Human Resource Management and Marketing Concepts
HUMAN RESOURCES MANAGEMENT (HRM)
Overview:
The people behind the people in organizations.
Key Responsibilities of HRM:
Recruitment and Selection
Orientation, Training, and Evaluation
Performance Appraisals
Compensation
Benefits
Flexible Work Arrangements
Employee Separation
Downsizing
Outsourcing
Motivation
Labour-Management Relations
HRM DETAILS
People Behind the People
HRM focuses on attracting, developing, and retaining employees to meet organizational objectives.
Three Main Objectives of HRM:
Provide qualified, well-trained employees for the organization.
Maximize employee effectiveness within the organization.
Satisfy individual employee needs via monetary compensation, benefits, advancement opportunities, and job satisfaction.
HRM Responsibilities
Core HRM responsibilities include:
Employee Recruitment and Selection
Planning for Staffing Needs
Employee Separation
Employee Training and Performance Evaluation
Employee Compensation and Benefits
Recruitment and Selection
Begins with planning current and future human resource needs.
Steps involve:
Prepare a human resource inventory noting:
Age, gender
Education, experience
Training, specialized skills
Finding Qualified Candidates:
Perform Job Analysis:
Job description
Job specification
Choose Sources of Candidates:
Internal Sources: Current employees.
External Sources:
Company websites
Social recruiting platforms (LinkedIn, Facebook, etc.)
Referrals
On-campus recruitment
Job websites
Review Applications and Resumés (screening): Automated software may be utilized.
Interview Candidates:
Initial screenings via phone/video.
Multiple rounds of interviews.
Final interview may include a dining interview.
Employment Tests:
Cognitive tests, personality tests, medical examinations, background checks, reference checks, credit checks.
Select a Candidate and Job Offer:
Offers may have conditions attached and must include compensation and benefits package.
Selecting and Hiring Employees
Selection stage involves assessing applicants to decide who gets the position.
Compliance with federal/provincial employment laws is essential to prevent discrimination based on race, religion, sex, national origin, etc.
Orientation, Training, and Evaluation
Companies provide information about expectations and performance via:
Orientation: Introduces company policies regarding rights and benefits.
Training: Includes on-the-job, classroom, and computer-based training.
Evaluation: Assessment of performance regularly.
Performance Appraisals
Evaluates an employee's work performance including attendance and goal achievement.
More effective appraisals should:
Occur several times a year
Align with organizational goals
Use objective measures
Foster two-way communications.
Types of Reviews:
Peer Reviews
Supervisory Reviews
360-degree Reviews (feedback from everyone involved).
Compensation
Employee pay significantly impacts lifestyle choices, job satisfaction, and productivity.
Important Terms:
Wage: Pay based on an hourly rate or amount of work.
Salary: Periodical pay (weekly, bi-weekly, monthly).
Factors influencing compensation decisions:
Competitor pay rates.
Government regulations.
Cost of living adjustments.
Company profitability.
Employee productivity.
Various Forms of Incentive Compensation
Includes:
Annual Incentive Plan: Rewards for specific results.
Discretionary Bonus Plan: Management sets bonus pool sizes post-performance.
Spot Awards: Recognition of contributions as they happen.
Profit-Sharing Plan: Employees share in company profits via fixed formulas.
Gain-sharing Plans: Incentives based on group productivity gains.
Team/Group Incentives: Focus on small team performances.
Retention Bonus: Reward to keep employees during crucial periods.
Project Bonus: Compensation for completing projects on time.
Employee Benefits
Benefits serve as additional compensation and may include:
Vacation time
Retirement plans
Health insurance
Child and elder care
Tuition reimbursement.
Laws mandate some benefits per employment standards (e.g., Canada Pension Plan, Unemployment Insurance).
Flexible Benefits
Allowing a choice of benefits (e.g., different insurance types).
Paid Time Off (PTO): Flexible time-off policies allowing freedom to use vacation days.
Flexible Work Arrangements
Types include:
Flextime: Employees set their own hours within limits.
Compressed Workweek: Longer hours over fewer days.
Job Sharing Program: Two or more employees share one job role.
Home-Based Work Program: Employees work from home.
Remote Workers: Work through internet connectivity.
Employee Separation
Voluntary Turnover: Employee resigns for personal reasons (e.g., starting a business).
Involuntary Turnover: Employee terminated for poor performance or cost-cutting situations.
Exit Interviews: Often conducted to understand reasons for departure.
Downsizing
The process of eliminating jobs within a firm. Impacts may include:
Potential positive effects on profits and productivity.
Negative effects such as low morale, anxiety, and diminished trust in management.
Outsourcing
Using external vendors for functions previously handled in-house to save costs and enhance flexibility.
Motivating Employees
Motivation begins with employee morale which reflects their attitude and sense of purpose.
High morale can lead to:
Positive job attitudes
Growth opportunities
Extrinsic rewards include pay and benefits, while intrinsic rewards involve job satisfaction from completing tasks.
Maslow’s Hierarchy of Needs Theory
Assumptions:
Needs depend on what individuals possess.
Satisfied needs are not motivators. Only unsatisfied needs can influence behavior.
Needs are arranged in hierarchy:
Physiological: (basic needs like food, shelter).
Safety: (health coverage, safe work environments).
Social: (acceptance from others).
Esteem: (recognition and value from others).
Self-actualization: (fulfilling personal potential).
Labour-Management Relations
Labour Union: Organization of workers aimed at achieving common goals in wages, hours, and working conditions.
Representations by the Canadian Labour Congress (CLC).
Labour Relations Boards: Judicial organizations overseeing unionization processes and labor disputes.
Collective Bargaining Process
Negotiation between management and union representatives on issues like wages, termination, and employee rights.
Dispute Settlement Techniques
Mediation: Third-party intervention to resolve conflicts.
Arbitration: Legally binding decisions made by an arbitrator.
Competitive Tactics of Unions
Strike: Temporary work stoppage to reach a contract or dispute resolution.
Picketing: Public protest against employers.
Boycott: Effort to discourage purchasing firm’s goods/services.
Competitive Tactics of Management
Lockout: Management closes the firm to pressure union negotiations.
Future of Labour Unions
Membership levels are declining due to economic shifts towards service sectors.
CUSTOMER-DRIVEN MARKETING
Marketing Concepts
Definition: The organizational function and processes for creating, communicating, and delivering value.
Exchange Process: Involves trading value between parties.
Utility Creation in Marketing
Utility: The ability to satisfy consumer wants and needs through:
Time Utility: Availability when needed.
Place Utility: Convenient location for purchase.
Ownership Utility: Organized transfer of products from seller to buyer.
Evolution of the Marketing Concept
Historical