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CHAPTER 1
Managing Human Resources
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.
What Do I Need to Know? (1 of 2)
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What Do I Need to Know? (2 of 2)
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Human Resource Management (HRM)
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Figure 1.1:
Human Resource Management Practices
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At companies with effective HRM:
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Human Capital
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Figure 1.2:
Impact of Human Resource Management
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HRM and Sustainable Competitive Advantage
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• At Southwest Airlines,
the company’s focus is
on keeping employees
loyal, motivated,
trained, and
compensated. In turn,
there is a low turnover
rate and a high rate of
customer satisfaction.
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High-Performance Work System
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Engaged, Enabled Employees
Deliver Bottom-Line Benefits
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Table 1.1:
Responsibilities of HR Departments
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Responsibilities of HR Departments
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Analyzing and Designing Jobs
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Recruiting and Hiring Employees
Recruitment Selection
• The process through • The process by which the
which the organization organization attempts to
seeks applicants for identify applicants with
potential employment. the necessary
knowledge, skills,
abilities, and other
characteristics that will
help the organization
achieve its goals.
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Qualities of Job Candidates
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Table 1.2: Top Qualities Employers Seek in
Job Candidates
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Training and Developing Employees
Training Development
• A planned effort to • The acquisition of
enable employees to knowledge, skills, and
learn job-related behaviors that improve
knowledge, skills, and an employee’s ability to
behavior. meet changes in job
requirements and in
customer demands.
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Managing Performance
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Planning and Administering Pay
and Benefits
Planning Pay & Benefits Administering Pay & Benefits
• How much to offer in salary • Systems for keeping track of
and wages. employees’ earnings and
• How much to offer in benefits are needed.
bonuses, commissions, and • Employees need
other performance-related information about their
pay. benefits plan.
• Which benefits to offer and • Extensive record keeping
how much of the cost will and reporting is needed.
be shared by employees.
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Maintaining Positive Employee Relations
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Establishing and Administering
Personnel Policies
• Organizations depend on their HR department
to help establish and communicate policies
related to:
– hiring
– discipline
– promotions
– benefits
• All aspects of HRM require careful and
discreet record keeping.
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Ensuring Compliance with Labor Laws
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• One reason W.L. Gore &
Associates is repeatedly
named one of the 100 Best
Companies to Work for in
America is their unusual
corporate culture where all
employees are known as
associates and bosses are
not found.
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Supporting the Organization’s Strategy
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Supporting the Organization’s Strategy
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Supporting the Organization’s Strategy
Corporate Social
Responsibility Stakeholders
• A company’s commitment • The parties with an interest
to meeting the needs of its in the company’s success
stakeholders. (typically, shareholders, the
community, customers, and
employees).
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Figure 1.3: Skills of HRM Professionals
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Who is Responsible for HR?
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Figure 1.4:
Supervisors’ Involvement in HRM
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Ethics in Human Resource Management
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Employee Rights
Right of
Right of free Right of
freedom of
consent privacy
conscience
Right of
Right to due
freedom of
process
speech
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Ethical companies act according to four
principles:
1. In their relationships with customers, vendors,
and clients, ethical companies emphasize
mutual benefits.
2. Employees assume responsibility for the
actions of the company.
3. The company has a sense of purpose or vision
that employees value and use in their day-to-
day work.
4. They emphasize fairness.
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Figure 1.5:
Standards for Identifying Ethical Practices
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Standards for Identifying Ethical Human
Resource Management Practices
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Figure 1.6:
Median Salaries for HRM Positions
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Test Your Knowledge
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Summary
• Human resource management (HRM) consists
of an organization’s “people practices”
– the policies, practices, and systems that influence
employees’ behavior, attitudes, and performance.
• HRM influences who works for the
organization and how those people work.
• HR departments have responsibility for a
variety of functions related to acquiring and
managing employees.
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Summary (continued)
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Summary (continued)
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