11 - Managing Human Resources
11 - Managing Human Resources
In this chapter we consider about Human resource management (HRM) comes in. It’s an important task that
involves having the right number of the right people in the right place at the right time. We also consider about
process Human resource management , Human resource planning, and managing human resources
management.
After completing this course, you will able to:
– Understand and describe Human Resources Management
– Understand and describe Process Human Resource Management
– Understand and describe Human Resource Planning
– Understand and describe managing Human Resources Management.
– What is Human Resources Management
– What is Human resource management
– What is Human resource planning
– What is managing human resources management.
With the organization’s structure in place, managers have to find people to fill the
jobs that have been created or to remove people from jobs if business
circumstances require. That’s where human resource management (HRM) comes
in. It’s an important task that involves having the right number of the right people
in the right place at the right time.
The entire HRM process is influenced by
the external environment. Those factors
most directly influencing it include the
economy, employee labor unions,
governmental laws and regulations, and
demographic trends.
• ECONOMY
The Great Recession left what many experts believe to be an enduring mark on HRM practices
worldwide. For instance, in Japan, workers used to count on two things: a job for life and a
decent pension. Now, lifetime employment is long gone and corporate pension plans are
crumbling. And a lower-tier labor class has emerged based on lower-paid part-time
employment in less desirable jobs.
Many of these jobs are temporary or part-time positions, rather than fulltime jobs with
benefits. Most of the employment gains have occurred in health care, retail, and food service
industries where pay tends to be less than in industries such as manufacturing.All of these
changes have affected employers and workers
• A labor union
A labor union is an organization that represents workers and seeks to protect their interests
through collective bargaining. In unionized organizations, many HRM decisions are dictated by
collective bargaining agreements, which usually define things such as recruitment sources;
criteria for hiring, promotions, and layoffs; training eligibility; and disciplinary practices. Due to
information availability, it’s difficult to pin down how unionized global workforces are.
One union membership trend we’re seeing, especially in the more industrialized countries, is that
the rate in private enterprise is declining while that in the public sector (which includes teachers,
police officers, firefighters, and government workers) is climbing. Although labor unions can
affect an organization’s HRM practices, the most significant environmental constraint is
governmental laws.
• Laws and Rulings
Legislation requires companies to practice representative participation, in which the goal is to
redistribute power within the organization, putting labor on a more equal footing with the interests of
management and stockholders. The two most common forms of representative participation are work
councils and board representatives. Work councils link employees with management. They are groups of
nominated or elected employees who must be consulted when management makes decisions involving
personnel. Board representatives are employees who sit on a company’s board of directors and
represent the interests of the firm’s employees.
• Demography
a. The oldest, most experienced workers (those born before 1946) make up 6 percent of the workforce.
b. The Baby Boomers (those born between 1946 and 1964) make up 41.5 percent of the workforce.
c. Gen Xers (those born 1965 to 1977) make up almost 29 percent of the workforce.
d. Gen Yers (those born 1978 to 1994) make up almost 24 percent of the workforce.
Human Resource Planning
Human resource planning is the process by which managers ensure that they have the right number and kinds of
capable people in the right places and at the right times. Through planning, organizations avoid sudden people
shortages and surpluses. HR planning entails two steps: assessing current human resources and meeting future
HR needs
An important part of a current assessment is job analysis, an assessment that defines a job and the behaviors
necessary to perform it. Using this information from the job analysis, managers develop or revise job descriptions
and job specifications.
A job description (or position description) is a written statement describing a job—typically job content,
environment, and conditions of employment. A job specification states the minimum qualifications that a person
must possess to successfully perform a given job. It identifies the knowledge, skills, and attitudes needed to do
the job effectively.
Human resource planning
Both the job description and job specification are important documents when managers begin Recruiting and
Selecting.
• Selection is screening job applicants to determine who is best qualified for the job. Managers need to “select”
carefully since hiring errors can have significant implications.
• Recruitment is, locating, identifying, and attracting capable applicants. On the other hand, if HR planning
shows a surplus of employees, managers may want to reduce the organization’s workforce through
decruitment.
A person starting a new job needs the same type of introduction to his or her job and the organization. This
introduction is called orientation. There are two types of orientation:
• Work unit orientation familiarizes the employee with the goals of the work unit, clarifies how his or her job
contributes to the unit’s goals, and includes an introduction to his or her new coworkers.
• Organization orientation informs the new employee about the company’s goals, history, philosophy,
procedures, and rules. It should also include relevant HR policies and maybe even a tour of the facilities
Employee training is an important HRM activity. As job demands change employee skills have to change. Type of
Employee Training :
General Specific
Communication skills, computer systems application and Basic life–work skills, creativity, customer education,
programming, customer service, executive development, diversity/ cultural awareness, remedial writing, managing
management skills and development, personal growth, change, leadership, product knowledge, public
sales, supervisory skills, and technological skills and speaking/presentation skills, safety, ethics, sexual
knowledge harassment, team building, wellness, and others
Compensasion and Benefit
Developing an effective and appropriate compensation system is an important part of the HRM process. It can help
attract and retain competent and talented individuals who help the organization accomplish its mission and goals.
In addition, an organization’s compensation system has been shown to have an impact on its strategic performance.
Managers must develop a compensation system that reflects the changing nature of work and the workplace in order
to keep people motivated.
Organizational compensation can include many different types of rewards and benefits such as base wages and
salaries, wage and salary add-ons, incentive payments, and other benefits and services. Employee benefits commonly
include offerings such as retirement benefits, health care insurance, and paid time off. Many organizations are
addressing the needs of their diverse workforces through offering flexible work options and family-friendly benefits to
accommodate employees’ needs for work-family life balance.
What Determines Pay and Benefits
External Conditions Imposed on the Group Work groups are affected by the external conditions imposed on it such as
the organization’s strategy, authority relationships, formal rules and regulations, availability of resources, employee
selection criteria, the performance management system and culture, and the general physical layout of the group’s
work space.
A group’s performance potential depends to a large extent on the resources each individual brings to the group. These
resources include knowledge, abilities, skills, and personality traits, and they determine what members can do and how
effectively they will perform in a group. Interpersonal skills—especially conflict management and resolution,collaborative
problem solving, and communication—consistently emerge as important for high performance by work groups.
A group’s performance potential depends to a large extent on the resources each individual brings to the group. These
resources include knowledge, abilities, skills, and personality traits, and they determine what members can do and how
effectively they will perform in a group. Interpersonal skills—especially conflict management and resolution,
collaborative problem solving, and communication—consistently emerge as important for high performance by work
groups.
Work groups aren’t unorganized crowds. They have an internal structure that shapes members’ behavior and influences
group performance. The structure defines roles, norms, conformity, status systems, group size, group cohesiveness, and
leadership.
A role refers to behavior patterns expected of someone occupying a given position in a social unit. In a group,
individuals are expected to do certain things because of their position (role) in the group. These roles are generally
oriented toward either getting work done or keeping group members happy.
Norms is standards or expectations that are accepted and shared by a group’s members. Norms dictate things such
as work output levels, absenteeism, promptness, and the amount of socializing on the job.
Tell about Human Resouces Management
Include the economy, employee labor unions, governmental laws and regulations, and demographic trends.