human resources management (HRM)
all activities involved in acquiring, maintaining, and developing an organization's human resources
identify and explain HRM activities
Human Resources Planning- determining the firm's future human resources needs Job Analysis- determining the exact nature of the positionRecruiting- attracting people to apply for positionsSelection- choosing and hiring the most qualified applicants Orientation- acquainting new employee with the firm
Maintaining
Employee Relations- increasing employee job satisfaction through satisfaction surveys, employee communication programs, exit interviews, and fair treatmentCompensation- rewarding employee effort through monetary paymentsBenefits- providing rewards to ensure employee well-being
Development of the HRM
Training and development- teaching employees new skills, new jobs, and more effective ways of doing their present jobs Performance appraisal- assessing employees' current and potential performance levels
Acquiring
human resources planningjob analysisrecruitingselectionorientation
Human resources planning
the development of strategies to meet a firm's future human resources needs
What are the factors affecting HR demand and who determines the number of employees needed and their qualification?
Information on the past staffing levels, evolving technologies, industry staffing practices, and projected economic trends and also based on sales and revenues. HRM managers determine both the number of employees required and their qualifications.
What are two useful techniques for forecasting human resources supply?
Replacement chart and skills inventory
Replacement chart
a list of key personnel and their possible replacements within a firm
Skills inventory
a computerized data bank containing information on the skills and experience of all present employees
What foes a firm do if demand is greater than supply and vice versa
When supply is predicated to be greater than demand, the firm must take steps to reduce the size of its workforce. When the oversupply is expected to be temporary, some employees may be laid off
the methods used to reduce the workforce when necessary
laid off- dismissed from the workforce until they are needed againattrition- normal reduction in the workforce that occurs when employees leave a firmearly retirement- people who are within a few years of retirement are permitted to retire early with full benefitsfired- because of the negative impact
Cultural (workforce) diversity
differences among people in a workforce owing to race, ethnicity, and gender
Advantages of diversity
costresources acquisitionmarketing edge flexibility creativity problem solvingbilingual skills
Job Analysis
a systematic procedure for studying jobs to determine their various elements and requirements
job description
a list of the elements that make up a particular job
job specification
a list of the qualifications required to perform a particular job
Recruiting
the process of attracting qualified job applicants
external and its advantages and disadvantages
attempts to attract job applicants from outside an organizationAdvantages- it brings in people with mew perspectives and varied business background, hire college people because this candidates are more trainable to fit with the corporate culture and also technologically savvy.Disadvantage- expensive, recruiting also provoke resentment among present employees.
internal
considering present employees as applicants for available positions
selection
process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant
role and the selecting process
employment applicationsemployment testsinterviews references assessment centers
orientation
process of acquainting new employees with an organization
effective employee reward system
1) enable employees to satisfy basic needs2) provide rewards comparable with those offered by other firms 3) be distributed fairly within the organization 4) recognize that different people have different needs
compensationcompensation system wage levelwage survey job evaluation comparable worth
compensation
payment employees receive in return for their labor
compensation system
policies and strategies that determine employee compensation
wage survey
collection of data on prevailing wage rates within an industry or a geographic area
job evaluation
process of determining the relative worth of the various is jobs within a form
comparable worth
seeks equal compensation for jobs requiring about the same level of education, training, and skills
types of compensation
hourly wageweekly or monthly salarycommissionsincentive payments lump-sum salary increasesprofit sharing
hourly wage
specific amount of money paid for each hour of work
salary
specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked
commission
payment that is a percentage of sales revenue
inventive payment
payment in addition to wages, salary, or commissions
lump-sum salary increase
entire pay raise taken in one limp sum
profit sharing
distribution of a percentage of a firm's profit among its employees
employee benefits
a reward in addition to regular compensation that is provided indirectly to employees
types of employee benefits
pay for time not worked insurance packages pension and retirement programsrequired by lawother benefits
flexible benefits plan
compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs
training and development
employee training management developmentperformance appraisal
employee training
the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently
management development
process of preparing managers and other professionals to assume increased responsibility in both present and future positions
list and define training and development methods
1) on-the-job methods-- the trainee learn by doing the work under the supervision of an experienced development 2) simulations- the work situation is simulated in a separate area so that learning takes place away from the day-to-day pressures of work3) classroom teaching and lectures- you probably already know these methods quite well4) conferences and seminars- experts and learners meet to discuss problems and exchanges ideas5) role playing- participants act out the roles of others in the organization for better understanding of other roles (primarily a management development tool)
performance appraisal
evaluation of employees' current and potential levels of performance of allow managers to makes objective human resources decisions
commission