Human Resource Management

Human Resource Management (HRM)

• The policies, practices, and systems that influence employees’:

  • Behavior.

  • Attitudes.

  • Performance.

HRM Practices

• Analysis and design of work

• HR planning

• Recruiting

• Selection

• Strategic HRM

• Training and development

• Performance management

• Compensation

• Employee relations

• Company Performance

Human Resources and Company Performance

• Human capital: an organization’s employees described in terms of their:

  • Training.

  • Experience.

  • Judgment.

  • Intelligence.

  • Relationships.

  • Insight.

• The concept of HRM implies that employees are resources of the employer.

Impact of Human Resource Management

• Human Resource Management affects the:

  • Type of Human Capital:

    • Training

    • Experience

    • Judgment

    • Intelligence

    • Relationships

    • Insight

  • Behavior of Human Capital:

    • Motivation

    • Effort

  • Organizational Performance:

    • Quality

    • Profitability

    • Customer satisfaction

Human Resources and Company Performance 2

• Sustainable Competitive Advantage: An organization is better than competitors at something and can hold that advantage over a sustained period of time.

• Human resources give organizations advantages because human resources:

  • Are valuable.

  • Are rare.

  • Cannot be imitated.

  • Have no good substitutes.

Human Resources and Company Performance 3

• High-Performance Work System: Technology, organizational structure, people, and processes all work together to give an organization a competitive advantage.

• May include:

  • Development of training programs.

  • Recruitment of people with new skill sets.

  • Establishment of rewards for such behaviors as teamwork, flexibility, and learning.

Responsibilities of Human Resource Departments 1

• HR Product Lines:

  • Administrative services and transactions.

  • Business partner services.

  • Strategic partner.

• Responsibilities:

  • Establishing and administering personnel policies.

  • Ensuring compliance with labor laws.

Responsibilities of HR Departments 1

Responsibilities of HR Departments 2

Responsibilities of Human Resource Departments 2

• Job Analysis:

  • Process of getting detailed information about jobs.

• Job Design:

  • Process of defining the way work will be performed and the tasks that a given job requires.

Responsibilities of Human Resource Departments 3

• Recruitment:

  • Process through which the organization seeks applicants for potential employment.

• Selection:

  • Process by which the organization identifies applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

Top Qualities Employers Look For in Employees

1. Problem-solving skills.

2. Teamwork skills.

3. Strong work ethic.

4. Analytical/quantitative skills.

5. Written communication skills.

Responsibilities of Human Resource Departments 4

• Training:

  • A planned effort to enable employees to learn job-related knowledge, skills, and behavior.

• Development:

  • Acquisition of knowledge, skills, and behaviors that improve an employee’s ability to meet changes in job requirements and in customer demands.

Responsibilities of Human Resource Departments 5

• Performance Management:

  • Process of ensuring employees’ activities and outputs match the organization’s goals.

  • HR may be responsible for developing or obtaining questionnaires and other devices for measuring performance.

  • Focus on the short term or the long term.

  • Typically completed by the employee’s supervisor.

Responsibilities of Human Resource Departments 6

• Planning and Administering Pay and Benefits:

  • Determine salary, wages, bonuses, commissions, and other performance-related pay.

  • Determine which benefits to offer and how much of the cost is shared by employees.

    • Need systems for keeping track of employees’ earnings and benefits.

    • Employees need information about benefit plans.

    • Requires extensive record keeping and reporting.

Responsibilities of Human Resource Departments 7

• Maintaining Positive Employee Relations:

  • Preparing and distributing employee handbooks and company publications.

  • Responding to communications from employees.

  • Negotiating union contracts and maintaining communication with union representatives.

Responsibilities of Human Resource Departments 8

• Establishing and Administering Personnel Policies:

  • Hiring.

  • Discipline.

  • Promotions.

  • Benefits.

• HR personnel communicate through a variety of channels:

  • Presentations at meetings, posting documents online, e-mail, social media, etc.

Responsibilities of Human Resource Departments 9

• Managing and Using Human Resource Data:

  • Handling records while protecting privacy.

• Workforce analytics:

  • Use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals.

Responsibilities of Human Resource Departments 10

• Ensuring Compliance with Labor Laws:

  • Includes equal employment opportunity, employee safety and health, employee pay and benefits, employee privacy, and job security.

• Government requirements include:

  • Filing reports and displaying posters.

  • Avoiding unlawful behavior.

• Lawsuits continue to influence HRM practices concerning job security.

  • Employment at will, age discrimination, etc.

Responsibilities of Human Resource Departments 11

• Supporting the Organization’s Strategy:

  • Human resource planning: identifying the numbers and types of employees the organization requires to meet objectives.

  • Talent management: systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers.

  • Evidence-based HR: collecting and using data to show human resource practices have a positive influence on company’s bottom line or key stakeholders.

Responsibilities of Human Resource Departments 12

• Supporting the Organization’s Strategy:

  • Managing change by applying knowledge of human behavior, along with performance management tools, to help the organization manage change constructively.

  • Sustainability: ability to profit without depleting resources, including employees, natural resources, and support of surrounding community.

  • Stakeholders: parties with an interest in the company’s success.

    • Typically includes shareholders, community, customers, and employees.

Skills of HRM Professionals

• Skills of HRM Professionals: The Society for Human Resource Management (SHRM) HR Success Competencies.

• Defines knowledge and skills associated with success in HRM.

• Four clusters of competencies:

  • Technical (HR expertise).

  • Interpersonal (relationship management, communications, and global mindset).

  • Business (consultation, analytical aptitude, and business acumen).

  • Leadership (leadership and navigation, diversity, equity, and inclusion and ethical practice).

Competencies for HR Professionals

• Technical: Human Resource Expertise

• Interpersonal: Relationship Management, Communications, Global Mindset

• Business: Analytical Aptitude, Business Acumen, Consultation

• Leadership: Leadership & Navigation, Diversity, Equity & Inclusion, Ethical Practice

HR Responsibilities of Supervisors

• Supervisors: At a start-up, the company’s founders are the first supervisors.

• Supervisors have many HR responsibilities.

  • Must consider the ways that decisions and policies will affect their employees.

Supervisors’ Involvement in HRM

• Common Areas of Involvement (see figure 1.4)

Ethics in Human Resource Management 1

• Ethics:

  • Fundamental principles of right and wrong.

  • Treatment of employees is a top concern, such as the treatment of women in the workplace.

• Ethical behavior:

  • Behavior that is consistent with those principles.

  • Many ethical issues in the workplace involve HRM.

Ethics in Human Resource Management 2

• Employee Rights:

  • Free consent.

  • Privacy.

  • Freedom of conscience.

  • Freedom of speech.

  • Due process.

Ethics in Human Resource Management 3

• Standards for Ethical Behavior:

  • Ethical companies act according to four principles:

    • Emphasize mutual benefits in relationships with customers, vendors, and clients.

    • Employees assume responsibility for the actions of the company.

    • Have a sense of purpose or vision that employees value and use in their day-to-day work.

    • Emphasize fairness.

Standards for Identifying Ethical Practices

• Fair and equitable

• Greatest good for greatest number

• Respect for basic human rights

Careers in Human Resource Management

• Building a Career:

  • Salaries vary depending on industry, education, and experience.

  • Some positions are generalists, some are specialized.

  • Most positions require a college degree.

  • Increase career opportunities through training and development.

Median Salaries for HRM Positions