Human Resource Management Quiz

Introduction to Human Resource Management (HRM)

• HRM is the utilization of individuals to achieve organizational objectives.
• It is a concern for all managers at every level.
• HRM faces a multitude of challenges.

HRM Functions

• Staffing: Ensuring the organization has the required number of employees with the appropriate skills in the right jobs at the right time. This involves constant job analysis, human resource planning, recruitment, and selection.
• Job Analysis: A systematic process to determine skills, duties, and knowledge required for performing jobs in an organization. It impacts virtually every aspect of HRM.
• Human Resource Planning: Matching the internal and external supply of people with anticipated job openings over a specified period. It sets the stage for recruitment and other HR actions.
• Recruitment and Selection: Attracting individuals to apply for jobs (must be timely; applicants need appropriate qualifications, and need sufficient number of applicants). Selection is choosing the best individual for a position.
• Performance Management: A goal-oriented process to ensure organizational processes are in place to maximize productivity. Applicable to employees, teams, and ultimately the organization.
• Performance Appraisal: A formal system of review and evaluation. Can be done for individuals and teams.
• Human Resource Development: Major HRM functions include training, development, career planning, career development, and organization development.
• Training: Providing learners with knowledge and skills needed for their present jobs (relatively short-term focus).
• Development: Offering learning that goes beyond present job (relatively long-term focus).
• Career Planning and Development: Ongoing process where individuals set career goals and identify means to achieve them. Career development is a formal organizational approach to ensure a pipeline of qualified individuals.
• Organization Development: A planned and systematic attempt to make the organization more effective and to create a positive behavioral environment.

Compensation

• Compensation includes all rewards that individuals receive as a result of their employment.
• Components include: financial compensation and nonfinancial compensation.
• Financial compensation includes Direct (Core Compensation): Pay employee receives (e.g., wages, salaries, bonuses, commissions). Indirect (Employee Benefits): Benefits such as paid vacations, sick-leave, holidays, medical insurance.
• Non-Financial Compensation: Satisfaction from the job itself, and from the psychological/physical environment.

Employee and Labor Relations

• Businesses are required by law to recognize a union and bargain in good faith if employees want union representation.
• Human resource activity with a union is often referred to as industrial (labor management) relations.
• Internal Labor Relations relate to the movement of employees within the organization (e.g. promotions, demotions, terminations, resignations).

Safety and Health

• Safety: Protecting employees from work-related injuries.
• Health: Employees’ freedom from illness and their general physical and mental well-being.

Interrelationships of HRM Functions

• All HRM functions are interrelated, impacting each other.
• A pay-for-performance compensation plan depends on reliable and valid performance appraisal practices.

Who Performs HRM Tasks?

• Many different actors participate in HRM: Human resource professionals, line managers, HR outsourcing centers, HR shared service centers and professional employer organizations (employee leasing).

The HR Professional

• Historically, the HR professional was responsible for all six HRM functions (in an advisory or staff capacity).
• HR professionals work with other managers to help them with HRM matters, and HR departments are currently becoming smaller.

Line Managers

• Line managers directly oversee the accomplishment of the organization's primary goals.
• They are involved with human resources by the nature of their jobs, and now perform many duties traditionally conducted by HRM professionals.

HR Outsourcing

• Transfers responsibility for HRM to an external provider.
• Can include discrete services (e.g., health benefits administration) and Business process outsourcing (BPO). BPO can administrate all HR functional areas.

HR Shared Service Centers (SSCs)

• Take routine, transaction-based activities that are dispersed and consolidate them in one location.
• Provide an alternative to HR outsourcing.

Professional Employer Organizations (PEOs)

• Companies that lease employees to other businesses.
• Advantages: economies of scale, greater job mobility for workers, job security, and compliance requirements handling by PEO.

HR as a Strategic Business Partner

• HR professionals must understand the company's business model.
• HR professionals must use this knowledge to support competitive advantage.
• Crucial to recruiting and selecting qualified individuals, managing their performance, and providing development opportunities to ensure employees are knowledgeable in their respective jobs.

Employees as Human Capital

• Capital is defined as factors enabling companies to generate and maximize income, value, identification and reputation.
• Capital includes cash and capital equipment (e.g., advanced robots).
• Human capital refers to collective skills, knowledge, abilities that employees contribute to create value for the employers.

Dynamic HRM Environment

• Illustrates the legal, global, and internal factors affecting HRM
• HRM interactions with factors such as legal considerations, labor market, society and political parties, unions, shareholders, competition, customers, technology, and economy impacting HRM.

Specific Environmental Factors

• Legal Considerations: Federal, state, and local legislation, court decisions, presidential executive orders impacting HRM.
• Labor Market: Potential employees, demographic shifts (older workers), and a dynamic workforce preparedness impacting HRM.
• Society: Ethics, corporate social responsibility, societal norms impacting HRM.
• Political Parties: Political parties influencing approaches to HRM (e.g., government intervention vs. market forces).
• Unions: Employee groups collectively bargaining with the employer impacting HRM.
• Shareholders: Owners of a corporation who may challenge programs impacting HRM.
• Competition: In product or service and labor markets, firms need to maintain a supply of competent employees. Competition can lead to bidding wars impacting HRM.
• Customers: Employment practices should not antagonize members of the market served by a company. High-quality employees are key to firms providing top-quality products and services.
• Technology: Rapid technological changes increasing sophistication and HRIS influencing HRM.
• Economy: A booming economy makes recruiting qualified workers difficult; an economic downturn may create a surplus of job applicants.
• Unanticipated Events: External environment occurrences requiring adjustments in HRM.
• Corporate Culture and Employer Branding: Corporate culture influences employment behaviors; employer branding attracts potential employees.
• HRM in Small Businesses: Many college graduates seek positions in small businesses. While the HRM functions remain the same, the manner of accomplishment differs depending on scale.
• Country Culture and Global Business: Cultural misunderstandings between countries can affect global business. Country culture influences HRM practices.
• HR Professionals: Various designations (executive, generalist, specialist) describe the HR professional. Competency models exist for HRM professionals which vary based on business needs.
• Expected Growth of the HR Profession: Employment of HR professionals is projected to grow.