Chapter 2 Textbook Notes.docx

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Human Resource Management
HRM 2501
Mc Clendon

Fundamentals of Human Resource Management Chapter 2: Functions and Strategy • Atypical HR department has responsibility for three major areas: o Transactional work, which is administrative work on individuals, like payroll, and administering employee benefits, like insurance and retirement plans o Tactical work that involves developing solutions that benefit employee work groups, like resolving employee performance issues or work-group conflict o Strategic work that benefits the entire organization by aligning services that are linked to long term goals • Once the organizational structure has been implemented to fit the strategy, jobs need to be designed so that employees understand the relevance of their positions to the organizational strategy and the necessary knowledge, skills, and abilities (KSAs) to achieve success • Performance management also needs to support the organization structure, HR needs to decide what the relevant job standards are and how to evaluate performance o Compensation needs to reward progress toward organizational goals o In short, strategic human resource management creates a clear connection between the goals of the organization and the activities of the people who work there • To look at HRM more specifically, we propose that is consists of four basic functions: o Staffing o Training and development o Motivation o Maintenance  In less academic terms, we might say that HRM is made up of four activities: • Hiring people • Preparing them • Stimulating them • Keeping them • Staffing Function- Activities in HRM concerned with seeking and hiring qualified employees o The goals, then, of the staffing function are to locate competent employees and bring them into the organization • The motivation function is one of the most important yet probably the least understood aspects of the HRM process o Motivation Function-Activities in HRM concerned with helping employees exert themselves at high energy levels • The last phase of the HRM process is called the maintenance function, as the name implies, this phase puts into place activities that will help retain productive employees o Maintenance Function-Activities in HRM concerned with maintaining employees’commitment and loyalty to the organization • Communications Programs- HRM programs designed to provide information to employees • Recent changes in the legal environment of HR include expanded rights of the disabled, veterans, those needing to leave from work to care for family memebers, minimum wage earners, as well as access to health care • Fortunately for workers in most of the rest of the world, labor unions exist to assist workers in dealing with the management of an organization o Labor Unions-Acts on behalf of its members to secure wages, hours, and other terms and conditions of employment • Another critical aspect of unions is that they promote and foster what is called a grievance procedure, or a specified process for resolving differences between workers and management • The last area of external influence is current management thought o Management Thought- Early theories of management that promoted today’s HRM operations • Four individuals are regarded as the forerunn
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