HUMAN RESOURCE MANAGEMENT EXAM 1 REVIEW CHAPTER 1 Responsibilites Functions of Human Resources Management 1 Employment and Recruiting 2 Training and develptment 3 Compensation 4 Benefits 5 Employee services Three Prodcut Lines quality 6 Employee and community 7 Relations 8 Personael records 9 Health and safety 10 Strategic planning Administrative Services and Transactions compensation hiring and staffing Emphasis resource efficiency and service Business Partner Services developing effective HR systems and helping implement business plans takent management Emphasis knowing the business and exercising infuence problem solving designing effective systems to ensure needed competencies Stategic Partner contributing to business strategy based on considerations of human capital business capabilities readiness and developing HR practices as strategic differentiators Emphasis knowledge of HR and of the business competitiono the market and business strategies Competitive Challenges Facing HRM 1 The Challenge of Sustainablity incudles providing a return to shareholdes providing high quality products and services and experiences for employees social responsibility and effectively using enw work arrangements 2 The Global Challenge In order to survive U S companies must improve HRM practices develop global markets and better prepare employees for global assignments 3 The Techonology Challenge with advances in technology companies must change employees and managers work roles create high performance work systems and develop commerce and e HRM Balanced Score Card give managers the opportunity to look at the company from the perspective of internal and external customers employees and shareholders Measures of human resource practices primarily relate to productivity people and processes The balanced scorecard should be used to Link human resource management activities to the company s business strategy Evaluate the extent to which the human resource function is helping the company s meet it s strategic objectives TABLE 1 9 IN TEXT SHOWS EXAMPLES OF BALANCED SCORE CARD Total Quality Management TQM is a compnay wide effort to conitinuously improve the ways people machines and systems accomplish work Core values of TQM include Designing methods and processes to meet the needs of internal and external customer needs All employees receive training in quality Promotion of cooperation with vendors suppliers and customers Managers measure progress with feedback based on data Quality is designed into a product or services so that errors are prevented from occuring rather than being detected and corrected Technology Technology has reshaped the way we play plan our lives and where we work The Internet has created a new business model e commerce in which business transactions and relationships can be conducted electronically Seventy nine percent of adults approximately 178 million go online spending an average of 11 hours a week on the Internet 141 Seventy two percent access the Internet from home while 37 percent do so from work Advances in technology have Changed how and where we work Resulted in high performance work systems Increased the use of teams to improve customer service and product quality Changed skill requirements Increased working partnerships Led to changes in company structure and reporting relationships Advances in technology have increased Increased the use and availability of Human Resource Information Systems HRIS which are used to acquire store manipulate analyze retrieve and distribute HR information Increased the use and availability of e HRM which is the processing and transmission of digitalized information used in HRM Increased the competitiveness in high performance work systems Ethics the fundamental principles by which employees and companies intereact Ethical HR practices HRM practices must result in the greatest good for the largest number of people Employement practices msut respect basic human rights of privacy due process consent and free speech Managers must treat employees and customers equitably and fairly CHAPTER 2 Strategic Management is a process for analyzing a company s competitive situation developing the company s strategic goals and devising a plan of action and allocation of resources that will help a company achieve its goals Strategice Human Resource Management is the pattern of planned HR activities and deployments inteded to enable an organization to achieve its goals Strategic Management Process Strategic mngmt has two distinct yet independent phases Strategy Formulation process of decideing company s strategic direction by defining it mission and goals external opportunites and threats and internal strengths and weaknesss And Strategy Implemntation process of devising structures and allocating resources to enact a company s chosen strategy 5 components of the strategic management process include 1 A mission is a statement of the organization s reasons for being 2 Goals are what the organization hopes to achieve in the medium to long term future 3 External analysis consists of examining the organization s operating environment to identify strategic opportunities and threats 4 Internal analysis attempts to identify the organization s strengths and weaknesses 5 Strategic choice is the organization s strategy which describes the ways the organization will attempt to fulfill its mission and achieve its long term goals Directional Strategies 5 Categories of Directional Strategies include concentration internal and external growth downsizings and mergers and acquisitions Concentration focuses on increasing market share reducing costs or creating and maintaining a market niche for products and services Internal growth focuses on new market and product development innovation and new joint ventures External growth emphasizes acquiring vendors and suppliers or buying businesses that allow a company to expand into new markets Downsizing is the planned elimination of large numbers of personnel designed to enhance organizational effectiveness HR needs to be involved in mergers and acquisitions Strategy Formulation the process of deciding on a strategic direction by defining a company s mission and goals its external opportunities and threats and its internal strengths and weaknesses Strategic Planning and HRM Linkages Model administrative one way two ay and integrative Administrative linkage is the lowest level of interaction HRM s functions attention is focused on