BM 212

Chapter Digest

I - Introduction To Human resource management

This is a function within an organisation concentrated on recruiting, managing and directing

people who work in it. Human Resource Management deals with issues related to
compensation, performance management, organisation development, safety, wellness,
benefits, employee motivation, training and others. HRM plays a strategic role in managing
people and the workplace culture and environment. If effective, it can contribute greatly to
the overall company direction and the accomplishment of its goals and objectives.

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Human Resource and company performance

Human resource is often seen as a means to attain or retain competitive advantage in current
product markets. High committment organizations and flexible specialization workplaces are
some of the new labels of such modem human resource policies (Osterman 1994), the shaping
of which should result in high performance. From an outsider's perspective, for instance that of
an investor or a banker, such an assumption raises two important sets of questions:

The findings illustrate the considerable utility of researchers and managers examining the entire human
resource system of an organization when searching for productive leverage point s to improve organizational
outputs like job and firm performance. The results suggest that human resource managers can have a positive
influence on firm performance through implementing and supporting organizational policies and procedures that
serve to positively motivate workers (e.g. reasonable incentive compensation and rewards, fair grievance
procedures, and performance management), and learning and development activities that stimulate optimal task
and contextual job performance.

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The trends shaping human resources management

Human Resource responsibilities have become broader and more strategic over time in response to a
number of trends. The role of HR has evolved from primarily being responsible for hiring, firing,
payroll, and benefits administration to a more strategic role in employee selection, training, and
promotion, and an advisory role to the organization in areas of labor relations and legal compliance.

A. Globalization and Competition Trends – Globalization refers to the tendency of firms to extend their
sales, ownership, and/or manufacturing to new markets abroad. Globalization of the world economy
and other trends has triggered changes in how companies organize, manage, and use their HR
 departments. The rate of globalization continues to be high, and has several strategic implications for
firms. More globalization means more competition, and more competition means more pressure to
lower costs, make employees more productive, and do things better and less expensively.

B. Indebtedness (“Leverage”) and Deregulation – In many countries, government stipends stripped away
rules and regulations. In the United States and Europe, for example, the rules that prevented
commercial banks from expanding into new businesses, such as stock brokering, were relaxed.

C. Technological Trends – Virtual online communities, virtual design environments, and Internet-based
distribution systems have enabled firms to become more competitive. HR faces the challenge of
quickly applying technology to the task of improving its own operations.

D. Trends in the Nature of Work – Jobs are changing due to new technological demands. Dramatic
increases in productivity have allowed manufacturers to produce more with fewer
employees. Nontraditional workers, such as those who hold multiple jobs, “contingent” or part-time
workers, or people working in alternative work arrangements, enable employers to keep costs down.

1. High-Tech Jobs – More jobs have gone high tech, requiring workers to have more education and skills.
Even traditional blue-collar jobs require more math, reading, writing, and computer skills than ever
before.

2. Service Jobs – Most newly created jobs are and will continue to be in the service sector.

3. Knowledge Work and Human Capital – This refers to the knowledge, education, training, skills, and
expertise of a firm’s workers. The HR function must employ more sophisticated and creative means to
identify, attract, select, train, and motivate the required workforce.

E. Workforce Demographic Trends – The labor force is getting older and more multi-ethnic. The aging
labor force presents significant changes in terms of potential labor shortages, and many firms are
instituting new policies aimed at encouraging aging employees to stay, or at re-hiring previously retired
employees. Growing numbers of workers with eldercare responsibilities and high rates of immigration
also present challenges and opportunities for HR managers.

1. Demographic Trends – The U.S. Workforce is becoming older and more ethincally diverse. Demographic
Trends are also making finding and retaining quality employees more challenging.

2. “Generation Y” – Born between 1977 and 2002, these employees want fair and direct supervisors and
aim to work faster and better than other workers.

3. Retirees – Organizations must deal with the large number of people leaving the workforce. In many
cases the number of younger workers entering the workforce is not enough to fill all of the vacated
positions.

4. Nontraditional Workers – These workers may hold multiple jobs and may be contigent or part-time
employees. Technology is facilitating these alternate work arrangement.

5. Workers from Abroad – This is one way that organizations are trying to overcome the large number of
retirees, but the option is sometimes met with opposition as unemployment increases.

F. Economic Challenges and Trends – All of these trends are occurring in a context of challenge and
upheaval. In Figure 1-5, gross national product (GNP) – a measure of the United States of America’s
total output – boomed between 1940 and 2010.

HR as a profit center
Some companies consider HR as Overhead, but progressive companies see HR as an integral part of its business strategy. A major way for
HR to be considered as a Profit Center is to capitalize on the many State and Federal Tax Credits, Grants, and other Incentives available
to their company.
Many new hires will qualify for Federal hiring credits up to $8500 per qualified new hire. Many State credits and/or grants are available
for training on your new or upgraded Sage Abra Software System. In Georgia, you can receive up to 1/2 of all your training costs back in
tax credits. Some States will allow you to take accelerated depreciation on your software cost.
HR can be perceived as a Profit Center through involving the company in pursuing and obtaining these many Tax Credits, Grants, and
other Incentives for the company, which adds many dollars to their bottom line profit!!!

The new HR Managers

“Harnessing and farming talent will only happen if HR managers are genuine in the way they approach people and issues”
Bimal Rath

There is no real reason for the HR manager to renew themselves in this particular year (as against any other year). Except that
change is more likely than ever to catch up and make the professional HR manager redundant sooner than later, if we don’t change.
And there is a great opportunity for the HR manager to earn some more respect from CEOs and other professionals
(notwithstanding the debate as to where the respect level stands right now).
A shift in perspective could do some good in this regard and here are a few new perspectives worth reflecting by my fellow HR
professionals:
Organizations are about employees, not employers only. The top leadership is important to pay attention to. But in the new age,
value creation can and is happening at all levels of the organization. HR’s role is to help create value for the marketplace by
supporting people alignment with culture, ideas and execution. This requires deep listening –not just to the bosses, but also to the
masses, and maybe some really bright young people. It will require learning to work better across layers, being a little irreverent to
hierarchy and creating value just like any other employee.
Genuineness is far more important in managing people than the rule book. Almost all great people managers are great listeners and
are seen as extremely genuine. If HR is to source, help manage and get the best out of organizational talent, it needs to be seen as
a ‘person’. And not a bunch of forms and emails. Harnessing and farming talent will only happen if HR managers are genuine in the
way they approach people and issues, and role model that for other managers.
Learning is the new leadership. Organizations will thrive if they adapt quickly and meaningfully on an ongoing basis. And that means
individuals, teams and the leadership have to adapt. Anyone who is becoming a hindrance to learning is actually taking the
organization back. HR has to not only promote this thought but take a lead in promoting learning on a daily basis. This will mean not
just reorienting the whole learning and leadership development function, but also rewarding newer behaviors.
The more you share, the more you get. HR managers tend to hide behind position, confidentiality and hoarding of information. And
employees simply hate it. The sense is that the HR is on a different planet. We must make an effort to firstly come onto the same
planet as our employees. The future of HR systems and processes (if there are any left in a few years!) will be like open source
software. The community drives and decides what it wants, within a few guidelines. If HR can educate employees to be ‘sensible
citizens’ of the organization, the real power of co-created organizations can be seen. That would of course mean a lot of courage
and openness, and much less of control. Are we up to it?
Appreciation is much more valuable than criticism. The best in people can be leveraged by allowing them to live their own dreams.
The discretionary effort and energy a person will put into the job in an organization is directly linked to the opportunity to maximize
his/her own potential in that context. Appreciating the uniqueness of each individual and their contribution, however small, is
perhaps the best way to support performance.
Really top talent attracts and creates more talent. HR managers need to be spending an inordinate amount of time in building
leaders. The leaders will create more leaders and set standards for others to follow and better themselves. If HR does not
understand excellence and quality, and does not continuously push the bar on leadership upwards, it is only breeding mediocrity
and complacence.

Responsibilities of Human Resources departments

Ethics and careers in HR

The human resources department handles a range of different functions within an
organization. The department is responsible for hiring and firing employees, training workers,
maintaining interoffice relationships and interpreting employment laws

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The human resources department handles a range of different functions within an

organization. The department is responsible for hiring and firing employees, training workers,
maintaining interoffice relationships and interpreting employment laws. The department works
diligently behind the scenes to ensure an organization runs efficiently. The HR department's
duties will vary between companies, but can generally be summed up in six main functions.

Hiring and Recruiting

One of the primary functions of the human resources department is to oversee hiring and
recruiting within an organization. The department actively recruits, screens, interviews and
hires qualified candidates for open positions. The department administers skills assessment
and personality tests to match candidates with the right job within the company. The human
resources department also develops employee handbooks that explain company policies and
procedures to new hires.

Training and Development

The human resources department handles the training and development of staff within an
organization. It creates training programs and conducts training for new hires and existing
employees. The human resources department also works in conjunction with department
managers and supervisors to determine the training needs of employees. They are also
responsible for contracts with training providers and monitoring training budgets.

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Handling Compensation
The human resources department is responsible for various aspects of employee
compensation. The department typically handles employee payroll and ensures employees
are paid accurately and on time, with the correct deductions made. Human resources
departments also manage compensation programs that include pensions and other fringe
benefits offered by the employer.

Employee Benefits
The human resources department manages all aspects of employee benefits, including health
and dental insurance, long-term care or disability programs as well as employee assistance
and wellness programs. The department keeps track of employee absences and job-protected
leave, such as family medical leave. Human resources department representatives ensure
employees receive the proper disclosures regarding benefit eligibility or if benefits are no
longer available because of a layoff or termination.

Employee Relations
The human resources department handles employee relations matters within an organization.
Employee relations involves employee participation in different aspects of organizational
activities. The department maintains the relationship between employees and management by
promoting communication and fairness within the company. The department also handles
disputes between employees and management, as well as disputes between the company
and labor unions or employee rights organizations.

Legal Responsibilities
The human resources department is responsible for interpreting and enforcing employment
and labor laws such as equal employment opportunity, fair labor standards, benefits and
wages, and work hour requirements. The department also investigates harassment and
discrimination complaints and ensures company officials remain compliant with United States
Department of Labor regulations.

The Strategic Context

Strategic human resource management (strategic HRM) is an approach to managing human resources that
supports long-term business goals and outcomes with a strategic framework. ... The pattern of planned human
resourcedeployments and activities intended to enable the organisation to achieve its goals

Equal Opportunity and the Law

The Equal Employment Opportunity Act of 1972 is the act which gives the Equal
Employment Opportunity Commission (EEOC) authority to sue in federal courts when it finds
reasonable cause to believe that there has been employmentdiscrimination based on race,
color, religion, sex, or national origin.
The Equal Employment Opportunity Act of 1972 is the act which gives the Equal
Employment Opportunity Commission (EEOC) authority to sue in federal courts when it
finds reasonable cause to believe that there has been employment discrimination based
on race, color, religion, sex, or national origin. In the case of public employment, the
EEOC refers the matter to the United States Attorney General to bring the lawsuit.

The Act prohibits employment discrimination in its programs on the basis of race, color,
national origin, sex, religion, age, disability, political beliefs, and marital or familial
status. Added as an amendment to Title VII , it expands the protection of Title VII to
public and private employers with 15 or more employees, both public and private labor
organizations with at least 15 members, and employment agencies.

HRM strategy and Analysis

Strategic planning is important to all managers. All managers personnel and other decisions should
be consistent with the goals that cascade down from the firms overall strategic plan. Those goals
form a hierarchy, starting with the president s overall strategic goals (such as double sales revenue
to $16 million) and filtering down to what each individual manager needs to do in order to support
that overall company goal.

because all managers operate within the framework of their company s overall plans, it s
important for all managers to be familiar with the strategic management process.

II- Recruitment. Placement and Talent Management

The Talent Management Process

The basics of Job analysis

Importance of Job Analysis

Methods for collecting job analysis information

Writing Job descriptions

Writing job specifications

Profiles in talent Management

Designing ergonomic Jobs

Designing jobs that meet mental capabilities and limitations

Workforce Planning and forecasting

The need for effective recruiting

Internal sources of candidates

Outside sources of Candidates

Employee testing and selection

Basic testing concepts

Types of tests

Work samples and simulations

Background investigations and other selection

Methods

Basic types of interviews

The errors that undermine an interview’s usefulness

III- Training and Development

Orienting and onboarding new employees

Implementing training programs

Implementing management development programs

Training strategy and overview of the training process

Managing organizational change programs

Evaluating the training efforts

Basic concepts in performance management and appraisal

Techniques for appraising performance

Dealing with appraisal problems and interviews

Performance Management
Managing employee turnover and retention

Employee engagement

Career Management

Improving coaching skills

Making promotion decisions

IV – Compensation

Basic Factors in Determining Pay Rates

Job Evaluation Methods

How to create a market-competitive pay Plan?

Pricing managerial and professional jobs

Money and motivation

Individual employee incentive and recognition programs

Designing effective incentive programs

Benefits and Services

V- Employee Relations

What Shapes ethical behaviour at work

Using HRM management methods to promote ethics and fair treatment

Managing employee discipline and privacy

Managing disciplines and dismissals

Labor relations and collective bargaining

The collective bargaining process

Dealing with disputes and grievances

The union movement today and tomorrow

Employee safety and health

Current trends, developments and practices of HRM

Social Responsibility: legal issues, managing diversity and career challenges

The future of training and development

Managing Global HR

SHRM and HR ethics