AM question ans…
C202 Managing Human Capital
From Human Resource Management 2nd Edition, Copyright 2019. Used by arrangement of Chicago Business
Press.
Red Text indicated learning objectives
Things following the Concepts tabs are just interesting extra from the chapter.
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Chapter 1: Strategic Human Resource Management
Learning Objectives:
1. Describe the primary Human Resource Management (HRM) functions.
a. Staffing
i. process of planning, acquiring, deploying, and retaining employees that enables
the organization to meet its talent needs and execute its business strategy
b. Training and development
c. Performance management
i. aligning individual employees’ goals, ethics, and behaviors with organizational goals and
strategies, appraising and evaluating past and current behaviors and performance
d. Rewards and benefits
e. Health and safety
f. Employee-management relations
2. Explain why HRM is important to organizational performance.
a. By shaping
i. What employees should do
1. Planning
2. Laws and Regulations
ii. What employees can do
1. Staffing
2. Training
iii. What employees will do
1. Compensation
2. Performance management
3. Explain how HRM strategy supports business strategy.
a. Effective Work Process is created by the above resulting in
i. Strategic execution
ii. Positive work environment
iii. Engaged employees
Concepts:
• Business strategy- how the firm will compete in its marketplace.
• Types of risk
o Strategic: HRM initiatives can affect business strategy.
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, 9/11/24, 9:38 C202 1-3 chapter summary notes (including learning objective
AM question ans…
▪ These may include the overall talent strategy, company culture, ethics, investments in
people, and the implementation of change initiatives.
o Operational: These risks can influence an organization’s ability to execute the business strategy
▪ Speed and the effectiveness of talent acquisition as well as the development of
employees’ skills and the identification and retention of top performers
o Financial: affects the organization’s workforce costs and productivity
▪ Directly through compensation, benefits, turnover, overtime, and time-to-hire and
indirectly through errors, accidents, delays, and lost production.
o Compliance: legal ramifications
▪ diversity, health and safety, union relations, whistleblowers, and harassment. SEC
regulations etc
• HRM responsibility / the manager:
o HRM: Designs organizational changes
o Manager: Implements HRM design changes into operations
• Talent philosophy: A system of beliefs about how its employees should be treated.
o the value placed on diversity;
o ethics;
o whether the firm would like employees to stay for a limited time or for their entire careers; and
o whether employees are viewed as assets to be managed or as investors choosing where to
allocate their time and effort.
• Human resource strategy- Links the entire human resource function with the firm’s business strategy.
• Employee handbook- Print or online materials that document the organization’s HRM policies and
procedures
• Direct financial compensation- Compensation received in the form of salary, wages, commissions, stock
options, or bonuses
• Indirect financial compensation- ffibenefits): Any and all financial rewards not considered direct financial
compensation, including health insurance, wellness benefits, paid vacations, and free meals
• Nonfinancial compensation- Rewards and incentives given to employees that are not financial in
nature, including intrinsic rewards received from the job itself or from the physical or psychological
work environment ffie.g., feeling successful or appreciated)
HRM is responsible for two broad areas of an organization: people-related issues and employment-related
legal compliance
Chapter 2: The Role of Human Resource Management in Business
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