Chapter 1

MANAGING HUMAN RESOURCES

1.

Define HRM and explain how HRM contributes to

an organizations performance.

2.

Identify the responsibilities of HR departments.

3.

Explain the roles of supervisors in HRM.

4.

Explains the skills needed by HR personnel.

Human resource management (HRM)

Policies, practices, and systems that influence employees
behavior, attitudes, and performance.
The policies and practices involved in carrying out the people
or human resource aspects of a management position,
including recruiting, screening, training, rewarding, and
appraising.
(Mondy and Noe, 2004)

Human Capital
An organizations employees described in terms of their:
training
experience
judgment
intelligence
relationships
Insight
Employees are not easily interchangeable and replaced.

HRM & Company Performance

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

Impact of HRM on Organizational Performance

At 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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Analyzing and Designing Jobs

Job Analysis

The process of getting detailed information about jobs.

Recruiting and Hiring Employees

Recruitment

Selection

The process through

which the organization
seeks applicants for
potential employment.

The process by which the organization

attempts to identify applicants with the
necessary knowledge, skills, abilities,
and other characteristics that will help
the organization achieve its goals.

Training & Developing Employees

Training

Development

A planned effort to enable

employees to learn jobrelated knowledge, skills,
and behavior.

The acquisition of knowledge,

skills, and behaviors that improve
an employees ability to meet
changes in job requirements and
in customer demands.

Managing Performance
Performance Management
The process of ensuring that employees activities and outputs match
the organizations goals.
The HR department is responsible for developing or obtaining forms and
other devices for measuring performance.

Planning and Administering Pay and Benefits

Planning Pay & Benefits

Administering Pay & Benefits

How much to offer in salary

Systems for keeping track of
and wages.
employees earnings and
benefits are needed.
How much to offer in bonuses,
commissions, and other
Employees need information
performance-related pay.
about their benefits plan.
Which benefits to offer and
Extensive record keeping
how much of the cost will be
and reporting is needed.
shared by employees.

Maintaining Positive Employee Relations

Preparing and distributing:
employee handbooks and policies
company publications and newsletters
Dealing with and responding to communications from employees:
questions about benefits & company policy
questions regarding possible discrimination, safety hazards,
possible harassment

Establishing & Administering Personnel Policies

Organizations depend on their HR department to help establish and
communicate policies related to hiring, discipline, promotions and
benefits.
All aspects of HRM require careful and discreet record keeping.

Ensuring Compliance with Labor Laws

Government requirements include:
filing reports and displaying posters
avoiding unlawful behavior
Managers depend on HR professionals to help them
keep track of these requirements.

Supervisors Involvement in HRM

Interrelationships of HRM Functions

Functional areas of HRM are not separate and distinct.
All HRM functions are interrelated
Management must recognize decision in one area will affect
other areas.
Example:
Firm that focuses on recruitment and training but neglect
providing good compensation is wasting time, effort and money.

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THANK YOU

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