Chapter 2
HRM
Functions and Strategy
Introduction
Achieving organizational goals can’t be done without
human resources. It’s people, not buildings, equipment, or
brand name, that make a company.
Managers are concerned with goal attainment, which
makes them effective, and with the best allocation of scarce
resources, which makes them efficient.
Thus, managers are those who work with and through
other people, allocating resources, in the effort to achieve
goals. They perform their tasks through 4 critical functions
(planning, organizing, leading, and controlling).
The Importance of HRM
Personnel management versus Human resource
management?
Strategic business partner and representative of
employees
People component of the organization
Hires and trains employees to function effectively within
the organization and some one has to oversee this.
Provides for the continuing personal development of each
employee.
Maintains employees affiliation with the organization.
Functions of HRM
1) Staffing 3) Motivation
Strategic human resource Job design
Performance appraisals
planning
Recruiting Rewards and
Selection compensation
2) Training and Development Employee benefits
Orientation 4) Maintenance
Employee training Safety and health
Employee development Communications
Career development Employee relations
The Staffing Function
Steps are as follows:
Employment planning
Well defined reason for needing individuals who possess
specific skills, knowledge, and abilities that are directly linked to
specific jobs required in the organization.
Job analysis
Essential qualifications and critical skills needed for each job
Recruitment
Focuses on locating potentially good applicants
Get an adequate pool of candidates
The Staffing Function
Recruitment, Cont.
Provide enough info about jobs to filter out non
qualified applicants
Selection
Thin out the large set of applications
Select an applicant who will be successful on the job
Staffing
Locate competent employees and get them into the
organization
The Staffing Function
Recruiting new employees
Correctly advertising the job to ensure that the appropriate
skills, knowledge, and abilities are being achieved.
After sorting through CVs and applications, the employment
specialist conducts 1st weeding out of candidates who applied
but don’t meet the job’s requirements.
Interview the selected candidates.
Further filter down the list of prospective candidates.
Schedule “fit” candidates to interview with manager.
Select candidate, then make job offer, then hire candidate.
The Training and Development Function
Socializing and adapting new employees to the organization.
Orient new employees to the rules, regulations, and goals of
the organization.
Focuses on:
Employee training – promote competency in new job
Employee development – employee centered
Organization development – system wide changes
Career development – employee centered
The Training and Development Function
HRM attempts to reach the goal of having competent,
adapted employees who possess the up-to-date skills,
knowledge, and abilities needed to perform their current jobs
more successfully.
If that is attained, then HRM turns its attention to finding
ways to motivate these individuals to exert high energy levels.
Helps employees cope with change.
Improve employees to achieve greater organizational
productivity.
The Motivation Function
Human behavior is complex.
One’s performance in an organization is a function of 2 factors:
Ability
Willingness
Employees need to have the appropriate skills and abilities to
adequately do the job.
Motivating employees is easiest when organizations correctly
define the requirements of the job, match applicants to those
requirements, and train the new employees on how to do the
job.
The Motivation Function
Performance standards for each employee is set.
Performance evaluation system is designed to provide
feedback to employees regarding their past performance,
while simultaneously addressing any performance
weaknesses the employee may have.
A link should be established between employee
compensation and performance.
The Motivation Function
Compensation and benefits are concerned with paying
employees and administering their benefits package, and
they come from elaborate investigations and analyses.
Job analyses lead to job rating lead to job evaluation or
job worth to organizations which in the end leads to
employee compensation and benefits.
The Maintenance Function
Activities that will help retain productive employees.
Working environment is safe and healthy.
Care for employees’ well-being.
Appropriate open communication programs (employees
are kept well informed)
Maintain commitment and loyalty to the organization.
Fair and equitable treatment.
Listening to employees
Help employees understand organizational rules.
Company activities, such as outings and picnics.