Guide
D351 v.2 Study Guide –
Enhanced Topic 1: Intro to the Functions of
HR Management
Human resource management is responsible for the
recruitment, selection, training, and motivation of the
organization's employees.
Fundamental task of defining and analyzing jobs in organizations:
• planning HR needs
• staffing the organization
• compensating and motivating employees
• appraising employee behavior / effective feedback
• enhancing human potential
• improving the workplace environment HCM (human
capital) to reach strategic goals
• maintaining effective work relationships among employees
• globalizing the HRM function within the firm
HRM involves two major activities: (planning and synchronizing
HR needs with the strategic mission) Adding value by the use of
people (human capital)
1) Strategic Planning
a. Increasing market share
b. Revenue growth
c. Product and service diversity
d. Profit margins
e. Financial obligations
2) Short & Medium Range Planning
a. Understand how many and what type of employees the
organization will need in the future
b. Addresses how firm obtains and trains future human capital
,Key Functions of HRM
The basic functions of HR management include planning,
organizing, staffing, leading, and controlling. Applies to both
internal (those currently employed) and external (those not
currently employed) candidates
1) Staffing the Organization
a. Recruiting: cast a wide net to ensure a full and fair search
for candidates
b. Selecting:
• Obtaining completed applications
• Interviewing candidates
• Reviewing education and formal training verifications
• Administering formal and informal tests to determine
fit and potential
• Comply with Federal and State Humans Rights
Legislation
• Match ability with job requirements
2) Compensating & Motivating Employees
Employees are rewarded based on job value, personal
contributions, performance
a. Direct Compensation: rewards that are directly linked to
performance
b. Not all rewards are based on performance, but simply for
being a member of the organization (indirect
compensation)
, 3) Appraising Employee Behavior:
Performance Appraisal (or review, evaluation, development
discussion) is the method in which job performance is
evaluated.
a. Important for measuring and monitoring an employees
contribution
b. Often the basis for promotions, trainings, and raises, as
well as termination
4) Enhancing Human Potential:
both formal and informal training and
development ability to grow and develop
personally
5) Maintaining Effective Work Relationships:
provide conditions that will make it attractive for employees to
stay
employment decisions such as discharges, layoffs, and
demotions must be made with care
observe employee rights
6) Globalizing HRM
learn from the HR practices, policies, and activities of other
countries
develop and implement HRM policies with international
applicability, also making them relevant to employees from
diverse cultures and backgrounds
*Note: Top Management plays a critical role in the effectiveness of
HRM in an organization
HR Implicit Objectives:
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o Moral philosophy (ethos – character) refers to the
principles, rules, and values that individuals use in
deciding what is right or wrong