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Law and Business
LAW 122
Eric Ball

Human Resource Management Notes 11/16/2010 9:16:00 AM Human Resource Management MOS 1021 Exam Notes Chapter1: The Challenge of HRM Summary Define Human Resource Management (HRM) Integrated set of processes, programs, and systems that focus on effective deployment and development of employees. Identify the process and activities of HRM Organizational, work and job design Planning Recruitment and Selection Training and development Performance management Compensation- developing and administering pay and benefits programs that will attract and retain employees Occupational Health and safety Employee and labor relations Explain the importance of HRM to the line manager Line manager is key link between employee and organization Helps you understand roles and responsibilities in managing employees People have always been central to organizations, but their strategic importance is growing in todays knowledge based industries Explain the relationship between the line manager and the HR practitioner Every managers job is managing people Successful organizations equip their line managers with a thorough understanding of HRM. HR professionals help the line manager be a good people manager by providing advice as well as direct services Combining expertise of HR professionals with the experience of line managers can develop and utilize the talents of employees to their greatest potential Describe current business challenges facing organizations and the impact on people in organizations. Globalization is creating pressure for managers to effectively manage people Survival of firms and business sectors will focus on maximizing utilization of employees Technology has enabled organizations to focus on quality and customer Environment and climate change is creating both threats and opportunities. Businesses are concerned about both their human capital and talent management. Identify key demographic and employee concerns There is a diverse and aging work force with an increased participation of females There are different generations working side- by- side with differing value and expectations There will be a shortage of labor in the not too distant future. The work landscape is changing with more part time and self employed people Employees have more rights Describe the link between business strategy and strategic HRM Business strategy involves formulation of companys mission, goals and action plans Part of any business strategy is to be competitive; to be competitive an organization needs to think about its people as part of its competitive advantage Strategic HRM focuses on linking and aligning the HRM process to the business strategy. The HR process and programs will reflect the particular strategy, such as growth. Key Terms Human Resource Management (HRM)- An integrated set of processes, programs and systems in an organization that focuses on the effective deployment and development of its employees. Globalization- Moving local or regional business into global marketplace. Downsizing- The planned elimination of jobs Outsourcing- contracting outside the organization for work that was formally done by internal employees. The small- business owner saves money, time, and resources by outsourcing tasks such as accounting and payroll. Human Resource information system (HRIS)- A technology that provides data for purpose of control and decision making Six Sigma- A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. ISO 9000- Worldwide quality standards program Benchmarking- finding the best practices in other organizations that can be brought into a company to enhance performance. Human Capital- The individuals knowledge, skills and abilities that have an economic value to an organization. Core Competencies- A combination of knowledge, skills and characteristics needed to effectively perform a role in organization. Talent Management- Leveraging competencies to achieve high organizational performance Strategic Human Resource Management- identifying hey HR processes and linking those to the overall business strategy. Need to Know: Definition of HRM Name of HR processes Definition of strategic human resource management Nature of employee expectations and concerns Need to Understand: Impact of current business challenges on HRM Link of strategic HRM with business planning Role of line managers in responding effectively to the expectations and concerns of employees Review Questions: What is the definition of human resource management? What are the 8 HRM processes and activities? How would you describe the relationship between the line manager and an HR professional? What are the current business challenges facing Canadian organization? What is the important link between a business strategy and the HR strategy? ****************See pages 28- 29 for more practice questions and further examples*************** Notes: Human resource management is more than hiring, paying and training people. The word employee is also intended to cover contract workers, people from other organizations who are working on a project, or any other similar working relationship. This is indicative of the new workplace that is far more fluid and flexible than the workforce of 10- 20 years ago. The term Human Resources implies that people are as important to the success of any business as other resources are, such as money, materials, machinery and information. Human Resource Processes and Activities (8 Steps) Organizational, work and job design- Determining what tasks need to be done, in what order, with what skills, and how individual tasks fit together in work units. Example- ensuring tasks get done through team efforts. Planning- ensuring that people in the organization are the right people with the right skills at the right time in the right place. Example- planning when to add more staff. Recruitment and Selection- Sourcing, attracting and hiring the people with the necessary skills and background. Training and Development- providing the resources to assist employees in providing the necessary knowledge and skills to do their job today and in the future. Performance Management- Ensuring that there are appropriate mechanisms in place to provide feedback to employees on a regular basis. Compensation (pay and benefits)- developing and administering pay and benefits programs that will attract and retain employees. Occupational Health and Safety- Ensuring that the safety and health of employees are maintained Employee and Labor Relations- Ensuring that there are positive and constructive relations between the employees and their supervisors and mangers and or union representatives. While the above lists the most traditional areas, a number of areas are emerging as the fields of HR grows and responds to the concerns of both employees and employers. Some of these are (1) organizational development and learning (an extension of training and development); (2) high- performance work groups or teams (an extension of jobs and design); (3) flexible work arrangements (ways to engage employees and
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