Human Resource Management Concepts

Human Resource Management (HRM) Overview

  • HRM Definition: Managing people, shared responsibility, and human resources used to manage a business of all sizes.

    • HRM is not isolated to the human resource department but permeates across the organization.

Three Phases of Human Resource Management

1. Human Resource Planning

  • Goal: Develop strategies to meet the firm's personnel needs.

  • Demand and Supply:

    • When demand exceeds supply, the firm must hire more people.

    • When supply exceeds demand, the firm may need to lay off employees.

2. Workplace Diversity

  • Refers to variety in ethnicity, skin color, or sex among employees.

  • Emphasis on the positive aspects of diversity rather than negative connotations.

3. Job Analysis

  • Fundamental to HR management; involves studying positions to define job descriptions and specifications.

  • Job Specification: Details what is necessary to perform a job.

  • Job Description: Clarifies roles and responsibilities of the job.

Recruiting

  • Definition: The process of attracting qualified applicants to fill positions.

  • Importance of maintaining talent within the company and promoting employees who perform well.

  • Recruiting from different businesses can introduce fresh perspectives and innovative practices.

Selection Process

  • Definition: The use of applicant information to choose the most fitting candidate for a position.

Human Resource Management Processes

1. Acquisition

  • Planning, recruiting, and hiring new employees.

2. Maintenance

  • Encompasses employee relations, compensation, and benefits administration.

3. Development

  • Involves performance appraisals and training programs.

  • HRM is a continuous process aimed at matching supply with demand in human resources.

Employee Integration and Expectations

Onboarding Process

  • Onboarding: The process of integrating new hires into the organization.

  • Orientation: Includes providing tours, reviewing workplace rules, and issuing necessary access credentials (e.g., passwords).

Employee Expectations

  • What might motivate an employee to stay:

    • Money, promotions, bonuses, a positive work environment, and overall compensation (payment received for labor).

  • Benefits: Additional perks beyond base compensation.

    • Examples: uniforms, holiday bonuses, overtime pay, company cars, healthcare benefits.

    • Workers' compensation is essential to cover injuries sustained on the job.

    • Contributions to social security for retirement are mandatory.

Discrimination and Theories in HRM

Legal Framework

  • EEOC (Equal Employment Opportunity Commission): Ensures compliance with federal laws prohibiting workplace discrimination.

Motivation Theories

  1. Theory X: Assumes that people dislike work and need immense control to function effectively.

  2. Theory Y: Suggests that assuming individuals take responsibility and are motivated to achieve organizational goals leads to a better workplace.

  3. Reinforcement Theory: Focuses on how actions that follow certain behaviors can either prevent or instigate favorable outcomes.

Steps of the Hiring Process

  1. Recruiting candidates.

  2. Extending a job offer.

  3. Onboarding of the new hire.

  4. Conducting orientation with new hires.

Reasons for Job Offer Declines

  • Insufficient financial compensation offered.

  • Candidates finding more appealing job opportunities elsewhere.

  • Personal circumstances that affect job commitments, such as family responsibilities.

Motivation in the Workplace

Theories of Motivation

  • Equity Theory: Employees strive for fairness and equality in treatment and compensation.

  • Expectancy Theory: Suggests motivation is a function of the desire for an outcome and the perceived chances of attaining that outcome.

  • Motivation: Describes an individual's internal process that energizes, directs, and sustains behavior.

Organizational Culture and Motivation

  • Companies need to cultivate a robust culture that answers the underlying reasons for employee motivation.

  • Employees tend to be more motivated when aligned with company goals.

Management Techniques

  1. Management by Objectives (MBO): Collaborative goal-setting between managers and employees.

  2. Job Enrichment: A strategy to enhance motivation by diversifying tasks and increasing employee responsibility and control over their roles.

  3. Job Enlargement: Involves expanding an employee’s tasks to enhance their scope of duties, contributing to job enrichment.