MGMT 3/14

Chapter 11: Managing Human Resource Systems

Human Resource Management

  • the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals
  • Human resources lead to competitive advantage

Three Key elements of Human resource management

  1. All managers are resource managers (must be part of hiring, firing, benefits, appraisals etc.)
  2. Employees are viewed as assets (valuable; people are not machines, they have ideas and suggestion)employees lead to competitive advantage
  3. Matching process, integrating the organizational goals with employee’s needs

Strategic HR Management goals (there are 3)

  1. Attract Effective workforce: HRM planning, Job analysis, Recruiting, Selecting
  2. Develop an effective workforce: training, development appraisal
  3. Maintain an Effective Workforce: wage/salary, benefits, labor relations, terminations

Environmental Influences on HRM

  • Competitive strategy: Building human capital (skills, knowledge, abilities), developing globalization (international HRM), using information technology (HRIS – computerized employee information system; data) / (these three create competitive advantage)
  • Federal legislation: equal employment opportunity (no discrimination based on age, race, religion)

HR Information System input

  • personal data (name, age, gender, race, home #)
  • work history (previous employers)
  • personal appraisal (date and result of appraisal)
  • promotion data (previous promotion records, special knowledge and skills for next promotion)
  • educational data (college, graduate school, training programs)
  • company employment history (previous positions in the company)

Attracting an Effective Workforce

  1. HR planning: retirement, growth, resignations
  2. Choose Recruiting Sources: want ads, Head hunters, Internet
  3. Select the Candidate: application, interview, tests
  4. Welcome new Employee

HR Planning

  1. forecasting of HR needs and the matching of individuals with expected vacancies
  2. what new technologies are emerging?
  3. what is volume of business likely to be in the next 5-10 years?
  4. What is turnover rate? How much is avoidable? (if any)

Forecasting Demand and Supply

  • Internal Factors: employees education level, up to date knowledge, specialized skills, transfer opportunities, turnover
  • External Factors: political, sociocultural, international, industry (trends), economy (unemployment rate)


  • the process of developing a pool of qualified job applicants
  • Internal recruiting
  • External recruiting
  • Job analysis
  • Person-Job fit
  • Person-Organization fit (linking values and beliefs)

Internal Recruitment

  • Promotion from within
  • a pool of applicants who already work for the company
  • career path is a planned sequence of jobs
  • improves employee morale and motivation
  • reduced employer time and cost
  • increases workers’ chances of success in new jobs

Methods for External Recruiting

  • Advertising
  • Employee referrals
  • walk-ins
  • Private employment agencies
  • state employment services
  • Career conferences
  • Internet job sites


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