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Fundamentals of Human
Resource Management

Chapter 2
Fundamentals of HRM

Management Essentials
Management involves setting goals and
allocating scarce resources to achieve
them.
Management is the process of
efficiently achieving the objectives of
the organization with and through
people.

Management Essentials
Primary Functions of Management
Planning establishing goals
Organizing determining what activities
need to be done
Leading assuring the right people are on
the job and motivated
Controlling monitoring activities to be
sure goals are met

Why is HRM Important to an

Organization?
The role of human resource managers has
changed. HRM jobs today require a new level
of sophistication.
Federal and state employment legislation has
placed new requirements on employers.
Jobs have become more technical and skilled.
Traditional job boundaries have become blurred
with the advent of such things as project teams
and telecommuting.
Global competition has increased demands for
productivity.

Why is HRM Important to an

Organization?
The Strategic Nature HRM must be
a strategic business partner and represent
employees.
forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
concerned with the total cost of its function
and for determining value added to the
organization.

Why is HRM Important to an

Organization?
HRM is the part of the organization
concerned with the people dimension.
HRM is both a staff, or support function
that assists line employees, and a
function of every managers job.

Why is HRM Important to an

Organization?
HRM Certification
Colleges and universities offer HR
programs.
The Society for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.

Why is HRM Important to an

Organization?
Four basic
functions:
Staffing
Training and
Development
Motivation
Maintenance

How External Influences Affect

HRM

Strategic Environment
Governmental Legislation
Labor Unions
Management Thought

How External Influences Affect

HRM
HRM Strategic Environment includes:

Globalization
Technology
Work force diversity
Changing skill requirements
Continuous improvement
Work process engineering
Decentralized work sites
Teams
Employee involvement
Ethics

How External Influences Affect

HRM
Governmental Legislation
Laws supporting employer and employee
actions

Labor Unions
Act on behalf of their members by
negotiating contracts with management
Exist to assist workers
Constrain managers
Affect non unionized workforce

How External Influences Affect

HRM
Management Thought
Management principles, such as those
from scientific management or based on
the Hawthorne studies influence the
practice of HRM.
More recently, continuous improvement
programs have had a significant influence
on HRM activities.

Staffing Function Activities

Employment planning
ensures that staffing will contribute to the
organizations mission and strategy

Job analysis
determining the specific skills, knowledge
and abilities needed to be successful in a
particular job
defining the essential functions of the job

Staffing Function Activities

Recruitment
the process of attracting a pool of qualified
applicants that is representative of all
groups in the labor market

Selection
the process of assessing who will be
successful on the job, and
the communication of information to assist
job candidates in their decision to accept
an offer

Goals of the Training and

Development Function
Activities in HRM concerned with
assisting employees to develop up-todate skills, knowledge, and abilities
Orientation and socialization help
employees to adapt
Four phases of training and development

Employee training
Employee development
Organization development
Career development

The Motivation Function

Activities in HRM concerned with helping
employees exert at high energy levels.
Implications are:
Individual
Managerial
Organizational

Function of two factors:

Ability
Willingness

Respect

The Motivation Function

Managing motivation includes:
Job design
Setting performance standards
Establishing effective compensation and
benefits programs
Understanding motivational theories

The Motivation Function

Classic Motivation Theories

Hierarchy of Needs Maslow

Theory X Theory Y McGregor
Motivation Hygiene Herzberg
Achievement, Affiliation, and Power Motives
McClelland
Equity Theory Adams
Expectancy Theory - Vroom

How Important is the

Maintenance Function
Activities in HRM concerned with maintaining
employees commitment and loyalty to the
organization.

Health
Safety
Communications
Employee assistance programs

Effective communications programs provide

for 2-way communication to ensure that
employees are well informed and that their
voices are heard.

Translating HRM Functions

into Practice
Four Functions:
Employment
Training and development
Compensation/benefits
Employee relations

Translating HRM Functions

into Practice
Employment - Employment specialists:

coordinate the staffing function

advertising vacancies
perform initial screening
interview
make job offers
do paperwork related to hiring

Training and Development

help employees to maximize their potential
serve as internal change agents to the organization
provide counseling and career development

Translating HRM Functions

into Practice
Compensation and Benefits
establish objective and equitable pay
systems
design cost-effective benefits packages
that help attract and retain high-quality
enployees.
help employees to effectively utilize their
benefits, such as by providing information
on retirement planning.

Translating HRM Functions

into Practice
Employee Relations involves:
communications
fair application of policies and procedures
data documentation
coordination of activities and services that
enhance employee commitment and
loyalty
Employee relations should not be confused
with labor relations, which refers to HRM in
a unionized environment.

Translating HRM Functions

into Practice
Purpose and Elements of HRM
Communications
Keep employees informed of what is
happening and knowledgeable of policies
and procedures.
Convey that the organization values
employees.
Build trust and openness, and reinforce
company goals.

Translating HRM Functions

into Practice
Effective Communication programs
involve:
Top Management Commitment
Effective Upward Communication
Determining What to Communicate
Allowing for Feedback
Information Sources

Does HRM Really Matter?

Research has shown that a fully functioning
HR department does make a difference.
Organizations that spend money to have
quality HR programs perform better than
those who dont.
Practices that are part of superior HR
services include:

rewarding productive work

creating a flexible work-friendly environment
properly recruiting and retaining quality workers
effective communications

HRM in an Entrepreneurial
Enterprise
General managers may perform HRM
functions, HRM activities may be
outsourced, or a single generalist may
handle all the HRM functions.
Benefits include
freedom from many government regulations
an absence of bureaucracy
an opportunity to share in the success of
the business

HRM in a Global Village

HRM functions are more complex when
employees are located around the
world.
Consideration must be given to such
things as foreign language training,
relocation and orientation processes,
etc.
HRM also involves considering the
needs of employees families when they
are sent overseas.

HR and Corporate Ethics

HRM must:
Make sure employees know about
corporate ethics policies
Train employees and supervisors on how
to act ethically

HR and Corporate Ethics

The Sarbanes-Oxley Act passed in
2002, establishes procedures for public
companies regarding how they handle
and report their financial status.
Establishes penalties for noncompliance.
Provides protection for employees who
report executive wrongdoing.
Requires that companies have
mechanisms in place where complaints can
be received and investigated.

Goals n Deliverables

Quiz no. 1
Discuss Corporate Ethics

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