The Foundations of Human Resource Management

Human resource management (HRM) is the set of organizational activities directed at attracting,
developing, and maintaining an effective workforce
HR (Human Resources) are the people comprising an organization's workforce.
Human capital reflects the organization’s investment in attracting, retaining, and motivating an
effective workforce
Talent management reflects the view that the people in an organization represent a portfolio of
valuable talents and skills that can be effectively managed and tapped in ways best targeted to
organizational success

HR Planning
 Job Analysis: systematic analysis of jobs within an organization; most firms have trained
experts who handle these analysis. Result
 Job description: lists the duties and responsibilities of a job; its working conditions;
and the tools, materials, equipment, and information used to perform it.
 Job specification: lists the skills, abilities, and other credentials and qualifications
needed to perform the job effectively
 Forecasting HR Demand and Supply
They can start planning for the organization's future HR needs.

Forecasting the supply of labor is really two tasks:

 Internal supply: the number and type of employees who will be in the firm at some future
date
 External supply: the number and type of people who will be available for hiring from the
labor market at large
Lalu ada
 Replacement charts: list of each management position, who occupies it, how long that
person will likely stay in the job, and who is qualified as a replacement
 Skills Inventory (Employee Information System): computerized system containing
information on each employee’s education, skills, work experiences, and career aspiration.
To facilitate both planning and identifying people for transfer or promotion.
 Matching HR Supply and Demand: After comparing future demand and internal supply,
managers can make plans to manage predicted shortfalls or overstaffing

The Legal Context of HRM

 Equal Employment Opportunity
Title VII of the Civil Rights Act of 1964 forbids discrimination in all areas of the employment
relationship, such as hiring, opportunities for advancement, compensation increases, layoffs,
and terminations, against members of certain protected
 Compensation and Benefits
 Ada peraturan yang menetapkan minimum wage/upah minimum. Ada juga asuransi kesehatan
dan pensiun plan. Employers who provide a pension plan for their employees are regulated by
the Employee Retirement Income Security Act (ERISA) of 1974. The purpose of this act is to
help ensure the financial security of pension funds by regulating how they can be invested.
The Family and Medical Leave Act (FMLA) of 1993 requires employers to provide up to 12
weeks of unpaid leave for family and medical emergencies
 Labor Relations
Union activities and management’s behavior toward unions constitute another heavily
regulated area. The National Labor Relations Act (also known as the Wagner Act), passed in
1935, established procedures for employees to vote on whether or not to be represented by a
union. If they vote to be represented by a union, management is required to bargain
collectively with that union. Labor-Management Relations Act (also known as the Taft-Hartley
Act) passed to limit union power
 Health and Safety
Occupational Safety and Health Act (OSHA) of 1970 federal law setting and enforcing
guidelines for protecting workers from unsafe conditions and potential health hazards in the
workplace
 Other Legal Issues
 AIDS in the workplace: Organizations must accommodate or make a good-faith
effort to accommodate individuals with HIV, maintain the confidentiality of all
medical records, and try to educate coworkers about AIDS
 Sexual Harassment: sexual harassment is defined by the EEOC as unwelcome sexual
advances in the work environment.
Quid pro quo harassment: the harasser offers to exchange something of value for sexual
favors
Hostile work environment: A group of male employees who continually make off-color
jokes and lewd comments and perhaps decorate the work environment with
inappropriate photographs may create a hostile work environment for a female
colleague, who may become uncomfortable
 Employment at Will: The concept of employment at will holds that both employer and
employee have the mutual right to terminate an employment relationship at any time for
any reason, with or without advance notice to the other.
 The Patriot Act

Staffing the Organization

Recruiting Employees
Recruiting is the process of attracting qualified persons to apply for the jobs that are open.
 Internal recruiting: considering present employees as candidates for openings
 External recruiting: attracting persons outside the organization to apply for jobs
Selecting Employees
 Application Forms
 Test
 Interviews
 Other techniques: polygraph test

Compensation and Benefits

Wages and Salaries
Wages compensation in the form of money paid for time worked.
Salary compensation in the form of money paid for discharging the responsibilities of a job. Paid for
performing a job. Salaries are usually expressed as an amount paid per month or year.
Incentive Programs
Incentive Program special compensation program designed to motivate high performance
  Bonus individual performance incentive in the form of a special payment made over and
above the employee’s salary
 Merit Salary System individual incentive linking compensation to performance in nonsales
jobs
 Pay for Performance (or Variable Pay) individual incentive that rewards a manager for
especially productive output
Companywide Incentives:
 Profit-Sharing Plan: incentive plan for distributing bonuses to employees when company
profits rise above a certain level
 Gainsharing Plan incentive plan that rewards groups for productivity improvements
 Pay-for-Knowledge Plan incentive plan to encourage employees to learn new skills or
become proficient at different jobs
Benefit Programs
Benefits compensation other than wages and salaries.
Workers’ Compensation Insurance legally required insurance for compensating workers injured on
the job
 Retirement Plans
Retirement plans (or pension plans) constitute another important—and sometimes
controversial—benefit that is available to many employees. Company-sponsored retirement
plans were historically set up to pay pensions to workers when they retire (these are referred
to as defined benefit plans)
 Containing the Costs of Benefits
As the range of benefits has increased, so has concern about containing the costs of these
benefits. Many companies are experimenting with cost-cutting plans while still attracting and
retaining valuable employees. One approach is the cafeteria benefits plan. A certain dollar
amount of benefits per employee is set aside so that each employee can choose from a variety
of alternatives. Intinya ada limit

Developing the Workforce

Training and Development
Training usually refers to teaching operational or technical employees how to do the job for which
they were hired. Development usually refers to teaching managers and professionals the skills
needed for both present and future jobs
 Assessing training needs
 Common training methods
 On-the-Job Training training, sometimes informal, conducted while an employee is
at work. Physical skill
 Vestibule training: off-the-job training conducted in a simulated environment. focus
on safety, learning, and feedback rather than on productivity.)
 Evaluation of Training

Performance Appraisal
Performance appraisal is a formal assessment of how well employees are doing their jobs.
evaluation of an employee’s job performance to determine the degree to which the employee is
performing effectively
 Common Appraisal Methods
Objective measures of performance include actual output (number of units produced), scrap
rate, dollar volume of sales, and number of claims processed
Judgmental methods, including ranking and rating techniques, are the most common way to
measure performance
 Errors in Performance Appraisal
 Errors or biases can occur in any kind of rating or ranking system. One common problem is
recency error, the tendency to base judgments on the subordinate’s most recent performance
because it is most easily recalled.
 Performance feedback

New Challenges in the Changing Workplace

Managing Workforce Diversity
Workforce Diversity the range of workers’ attitudes, values, beliefs, and behaviors that differ by
gender, race, age, ethnicity, physical ability, and other relevant characteristics
Managing Knowledge Workers
Knowledge Workers employees who are of value because of the knowledge they posses
Contingent and Temporary Workers
Contingent Worker employee hired on something other than a full-time basis to supplement an
organization’s permanent workforce. One key to managing contingent workers effectively is careful
planning and analysis

Dealing with Organized Labor

A labor union is a group of individuals working together to achieve shared job-related goals, such as
higher pay, shorter working hours, more job security, better benefits, or improved working
conditions. Labor relations refers to the process of dealing with employees who are represented by a
union
Unionism Today
 The future of unions
Collective Bargaining
Collective bargaining is the process by which labor and management negotiate conditions of
employment for union-represented workers and draft a labor contract.
 Reaching Agreement on Contract Terms
The collective bargaining process begins when the union is recognized as the exclusive
negotiator for its members and union leaders meet with management representatives to
agree on a labor contract. By law, both parties must sit down at the bargaining table and
negotiate in good faith

 Contract issues
Issues that are typically most important to union negotiators include compensation, benefits,
and job security.
 Compensation: includes both current and future wages. Cost-of-Living Adjustment (COLA)
labor contract clause tying future raises to changes in consumer purchasing power. Cost-of-
Living Adjustment (COLA) labor contract clause tying future raises to changes in consumer
purchasing power
 Benefits:
 Job security
When bargaining fails
 Union Tactics
Strike labor action in which employees temporarily walk off the job and refuse to work.
To support a strike, a union faced with an impasse has recourse to additional legal
activities:
-Picketing: labor action in which workers publicize their grievances at the entrance to an
employer’s facility. Workers march at the entrance to the employer’s facility with signs
explaining their reasons for striking.
-Boycott: when union members agree not to buy the products of a targeted employer.
Workers may also urge consumers to boycott the firm’s products
-Work slowdown: labor action in which workers perform jobs at a slower than normal
pace
 Management tactics
-Lockouts: management tactic whereby workers are denied access to the employer’s
workplace
-Strikebreaker: worker hired as a permanent or temporary replacement for a striking
employee
Mediation and Arbitration
 Mediation: the neutral third party (the mediator) can suggest, but cannot impose, a
settlement on the other parties. Saran Third party tidak harus dituruti kedua belah pihak,
karena seifatnya tidak mengikat
 Arbitration: the neutral third party (the arbitrator) dictates a settlement between the two
sides, which have agreed to submit to outside judgment. Keputusan pihak ketiga harus
dipenuhi.