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Human Resource

Introduction to HRM

Activities undertaken to attract, develop, and

maintain an effective workforce within an
• The people who make up and organization
give that organization its primary source
of competitive advantage.
• Human Resource Management plays a key
role in finding and developing the
organizations people as human resources
that contribute to and directly affect
company success.
Introduction to HRM
• Organizational performance is impacted in a
positive way from HRM.
• HRM professionals are considered key players in
the management team. No longer just
• As organizations flatten out more responsibility
is pushed down. Today’s business leaders will
deal with HRM.
– Recruiting, developing, performance appraisals are
examples of things being pushed down.
The Strategic Goals of HRM
• Three Primary Goals all Influence by
Attract and Effective Workforce Develop an Effective Workforce
HRM Planning Training
Job Analysis Development
Forecasting Appraisal

Maintain an Effective Workforce

Wage and Salary
Labor Relations
Environmental Influences
on HRM
• “Our people are our most important
• You must find, recruit, train, nurture, and
retain the best people.
– Without them (people) your strategy and
structure does not mean anything!
Environmental Influences
• Competitive Strategy
• Federal Legislation
• Trend in society
Competitive Strategy
• Organization competitive strategy may
include merges and acquisition,
downsizing to increase efficiency,
international operation.
• These strategic decision determine the
demand of skills and employees.
• The human resource strategy in return,
must include the correct employee markup
to implement the organizational strategy.
Federal Legislation
• In the past 40 years several laws have been
passed to ensure equal employment
opportunities (EOO).
– Purpose: Stop unfair discriminatory practices that are
unfair to a specific group and define enforcement
agencies to enforce the laws.
• Discrimination: the hiring or promoting of
applicants based on criteria that are not job
• Affirmative Action: a policy requiring employers
to take positive steps to guarantee equal
employment opportunities for people within
protected groups.
Federal Legislation
• Equal Employment Opportunity Commission
– Enforcement agency for Federal Legislation regarding

• Example: Age Discrimination in Employment Act (ADEA)

– Age 40 or older
– Employers with 40 or more employees
– Damages:
• Back Pay
• Front Pay
• Can recover costs and fees
• No compensatory or punitive damages covered
Trend In Society
• Trend include every thing from court decision
that rule against company that fire employees to
dramatic change.few important trends are:
• Globalization:as firm compete globally HR
executive must deal with staffing concern.
• Work force diversity: hiring decision of
employees with discrimination of color, race ,
religion or cast.
• Labor supply fluctuation: as changing
demographic and economic condition affect
labor terms of shortage or oversupply.
• Employment at will: this rule traditional
permitted an employer to fire the employee for
just cause or even no cause.
• Now 40 states have written law to severely limit
that “at will” to protect against wrongful firing
of employees who refuse to violate a law or
who expose an illegal action by their
• Employees flexibility:to obtain quality
employees and reduce excess employees coat
firm can competitive in global market.
• Greater use of part time employees
• Employees leasing and temporary employees.
Attracting an Effective
The first goal of HRM is to attract individuals
who show signs of becoming valued,
productive, and satisfied employees.

• Human Resource Planning

– Need to predict the need for new employees
based on the types of vacancies that exist or need
for new employees
Human Resource Planning
• Human Resource Planning: The forecasting of
human resource needs and the projected
matching of individuals with expected job
– What will the volume of business likely be in five to
ten years?
– What is the turnover rate? How much can be
– How many engineers will we need?
– Can temporary labor be used?
• Recruiting: the activities or practices
that define the desired characteristics of
applicants for specific jobs.
• Finding and attracting capable applicant
for job,
– Can be external or internal
– Internal:
• Less costly, generates higher employee
commitment, development, and satisfaction.
– External:
• Acquire knowledge, skills, and abilities not
available internally
Realistic Job Previews give the
applicant all pertinent information-positive
and negative- about the job and the
– Enhance satisfaction and reduce turnover
since individuals can be properly matched up
with a job and organization which suits them.
• Ensure that all practices are compliant
with EEO
• Certain groups of people are part of a
‘protected group; which indicates that
they are underrepresented in the
– Age
– Disabilities
– Race
• Select the desired employees from the pool
of applicants.
• The process of determining the skills and
abilities, and other attributes a person needs
to perform a particular job.
• A good place to start in making a selection
decision is job description.
• job description: a listing of duties as well as
desirable qualification for a particular job.
Selection devices: several devices are used to
assessing applicant qualification.
Application Form: a device for collecting information
about education, previous job experience and other
back ground characteristics.
• Two way communication for each to gather
information (individual, phone, panel, electronic)
– Employment Test
• Intelligence tests, aptitude and ability tests,
personality inventories
– Assessment Center
• 2 or 3 day period to do simulated managerial
Developing an Effective
• Training and Development
• Performance Appraisal
Training and Development
• Training and development represent a
planned effort by an organization to facilitate
employee’s learning of job-related behaviors.

– Most Common Method is On The Job Training OJT

• A type of training in which an experienced
employee ‘adopts’ a new employee to teach
them how to perform job duties.
– Mentoring
• Experienced employee works with a new employee to
provide guidance, support and learning opportunities
– Orientation Training: new comer are introduced to
the organization’s culture standards and goals.
– Classroom Training: include lecture , films, audio
visual techniques, and simulation.
– Programmed and computer-assisted instructions:
The employee work on his/her own place to learn
material from the text that included exercise and
Conference and group decisions:participant analyze
case or discuss topics assisted by a training
• Promoting from Within
– Another way to further employee
development is through promotion from
within; this helps companies retain
valuable employees.
• Provide challenging assignments
• Prescribes new responsibilities
• Help employee grow by expanding and
developing their abilities.
Performance Appraisal
• The process of observing and evaluating an
employee’s performance, recording the
assessment, and providing feedback to the
– Give feedback and praise concerning the acceptable
elements of the employee’s performance.
– Describe performance areas that need improvement.
– Reward through merit pay, recognition, and other
• Make accurate use of rating scales and
assessment systems
Assessing Performance
• Jobs are multidimensional and
performance is also multidimensional.
360-degree feedback
– A process that uses multiple raters, including
self-rating, to appraise employee performance
and guide development.
• Supervisors, co-workers, customers and other
individuals as applicable. Gives you a full picture of
who you are from various perspectives.
Performance Evaluation
• Train managers how to use the
performance appraisal interview.
– Some mistakes:
• Stereotyping: placing an employee into a class or
category based on one or a few traits or
• Halo Effect: when an employee receives the same
rating on all dimensions regardless of his or her
• Behaviorally Anchored Rating Scale: a rating
technique that relates an employees performance to
specific job-related incidents.
– Each incident of dimension gets its own bar and

– Performance appraisal interviews:

– A formal review of an employee’s performance
conducted between the superior and the
Maintain an Effective
• Compensation
• Benefits
• Termination
• Compensation: monetary payments (wages,
salaries) and non-monetary goods/commodities
(benefits, vacations) used to reward employees.
– Money
– Health Insurance
– Paid Vacations
– Employee Fitness Centers
– Memberships in Clubs
– Corporate Jet
• Helps to attract and retain employees.
• The compensation package should fit the
company strategy and should provide
compensation equity.
Compensation Equity
• Maintain a sense of fairness and
equity within the pay structure.
– Job Evaluation: will allow the
organization to determine the value of
jobs within the organization through the
examination of job content.
Pay and Performance
• Some compensation is developed based
on a pay for performance standard.
– A portion of compensation is tied to effort and
• Can be compensated with:
– Bonuses
– Incentives
– Profit sharing
– Stock
• Should be linked to company strategy!
Wage and Salary structure
• Point system:job evaluation system that
assign a predetermine pint value to each
compassable job factor in order to determine
the worth of given job.
– Wage and Salary Surveys: will allow the
organization to pay incumbents
competitively with what other firms are
• Organizations lose employees due to
– Retirement
• What is the companies responsibility? If any?
– Leave for other opportunities
• Use an exit interview to determine the reasons for
leaving. It will provide you with an inexpensive way to
learn about pockets of dissatisfaction within your
organization. (This will help reduce future turnover for
the same reasons!)
• Some are terminated. WHY?
– Productive employees resent disruptive, low-performing
employees who are allowed to stay with the company and
receive pay and benefits comparable to others.
• Poor Performance