1. MKT 305 Human Resources Management Mishari Alnahedh

2. LECTURE 1: Introduction to HRM

3. 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

4. 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)

5. 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)

6. Human Resources Management
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7. Human Capital
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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

8. Responsibilities of HR Departments
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9. Definitions Job Analysis Job Design
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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.

10. Definitions Recruitment Selection
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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.

11. Definitions Training Development
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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.

12. Planning Pay & Benefits Administering Pay & Benefits
Definitions
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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.

13. Maintaining Positive Employee Relations
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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.

14. Skills of HRM Professionals
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15. Supervisors’ Involvement in HRM
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16. The Labor Force Internal Labor Force External Labor Market
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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).

17. Skill Deficiencies of the Workforce
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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.

18. What are High-Performance Work Systems?
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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

19. Employee Empowerment Employee Empowerment Employee Engagement
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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.

20. Teamwork
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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

21. Changes in the employment relationship
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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.

22. Changes in the employment relationship
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Changes in the employment relationship
A New Psychological Contract
Flexibility
Flexible Staffing Levels
Flexible Work Schedules

23. Instead, employees are looking for:
Employment Relationship
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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.

24. Employment Relationship
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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