Human Resource Management (HRM) Chapter 7 Slides PDF

HUMAN RESOURCE MANAGEMENT BUS 102 HRM Human Resource Management (HRM) is an operation/function in companies designed to Maximize employees’ performance Meet the employer's strategic goals and objectives How HR can maximize employees’ performance? HRM focuses on management of p...

HUMAN RESOURCE MANAGEMENT BUS 102 HRM Human Resource Management (HRM) is an operation/function in companies designed to Maximize employees’ performance Meet the employer's strategic goals and objectives How HR can maximize employees’ performance? HRM focuses on management of people within companies, emphasizing on policies and systems. What are the processes of managing the people within the organization? Determining HR needs, acquiring (recruiting & selecting), training (motivating), appraising (rewarding & evaluating), compensating and scheduling employees Focusing on labor relations, fairness concerns, health and safety So that HR can maintain competent workforce Why maintain a competent workforce? To achieve the goals of an organization in an effective and efficient manner.  People: The Ultimate Resource There has been a shift from manufacturing to service industries, and also to high-tech manufacturing. These require more technical skills than before, and so people have to be retrained (which HR does). Nowadays, because of increased competition, good, qualified employees are much harder to find (scarcer). So, HR is now much more challenging and important than before. The human resource job is now the job of all managers in an organization (Shared HR Responsibility). SOME MAJOR HR CHALLENGES Cost (Health care, Training, Hiring process) Skilled Workers: A shortage of trained workers in important, growth areas (such as IT, Green Technology etc.) Technology (large database) Overabundance of workers in declining industries, such as steel and automobiles (who need retraining) Economy (Nation’s Unemployment problem): Increased outsourcing (jobs going abroad), because labor costs in other countries are much cheaper than in U.S Changing and Diverse Workforce: Increasing single-parent families, and therefore the need for maternity leave, job sharing, telecommuting etc. increases. HR has to balance these needs against organizational profitability. Ethics: A decreased sense of employee loyalty (due to so many firms in the market, shorter job cycles, contractual work etc.)  Some HR Concepts Affirmative Action – A Policy that is designed to reduce inequality in hiring by giving neglected groups of society the chance to get selected for jobs. Ex- A quota of hiring a minimum of 5 female workers or members from minority groups (ex-tribal workers) in the coming year. However, this can result in Reverse Discrimination – Gender Discrimination against males in hiring or promoting So, HR has to balance affirmative action and reverse discrimination to be fair, ethical and at the same time also ensure performance for the firm. HRM Related to LAW Employers must know the law and act accordingly. Legislation affects all areas of HRM. Court cases highlight that sometimes it’s proper to go beyond providing equal rights. Changes in law and legislation occur regularly. WHO IS A HRM MANAGER? ROLES OF A HRM MANAGER Developing & Implementing Staffing Plan (Recruitment & Selection) Developing Workplace Policies Compensating the Employees-working as the Benefactor for the Company Making Retention Policies Providing Training and Development Dealing with Laws, Regulations affecting Employment Providing Worker Protection Establishing Communication Creating Awareness about External Factors HRM FUNCTIONS (SPECS-ME-CTR) Human Resource Recruitment Management Career Management Selection Employee Union Talent Relations Management Organizational Goals Equal Employment Scheduling Opportunity Training & Compensation Development and Benefit Performance Motivation Evaluation Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. RECRUITMENT AND SELECTION During recruitment and selection, the line manager describes the qualifications employees need to fill specific positions. Then the human resource team (Staff) takes over. HR managers sort qualified applicants, conduct initial, screening interviews, administer the appropriate tests and then refer the best applicants to the line manager, who interviews and selects the ones he or she wants.  RECRUITMENT Recruitment is the set of activities used to obtain a sufficient number of the right employees at the right time. Recruiting is not an easy task. On the contrary, it become very challenging for several reasons: – Retaining employees is a challenge – It is important to hire people who are not only skilled but also fit in with the culture and leadership style of the company – Sometimes people with necessary skills are not available; then workers must be hired and trained internally Employee Sources SELECTION The process of gathering information and deciding who should be hired, under legal guidelines, to fit the needs of the organization and individuals. Selection & training are extremely expensive process. SELECTION PROCESSES Step 1.Obtaining complete application forms Step 2.Conducting initial and follow up interviews Step 3. Giving employment tests Step 4. Conducting background investigations Step 5. Obtaining results from physical exams Step 6. Establishing trial (probationary) periods  HIRING CONTINGENT WORKER These include part-time workers, temporary workers, seasonal workers, interns, and co- op students. Also, they are hired on special cases, i.e., to temporarily substitute full-timers, or to meet the peak demand or uncertain economy. They do not have the expectation of regular, full-time employment. Contingent workers receive FEW BENEFITS and EARN LESS than permanent workers do. They are usually highly PRODUCTIVE.  COMPENSATION The objectives of compensation policy are as follows − Allure suitable staff. Keep qualified personnel. Develop reward structures that are equitable with logical and fair pay relationships between differently valued jobs. Manage pay structures to mirror inflationary effects. Assure that rewards and salary costs handle changes in market rates or organizational change. Appraise performance, duty, and loyalty, and provide for progression. Abide with legal requirements. Maintain compensation levels and differentials under review and control salary or wage costs. FRINGE BENEFITS FRINGE BENEFITS include sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages. c. Many employees want more fringe benefits instead of more salary to avoid higher taxes. a. In recent years benefit programs grew faster than wages. b. Benefits account for about 30% OF PAYROLLS today. SOFT-BENEFITS help workers maintain balance between work & family life. CAFETERIA-STYLE FRINGE BENEFITS allow employees to choose the benefits they want up to a certain dollar amount. TRAINING AND DEVELOPMENT In training, the line manager again describes what he or she expects the employee to be able to do. Then the human resource team (Staff) develops a training program, which the line manager then (usually) administers. Again, without cooperating each other this would be difficult Training and Development -- All attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short-term skills. Development focuses on long-term abilities. Both include 3 steps: (i) Assessing organization needs and employee skills to determine training needs; (i) Designing training activities to meet identified needs; (ii) Evaluating the training effectiveness. PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing. Almost all workers undergo a performance appraisal annually at large corporations. In the 360-degree review, management gathers opinions from all around the employees in order to get a comprehensive idea of the worker’s abilities. ETHICAL HRM – 6 guidelines for HR Teams 1) Know the laws 2) Prioritize professional development 3) Be an ethical HR leader Commitment: “The desire to do the right thing regardless of the cost.” Consciousness: “The awareness to act consistently and apply moral convictions to daily behavior.” Competency: “The ability to collect and evaluate information, develop alternatives and foresee potential consequences and risks.” 4) Understand conflicts of interest 5) Implement diversity and inclusion practices 6) Keep information confidential