HRM

CHAPTER 1: Introduction to Human resource Management

 Organization A group consisting of people with formally assigned roles who work together to achieve the
organization’s goals.
 Manager Someone who is responsible for accomplishing the organization’s goals, and who does so by
managing the efforts of the organization’s people.
 Managing To perform five basic functions: planning, organizing, staffing,leading, and controlling
 Management process The five basic functions of planning, organizing, staffing, leading, and controlling.
● Planning. Establishing goals and standards; developing rules and procedures; developing plans and
forecasts
● Organizing. Giving each subordinate a specific task; establishing departments; delegating authority to
subordinates; establishing channels of authority and communication; coordinating the work of
subordinates
● Staffing. Determining what type of people should be hired; recruiting prospective employees; selecting
employees; setting performance standards; compensating employees; evaluating performance;
counseling employees; training and developing employees
● Leading. Getting others to get the job done; maintaining morale; motivating subordinates
● Controlling. Setting standards such as sales quotas, quality standards, or production levels; checking to
see how actual performance compares with these standards; taking corrective action as needed
 Human resource management (HRM) The process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and safety, and fairness concerns.
● Conducting job analyses (determining the nature of each employee’s job).
● Planning labor needs and recruiting job candidates.
● Selecting job candidates.
● Orienting and training new employees.
● Managing wages and salaries (compensating employees).
● Providing incentives and benefits.
● Appraising performance.
● Communicating (interviewing, counseling, disciplining).
● Training employees, and developing managers.
● Building employee relations and engagement.
 Why Is Human Resource Management Important to All Managers?
- Avoid personal mistakes
- Improving profits and performance
- You may spend some time as an HR manager
- HR for small businesses
 Line and Staff Aspects of Human Resource Management:
• authority: The right to make decisions, direct others’ work, and give orders
• line authority: Traditionally gives managers the right to issue orders to other managers or employees.
• staff authority: Gives a manager the right to advise other managers or employees
• line manager: A manager who is authorized to direct the work of subordinates and is responsible for
accomplishing the organization’s tasks.
• staff manager: A manager who assists and advises line managers.
 Line Managers’ Human Resource Management Responsibilities
1. Placing the right person in the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
 9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
 The Human Resource Department
● Recruiters: Maintain contacts within the community and perhaps travel extensively to search for
qualified job applicants.
● Equal employment opportunity (EEO) representatives or affirmative action coordinators: Investigate
and resolve EEO grievances, examine organizational practices for potential violations, and compile and
submit EEO reports.
● Job analysts: Collect and examine detailed information about job duties to prepare job descriptions.
● Compensation managers: Develop compensation plans and handle the employee benefits program.
● Training specialists: Plan, organize, and direct training activities.
● Labor relations specialists: Advise management on all aspects of union–management relations.

The trends Shaping Human Resource Management

 Workforce Demographics and Diversity Trends:
- it will continue to become more diverse with more women, minority group members, and older
workers in the workforce
- Many employers are bringing retirees back(or just trying to keep them from leaving).
- Other firms are shifting to nontraditional workers.
- Some employers find millennials or “generation Y” employees (those born
roughly between 1982 and 2004) a challenge to deal with, and this isn’t just an American phenomenon.
Trends in How People Work
 On-demand workers: employees aren’t employees at all, but are freelancers and independent
contractors who work when they can on what they want to work on, when the company needs them
 Human capital: One big consequence of such demographic and workforce trends is
employers’ growing emphasis on their workers’ knowledge, education, training, skills,
and expertise—in other words on their “human capital.”
- Globalization Trends:
- Globalization refers to companies extending their sales, ownership, and/or manufacturing to new
markets abroad.
- At the same time, globalization vastly increased international competition. More
globalization meant more competition, and more competition meant more pressure
to be “world class”—to lower costs, to make employees more productive, and to do
things better and less expensively.
- Economic Trends:
- Economic trends are pointing up today, and hopefully they will continue to do so.
- Labor force trends: the percent of the population that wants to work is declining.
- The unbalanced labor force: because most of the jobs that the economy added in the past few
years don’t require college educations. The result is an unbalanced labor force: in some
occupations (such as high-tech)
unemployment rates are low, while in others unemployment rates are still very high; recruiters in
many companies can’t find candidates, while in others there’s a wealth of candidates41; and
many people working today are in jobs “below” their expertise
- Technology Trends:
- it may be technology that most characterizes the trends shaping human
resource management today.
- Five main types of digital technologies are driving this transfer of functionality from HR
professionals to automation:
1. social media (Twitter, Facebook, LinkedIn)
2. mobile applications (to monitor employee location and to provide digital photos at the
facility clock-in location to identify workers.)
3. gaming (Knack, Gild, and True Office enable employers to inject gaming features into
training, performance appraisal, and recruiting.)
 4. cloud computing (monitor and report on things like a team’s goal attainment and to
provide real-time evaluative feedback.)
5. data analytics (using statistical techniques, algorithms, and problem-solving to identify
relationships among data for the purpose of solving particular problems).
 Strategic human resource management Formulating and executing human resource policies and practices
that produce the employee competencies and behaviors the company needs to achieve its strategic aims.
 HR AND PERFORMANCE: 3 levers
- HR department lever: The HR manager ensures that the human resource
management function is delivering services efficiently.
- employee costs lever: the human resource manager takes a prominent role in advising top
management about the company’s staffing levels, and in setting and controlling the firm’s
compensation, incentives, and benefits policies.
- strategic results lever: the HR manager puts in place the policies and practices that produce the
employee competencies and skills the company needs to achieve its strategic goals.
 HR And PeRfoRMAnce MeAsuReMent Improving performance requires measuring what you are doing.
 HR And evidence-BAsed MAnAgeMent Basing decisions on such evidence is the heart of evidence-based
human resource management.
 HR And Adding vAlue The bottom line is that today’s employers want their human resource managers to
add value by boosting profits and performance.

 Employment engagement The extent to which an organization’s employees are psychologically involved
in, connected to, and committed to getting their jobs done. Employee engagement is important because it
drives performance.
 Ethics The principles of conduct governing an individual or a group; specifically, the standards you use to
decide what your conduct should be.

Chapter 3 Human resource Management strategy and analysis

 The Strategic Management Process
 The Management Planning Process: 5 steps:
1. setting objectives
2. making basic planning forecasts
 3. reviewing alternative courses of action
4. evaluatingwhich options are best
5. choosing and implementing your plan.
- A plan shows the course of action for getting from where you are to the goal.
- Planning is always “ goal-directed”.
- Hierarchy of goals: view the goals from the top of the firm down to front-line employees
- Policies and procedures provide day-to-day guidance employees need to do their jobs in a manner that is
consistent with the company’s plans and goals. Policies set broad guidelines delineating how employees
should act.
- Procedures spell out what to do if a specific situation arises.
 What Is Strategic Planning?
- strategic plan: The company’s plan for how it will match its internal strengths and weaknesses with
external opportunities and threats in order to maintain a competitive advantage.
- Strategy: A course of action the company can pursue to achieve its strategic aims.
- strategic management: The process of identifying and executing the organization’s strategic plan by
matching the company’s capabilities with the demands of its environment.
 Types of strategies:
1. Corporate strategy:
- the corporate-level strategy identifies the portfolio of businesses that, in total, comprise the
company and how these businesses relate to each other.
- A diversification corporate strategy means the firm will expand by adding new product lines.
- A vertical integration strategy means the firm expands by, perhaps, producing its own raw
materials, or selling its products directly.
- With a consolidation strategy, the company reduces its size.
- With geographic expansion, the company grows by entering new territorial markets, for
instance, by taking the business abroad.
2. Competitive strategy:
- A competitive strategy identifies how to build and strengthen the business
unit’s long-term competitive position in the marketplace.
- Competitive advantage means any factors that allow a company to
differentiate its product or service from those of its competitors to increase market
share.
- Cost leadership means becoming the low-cost leader in an industry.
- With differentiation, the firm seeks to be unique in its industry along dimensions that are widely
valued by buyers.
3. Functional strategy: A strategy that identifies the broad activities that each department will
pursue in order to help the business accomplish its competitive goals.

 Strategic Human Resource Management:

 Strategic human resource management means formulating and
executing human resource policies and practices that produce the employee competencies and behaviors
the company needs to achieve its strategic aims.
 Strategic Human Resource Management Tools:
1. strategy map A strategic planning tool that shows the “big picture” of how each department’s
performance
contributes to achieving the company’s overall strategic goals.
2. Hr scorecard A process for assigning financial and nonfinancial goals or metrics to the human resource
management– related chain of activities required for achieving the company’s strategic aims and for
monitoring results.
3. A digital dashboard presents the manager with desktop graphs and charts, showing a computerized
picture of how the company is doing on all the metrics from the HR scorecard process.
- Employee engagement refers to being psychologically involved in, connected to, and committed to getting one’s
jobs done. Engaged employees “experience a high level of connectivity with their work tasks,” and work hard to
accomplish their task-related goals. Employee engagement is important because it drives performance and
productivity.