Summary
Human Resource Management: Functions, Applications, and Skill
Development
,Inhoud
Chapter 1 Introduction:........................................................................................................... 2
Chapter 2 Strategy-driven Human Resource Management:...................................................4
Chapter 3 The legal environment and diversity management.................................................6
Chapter 4 Workforce planning:...............................................................................................9
Chapter 5 Recruiting job candidates:....................................................................................13
Chapter 6 Selecting new employees:...................................................................................15
Chapter 7 Learning and development:..................................................................................19
Chapter 8 Performance management and appraisal:...........................................................23
Chapter 11 Compensation management:.............................................................................28
Chapter 12 Incentive pay:.....................................................................................................31
Chapter 16 Global issues for Human Resource Managers:..................................................34
1
,Chapter 1 Introduction:
Human resources are the people within the organization. Human resources are important
because it affects the skill sets of the company and can create a competitive advantage
when human resources are better managed than other organizations.
Employee engagement: A combination of job satisfaction, ability and willingness to perform
for the organization at a high level and over an extended period of time.
Now the HR department is a profit centre aimed at improving organizational results. But how
can HR do this while it is not directly in the core organizational process? They aim on
enhancing productivity, effectiveness and efficiency.
Effectiveness: A function of getting the job done whenever and however it must be done. It
answers the question, “Did we do the right things?”
Efficiency: A function of how many organizational resources we used in getting the job done.
It answers the question, “Did we do things right?”
HRM Challenges:
- Maintaining high levels of employee engagement
- Developing next generation organizational leaders
- Maintaining competitive compensation and benefits offerings
- Managing the loss of key workers and their skill sets
Critical dependent variables:
The following issues are hard to deal with according to HR managers:
- Productivity
- Employee engagement
- Turnover - permanent loss of workers from the organization. When people quit, it is
considered voluntary turnover, while when people are fired it is involuntary turnover
- Absenteeism - Temporary absence of employees from the workplace
Sustainable competitive advantage: A capability that creates value for customers that rivals
can’t copy quickly or easily and that allows the organization to differentiate its products or
services from those of competitors.
The influence of social media: In a lot of HR workplaces social media is used for the
following goals
- Recruiting and selection
- The onboarding process
- Training and development
- Performance management
HRM Skills:
- Technical skills: The ability to use methods and techniques to perform a task
- Interpersonal: The ability to understand, communicate and work well with individuals
and groups through developing effective relationships
2
, - Conceptual and design skills: The ability to evaluate a situation, identify alternatives
select a reasonable alternative and make a decision to implement a solution to a
problem
- Business skills: The analytical and quantitative skills - including in-depth knowledge
of how business works and its budgeting and strategic-planning processes that are
necessary for a manager to understand and contribute to the profitability of the
organization.
HR responsibilities of Line management:
- Legal considerations
- Labor cost controls
- Leadership and motivation
- Training and development
- Appraisal and promotion
- Safety and security employees
3
,Chapter 2 Strategy-driven Human Resource
Management:
Strategy and strategic planning deal with a process of looking at our organizations and its
environment both today and in the expected future. And determining what our organization
decides to do to meet the requirements of that expected future.
The external environment:
- Customers - Satisfy the customers needs
- Competition - Rivals in the same branche need a competitive advantage over the
competitors
- Suppliers - Who deliver resources you need good relations with suppliers
- Labor force - The employees
- Shareholders - Owners of the company appoint a board of directors
- Society - Opinion of society in certain businesses (Social responsibility)
- Technology - Adoption of innovations in technology
- The economy - Exchange rates, inflation and domestic economy
- Government - Regulation and legislation
Strategy: Is a plan of action designed to achieve a particular set of objectives
Strategic advantage occurs when you analyze the environment better and react to it quicker
than your competitors do while using all of your internal resources efficiently.
Vision: Is what we expect to become as an organization at a particular point in time
Mission Statement: Lays out our expectations of what we are going to do in order to become
the organization we have envisioned
Tools for strategic analysis:
Five-Force analysis:
- Rivalry among competitors
- Threat of substitute products and services
- Potential new entrants
- Power of suppliers
- Power of buyers
Organizational structure: Refers to the way in which an organization groups its resources to
accomplish its mission.
4
, Basics of organizational structure:
Complexity: Is the degree to which three types of differentiation exist within the organization
Vertical differentiation deals with how we break the organization up vertically, meaning in
how many layers from top to bottom are there in the organization. Horizontal differentiation
identifies how we break the organization horizontally in different departments. Spatial
differentiation deals with the physical separation of different parts of the organization.
Formalization: Degree to which jobs are standardized within an organization, meaning the
degree to which we have created policies, procedures and rules that program the jobs of the
employees.
Centralization: Degree to which decision making is concentrated within the organization.
Organizational culture: The values, beliefs and assumptions about appropriate behaviour
that members of an organization share.
Three levels:
- Level 1: The behaviour includes all the observable things that can be seen.
- Level 2: Values and beliefs can not be observed directly but can be inferred from the
people's behaviour
- Level 3: Assumptions are values and beliefs that are so deeply ingrained that they
are considered unquestionably true.
Data analytics: Is the process of accessing large amounts of data in order to analyze those
data and gain insight into significant trends or patterns within organizations or industries.
Human resource management systems: Interacting database systems that aim generating
and delivering HR information and allow us to automate some human resource management
functions.
Management tools for strategic HRM
Economic Value Added: Is a measure of profits that remain after the cost of capital has been
deducted from operating profits.
Return of investment: measure of the financial return we receive because of something that
we do to invest in our organization or its people.
Balanced scoreboard: A scoreboard measuring financial customer service, internal process
and learning and growth measures.
5
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller JoopColier. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.58. You're not tied to anything after your purchase.
