06-Human Resource Management

HUMAN RESOURCES MANAGEMENT

Lecture Notes for Business IntroductionFahmy Radhi

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HUMAN RESOURCES MANAGEMENT

Set of Organizational activities directed at attracting, developing, and maintaining an effective workforceThe process of acquiring, training, terminating, developing, and properly using the human resources in an organization

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The HRM Process1. Human Resource Planning: Forecasting

Demand Supply and Job Analysis2. Staffing the Organization: Recruitment,

Selecting, and Orientation3. Developing the Workforce: Training

and Performance Appraisal4. Compensation and Benefit: Wages and

Salaries, Incentive and Benefit Program

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Human Resource Planning

Job Analysis – determining the tasks, the skills, abilities and responsibilities needed to perform the jobJob Description – a statement about a job’s duties Job Specification – A statement of the human qualification needed to perform a job

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Human Resource Planning

Forecasting the demand - estimating the personnel needs of organization

Forecasting the supply of labour:Internal SupplyExternal Supply

Matching Demand with Supply

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Recruiting

Recruitment – Steps taken to staff an organization with the best qualified people

Sources:Internal recruitingExternal recruiting from worker unions, university, employment agencies

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Selection and Orientation

Selection – evaluating and choosing the candidates. Selection Process: application form, Tests, and Interview

Orientation – A procedure for providing new employees with basic background information about the firm

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Training and Development

Training – supplying the skills, knowledge, and attitudes needed by employees to improve their abilities to perform their job On-the Job Training Off-the Job Training

Development – preparing someone for the new and greater challenges and more demanding job

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Performance Appraisal

Performance Appraisal – appraising the employee’s performance in relation to job standards and then providing feedback to the employee

Methods:Subjective Performance appraisal – performance criteria and rating scale are not definedObjective Performance Appraisal – performance criteria and the method of measurement are specifically defined

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Performance Appraisal Results

Promotions – job changes that lead to higher pay and greater responsibilitiesTransfers – Lateral moves from one position to the other having similar pay and a similar responsibility levelDemotion – A movement from one position to another that has less pay or responsibilitySeparation – departure of an employee from an organization

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Compensation

Compensation – determining an employee’s performance initial wages, making changes to wages, and offering accompanying benefits

Types:Direct Compensation – an employee’s base pay and performance base payIndirect compensation – protection programs, private protection, and other benefitsWages – Compensation based on time worked and number of units produced

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Motivating

Motivation – the way drives or needs direct a person’s behavior toward a specific goals

Motivation Theories:Classical TheoryBehavior TheoryContemporary Theories:Maslow’s Hierarchy Model, Theories X an Y, Two-Factor Theory, Expectancy Theory and Equity Theory

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Maslow’s Needs Hierarchy

Five needs arranged in a hierarchy:1. Physiological Needs - biological need2. Security Needs – to be financially secure

and protected against job loss3. Social Needs – to belong and to interact

with other people4. Esteem Need – the need for self-respect

and for respect from other5. Self-Actualization Need – the need to use

and display one’s full range competence 

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McGregor’s Theory X and Theory Y

Theory X employees dislike work, responsibility, and accountability and employees must be closely directed and controlled to be motivated

Theory Ywant to be challengelike to display creativityhighly motivated to perform well if given some freedom to direct or manage their own behavior