Introduction to HRM
Understanding the core purpose and expected learning outcomes.
What is Human Resource Management?
The management of employees in a way that enables them to help a firm reach its strategic objectives.
Learning Outcomes
Recruitment
Explain the importance of employee recruitment and list useful sources for finding suitable applicants.
Evaluation
Identify the systematic steps involved in evaluating job applicants.
Training
Describe the roles of training and development for both managerial and non-managerial employees.
Compensation
Explain the various types of compensation plans, including the use of incentive plans.
HR Issues
Discuss co-employment, legal protection, labor unions, and formalizing relationships.
Recruiting Personnel
Building a pool of potential employees large enough to contain talented prospects.
Core Goals & Needs
Recruitment brings applicants to a business. Success depends on:
- The need for quality employees.
- The lure of entrepreneurial firms.
- Diversity in the workforce – differences among employees regarding gender, age, ethnicity, and race.
Sources of Employees
Defining the Job
Job Description
An outline or summary of the work to be performed for a particular position.
Job Specification
A list of the knowledge, skills, abilities and other characteristics needed to perform a specific job.
Evaluating Prospects & Selecting Employees
The systematic process of narrowing down applicants to find the best fit.
Using Application Forms
Gathering initial standardized data regarding background, education, and experience.
Interviewing the Applicant
Conducting face-to-face or virtual conversations to assess personality, fit, and deeper skills.
Checking References & Background
Verifying past employment, qualifications, and gathering character insights from previous employers.
Testing the Applicant
Administering cognitive, personality, or practical skills assessments related to the job.
Requiring Physical Examinations
Ensuring the candidate meets health and physical requirements (if applicable to the specific role).
Training & Developing Employees
Enhancing the skills and capabilities of the workforce.
Core Training Components
- Basic components of training and development
- Orientation for new personnel
- Training to improve quality
- On-the-job training
Managerial & Professional
Developing leadership and specialized skills requires structural planning:
- Identifying the need for development
- Creating a plan for development
- Setting a timetable for development
- Providing employee counseling
4 Steps in Job Instruction Training
Step 1: Prepare Employees
- Put employees at ease.
- Place them in appropriate jobs.
- Find out what they already know.
- Get them interested in learning.
Step 2: Present the Operations
- Tell, show, and illustrate the task.
- Stress key points to ensure understanding.
- Instruct clearly, completely, and patiently.
Step 3: Try Out Performance
- Have employees perform the task themselves.
- Have them tell, show, and explain what they are doing.
- Ask employees questions and gently correct any errors.
Step 4: Follow Up
- Check on employees frequently initially.
- Tell them exactly how and where to obtain help.
- Encourage questions to build confidence.
Compensation and Incentives
Rewarding employees for their time, effort, and performance.
1. Wage & Salary Levels
The base financial compensation provided to employees, determined by market rates, job complexity, and experience.
2. Financial Incentives
Performance-based rewards such as bonuses, commissions, or profit-sharing designed to motivate high achievement.
3. Stock Incentives
Providing equity in the company (like stock options) to align employee interests with long-term company success.
4. Employee Benefits
Non-wage compensations like health insurance, retirement plans, paid time off, and other perks.
Special Issues in HRM
Complex organizational and legal considerations in managing people.
General HRM Issues
- Co-employment agreements
- Legal protection of employees
- Labor unions
- Formalizing employer-employee relationships
When do you need a Human Resource Manager?
A dedicated HR professional becomes critical when:
- There are a substantial number of employees.
- Employees are represented by a union.
- The labor turnover rate is high.
- The need for skilled/professional personnel creates recruitment/selection problems.
- Supervision or operative employees require considerable training.
- Employee morale is unsatisfactory.
- Competition for personnel is keen.
Class Discussion
Critical thinking questions to apply HR concepts to real-world scenarios.
1️⃣ Employee Stock Ownership
Is the use of an employee stock ownership plan desirable in a small business? What might lessen such a plan's effectiveness in motivating employees?
2️⃣ Background Checks
What are the positive and negative features of background checks? How important are these checks to the selection of high quality employees?