MGT 121 Module 1 & 2 PDF

What is HRM? Human resource management (HRM) refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance (Noe, et. al, 2015). Human resource management is the process of acquiring, training, appraising, and compensat...

What is HRM? Human resource management (HRM) refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance (Noe, et. al, 2015). Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns (Dessler, 2013). Human resource (HR) management is designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals (Mathis, 2010). Trends in Human Resources Management 1. Changes in workforce composition - Alternative workforce (independent contractors, freelancers, gig workers, etc.) have entered the mainstream 2. Increasing Workforce Diversity - Labor force is becoming racially and ethnically diverse 3. Increased Employee Expectations of Employers - Employees demand a personalized work experience that show transparency, flexibility, and accountability that wants them 4. Changes in Societal Expectations - Assessment of businesses includes its societal impacts (relationship with workers, customers, and community) 5. Infrastructural Obsolescence - The changing labor market dynamics, employee expectations, and technological changes will require fundamental changes in the organization’s structure, systems, policies, and procedure 6. Changes in the Nature of Work - There exists now a division of labor between humans and machines. 7. Market and Industry 4.0 - People oriented skills are essential to take full advantage of new technologies 8. Changes in the Evaluation and Valuation of Talent - The change in required skills holds human resource management responsible for a change in policies, procedures, and programs that define how employees are evaluated, compensated, and developed. 9. “Reskilling Imperative” - With emerging trends and technologies, reskilling and upskilling will be the norm in order to keep up with these changes. 10. Geopolitical Risks - Diplomatic tensions and tariff wars impact the global supply chain and markets Functions of HRM can be divided into three areas: acquiring, developing and maintaining human resources. 1. Acquiring a. Job Analysis - provides the foundation for such areas as performance appraisal, employee selection, training, and job design - process of getting detailed information about jobs such as the duties that will be attached to the positions and the characteristics of the people to hire b. Job Design - process of defining how work will be performed and identifying the tasks that will be required in a given job. It is about organizing tasks, duties, responsibilities, and other elements into a productive unit of work c. Human resource planning - process of analyzing and identifying the need or demand for and the availability or supply of human resources so that the organization can meet its objectives. It ensures that the right number of people with the required skills is available when needed d. Recruitment, selection, placement - Recruitment is the process of seeking applicants; - Selection is the screening of applicants - Placement is assigning qualified applicants to jobs that they were recruited and selected for. 2. Developing a. Training and Development - Training is the planned effort by the organization to facilitate learning of job related competencies, knowledge, skills, and behaviors. It is the process of teaching employees what they need to acquire and develop in order to perform their jobs well. - Development is the acquisition of knowledge, skills, and behaviors (e.g. through training) that improve an employee’s ability to meet changes in job requirements like new or higher responsibilities. b. Performance management - Process through which managers ensure that the activities and outputs of employees are congruent with or linked to the organization’s goals. It is about creating an enabling work environment that seeks to make employees continuously grow and develop. - Performance appraisal which is a method of managing performance is built within.  3. Maintaining a. Compensation and benefits - The reward system of the organization which includes all forms of pay given to employees as a result of their employment. b. Employee-management relations - This is about maintaining an agreeable and peaceful relationship between the employees and the management c. Employee discipline, safety, and health - Employee discipline is the means the management uses to bring employee behavior under control. Safety and health refer to the protection of employees’ wellbeing, - The Human Resource Manager Is responsible for ensuring that acquiring, developing, and maintaining human resources are properly undertaken Should have the following skills; ○ Organized and can multitask effectively ○ Communications skills; ability to present good and bad news ○ Specific job skills ○ Fairness and strong ethics ○ Critical & creative thinking ○ Good writing skills Strategic Planning ★ HRM was once called personnel department ★ Personnel department hired people and dealt with the hiring paperwork and processes (hiring processes and legal compliance) ★ PD is now divided into human resource management and human resource development ★ In smaller organizations, manager/owner perform HRM functions Personnel Management Focus HRM Focus Administering of policies Helping to achieve strategic goals through people Stand-alone programs, such as HRM training programs that are training integrated with company’s mission and values Personnel department responsible for Line managers share joint managing people responsibility in all areas of people hiring and management Creates a cost within an organization Contributes to the profit objectives of the organization HRM Duties 1. Staffing - Includes the development of a strategic plan to determine how many people you might need to hire 2. Basic workplace policies - Help reach the strategic plan’s goals is the job of HRM 3. Compensation and benefits - Paychecks, 401(k) plans, health benefits, and other perks are usually the responsibility of an HR manager 4. Retention - Assessment of employees, strategizing on how to retain employees and providing input 5. Training and development - Helping new employees develop skills needed for their jobs and helping current employees grow their skills - Determination of training needs and development and implementation of training programs 6. Regulatory issues and worker safety - Keeping up to date on new regulations relating to employment, health care, and other issues HRM vs. Personnel Management Human Resource Strategy - Elaborate and systematic plan of action developed by a human resource department HRM Strategic Plans - Major objectives the organization wants to achieve - Long-term goals HR Plan - Specific activities carried out to achieve the strategic plans - Short-term objectives ULRICH HR MODEL - HR became more of a partnership within the organization - implementation of this model must happen with an understanding of the overall company objectives, problems, challenges, and opportunities - Looks at 5 Main Areas 1. Strategic partner. Partnership with the entire organization to ensure alignment of the HR function with the needs of the organization. 2. Change agent. The skill to anticipate and respond to change within the HR function, but as a company as a whole. 3. Administrative expert and functional expert. The ability to understand and implement policies, procedures, and processes that relate to the HR strategic plan. 4. Human capital developer. Means to develop talent that is projected to be needed in the future. 5. Employee advocate. Works for employees currently within the organization. Four Aspects to keep in mind when creating a good HRM Strategic Plan: 1. Make it applicable - Should be the guiding principles for the HRM function - Should be reviewed and changed as aspects of the business change 2. Be strategic partner - Alignment of corporate values in the HRM strategic plan should be a major objective of the plan - Aligned with the mission and objectives of the organization as a whole 3. Involve People - HR manager should meet with various people in departments and find out what skills the best employees have 4. Understand how technology can be used - The best organizations are those that embrace technology and find the right technology uses for their businesses