Chapter No # 01 Managing Human Resources: Management: What Is HRM?

Chapter no # 01
Managing Human Resources

Management: effectively and efficiently manages the resources.
What is HRM?
The policies and practices involved in carrying out the “people” or human resource aspects of a
management position, including recruiting, screening, training, rewarding, and appraising.
OR
The policies, practices, and systems that influence employees’:
– behavior
– attitudes
– performance
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.
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 turn overrate 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.
Responsibilities of HR Departments
Analyzing and Designing Jobs

Job Analysis Job design
The process of getting detailed information The process of defining the way work will be
about jobs. performed and the tasks that a given job
requires.
Recruiting and Hiring Employees
Recruitment Selection
The process through which the organization The process by which the organization
seeks applicants for potential employment. attempts to identify applicants with the
necessary knowledge, skills, abilities, and
other characteristics that will
help the organization achieve its goals.
Training and Developing Employees

Training Development
A planned effort to enable employees to The acquisition of knowledge, skills, and
learn job-related knowledge, skills, and behaviors that improve an employee’s ability
behavior. 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 Administering Pay & Benefits

 How much to offer in salary and  Systems for keeping track of
wages? employees’ earnings and benefits are
needed
 How much to offer in bonuses,  Employees need information about
commissions, and other performance- their benefits plan.
related pay.
 Which benefits to offer and how much  Extensive record keeping and
of the cost will be shared by reporting is needed.
employees.
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.
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.
 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
Corporate Social Responsibility Stakeholders
A company’s commitment to meeting the The parties with an interest in the company’s
needs of its stakeholders. success (typically, shareholders, the
community, customers, and
employees).
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:

1. In their relationships with customers, vendors, and clients, ethical companies emphasize
mutual benefits.
2. Employees assume responsibility for the actions of the company.
3. The company has a sense of purpose or vision that employee’s value and use in their day-
today work.
4. They emphasize fairness.
Standards for Identifying Ethical Human Resource Management Practices
1. HRM practices must result in the greatest good for the largest number of people.
2. Employment practices must respect basic human rights of privacy, due process, consent,
and free speech.
3. Managers must treat employees and customers equitably and fairly.

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Chapter No # 01 Managing Human Resources: Management: What Is HRM?

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Chapter no # 01

Managing Human Resources

At companies with effective HRM:

HRM and Sustainable Competitive Advantage

– Human resources are valuable.

 At Southwest Airlines, the company’s focus is on keeping employees loyal, motivated,

High-Performance Work System

Analyzing and Designing Jobs

Training and Developing Employees

Planning and Administering Pay and Benefits

Planning Pay & Benefits Administering Pay & Benefits

 Preparing and distributing:

 Dealing with and responding to communications from employees:

 Collective bargaining and contract administration.

Establishing and Administering Personnel Policies

Ensuring Compliance with Labor Laws

Supporting the Organization’s Strategy

Ethics in Human Resource Management

 Ethics – the fundamental principles of right and wrong.

Ethical companies act according to four principles:

Standards for Identifying Ethical Human Resource Management Practices

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