HRM Process

Acquisition
Acquisition -Job Analysis
A job analysis refers to studying a job in order to understand what is needed to help the job holder perform a
job successfully.KnowledgeSkillsAbilitiesAttitudes

4 Acquisition - HR Planning (Forecasting)

Demand ForecastingDetermining the number of employees that the organization will need at some point in
the future as well as the knowledge, skills, and abilities that these employees must possess.Supply
ForecastingDetermining what human resources will be available, both inside and outside the organization.

5 Acquisition - Recruitment
The process of finding and attracting job candidates who are qualified to fill job vacancies.Internal
recruitmentIdentifying candidates from inside the organization and encouraging them to apply for jobs that
are vacant.External recruitmentAdvertising for and soliciting applicants from outside the organization.

6 Acquisition - Selection
Selection is the process of evaluating and choosing the best qualified candidate from the pool of applicants
recruited for the position.It entails the exchange of accurate information between employers and job
candidates to optimize the person-job match.Although organizations usually make these decisions, applicants
also self-select by choosing to join, not to join, or to leave, organizations according to their individual needs.

Training
A planned effort to assist employees in learning job-related behaviors in order to improve performance.
Companies train employees in an effort to prepare them to work toward achieving the goals and objectives
of the organization.

Types of Training Programs

Orientation

Technical training

On-the-job training

Management development programs

Performance Appraisal
A systematic process of evaluating employee job-related achievements, strengths, weaknesses, as well as
determining ways to improve performance .Uses of performance appraisal information:

Motivation

Personnel movement
Training

Feedback for improvement and personal development

Problems with Performance Appraisal

Halo Effect

Rater Patterns

Contrast Error

Recency Error

Compensation
Compensation, the third major HRM function, refers to HRM duties related to paying employees and
providing incentives for them. HRM professionals are typically charged with developing wage and salary
systems that accomplish specific organizational objectives, such as employee retention, quality,
satisfaction, and motivation.

Direct Compensation

Base pay Refers to wages and salaries employees receive in exchange for performing their jobs

Incentives. Compensation beyond base pay used to attract, retain, and motivate employees.Bonuses,
commissions, profit-sharing plans, stock options.

Indirect Compensation
Benefits
Rewards employees receives as part of their employment relationship with the organization.

Benefit categories

Required and voluntary security

Retirement

Time-offInsurance and financialSocial and recreational

Fairness
Compensation designers are concerned with three sources of fairness expectation:

External Fairness Is the pay for the job fair in one organization relative to the pay for the same job in other
organizations?

Internal Fairness Is the pay for the job within the organization fair relative to the pay of other jobs in the
same organization?

Employee Fairness Is the pay fair relative to what coworkers are making on the same job?
Labor-Management Relations
The formal process through which labor unions represent employees to negotiate terms and conditions of
employment, including:

Pay

Hours of work

Benefits

Other important aspects of the working environment

Equal employment opportunity (EEO) laws prohibit the consideration of race, color, religion, national origin,
or gender in employment decision-making.

Safety and Health

Occupational Safety and Health is a general area of concern in employment which spans the physiological
and psychological needs and well-being of persons engaged in occupations; work-related trauma and death;
the prevention of work-related trauma and death; the protection from, or from risk of work-related-trauma
and death; and the rehabilitation and retraining of persons who have suffered work-related trauma (CCH
Occupational Health and Safety: Glossary, CCH International, 1992)