HRM

Customers

People or businesses who buy the organization’s products or services; their needs drive company success.

Competition

Other companies in the same industry fighting for the same customers.

Suppliers

Companies or individuals who provide raw materials, components, or services used in production.

Labor Force

The pool of available employees, both within and outside the organization.

Shareholders

Individuals or institutions who own stock in the company and have a financial interest in its success.

Society

The broader community whose values and expectations can pressure companies to act responsibly.

Technology

Innovations and tools that affect how work gets done and what products/services are offered.

Economy

The overall financial climate, including growth, inflation, interest rates, and exchange rates, that impacts business.

Government

Local, regional, or national authorities that create and enforce laws and regulations affecting business.

Legal Considerations

Making sure the organization follows all labor laws, regulations, and rules regarding employment, safety, discrimination, and workplace rights.

Staffing

Attracting, recruiting, selecting, and onboarding employees for the organization.

Training and Development

Providing learning opportunities so employees gain new skills, improve current ones, and prepare for future roles.

Performance Management

Setting goals, giving feedback, evaluating employee performance, and supporting improvement.

Compensation and Benefits

Designing and managing pay systems, salaries, bonuses, health insurance, and other rewards.

Employee and Labor Relations

Managing relationships between the organization and its employees, including dealing with unions, grievances, and conflict resolution.

Safety and Health

Ensuring a safe and healthy work environment, preventing accidents and illnesses.

Ethics and Social Responsibility

Promoting ethical behavior, organizational values, and corporate social responsibility (CSR) within HR practices.

Diversity and Inclusion

Encouraging a workforce with varied backgrounds and creating a welcoming, fair, and respectful environment for all.

HR Planning and Strategy

Aligning HR practices with the organization’s goals, forecasting needs, and planning for future workforce requirements.

Human Resource Management (HRM)

The process of recruiting, selecting, training, evaluating, and developing employees to achieve organizational goals.

External Environment (HRM)

Outside forces affecting the organization (customers, competition, suppliers, labor force, shareholders, society, technology, economy, government).

Internal Environment (HRM)

Inside factors the organization controls (strategy, vision, mission, structure, culture).

Strategic Vision

What the organization aspires to become in the future.

Mission Statement

The organization’s purpose and what it must do to achieve its vision.

Types of Strategy

Cost leadership (minimize costs), Differentiation (unique product/service), Focus/Niche (target a specific market).

Porter’s Five Forces

Rivalry among competitors, threat of substitutes, threat of new entrants, supplier power, buyer power.

SWOT Analysis

Assessment of organization’s strengths, weaknesses, opportunities, and threats.

Setting Objectives

Defining clear, measurable goals aligned with strategy.

Organizational Structure

The way an organization groups its resources to achieve its mission.

Complexity (Structure)

Number of vertical layers (management), horizontal divisions (departments), and spatial spread (locations).

Formalization

Degree to which jobs/processes are standardized via rules and procedures.

Centralization

Degree to which decision-making authority is concentrated at top levels.

Organizational Culture

Shared values, beliefs, and assumptions about appropriate behavior in the organization.

Levels of Culture

Behavior (visible actions), values/beliefs (invisible), assumptions (deep, unquestioned truths).

People Analytics

Using data analysis to understand HR trends and employee performance.

Human Resource Management Systems (HRMS)

Digital systems for tracking HR data (attendance, payroll, performance).

Recruitment

The process of attracting the right candidates to fill job openings.

Labor Market

External pool of talent available for recruiting.

Social and Legal Environment (Recruiting)

Laws and social trends that affect recruiting practices.

Internal Recruiting

Filling jobs with current employees (promotions, transfers).

Open Recruiting

Job advertised within the company; anyone can apply.

Targeted Recruiting

Managers nominate candidates internally.

Closed Recruiting

HR searches files and recommends candidates internally.

Advantages of Internal Recruiting

Increases job satisfaction, faster, cheaper, better fit.

Disadvantages of Internal Recruiting

Smaller talent pool, may reinforce old culture, job left behind must be filled.

External Recruiting

Hiring from outside the company (walk-ins, educational institutions, employment agencies, ads, internet).

Advantages of External Recruiting

Fresh ideas, diverse skills, increase diversity, fill complex roles.

Disadvantages of External Recruiting

More expensive, takes longer, new hires need orientation.

Recruitment Constraints

Budget, policies, image, recruiter-candidate interaction, realistic job preview (RJP).