Managing Human Resourses

What Do I Need to Know? (1 of 2)
Define human resource management and explain how HRM contributes to an organization’s performance.
Identify the responsibilities of human resource departments.
Summarize the types of skills needed for human resource management.

What Do I Need to Know? (2 of 2)
Explain the role of supervisors in human resource management.
Discuss ethical issues in human resource management.
Describe typical careers in human resource management.

Human Resource Management (HRM)
The policies, practices, and systems that influence employees’:
behavior
attitudes
performance

Figure 1.1:
Human Resource Management Practices

At companies with effective HRM:
Employees and customers tend to be more satisfied.
The companies tend to:
be more innovative
have greater productivity
develop a more favorable reputation in the community

Human Capital
Human Capital – an organization’s employees described in terms of their:
training
experience
judgment
intelligence
relationships
insight
The concept of “human resource management” implies that employees are resources of the employer.

Figure 1.2:
Impact of Human Resource Management

HRM and Sustainable Competitive Advantage
An organization can succeed if it has sustainable competitive advantage.
Human resources have the necessary qualities to help give organizations this advantage:
Human resources are valuable.
Human resources with needed skills and and knowledge are sometimes rare.
Human resources cannot be imitated.
Human resources have no good substitutes.

At Southwest Airlines, the company’s focus is on keeping employees loyal, motivated, trained, and compensated. In turn, there is a low turnover rate and a high rate of customer satisfaction.

High-Performance Work System
An organization in which technology, organizational structure, people, and processes all work together to give an organization an advantage in the competitive environment.

Engaged, Enabled Employees Deliver Bottom-Line Benefits

Table 1.1:
Responsibilities of HR Departments

Responsibilities of HR Departments
One employee dedicated to handle HR related matters is usually necessary in a company of ____ employees.
10
25
75
200

Analyzing and Designing Jobs
Job Analysis
The process of getting detailed information about jobs.
Job Design
The process of defining the way work will be performed and the tasks that a given job requires.

Recruiting and Hiring Employees
Recruitment
The process through which the organization seeks applicants for potential employment.
Selection
The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

Qualities of Job Candidates
Which of the following qualities were in the top 5 as reported by employers?
Technical skills
Intelligence
Interpersonal skills
Computer skills

Table 1.2: Top Qualities Employers Seek in Job Candidates

Training and Developing Employees
Training
A planned effort to enable employees to learn job-related knowledge, skills, and behavior.
Development
The acquisition of knowledge, skills, and behaviors that improve an employee’s ability to meet changes in job requirements and in customer demands.

Managing Performance
Performance Management – The process of ensuring that employees’ activities and outputs match the organization’s goals.
The human resource department may be responsible for developing or obtaining questionnaires and other devices for measuring performance.

Planning and Administering Pay
and Benefits
Planning Pay & Benefits
How much to offer in salary and wages.
How much to offer in bonuses, commissions, and other performance-related pay.
Which benefits to offer and how much of the cost will be shared by employees.
Administering Pay & Benefits
Systems for keeping track of employees’ earnings and benefits are needed.
Employees need information about their benefits plan.
Extensive record keeping and reporting is needed.

Maintaining Positive Employee Relations
Preparing and distributing:
employee handbooks and policies
company publications and newsletters
Dealing with and responding to communications from employees:
questions about benefits and company policy
questions regarding possible discrimination, safety hazards, possible harassment
Collective bargaining and contract administration.

Establishing and Administering
Personnel Policies
Organizations depend on their HR department to help establish and communicate policies related to:
hiring
discipline
promotions
benefits
All aspects of HRM require careful and discreet record keeping.

Ensuring Compliance with Labor Laws
Government requirements include:
filing reports and displaying posters
avoiding unlawful behavior
Managers depend on HR professionals to help them keep track of these requirements.
Lawsuits that will continue to influence HRM practices concern job security.

One reason W.L. Gore & Associates is repeatedly named one of the 100 Best Companies to Work for in America is their unusual corporate culture where all employees are known as associates and bosses are not found.

Supporting the Organization’s Strategy
Human resource planning – identifying the numbers and types of employees the organization will require to meet its objectives.
The organization may turn to its HR department for help in managing the change process.
Skilled HR professionals can apply knowledge of human behavior, along with performance management tools, to help the organization manage change constructively.

Supporting the Organization’s Strategy
Evidence-based HR– Collecting and using data to show that human resource practices have a positive influence on the company’s bottom line or key stakeholders.

Supporting the Organization’s Strategy
Corporate Social Responsibility
A company’s commitment to meeting the needs of its stakeholders.
Stakeholders
The parties with an interest in the company’s success (typically, shareholders, the community, customers, and employees).

Figure 1.3: Skills of HRM Professionals

Who is Responsible for HR?
In an organization, who should be concerned with human resource management?
Only HR departments
Only Managers
Managers and HR departments

Figure 1.4:
Supervisors’ Involvement in HRM

Ethics in Human Resource Management
Ethics – the fundamental principles of right and wrong.
Ethical behavior is behavior that is consistent with those principles.
Many ethical issues in the workplace involve human resource management.

Employee Rights

Ethical companies act according to four principles:
In their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits.
Employees assume responsibility for the actions of the company.
The company has a sense of purpose or vision that employees value and use in their day-to-day work.
They emphasize fairness.

Figure 1.5:
Standards for Identifying Ethical Practices

Standards for Identifying Ethical Human Resource Management Practices
HRM practices must result in the greatest good for the largest number of people.
Employment practices must respect basic human rights of privacy, due process, consent, and free speech.
Managers must treat employees and customers equitably and fairly.

Figure 1.6:
Median Salaries for HRM Positions

Test Your Knowledge
Which HR functions are primarily concerned with 1) ensuring employees are capable of doing their current job , 2) ensuring that employees are satisfied with their rewards.
1) Development; 2) Employee Relations
1) Training; 2) Legal Compliance
1) Selection; 2) Pay & Benefits
1) Training; 2) Pay & Benefits

Summary
Human resource management (HRM) consists of an organization’s “people practices”
the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.
HRM influences who works for the organization and how those people work.
HR departments have responsibility for a variety of functions related to acquiring and managing employees.

Summary (continued)
HR management requires substantial human relations skills, including skill in:
communicating
negotiating
team development
HR professionals also need:
To understand the language of business
To be a credible with line managers and executives
To be strategic partners

Summary (continued)
Non-HR managers must be familiar with the basics of HRM and their own role with regard to managing human resources.
Supervisors typically have responsibilities related to all the HR functions.
HR professionals should make decisions consistent with sound ethical principles.