Human Capital

Human Resource Management (HRM)

Policies, practices, and systems that influence employees' behavior, attitudes, performance.

Human Capital

Employees described in terms of training, experience, judgment, intelligence, relationships, insight.

Sustainable Competitive Advantage

Human resources are valuable, rare, cannot be imitated, have no good substitutes.

High-Performance Work System

Technology, structure, people, and processes working together.

Analysis & Design of Work

Job analysis, job design, job descriptions.

Recruitment & Selection

Postings, interviewing, testing.

Training & Development

Orientation, skills, career development.

Performance Management

Appraisals, discipline.

Compensation & Benefits

Wages, salaries, insurance, retirement plans.

Employee Relations

Surveys, handbooks, labor compliance.

Personnel Policies

Creation and communication.

Employee Data Systems

Record keeping, analytics.

Compliance with Laws

Safety, EEO, pay, privacy.

Supporting Strategy

HR planning, talent management, evidence-based HR, change management, sustainability.

Top Qualities Employers Look For

Problem-solving skills, teamwork skills, strong work ethic, analytical/quantitative skills, written communication skills.

Ethics in HRM

Principles of right and wrong.

Employee Rights

Consent, privacy, conscience, speech, due process.

Standards for Ethical Behavior

Mutual benefits, responsibility, purpose, fairness.

Careers in HRM

Salaries vary by industry, education, experience; roles: generalist or specialist; college degree required; more opportunities with training and development.

Internal Labor Force

Organization's workers (employees and contractors).

External Labor Market

Individuals actively seeking employment.

An Aging Workforce

Workers aged 55+ fastest-growing group; HRM must plan for retirement, retraining, healthcare costs, motivation.

A Diverse Workforce

Diversity in race, ethnicity, gender increasing; fastest growing racial group = multiracial; fastest growing ethnic group = Hispanic.

Skill Deficiencies

Desired skills: math, verbal, interpersonal, decision making, computer.

High-Performance Work Systems

Knowledge Workers: provide specialized knowledge.

Upskilling & Reskilling

Expanding or acquiring new skills.

Employee Empowerment

Decision-making and innovation.

Teamwork

Increases motivation and efficiency.

Agile

Integrates development into strategy.

Focus on Strategy

HR aligns with company goals.

Downsizing, Reengineering, Outsourcing

Reduce cost, streamline processes.

Global Markets

Offshoring, reshoring, expatriate management.

HRIS

Improve accuracy and decision-making.

Automation

Software for selection, planning, compensation, training.

People Analytics

Data and AI to guide HR decisions.

Self-service and dashboards

Empower employees.

Psychological Contract

Unspoken expectations.

Union Membership

Declining.

Flexibility

Rise of gig, contract, and remote work.

Equal Employment Opportunity (EEO)

Ensures all individuals have equal chance for employment.

Major Laws

Civil Rights Acts (1866, 1964, 1991), Equal Pay Act (1963), ADEA (1967), ADA (1990), Pregnancy Discrimination Act (1978), GINA (2008), Lilly Ledbetter Act (2009).

Federal Agencies

EEOC: enforces EEO laws; OFCCP: enforces executive orders for contractors.

Avoiding Discrimination

Disparate treatment and disparate impact.

Four-Fifths Rule

A guideline for assessing adverse impact in hiring.

Sexual Harassment

Quid pro quo or hostile environment.

Occupational Safety and Health Act (OSHA)

Created OSHA agency (1970); employers must provide safe workplace and keep records.

Safety Programs

Job hazard analysis, communication, safety incentives.

Work Flow Design

Analyze tasks for production.

Job Analysis

Collects info about jobs.

Job Description

TDRs.

Job Specifications

KSAOs.

Job Design

Defines how work is performed.

Flexibility in Job Design

Flextime, job sharing, compressed workweek, telecommuting.

Ergonomics

Interface between work and body.

HR Planning Process

Forecasting, Goal Setting & Strategic Planning, Implementation & Evaluation.

Forecasting

Predict labor demand/supply.

Trend analysis

A method used in forecasting to analyze data trends.

Transitional matrix

Tracks movement of employees.

Managing Labor Surplus

Options include downsizing, pay cuts, transfers, early retirement, retraining.

Managing Labor Shortage

Options include overtime, temporary workers, outsourcing, retraining.

Recruitment

Personnel Policies: internal vs external, pay strategies, employment-at-will.

Sources of Recruitment

Internal postings, referrals, agencies, colleges, online.

Metrics in Recruitment

Yield ratio, cost per hire.

Recruiters

Should be warm, informative, timely, respectful.

Realistic job previews

Improve accuracy in recruitment.

Selection Process

Identify candidates, assess KSAOs, and place in jobs.

Applicant-tracking system

Automates the selection process.

Key Measures in Selection

Reliability, Validity, Generalizability, Utility, Legality.

Employment Tests

Aptitude, Achievement, Cognitive, Physical, Personality, Work Samples.

Interviews

Types include nondirective, structured, situational, behavioral, panel.

Best Interview Type

Behavioral interviews.

Decision Models

Multiple-hurdle or compensatory.

Training Overview

Builds job-related KSAOs and should align with organizational goals.

Instructional Design

Includes Needs assessment, Readiness for training, Planning, Implementation, Evaluation.

LMS (Learning Management System)

Automates and manages training programs.

Needs Assessment

Includes Organization Analysis, Person Analysis, Task Analysis.

Training Methods

Presentation, Hands-on, Group-building.

Evaluation of Training

Measure learning, performance, and ROI.

Applications of Training

Orientation/Onboarding, Diversity, Equity, Inclusion Training.