MKT 305 Human Resources Management Mishari Alnahedh

LECTURE 1: Introduction to HRM

What is Human Resources Management (HRM)? Mishari Alnahedh What is Human Resources Management (HRM)? HRM: The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Companies with effective HRM tend to: Be more innovative Have employees and customers be more satisfied Have greater productivity Develop a more favorable reputation in the community

Behaviors Driven by HR Recruitment and turnover Human Resources Management Mishari Alnahedh Behaviors Driven by HR Recruitment and turnover Commitment to organization Loyalty Effort Innovation Attitude towards customers Ability to do the job (skills)

Intellectual Basis for Human Resources: Human Resources Management Mishari Alnahedh Intellectual Basis for Human Resources: Economics (compensation/incentives) Sociology (group norms) Psychology (motivation) Political science (the environment)

Human Resources Management Mishari Alnahedh

Human Capital Mishari Alnahedh Human Capital – an organization’s employees described in terms of their: training Experience Judgment Intelligence Relationships insight The concept of HRM implies that employees are resources of the employer HR are valuable, cannot be imitated, have no good substitutes and with needed skills and knowledge are sometimes rare.  HR can help give organizations their sustainable competitive advantage

Responsibilities of HR Departments Mishari Alnahedh

Definitions Job Analysis Job Design Mishari Alnahedh Job Analysis Job Design Process of getting detailed information about jobs. Process of defining the way work will be performed and the tasks that a given job requires. To produce their given product or service (or set of products or services) companies require that a number of tasks be performed. The tasks are grouped together in various combinations to form jobs. Ideally, the tasks should be grouped in ways that help the organization to operate efficiently and to obtain people with the right qualifications to do the jobs well. This function involves the activities of job analysis and job design.

Definitions Recruitment Selection Mishari Alnahedh Recruitment Selection The process through which the organization seeks applicants for potential employment. The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

Definitions Training Development Mishari Alnahedh Training Development A planned effort to enable employees to learn job-related knowledge, skills, and behavior. Acquisition of knowledge, skills, and behaviors that improve an employee’s ability to meet changes in job requirements and in customer demands. Performance Management: the process of ensuring that employees’ activities and outputs match the organization’s goals.

Planning Pay & Benefits Administering Pay & Benefits Definitions Mishari Alnahedh Planning Pay & Benefits Administering Pay & Benefits How much salary, wages bonuses, commissions, and other performance -related pay to offer. Which benefits to offer and how much of the cost will be shared by employees. Systems for keeping track of employees’ earnings and benefits are needed. Employees need information about their benefits plan. Extensive record keeping and reporting is needed.

Maintaining Positive Employee Relations Mishari Alnahedh Preparing and distributing: employee handbooks and policies company publications and newsletters Dealing with and responding to communications from employees questions: about benefits and company policy, possible discrimination or harassment, safety hazards etc. Collective bargaining and contract administration.

Skills of HRM Professionals Mishari Alnahedh

Supervisors’ Involvement in HRM Mishari Alnahedh

The Labor Force Internal Labor Force External Labor Market Mishari Alnahedh Internal Labor Force External Labor Market An organization’s workers: Its employees People who have contracts to work at the organizations Internal labor force has been drawn from the external labor market. Individuals who are actively seeking employment. Number and kinds of people in external labor market determine kinds of human resources available to an organization. HR professionals need to be aware of trends in the composition of the external labor market because these trends affect the organization’s options for creating a well-skilled, motivated internal labor force. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization (and their cost).

Skill Deficiencies of the Workforce Mishari Alnahedh Employers are looking for skills: Mathematical Verbal Interpersonal Computer Gap between needed and available skills has decreased companies ability to compete. Sometimes lack the capacity to upgrade technology, reorganize work, and empower employees. A college degree is a basic requirement for many jobs today. Some companies are unable to find qualified employees and instead rely on training to correct skill deficiencies. Other companies team up with universities to design and teach courses.

What are High-Performance Work Systems? Mishari Alnahedh What are High-Performance Work Systems? Organizations have best fit between their: social system (people and how they interact); and technical system (equipment and processes). Key trends in high-performance work systems: reliance on knowledge workers empowerment of employees to make decisions teamwork

Employee Empowerment Employee Empowerment Employee Engagement Mishari Alnahedh Employee Empowerment Employee Engagement Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Full involvement in one’s work and commitment to one’s job and company. higher productivity better customer service lower employee turnover Use of employee empowerment shifts the recruiting focus away from technical skills and toward general cognitive and interpersonal skills. Employees who have responsibility for a final product or service must be able to listen to customers, adapt to changing needs, and creatively solve a variety of problems.

Teamwork Mishari Alnahedh Teamwork: the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. Work teams often assume many of the activities traditionally reserved for managers: selecting new team members scheduling work coordinating work with customers and other units of the organization

Changes in the employment relationship Mishari Alnahedh Changes in the employment relationship The employment relationship takes the form of a “psychological contract” that describes what employees and employers expect from the employment relationship. In the traditional version, organizations expected employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion.

Changes in the employment relationship Mishari Alnahedh Changes in the employment relationship A New Psychological Contract Flexibility Flexible Staffing Levels Flexible Work Schedules

Instead, employees are looking for: Employment Relationship Mishari Alnahedh Organizations are requiring top performance and longer work hours but cannot provide job security. Instead, employees are looking for: flexible work schedules comfortable working conditions greater autonomy opportunities for training and development performance-related financial incentives This requires planning for flexible staffing levels.

Employment Relationship Mishari Alnahedh Organizations seek flexibility in staffing levels through alternatives to traditional employment relationship: outsourcing, temporary, and contract workers flexible work schedules – including shortened work weeks allowing employees to adjust work hours to meet personal and family needs moving employees to different jobs to meet changes in demand