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Human Resource Management (HRM) Activities:

 Job analysis
 Human resource planning
 Employee recruitment, selection, motivation, and orientation
 Performance evaluation and compensation
 Training and development
 Labor relations
 Safety, health, and wellness

Four descriptions of the HRM function:

1. It is action-oriented
1. Effective HRM focuses on action rather than on record
keeping, written procedure, or rules.
2. It stresses on action.
3. It emphasizes the solution of employment problems to help
achieve organizational objectives and facilitate employees’
development and satisfaction.
2. It is people-oriented
1. Whenever possible, HRM treats each employee as an
individual and offers services and programs to meet the
individual’s needs.
3. It is globally-oriented
1. It is a globally oriented function or activity.
2. It is being practiced efficiently and continuously in Mexico,
Poland, and Hong Kong.
3. American practitioners review best-in-class HRM practices
in Brazil to determine if some principles can be applied or
modified to work in the United States.
4. It is future-oriented
1. Effective HRM is concerned with helping an organization
achieve its objectives in the future by providing for
competent, well-motivated employees.
2. Thus, human resources need to be incorporated into an
organization’s long-term strategic plans.

Strategic Importance of HRM

 The HRM function today is much more integrated and strategically
involved in every unit and functional area of an institution.
 The actions, language, and performance of the HRM function must
 Measured
 Precisely communicated
 Evaluated

Key Strategic HRM Concepts That Must Be Applied:

 Analyzing and solving problems from a profit-oriented, not just a
service oriented, point of view.
 Assessing and interpreting costs or benefits of HRM issues as
productivity, salaries and benefits, recruitment, training,
absenteeism, meetings, and attitude surveys.
 Using planning models that include realistic, challenging, specific,
and meaningful goals.
 Preparing reports on HRM solutions to problems encountered by
the firm.
 Training the human resources staff
 Emphasizing the strategic importance of HRM.
 Emphasizing the importance of contributing to the firm’s

HRM and Organizational Effectiveness

 HRM activities play a major role in ensuring that an organization
will survive and prosper.
 Organizational effectiveness or ineffectiveness is described in
terms of:
 Performance
 Employee satisfaction
 Absenteeism and turnover
 Training effectiveness and its return on investment
 Accident rates

Objectives of the HRM Function

 Helping the organization reach its goals.
 Employing the skills and abilities of the workforce efficiently.
 Providing the organization with well-trained and well-motivated
 Increasing to the fullest the employee’s job satisfaction and self-
 Developing and maintaining a quality of work life that makes
employment in the organization desirable.
 Communicating HRM policies to all employees.
 Helping to maintain ethical policies and socially responsible

Competencies Needed by HR Professionals:

 Communication skills
 Problem solving
 Leadership
 Recruiting/staffing
 Employment law
 Training and development
 Technology
 Forecasting
 Compensation design
 Benefits design and administration
 Accounting and finance
 Record keeping

HRM’s Place in Management

 HRM must:
 ascertain specific organizational needs for the use of its
 evaluate the use and satisfaction among other departments.
 educate management and employees about the availability
and use of HRM services.

External Environmental Influences

 Government
 laws
 regulations
 The Union
 Economic Conditions
 domestic
 International
 Competitiveness
 Competitive advantage
 Work Sector of the Organization
 private sector
 public sector
 Composition and Diversity of the Labor Force
 Geographic Location of the Organization
Internal Environmental Influences
 Strategy
 Goals
 Organization culture
 Nature of the task (job)
 Work group
 Leader’s style and experience

HRM Activities That Can Enhance and Sustain Competitive

1. Employment security.
2. Selectivity in recruiting.
3. High wages.
4. Incentive pay.
5. Information sharing.
6. Participation and empowerment.
7. Teams and job redesign.
8. Training as skill development.
9. Cross-utilization and cross training.
10.Promotion from within
11.Measurement of practices.

Key Factors in the Nature of the Task (Job):

 Degree of knowledge and ability to use information technology.
 Degree of empowerment.
 Degree of physical exertion required.
 Degree of environmental unpleasantness.
 Physical location of work.
 Time dimension of work.
 Human interaction on the job.
 Degree of variety in the task.
 Task identity.
 Task differences and job design.

Major HRM Problems for the International Corporation

1. Selecting and training local managers.
2. Companywide loyalty and motivation.
3. Speaking local language and understanding local culture.
4. Appraising managers’ overseas performance.
5. Planning systematic management succession.
6. Hiring local sales personnel.
7. Compensating local foreign managers.
8. Hiring and training foreign technical employees.
9. Selecting and training international managers for overseas.
10.Dealing with foreign unions and labor laws.
11.Promoting or transferring foreign managers.
12.Compensating international managers for an overseas assignment.