MODULE-4

HRM
 What Is Human Resource Management?
• The Management Process
• Planning
• Organizing
• Staffing
• Leading
• Controlling
Human resource management
• (HRM) is the process of acquiring, training, appraising, and compensating employees,
and of attending to their labor relations, health and safety, and fairness concerns.
Why Is Human Resource Management Important to
All Managers?
• To avoid personnel mistakes
• To improve profits and performance
• You may spend some time as an HR manager
• You may end up as your own human resource manager
Roles of human resource manager
• Recruitment and staffing
• Employee relations
• Training and development
• Performance management
• Compensation and benefits
• Compliance
• Employee engagement and retention
The responsibilities of Human Resource
Management (HRM)
• Recruitment and selection:
• Training and development
• Performance management
• Compensation and benefits
• Employee relations
• Compliance with laws and regulations
• Strategic planning
• Diversity and inclusion:
Line and Staff Aspects of Human Resource
Management
• Authority is the right to make decisions, to direct the work of others, and to give
orders. Managers usually distinguish between line authority and staff authority.
• Line authority gives you the right to issue orders
• Staff authority gives you the right to advise others in the organization
Line Manager’s H R Management Responsibilities (1 of 2)

• Placing the right person in the right job

• Starting new employees in the organization (orientation)
• Training employees for jobs that are new to them
• Improving the job performance of each person
Line Manager’s H R Management Responsibilities (2 of 2)

• Gaining creative cooperation and developing smooth working relationships

• Interpreting the company policies and procedures
• Controlling labor cost
• Developing the abilities of each person
• Creating and maintaining departmental morale
• Protecting employees’ health and physical conditions
 The Human Resource Department
Figure 1-1 Human Resource Department Organization Chart Showing Typical
HR Job Titles

Source: “Human Resource Development Organization Chart Showing Typical H R Job Titles,” www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf.
New Approaches To Organizing H R
• Reorganizing the HR function of how it is organized and delivers HR services
• Shared Services (Transactional) HR teams
• Corporate HR teams
• Embedded HR teams
• Centers of expertise
 Trends in Human Resource Management
• Workforce Demographics and Diversity Trends
• Trends in Jobs People Do
• Globalization Trends
• Economic Trends
• Technology Trends
More on H R Technology Trends
• There are six main types of digital technologies driving HR
professionals to automation:
• Social Media
• Mobile Applications
• Cloud Computing
• Data Analytics
• Artificial Intelligence
• Augmented Reality
 BRIEFLY DESCRIBE SIX IMPORTANT
COMPONENTS OR PILLARS OF HUMAN
RESOURCE MANAGEMENT TODAY
 Today’s New Human Resource Management
• A Brief History of Personnel/Human Resource Management
• Distributed HR and the New Human Resource Management
A Quick Summary
What Trends Mean for Human Resource Management
Strategic Human Resource Management
• Strategic human resource management – means formulating and executing human
resource policies and practices that produce the employee competencies and behaviors
that the company needs to achieve its strategic aims.
H R and Performance Measurement
The Human Resource Manager is expected to spearhead employee
performance.
Three levers can be applied to do so:
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever
 H R and Evidence-Based Management
• Evidence-based human resource management – is the use of data, facts, analytics,
scientific rigor, critical evaluation, and critically evaluated research/case studies to
support human resource management proposals, decisions, practices, and conclusions.
• Actual measurements
• Existing data
• Research studies
H R and Adding Value
• Adding value – means helping the firm and its employees improve in a measurable
way as a result of the human resources manager’s actions.
Sustainability and H R M
• It is about measuring companies in terms of maximizing profits but also on their
environmental and social performance as well.
Employee Engagement and H R M
• Employee engagement refers to being psychologically involved in, connected to, and
committed to getting one’s job done.
Ethics and H R M
• Ethics means the standards someone uses to decide what his or
her conduct should be.
LIST AT LEAST FOUR IMPORTANT HUMAN
RESOURCE MANAGER COMPETENCIES
The Skills of the New H R Manager
• HR managers can’t just be good at traditional personnel tasks like hiring and training,
but must “speak the CFO’s language” by defending human resource plans in
measurable terms.
 The New Human Resource Manager
• ● Leadership & Navigation – the ability to direct and contribute to initiatives and processes within the
organization.
• ● Ethical Practice – the ability to integrate core values, integrity, and accountability throughout all
organizational and business practices.
• ● Business Acumen – the ability to understand and apply information with which to contribute to the
organization’s strategic plan.
• ● Relationship Management – the ability to manage interactions to provide service and to support the
organization.
• ● Consultation – the ability to provide guidance to organizational stakeholders.
• ● Critical Evaluation – the ability to interpret information with which to make business decisions and
recommendations.
• ● Global & Cultural Effectiveness – the ability to value and consider the perspectives and backgrounds
of all parties.
• ● Communication – the ability to effectively exchange information with stakeholders.
Human Resource Manager Certification
• HRCI Certifications
• PHR – Professional in Human Resources
• SPHR – Senior Professional in Human Resources
• SHRM now has its own competency and knowledge based
testing
 H R and the Manager’s H R
Philosophy
An initial philosophy based on experiences, education, values, assumptions, and
background.
The Small Business Challenge
• There’s nothing small about small business
• most business growth
 How Small Business H R M Is
Different ( 1 o f 2 )
• Size
• Priorities
• Informality
• “matter of survival”
• The entrepreneur
 How Small Business H R M Is
Different ( 2 o f 2 )
• Implications
• Legal risk
• Slow decisions and overwhelm managers
• Paperwork is time consuming and duplication may create data entry errors
• Competitive disadvantage
Diversity Counts

Necessity and the Entrepreneur

Why H R M Is Important to Small Business
• Positive performance
• Getting and keeping customers
Trends Shaping H R: Digital and Social Media

Internet Recruiting

Let’s take a look…

Small Business Employment Selection
• Tests
• Wonderlic Personnel Test
• Predictive Index
• Don’t forget the obvious
• Keep it local, and in the industry
• Test Online
• Poll your contacts
• Send a recording
Employment Training
• Private vendors
• The Small Business Administration
• The National Association of Manufacturers
Employment Appraisal and Compensation Online
Tools
• Small employers have easy access to computerized and online
appraisal and compensation services
• Oracle
• Halogen
• Salary.com
• Determine local pay rates
Employment Safety and Health Tools
• OSHA
• free services for small employers
• free on-site safety services for small businesses
• OSHA Sharp program
• a process through which OSHA certifies that small employers have achieved
commendable levels of safety awareness
LIST FIVE WAYS ENTREPRENEURS
CAN USE THEIR SMALL SIZE TO
IMPROVE THEIR H R PROCESSES
Leveraging Small Size with Familiarity, Flexibility,
Fairness, and Informality
• More Personal Familiarity
• Being Flexible
• Informal
• Simple, Informal Employee Selection Procedures
Improving Performance: H R Tools for Line
Managers and Small Businesses

Streamlined Interviewing Process

Let’s talk about it…

✓ Intellectual capacity.
✓ Motivation.
✓ Knowledge and experience.
✓ Personality.
Flexibility in Training
• What the training will do for their bottom line
• Relatively informal in how they train employees
• About 70% of all training is “informal”
Encouraging Informal Training
• Informal learning occurs when employees
• have something they need to learn
• are motivated to learn it
• are given the opportunity to learn
Flexibility in Benefits & Rewards
• Work/life flexibility
• Simple pension schemes
• Inexpensive and simple
DISCUSS HOW YOU WOULD CHOOSE AND
DEAL WITH A PROFESSIONAL EMPLOYEE
ORGANIZATION
Using Professional Employer Organizations (1 of 7)

• Professional Employer Organizations (PEOs)

• Human Resource Outsourcers (HROs)
• Employee/staff leasing firms
Using Professional Employer Organizations (2 of 7)

• How do PEOs work?

• Deciding which tasks to outsource
• Co-employers of record
Using Professional Employer Organizations (3 of 7)

• Why use a PEO?

• Insurance and benefits are often the big PEO attraction
• Legal risk
• Slow down company decision making
• Data entry errors
• Competitive disadvantage
Using Professional Employer Organizations (4 of 7)

• Caveats
• View human resource management practices as strategic
• Tax disadvantages
Using Professional Employer Organizations (5 of 7)

Figure 18.4 Guidelines for Finding and Working with PEOs

Employers should choose and manage the PEO relationship carefully.
Guidelines for doing so include:
• Conduct a needs analysis. Know ahead of time exactly what human resource
concerns your company wants to address.
• Review the services of all PEO firms you’re considering. Determine which
can meet all your requirements.

• Determine if the PEO is accredited. There is no rating system. However, the

Employer Services Assurance Corporation of Little Rock, Arkansas (
www.Escorp.org), imposes higher financial, auditing, and operating standards
on its members. Also check the National Association of Professional
Employer Organizations (www.NAPEO.org), and www.PEO.com.
Using Professional Employer Organizations (6 of 7)

• Check the provider’s bank, credit, insurance, and professional

references.
• Understand how the employee benefits will be funded. Is it fully
insured or partially self-funded? Who is the carrier? Confirm that
employers will receive first-day coverage.
• See if the contract assumes the compliance liabilities in the applicable
states.
• Review the service agreement carefully. Are the respective parties’
responsibilities and liabilities clear?
• Investigate how long the PEO has been in business.
• Check out the prospective PEO’s staff. Do they seem to have the
expertise to deliver on its promises?
Using Professional Employer Organizations (7 of 7)

• Ask, how will the firm deliver its services? In person? By phone? Via
the Web?
• Ask about upfront fees and how these are determined.
• Periodically get proof that payroll taxes and insurance premiums
are being paid properly and that any legal issues are handled
correctly.

Source: Based on Robert Beck and J. Starkman, “How to Find a P EO That Will Get the Job
Done,” National Underwriter 110, no. 39 (October 16, 2006), p p. 39, 45; Lyle DeWitt,
“Advantages of Human Resource Outsourcing,” The CPA Journal 75, no. 6 (June 2005), p age

13; www.peo.com/dmn, accessed April 28, 2008; Layne Davlin, “Human Resource Solutions
for the Franchisee,” Franchising World 39, no. 10 (October 2007), p 27; and see for
a ge

example, www.adp.com/solutions/employer-services/totalsource/what-is-a-peo.aspx,
accessed September 24, 2015.
DESCRIBE HOW YOU WOULD CREATE A START-
UP HUMAN RESOURCE SYSTEM FOR A NEW
SMALL BUSINESS
Managing H R Systems, Procedures, and Paperwork
(1 of 4)

• Consider the paperwork required to run a five-person retail shop

• A human resource system comprised of standardized forms
• Computerize various parts of the system
Managing H R Systems, Procedures, and Paperwork
(2 of 4)

• Basic components of manual HR systems

• Standardized personnel forms
• Means of organizing information for each employee
• Other sources
• Direct mail catalog companies
• Legal-compliance forms
Basic Components of Manual H R Systems
Some Important Employment Forms
New Employee Forms Current Employee Forms Employee Separation
Forms
Application Employee Status Change Request Retirement Checklist
New Employee Checklist Employee Record Termination Checklist
Employment Interview Performance Evaluation COBRA Acknowledgment
Reference Check Warning Notice Unemployment Claim
Telephone Reference Report Vacation Request Employee Exit Interview
Employee Manual Acknowledgment Probation Notice
Employment Agreement Job Description
Employment Application Disclaimer Probationary Evaluation
Employee Secrecy Agreement Direct Deposit Acknowledgment
Absence Report
Disciplinary Notice
Grievance Form
Expense Report
401(k) Choices Acknowledgment
Injury Report
Managing H R Systems, Procedures, and Paperwork
(3 of 4)

• Automating individual H R tasks: As the small business grows, it becomes impractical to rely
on manual HR systems. It is at this point that most small- to medium-sized firms begin
computerizing individual human resource management tasks.
• Packaged systems: Web sites such as www.capterra.com/itemize HR software available from
vendors such as Zenefits, Halogen Talent Space, Fairsail HRIS, and Cezanne HR. These
vendors provide software solutions for virtually all personnel tasks, ranging from benefits
management to compensation, compliance, employee relations, outsourcing, payroll, and
time and attendance systems. HRdirect sells software packages.
• Human Resources Information System (H RIS) As the company grows, a more comprehensive
system becomes necessary. We can define an integrated human resource information
system (HRIS) as human resource software that unifies HR management processes such
as applicant tracking, hiring, training, performance management, benefits administration,
and payroll into one automated system.
• There are several benefits to be gained by installing an HRIS.
Benefits of Installing H R I S (1 of 2)

• Improved Transaction Processing: – The day-to-day minutiae of maintaining and

updating employee records takes an enormous amount of time. HRIS packages
substitute powerful computerized processing for a wide range of the firm’s HR
transactions.

• Facilitates online self-processing:HR information systems also facilitate employee

self-processing.
Benefits of Installing H R I S (2 of 2)

• Improved Reporting Capability: By integrating numerous individual HR tasks

(training records, appraisals, employee personal data, and so on), the HRIS
improves HR’s reporting capabilities.
• HR System Integration: Because the HRIS’s software components (record
keeping, payroll, appraisal, and so forth) are integrated, they enable the
employer to reengineer its HR function
Managing H R Systems, Procedures, and Paperwork
(4 of 4)

• HRIS vendors
• Automated Data Process, Inc.
• Business Information Technology, Inc.
• Human Resource Microsystems
• Lawson Software
• Oracle Corporation
• SAP America, Inc.
Trends Shaping H R: Digital and Social Media
Trends Shaping HR: Digital and Social Media

HR on the Cloud

Most suppliers of human resource management systems, such as ADP, Ceridian, Kronos, Oracle, and SAP, offer
totally cloud-based systems. For small business owners particularly, the advantages of cloud systems are that the
vendors can more easily update them with the latest features—saving the small business owner much time and
expense—and that the owner and employees can easily access the information from wherever they are.

BambooHR illustrates an HR system especially designed for small and medium-sized businesses
(www.bamboohr.com). A dramatic improvement over spreadsheets and other paper-based systems, BambooHR
enables authorized managers and employees to securely and remotely access company information on matters
like time off and personal information, and to produce reports and/or follow trends on the system’s customizable
dashboards. Furthermore, the BambooHR system was designed to be integrated with compatible applications. It
can therefore be seamlessly integrated with the small business’ payroll systems, applicant tracking systems,
benefits enrollment systems, and performance review systems.

As another example, many employers outsource benefits administration to cloud-based services offered by firms
like Zenefits. A new employee uses his or her laptop or smartphone to access the Zenefits Web site. He or she can
then input personal information and sign documents via a touchscreen, and register for specific benefits.