rights Act?

This law was intended to prevent the practice of treating people differently based on their race.

What is Title VII the Civil Rights Act?

makes it unlawful for an employer to refuse to hire any individual because of the individual's race, color, religion, sex, or national origin. also makes it illegal to discriminate against any individual with respect to compensation, terms, conditions, or privileges of employment based upon those same characteristics.

What groups are protected under Title VII?

Everyone based on their gender, race, religion etc.

How was the EEOC created?

By the civil rights act

What is the purpose of the EEOC?

EEOC enforces federal anti-discrimination statutes and provides oversight for all federal equal opportunity employment regulations.

Define the term and provide an example of "gender discrimination."

unfavorable treatment of someone because of their sex. Making a woman clean the toliets over a man because she is a woman and should know how to clean.

Define the term and provide an example of "sex discrimination."

Discriminating against someone because of their sex, sexuality or gender identity. Not hiring a woman because she could get pregnant.

Define the term and provide an example of "gender identity discrimination."

Discriminating against someone because of their gender identity. Not hiring someone because they're trans

What is sexual harassment?

sexual harassment is harassment directed at an employee because of his or her gender

What is the purpose of the Age Discrimination in employment Act (ADEA)?

To protect workers who are 40+ from being fired, or not hired due to their age.

Define the term "religious discrimination."

treating someone unfairly because of their religious beliefs

List one example of the religious discrimination.

Not hiring someone because they are muslim.

How does the EEOC define "race"?

is a local geographic or global human population—a distinct group—that is evident by genetically transmitted characteristics. For example, American Indian and Pacific Islander are racial categories.

How does the EEOC define "color"?

Color is also commonly understood to mean pigmentation, complexion, or skin shade or tone. Color and race are related, but are not the same. Therefore, color discrimination may occur among members of the same race on the basis of skin tone lightness or darkness.

Describe national origin employment discrimination.

nation of origin discrimination applies not only to a country but to a group of people who share a common language, culture, ancestry, and/or other similar social characteristics.

What was the purpose of affirmative action?

assist historically disadvantaged groups in employment. Such groups include women, African Americans, Asians, Pacific Islanders, disabled persons, American Indian/Alaska Native, and veterans.

What protected categories are covered under affirmative action?

Any disadvantages group

Who must have an affirmative action plan?

Federal contractors

What are the three basic elements of an affirmative action plan?

Reasonable self-analysis; Reasonable rationale for taking affirmative action; and Reasonable affirmative action.

Define the term "demand" in terms of HRM.

understand the companies human capital needs

Define the term "supply" in terms of HRM.

who is available to fill those needs

List the ways that human resource planning (HRP) helps organizations.

Reduce cost so there isn't a surplus of people, planning employee development and to use those employees strengths, improve business planning process, provide more opportunities for women and minorities, promote awareness and importance of HRM through the workplace, evaluating the effect of HR actions and policies.

How has technology influenced HRP?

It is easier to be able to compile data about employees in one place for convenient access,

What are the 4 steps (phases) in the HR planning process? What happens during each step/phase?

Gathering, analyzing, and forecasting data to develop an HR supply and demand forecast

What are the two common forecasting techniques used to project the organization's demand for human resources?

Judgemental and statistical

What are the six statistical forecasting methods?

simple linear regression (increased sales mean we will need to have more CSR), multiple linear regression (mulitple factors instead of just one. sales increase which increases are need for CSR, computing space for new clients) productivity ratio ( historical data are used to examine the past level of a productivity index), HR ratio (past HR data are examined to determine historical relationships among employees in various jobs or job categories), time series analysis (Past staffing levels are examined in order to isolate seasonal and cyclical variations, long-term trends, and random movements.), stochastic ratios (the likelihood of landing a series of contracts is combined with the HR requirements for each contract, in order to estimate expected staffing requirements.)

What are the three judgmental forecasting methods?

Managerial estimates (in financial institutions like banks, a bottom-up approach is often used, where each branch passes its estimates to the head office.) delphi technique (large number of experts take turns presenting a forecast statement and assumptions. An intermediary passes each expert's forecast and assumptions to the others, who then make revisions to their own forecasts) Nominal grouping technique (several people sit around a conference table and independently list their ideas on a sheet of paper. After ten to twenty minutes, they take turns expressing their ideas to the group. As these ideas are presented, they are recorded on larger sheets of paper so that everyone can see all the ideas and refer to them in later parts of the session.)

List an example of a variable.

What can change, if we sell X number of contracts how many employees will we need

When should multiple linear regression be used to forecast demand?

When trying to figure out what you will need based on one variable

When should time series analysis be used to forecast demand?

When trying to determine how many seasonal workers you may need

What are the two judgmental techniques used by organizations to make supply forecasts?

Replacement planning (uses charts that show the names of the current occupants of positions in the organization and the names of likely replacements.) Succession planning (is similar to replacement planning, except that succession planning tends to be longer term, more developmental, and more flexible.)

What information is included in replacement planning?

A chart of available positions (those who aren't performing) and a list of those who could fill that position instead.

What is the difference between succession planning and replacement planning?

succession planning tends to be longer term, more developmental, and more flexible.

Why is establishing HR objectives and policies (phase 2) vital?

because it fosters HR strategies that support the firm's business plans

What are the two types of action programs?

Attraction and reduction

What action program is designed to increase the supply of the right employees in the organization?

Attraction

What should be included in redundancy planning?

is essentially HR planning associated with the process of laying off employees who are no longer needed. Outplacement counseling, buy outs, job skill retraining, and job transfers.

Why is the evaluation of HR plans and programs an important process?

Evaluation of HR plans and programs is an important process not only for determining the effectiveness of HRP, but also for demonstrating the significance of both HRP and the HR department's role within the organization.

Civil Rights Act

makes it unlawful for an employer to refuse to hire any individual because of that person's race, color, religion, sex, or national origin

Fair Labor Standards Act of 1938 (FLSA)

restricts child labor and provides for a minimum wage and overtime pay for employees.

Equal Pay Act of 1963 (EPA)

requires that employers provide equal pay for men and women who do similar work.

Age Discrimination in Employment Act of 1967 (ADEA)

protects those 40 and older from age discrimination throughout the recruitment process.

Pregnancy Discrimination Act of 1978

recognizes pregnancy as a temporary disability and prohibits applicants from being discriminated against in the recruitment process because of pregnancy, childbirth, or related medical conditions.

Immigration Reform and Control Act of 1986 (IRCA):

makes it illegal to hire or recruit illegal immigrants knowingly. Under IRCA, employers may hire only persons who may legally work in the U.S., i.e., citizens and nationals of the U.S. and aliens authorized to work in the U.S.

Americans with Disabilities Act

prohibits discrimination against qualified individuals with disabilities throughout the recruitment process.

Genetic Information Nondiscrimination Act

prohibits the use of genetic information in employment decisions and restricts employers from requesting, requiring, or purchasing genetic information.

Define the term "recruitment."

recruitment is to provide a pool of potentially qualified job candidates from which to select.

What are the purposes of recruitment?

"Determine the present and future recruitment needs of the organization in conjunction with HR planning and job analysis activities.

What does acronym "KSA" mean?

knowledge, skills, and abilities

How does the book define knowledge?

Knowledge: a theoretical or practical understanding of a subject.

How does the book define skills?

Skills: proficiencies developed through training or experience.

How does the book define abilities?

Abilities: qualities that enable a person to perform a particular task; abilities are more stable and enduring than skills.

Describe the purpose of recruitment.

To find a large pool of applicants who are qualified for a position

What are the factors that influence a "promotion-from-within" policy?

.employees are familiar with the people, procedures, policies, and special characteristics of the organization. A second reason for internal recruitment is that employees are likely to feel more secure and loyal to an organization when it gives them opportunities for advancemen

What criterion do organizations think should be used for transfers?

whether seniority, or performance and merit, should be used as the criterion

What criterion do unions think should be used for transfers?

Seniority

What is job rotation?

Rotating between positions within an organization

What is the purpose of a job posting?

extends an open invitation to all employees, through prominent display of notice, to apply for a job vacancy.

List three examples of when a job posting might be seen by an employee.

company website, they can also be found on bulletin boards, in company newsletters, circulated in employee lounges, in email notifications, and announced at staff meetings.

Define the term "employee referral."

are essentially word-of-mouth advertisements that generally involve rewarding employees for referring skilled job applicants to an organization.

What is the most common source of external recruiting in most industries?

Job postings on company websites

In what type of situations are employment agencies used?

For professional/managerial workers, and skilled workers