CHAPTER

5: HUMAN RESOURCES MANAGEMENT

Human resource management is defined as a system of activities and strategies that focus on
successfully managing employees at all levels of an organization to achieve organizational goals
(Byars & Rue, 2006).

The human resource management process involves planning for, attracting, developing, and
retaining employees. It is also known as the staffing process.


Human Resources
Planning




Retaining Attracting
Employees Employees




Developing
Employees


A. Human Resources Planning

Human Resources Planning is a dynamic management process of ensuring that at all times a
company or its unit has in its employs the right number of people with the right skills, assigned to
the right jobs where they can contribute most effectively to the productivity and profitability of the
company.

Human Resource Planning includes both a supply and a demand side. An organization must first
develop an understanding of the tasks to be performed and the jobs to be filled through job analysis.

Job analysis provides the necessary information for firms to develop both job descriptions and job
specifications.


B. Attracting Employees

Recruiting is the process of attracting qualified candidates to apply for job openings. To fill an
opening, possible candidates must first be made aware that the organization is seeking employees.
They must be persuaded to apply for the jobs. Recruiting can be done internally and externally.

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Methods of Recruiting

1. Internal Methods of Recruitment

a. Supervisory Recommendations
b. Job Posting
c. Computerized Career Progression
d. Career Development System

2. External Method of Recruitment

a. Employee Referrals
b. Applicant-Initiated Recruitment
c. Help-wanted Advertisement
d. Public Employment Agencies
e. Private Employment Agencies
f. Executive Search Firms
g. Internship
h. Special Events
i. Recruiters
j. Campus Recruiting
k. On-Line Recruiting


C. Developing Employees

Human Resource Development is defined as a set of systematic and planned activities designed by
an organization to provide its members the opportunities to learn necessary skills to meet current
and future job demands.

Training – providing an employee with skills that can be used immediately in the job.

Development – providing an employee with knowledge that may be used today or at some time in
the future.

Performance appraisal is a formal method for assessing how well an individual employee is doing
with respect to assigned goal. Its ultimate purpose is to communicate personal goals, motivate good
performance, provide constructive feedback, and set the stage for effective development plan.

D. Retaining Employees

Compensation is the total of an employee’s pay and benefits. Compensation affects both attracting
and retaining employees.

Pay Systems

1. Wages
2. Salary
3. Incentives

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