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Summary Human Resource Management, ISBN: 9781544327822, Human Resource Management B&M
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Summary of all required chapters for the exam. Journal articles not included.
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English glossary of important terms of the course
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HRM summarySTUDY OVERVIEW
What INCLUDED IN SUMMARY? QUESTIONS ?
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 8
Chapter 11
Chapter 12
Chapter 16
,Lecture 1: HRM Process, Strategic HRM & Globalization
Chapter 1 HRM Process
In the 21st century we view HRM as a productivity center for the company. As a revenue center, HR
fulfils a revenue-generating function by providing the organization with the right people in the right
place and with the right skills so the organizational productivity can be improved.
Key challenges:
- Maintaining high levels of employee engagement
- Developing next generation organization leaders
- Maintaining competitive compensation and benefit offerings
- Managing the loss of key workers and their skill sets
Key dependent variables that managers must control
1. Productivity is the amount of output that an organization gets per unit of input, with human
input usually expressed in terms of units of time. Efficiency and effectiveness
2. Employee engagement is a combination of job satisfaction, ability, and a willingness to
perform for the organization at a high level and over an extended period of time
3. Turnover is permanent loss of workers from the organization. When people quit, it is
considered voluntary turnover, while when people are fired it is involuntary turnover.
4. Absenteeism is temporary absence of employees from the workplace
The four major HRM skill sets:
- Technical skills: include the ability to use methods and techniques to perform a task
- Interpersonal skills: provide the ability to understand, communicate, and work well with the
individuals and groups through developing effective relationships.
- Conceptual and design skills provide the ability to evaluate a situation, identify alternatives,
select an alternative, and implement a solution to the problem.
- Business skills provide analytical and quantitative skills, including in-depth knowledge of how
the business works and of its budgeting and strategic-planning processes that is necessary for a
manager to understand and contribute to the profitability of the organization.
Line manager’s six HRM responsibilities:
1. Legal considerations
2. Labour cost controls
3. Leadership and motivation
4. Training and developing
5. Appraisal and promotion
6. Employee safety and security
The 8 major HRM discipline areas:
1. The legal environment: EEO and diversity management
2. Staffing
3. Training and development
4. Employee relations
5. Labour and industrial relations
6. Compensation and benefits
7. Safety and security
8. Ethics and sustainability
, Chapter 2: Strategic HRM
The 9 major external forces:
Shareholders
Labour force Society
Suppliers Technology
Economy
Competition
Customers Organization Governments
Strategy is a plan of action designed to achieve a particular set of objectives.
the vision we identify a future state for the organization: “What do we want to become as an
organization?”
The mission is more specific. It is a statement of what the various organizational units will do and
what they hope to accomplish. “What do we need to do in order to become what we have
envisioned?”
When putting the mission and vision together, employees get a more complete picture of what
direction they are expected to go in.
Types of strategies:
- Cost leadership: cost leaders do everything that they can to lower the organizational costs
required to produce their products or services. Not necessarily providing the lowest cost to
customers. in HRM: maximum efficiency and effectiveness (e.g. hiring people based on
skills)
- Differentiation: attempts to create an impression of difference for the company’s product or
service in mind of the customer. in HRM: focused on employees who are flexible and
adaptable, have the ability to innovate and create new processes and who can work in
uncertain environments and cross-functional teams.
- Focus or Niece: the company focuses on a specific portion of a larger market. (e.g. on a
regional market, a particular product line, or buyer group).
Strategic Analysis:
- Five-Force analysis to determine the external competitive situations, analysing the rivalry
amongst competitors, threat of substitute products or services, potential new entrants, power
of suppliers and power of buyers.
- SWOT analysis analyses the internal environment of strengths and weaknesses opportunities
and threats.
Major components of organization structure
- Complexity: the degree to which three types of differentiation exist within the organization.
o Vertical differentiation, horizontal differentiation, spatial differentiation
- Formalization: degree to which jobs are standardized within an organization
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