McGraw-Hill/Irwin
Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.
Human Resource Management (HRM)
The policies,
practices, and
systems that
influence
employees’:
 behavior
 attitudes
 performance

Human Capital – an
organization’s employees
described in terms of their:
 training
 experience
 judgment
 intelligence
 relationships
 Insight
Employees are resources of
the employer.

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FIGURE 1.1: HRM PRACTICES
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Figure 1.2: Impact of HRM
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Table 1.1: Responsibilities of HR
Departments
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Managing Performance



Performance Management – process of ensuring
that employees’ activities and outputs match
organization’s goals.
HR department develops or obtains questionnaires
and other devices for measuring performance.
High-performance work system- organization in
which technology, organizational structure, people,
and processes all work together to give an
organization an advantage in the competitive
environment.
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Ensuring Compliance with Labor Laws
Government requirements include:


filing reports and displaying posters
avoiding unlawful behavior
Managers depend on HR to help keep track of
these requirements.
Lawsuits influence HRM practices.
Employees have rights of free consent, conscience,
speech and due process.
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Supporting the Organization’s
Strategy





HR planning – identifies numbers and types of
employees organization requires to meet
objectives.
HR department helps manage change process.
Evidence-based HR– Collects and uses data to show
that HR practices have a positive influence on the
company’s bottom line or key stakeholders.
Corporate Social Responsibility- A company’s
commitment to meeting stakeholders’ needs.
Stakeholders- parties with an interest in the
company’s success (shareholders, community,
customers and employees).
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Figure 1.4: Supervisors’ Involvement
in HRM
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Ethical companies act according to
principles and standards:

•
•
•
Ethics – fundamental principles of right and wrong;
greatest good for greatest number, fair, equitable, and
respect for human rights.
In relationships, ethical companies emphasize mutual
benefits and fairness.
Employees assume responsibility for company’s
actions.
Company has a sense of purpose or vision that
employees value and use in their day-to-day work.
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