Guide– Enhanced
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 motivationof the organization's employees.
Fundamental task of defining and analyzing jobs in organizations:
• planning HR needs
• staffing the organization
• compensating and motivatingemployees
• 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 & MediumRange 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