The Importance of Human Resource
Management (HRM)
• As a necessary part of the organizing function of
management
Selecting, training, and evaluating the work force
• As an important strategic tool
HRM helps establish an organization’s sustainable
competitive advantage.
• Adds value to the firm
High performance work practices lead to both high
individual and high organizational performance.
Examples of High-Performance Work Practices
• Self-managed teams
• Decentralized decision making
• Training programs to develop knowledge, skills,
and abilities
• Flexible job assignments
• Open communication
• Performance-based compensation
• Staffing based on person–job and person–
organization fit
Human Resource Management Process
Environmental Factors Affecting HRM
• Employee Labor Unions
Organizations that represent workers and seek to
protect their interests through collective bargaining.
• Governmental Laws and Regulations
Limit managerial discretion in hiring, promoting, and
discharging employees.
Managing Human Resources
• Human Resource (HR) Planning
The process by which managers ensure that they
have the right number and kinds of people in the right
places, and at the right times, who are capable of
effectively 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
Developing a program to meet those future needs
Recruitment and Decruitment
• Recruitment
The process of locating, identifying, and attracting
capable applicants to an organization
• Decruitment
The process of reducing a surplus of employees in
the workforce of an organization
Major Sources of Potential Job Candidates
Decruitment Options
Selection
• Selection Process
The process of screening job applicants to ensure
that the most appropriate candidates are hired.
Selection Devices
• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical examinations
Orientation
• Transitioning a new employee into the
organization.
Work-unit orientation
Familiarizes new employee with work-unit goals
Clarifies how his or her job contributes to unit goals
Introduces he or she to his or her coworkers
Organization orientation
Informs new employee about the organization’s objectives,
history, philosophy, procedures, and rules.
Includes a tour of the entire facility
Types of Training
Type Includes
General Communication skills, computer systems application
and programming, customer service, executive
development, management skills and development,
personal growth, sales, supervisory skills, and
technological skills and knowledge
Specific Basic life/work skills, creativity, customer education,
diversity/cultural awareness, remedial writing, managing
change, leadership, product knowledge, public
speaking/presentation skills, safety, ethics, sexual
harassment, team building, wellness, and others
Employee Training Methods
• Traditional • Technology-Based
Training Methods Training Methods
On-the-job CD-ROM/DVD/videotapes/
audiotapes
Job rotation
Videoconferencing/
Mentoring and coaching
teleconferencing/
Experiential exercises satellite TV
Workbooks/manuals E-learning
Classroom lectures
Employee Performance Management
• Performance Management System
A process of establishing performance standards and
appraising employee performance in order to arrive at
objective HR decisions and to provide documentation
in support of those decisions.
Advantages and Disadvantages of Performance Appraisal Methods
Method Advantage Disadvantage
Written Simple to use More a measure of evaluator’s writing
essays ability than of employee’s actual
performance
Critical Rich examples; behaviorally Time-consuming; lack quantification
incidents based
Graphic Provide quantitative data; Do not provide depth of job behavior
rating scales less time-consuming than assessed
others
BARS Focus on specific and Time-consuming; difficult to develop
measurable job behaviors
Multiperson Compares employees with Unwieldy with large number of
comparisons one another employees; legal concerns
MBO Focuses on end goals; Time-consuming
results oriented
360-degree Thorough Time-consuming
appraisals
Compensation and Benefits
• Benefits of a Fair, Effective, and Appropriate
Compensation System
Helps attract and retain high-performance employees
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
Career Development
• Career Defined
The sequence of positions held by a person during
his or her lifetime.
The Way It Was
Career Development
– Provided for information, assessment, and training
– Helped attract and retain highly talented people
Now
– Individuals—not the organization—are responsible for
designing, guiding, and developing their own careers.
