McGraw-Hill/Irwin

Copyright 2014 by the McGraw-Hill Companies, Inc. All rights reserved.

NEED TO KNOW
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Definition of HRM and how HRM contributes to an organizations performance. Responsibilities of HR departments. Types of skills needed HRM. Role of supervisors. Ethical issues in HRM. Typical careers HRM.

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Human Resource Management (HRM)

The policies, practices, and systems that influence employees: behavior attitudes performance

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HRM Practices

Job analysis and job design Recruiting Selection Training and development Performance management Compensation Employee relations HR planning and change management
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COMPANIES WITH EFFECTIVE HRM:

Employees and customers tend to be more satisfied. The companies tend to:
be

more innovative have greater productivity develop a more favorable reputation in the community

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HUMAN CAPITAL
Human Capital an organizations employees described in terms of their: training experience judgment intelligence relationships insight The concept of HRM implies that employees are resources of the employer.

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HRM and Sustainable Competitive Advantage

An organization can succeed if it has sustainable competitive advantage. HR have the necessary qualities to help give organizations this advantage:
HR are valuable, cannot be imitated, have no good substitutes and with needed skills and and knowledge are sometimes rare.

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At Southwest Airlines, the companys focus is on keeping employees loyal, motivated, trained, and compensated. In turn, there is a low turnover rate and a high rate of customer satisfaction.

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High-Performance Work System

An organization in which technology, organizational structure, people, and processes all work together to give an organization a competitive advantage.

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Table 1.1: Responsibilities of HR Departments

Job analysis and job design Recruiting Selection Training and development Performance management Compensation Employee relations HR planning and change management Establishing and administering personnel policies Ensuring compliance with labor laws.

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Supporting the Organizations Strategy

HR planning identifying the numbers and types of employees the organization will require to meet its objectives. The organization may turn to its HR department for help in managing the change process. Skilled HR professionals can apply knowledge of human behavior, along with performance management tools, to help the organization manage change constructively.

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Supporting the Organizations Strategy

Evidence-based HR Collecting and using data to show that human resource practices have a positive influence on the companys bottom line or key stakeholders.

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Figure 1.3: Skills of HRM Professionals

Credible activists 2. Cultural steward 3. Talent manager/ organizational designer 4. Strategy architect 5. Business allies 6. Operational executors
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Who is Responsible for HR?

In an organization, who should be concerned with human resource management?

A. B.

C.

Only HR departments Only Managers Managers and HR departments

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Figure 1.4: Supervisors Involvement in HRM

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ETHICS IN HRM
Ethics fundamental principles of right and wrong. Ethical behavior is behavior that is consistent with those principles. Many ethical issues in the workplace involve HRM.

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Employee Rights

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STANDARDS FOR IDENTIFYING ETHICAL HRM PRACTICES

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HRM practices must result in the greatest good for the largest number of people. Employment practices must respect basic human rights of privacy, due process, consent, and free speech. Managers must treat employees and customers equitably and fairly.

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Figure 1.6: Median Salaries for HRM Positions

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Summary
HRM consists of an organizations people practices

policies, practices, and systems that influence employees behavior, attitudes, and performance. HRM influences who works for the organization and how those people work.

HR departments have responsibility for a variety of functions related to acquiring and managing employees.

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Summary (continued)
HRM requires human relations skills, including skill in:
communicating
negotiating team

development

HR professionals also need to :

understand

the language of business be a credible with line managers and executives be strategic partners

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Summary (continued)
Non-HR managers must be familiar with the basics of HRM and their own role with regard to managing human resources.
Supervisors typically have

responsibilities related to all the HR

functions.

HR professionals should make decisions consistent with sound ethical principles.

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Summary (continued)
Decisions of HR professionals should:
result in

the greatest good for the largest number of

people. respect basic rights of privacy, due process, consent, and free speech. treat employees and customers equitably and fairly.

Careers in HRM may involve specialized work in fields such as recruiting, training, or compensation

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