Human Resource Management Notes 11/16/2010 9:16:00 AM
Human Resource Management
Chapter1: The Challenge of HRM
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
Recruitment and Selection
Training and development
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
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
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
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
Identify key demographic and employee concerns
There is a diverse and aging work force with an increased participation of
There are different generations working side- by- side with differing value
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
Employees have more rights
Describe the link between business strategy and strategic HRM
Business strategy involves formulation of companys mission, goals and
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
Strategic HRM focuses on linking and aligning the HRM process to the
The HR process and programs will reflect the particular strategy, such as
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
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
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
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
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
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