CHAPTER 6 - PART 1.pdf

8/19/2019 CHAPTER 6 - PART 1.pdf

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Chapter 6 :Human Resource Management


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• Proverbs 28:10 Lead good people downa wrong path and you'llcome to a bad end; dogood and you'll be

rewarded for it.

By: Orlando V. Griego, PhD

http://www.biblegateway.com/passage/?book_id=24&chapter=28&verse=10&version=65&context=versehttp://www.biblegateway.com/passage/?book_id=24&chapter=28&verse=10&version=65&context=verse


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After studying this chapter, you should be able to:

6.1 Determine human resource management concepts.6.1.1 Define fundamental human resource management.

6.1.2 Determine principles or characteristic of a goodhuman resource policy such as recruiting

employees, employment condition, discharge,training, strategies and methods health standard

promotion, safety practice, financial aid & separation.


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What Is Human Resource Management (HRM)?

• The policies and practices involved in carryingout the “people” or human resource aspects of amanagement position, including recruiting,screening, training, rewarding, and appraising.

6.1 Determine Human Resource Management Concepts.

• Getting results. The bottom line of managing.

• HR creates value by engaging in activities that producethe employee behaviors that the company needs toachieve its strategic goals.

Basic HR Concepts


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Human Resource (HR) Management

• The design of formal systems in an organization to

ensure effective and efficient use of human talent toaccomplish organizational goals.

6.1.1 Define fundamental human resource management.

Management process

The five basic functions of planning, organizing,staffing, leading, and controlling.


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The Importance of HRM

• As a necessary part of the organizing function ofmanagement

– Selecting, training, and evaluating the work force• As an important strategic tool

– HRM helps establish an organization’s sustainablecompetitive advantage.

• Adds value to the firm – High performance work practices lead to both high

individual and high organizational performance.


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Figure 6.1:

Impact of Human Resource Management

Source: Based on fundamentals of Human Resource Management 4th edition

by R.A. Noe, J.R. Hollenbeck, B. Gerhart, and P.M. Wright


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6.1.2 Determine principles or characteristicof a good human resource policy such asrecruiting employees, employment condition,

discharge, training, strategies and methodshealth standard promotion, safety practice,financial aid and separation.


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Figure 6.2: Human Resource Management Process

Source: Based on PowerPoint Presentation by Charlie Cook, The University of West Alabama


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Human Resource Planning (HRP)• Activities that managers engage in to forecast theircurrent and future needs for human resources.

• The process by which managers ensure that they havethe right number and kinds of people in the rightplaces, and at the right times, who are capable ofeffectively and efficiently performing their tasks.

• Helps avoid sudden talent shortages and surpluses.

• Steps in HR planning:

- Assessing current human resources

- Assessing future needs for human resources

HR Activities


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Recruitment & Discharge/Decruitment

• Recruitment – The process of locating,

identifying, and attractingcapable applicants to anorganization.

• Discharge/Decruitment

– The process of reducing asurplus of employees in theworkforce of an organization


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RecruitmentSources

Internal

Searches

EmployeeReferrals

Employee

Leasing

Temp

Services

Employment

Agencies Advertisements

School

Placement

Source: Based on Robbins et al., Fundamentals of Management, 4th editionCanadian Edition. 2005 Pearson Education Canada, Inc.


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Decruitment Options


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Selection• Selection Process

– The process of screening job applicants toensure that the most appropriate candidatesare hired.

• What is Selection?

– An exercise in predicting which applicants, ifhired, will be (or will not be) successful inperforming well on the criteria theorganization uses to evaluate performance.

– Selection errors:• Reject errors for potentially successful applicants

• Accept errors for ultimately poor performers

Purpose is to hire the person(s)best able

to meet the needs of the


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Figure 6.3: Selection Tools

Source:

Based on Gareth R. Jones, Jennifer M. George, Contemporary Management, 5th edition. 2008 McGraw-Hill Companies, Inc.


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Orientation

• Process to introduce new employees to organization.

(Transitioning a new employee into the organization)

• Familiarize new employee to job and work unit.

• Help employee to understand values, beliefs, and

acceptable behaviours.


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Training and Development

• Training – Teaching organizational

members how to performcurrent jobs and helping them

to acquire the knowledge andskills they need to be effectiveperformers.

• Development

– Building the knowledge and skills oforganizational members to enable them totake on new responsibilities and challenges.


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Training and Development

Source:

Based on Gareth R. Jones, Jennifer M. George, Contemporary Management, 5th edition. 2008 McGraw-Hill Companies, Inc.


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Employee Performance Management

• Performance Management System

– A process of establishing performancestandards and appraising employeeperformance in order to arrive at objective

HR decisions and to provide documentationin support of those decisions.


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COMPENSATION AND BENEFITS

Sources: Based on R.I. Henderson, Compensation Management, 6th ed. (Upper Saddle River, NJ: Prentice Hall, 1994), pp. 3 –24; and A. Murray, “Mom,

Apple Pie, and Small Business,” Wall Street Journal, August 15, 1994, p. A1


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Compensation and Benefits• Benefits of a Fair, Effective, and Appropriate

Compensation System

– Helps attract and retain high-performanceemployees

– Impacts on the strategic performance of the firm• Types of Compensation

– Base wage or salary

– Wage and salary add-ons

– Incentive payments

– Skill-based pay

– Variable pay


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Safety Practice (Health and Safety)

• Employers are responsible for ensuring ahealthy and safe work environment.

• Employees are required for follow instructionsand any legal requirements.

• Workplace violence is a growing concern. – Safety in the workplace – OSHA (1970)…who has the responsibility for

healthy employees?

– Security post 9-11 – Health Promotion


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Employee and Labor Relations

• Relationship between union and employer• Union functions as the voice of employees

• Collective bargaining is a process to negotiateterms and conditions of employment

• Bargaining produces a written documentcalled a collective agreement.


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After studying this chapter, you should be able to:

6.1 Determine human resource management concepts.

6.1.1 Define fundamental human resource management.

6.1.2 Determine principles or characteristic of a goodhuman resource policy such as recruiting

employees, employment condition, discharge,training, strategies and methods health standard

promotion, safety practice, financial aid & separation.

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