Lesson 3: Human resource management: an overview
human resource management
-utilization of individuals to achieve organizational objectives
-dealing with challenges such as a constantly changing workforce, government regulations, a
technological revolution
human resource management functions
staffing
-process through which an organization ensures that it always gas the proper number of
employees with the appropriate skills in the right jobs, at the right time, to achieve
organizational objectives
-job analysis: the systematic process of determining the skills, duties, and knowledge
requires for performing jobs in an organization
-human resource planning: the systematic process of matching the internal and external
supply of people with job openings anticipated in the organization over a specific period
-recruitment: the process of attracting individuals on a timely basis, in sufficient numbers,
and with appropriate qualifications
-selection: the process of choosing the individual best suited for a position and the
organization from a group of applicants
performance management
-goal-oriented process directed toward ensuring that organizational processes are in place
to maximize the productivity of employees, teams, and ultimately, the organization
-performance appraisal: a formal system of review and evaluation of individual or team task
performance
human resource development
-major HRM functions consisting not only of training and development but also of individual
career planning and development activities, organization development, and performance
management appraisal
-organizational development (OD): changing the organization / the corporate culture to a
more behavioral environment
-career planning: sets career goals and identifies means to achieve them
-career development: a formal approach to ensure that people with the proper
qualifications and experiences are available when needed
compensation
-direct financial compensation (monetary compensation): wages, salaries, commissions, and
bonuses
-indirect financial compensation (employee benefits): paid vacations, sick leave, holidays,
and medical insurance
-non-financial compensation: satisfaction from the job itself from the psychological or
physical environment
Lesson 3 1/5
, employee and labor relations
-most firms today would rather have a union-free environment
-union wages and benefits are on average 54% higher than nonunion wages and benefits
-internal employee relations comprise the HRM activities associated with the movement of
employees within the organization such as promotions, demotion, termination, and
resignation
safety and health
-safety: protection of employees from injuries caused by work-related accidents
-health: employees’ freedom from physical or emotional illness
human resource and data analytics
-analyzing employment data and business outcomes
-identifying the causes of certain work-related accidents
-companies should remember that while big data is very good at detecting correlations, it
does not explain which correlations are meaningful
-when making decisions, it is important to remember that correlation does not equate with
cause and effect
interrelationships of human resource management functions
management must recognize that decisions on one area will affect other areas
example: a firm that emphasizes recruiting top-quality candidates but neglects to provide
satisfactory compensation is wasting time, effort, and money
---
performance of HR activities
many HR departments continue to get smaller because others outside the HR department
now perform certain functions
human resource management professional
individual who normally acts in an advisory or staff capacity, working with other
professionals to help them deal with human resource matters
line managers
-individuals directly involved in accomplishing the primary purpose of the organization
-they look to HR for guidance in topics such as selection, training, promotion, and taking
disciplinary action
human resource outsourcing (HRO)
-process of hiring external HR professionals to do the HR work that was previously done
internally
-HRO enables HR to serve as strategic business partners
-discrete services outsourcing: involves one element of a business process or a single set of
high-volume repetitive functions to be outsourced; benefits administration has become so
complex that it really takes someone who works with it every single day to keep track of all
the different laws and changes that are going on
Lesson 3 2/5
human resource management
-utilization of individuals to achieve organizational objectives
-dealing with challenges such as a constantly changing workforce, government regulations, a
technological revolution
human resource management functions
staffing
-process through which an organization ensures that it always gas the proper number of
employees with the appropriate skills in the right jobs, at the right time, to achieve
organizational objectives
-job analysis: the systematic process of determining the skills, duties, and knowledge
requires for performing jobs in an organization
-human resource planning: the systematic process of matching the internal and external
supply of people with job openings anticipated in the organization over a specific period
-recruitment: the process of attracting individuals on a timely basis, in sufficient numbers,
and with appropriate qualifications
-selection: the process of choosing the individual best suited for a position and the
organization from a group of applicants
performance management
-goal-oriented process directed toward ensuring that organizational processes are in place
to maximize the productivity of employees, teams, and ultimately, the organization
-performance appraisal: a formal system of review and evaluation of individual or team task
performance
human resource development
-major HRM functions consisting not only of training and development but also of individual
career planning and development activities, organization development, and performance
management appraisal
-organizational development (OD): changing the organization / the corporate culture to a
more behavioral environment
-career planning: sets career goals and identifies means to achieve them
-career development: a formal approach to ensure that people with the proper
qualifications and experiences are available when needed
compensation
-direct financial compensation (monetary compensation): wages, salaries, commissions, and
bonuses
-indirect financial compensation (employee benefits): paid vacations, sick leave, holidays,
and medical insurance
-non-financial compensation: satisfaction from the job itself from the psychological or
physical environment
Lesson 3 1/5
, employee and labor relations
-most firms today would rather have a union-free environment
-union wages and benefits are on average 54% higher than nonunion wages and benefits
-internal employee relations comprise the HRM activities associated with the movement of
employees within the organization such as promotions, demotion, termination, and
resignation
safety and health
-safety: protection of employees from injuries caused by work-related accidents
-health: employees’ freedom from physical or emotional illness
human resource and data analytics
-analyzing employment data and business outcomes
-identifying the causes of certain work-related accidents
-companies should remember that while big data is very good at detecting correlations, it
does not explain which correlations are meaningful
-when making decisions, it is important to remember that correlation does not equate with
cause and effect
interrelationships of human resource management functions
management must recognize that decisions on one area will affect other areas
example: a firm that emphasizes recruiting top-quality candidates but neglects to provide
satisfactory compensation is wasting time, effort, and money
---
performance of HR activities
many HR departments continue to get smaller because others outside the HR department
now perform certain functions
human resource management professional
individual who normally acts in an advisory or staff capacity, working with other
professionals to help them deal with human resource matters
line managers
-individuals directly involved in accomplishing the primary purpose of the organization
-they look to HR for guidance in topics such as selection, training, promotion, and taking
disciplinary action
human resource outsourcing (HRO)
-process of hiring external HR professionals to do the HR work that was previously done
internally
-HRO enables HR to serve as strategic business partners
-discrete services outsourcing: involves one element of a business process or a single set of
high-volume repetitive functions to be outsourced; benefits administration has become so
complex that it really takes someone who works with it every single day to keep track of all
the different laws and changes that are going on
Lesson 3 2/5
