Unit 10 - Human Resource Management Notes PDF

UNIT 10 -- HUMAN RESOURCE MANAGEMENT Source: Management The New Workplace 7^th^ ed. (2008) by Richard Daft & Dorothy Marcic. Thomson/South-Western **Human Resource Management --**(HRM) refers to the process (activities) of attracting an effective workforce, developing the workforce to its potentia...

UNIT 10 -- HUMAN RESOURCE MANAGEMENT Source: Management The New Workplace 7^th^ ed. (2008) by Richard Daft & Dorothy Marcic. Thomson/South-Western **Human Resource Management --**(HRM) refers to the process (activities) of attracting an effective workforce, developing the workforce to its potential, and maintaining the workforce over the long term. Elements of HRM **STRATEGIC ROLE OF HRM** - The strategic role of HRM is to drive organizational **performance**.**Human Resources arethe most important tools used for implementing strategy** (Other tools include leadership structural design and information & control systems). HRM has shed its old personnel image and gained recognition as a vital player in corporate strategy - HRM departments not only support the organization's strategic objective but actively pursue an ongoing, integrated plan for furthering the organization's performance - Higher employee productivity - Stronger financial results - Achieve organization's strategic goals - Key players on management team **Current strategy issues of interest** to managers include finding the right people so that the organization can: - Becoming more competitive on a global basis - Improving quality, productivity, and customer service - Managing mergers and acquisitions - Applying new information technology for e-business **Three ways in which HR is changing** 2\. Development of Global strategies IHRM 3\. The use of information technology HR to e-HR **THE LEGAL FRAMEWORK OF HUMAN RESOURCE MANAGEMENT** Organizations must ensure that their practicesconform to the LAW. **Federal laws** passed fall into three categories: 1. Equal Employment Opportunity (EEO)/Discrimination laws -EEOC investigates complaints concerning discrimination and affirmative action 2. Compensation/Benefits Laws 3. Health/Safety Laws **Local Legislation (Labour laws in Jamaica)**fall into three broad categories: 1. Employment law 2. Industrial relations law 3. Industrial safety law Examples of local laws: 1. Minimum Wage Act December 22, 1938 2. Termination and Redundancy Payments Act 1974 3. Labour Relations and the Industrial Dispute Act 1975 (LRIDA) 4. Employment (Equal Pay for Men and Women) Act December 1, 1975 5. The Maternity Leave Act Dec 31, 1979 6. Caribbean Community (Free Movement of Skilled Persons) Act July 1977 7. Factory Act (Occupational health and Safety) 1943 **Jamaican labour laws are enacted with three purposes** Protective -- to protect workers against unfair treatment. For example the Maternity Leave and Minimum Wage Acts Auxiliary -- support the practice of collective bargaining. For example the Trade Union Act and the LRIDA Restrictive -- limits the scope of trade unions' activities particularly as it relates to disruptive impact of industrial action **SOCIETAL TRENDS THAT INFLUENCE HRM** 1. Teams & Projects -- with emphasis on projects, distinctions between job categories and descriptions are collapsing. Many workers today handle multiple tasks/responsibilities. Virtual teams are being used more often. 2. Temporary & Part Time Employees -- Contingent workers/professionals are now a large part of the work force. This may be due to downsizing, outsourcing and restructuring which have led to the elimination of some positions. Also, some employees prefer part-time jobs. 3. Work-Life Balance --HR managers are using initiatives to help employees lead a balanced life. For example telecommuting, flexible scheduling, on site gym, child care, paid leave. 4. Becoming an Employer of Choice --An employer of choice is a company that is highly attractive to potential employees because of the human-resources practices that focus not just on tangible benefits but also on intangibles. 5. Rightsizing (Downsizing) the Organization -- this refers to intentionally reducing the company's workforce to the point where the number of employees is deemed to be right for the company's current situation. 6. Diversity -- this includes all the ways employees differ. Organizations have to manage diversity by creating a climate in which the potential advantages of diversity for the organization or group performance are maximized while the potential disadvantages are minimized. Issues that may arise include prejudice, stereotypes, discrimination, ethnocentrism. **GOALS OF HRM** **[GOALS OF HRM]** 1. **[Attracting an Effective Workforce]**  **Human Resource Planning** -- this involves forecasting the human needs and the matching of individuals with expected job vacancies. **Recruiting**-- activities or practices that define the desired characteristics of applicants for specific jobs. - Internal-- promote-from-within policies used by many to fill high-level positions - External = recruiting newcomers from outside has advantage of multiple sources - E-cruiting = use of Internet - fastest-growing approach to recruiting Sources of Recruits -- advertising, on-line, private employment agencies (headhunters), job fairs, employee referrals. Before recruiting, the organizational needs are assessed by paying attention to the job analysis, job description and job specifications. **Selection** -- the process of determining the skills, abilities and other attributes a person needs to perform a particular job. Selection devices include: application forms, interviews, employment tests, assessment centres, online checks, reference checks 2. **[Developing an Effective Workforce.]** **Training and Development[--]**this represents a planned effort by an organization to help employees learn job-related skills and behaviours. a. On-the-job training -- experienced employee "adopts" new employee to teach him/her how to perform job duties. b. Corporate Universities -- in-house training and education facility that offers broad-based learning opportunities for employees c. Promotion from Within -- promoting current employees to new positions d. Mentoring & Coaching -- mentoring is when an experienced employee guides and supports a less-experienced employee. Coaching is a method of directing, instructing and training s person with the goal of developing specific management skills. **Performance Appraisal --** this is the process of observing and evaluating an employee's performance, recording the assessment and providing feedback to the employee. Recent trend is the use of 360-degree feedback i.e. a process that uses multiple raters, including self-rating, to appraise employee performance and guide development. Errors in Performance Evaluations - Stereotyping -- placing someone in a category based on a few traits/characteristics - Halo effect -- an employee receives the same rating on all dimensions even if performance is good on some and poor on others 3. **[Maintaining an Effective Workforce]** **Compensation --** monetary payments and nonmonetary goods and commodities used to reward employees - Wage and Salary -- job-based pay, skill-based pay, competency-based pay - Compensation Equity -- Job evaluations are done to determine the value of a job by examining its content so that similar and dissimilar jobs can be compared to determine equitable pay rates - Pay for performance -- incentive pay that ties at least part of compensation to employee effort and performance **Benefits --** may be required by law, for example unemployment compensation, workers compensation. Other benefits include health insurance, vacations, day care centers, fitness centres etc. **Termination --**Employers may have to terminate employees. This can be beneficial to the organization as unproductive employees can be disruptive. Exit interviews can be used determine the reason for termination of the employee.