Chapter 12: Human Resource Management

Question 1

What is the HRM Process?

Answer 1

•Human Resource Management Process - activities necessary for staffing the organisation and sustaining high employee performance

•Consists of eight activities -
–first three activities ensure that competent persons are identified and selected
–Next two activities are to provide the selected employees with necessary orientation and training
–Last three activities ensure that the high-performing employees are retained

Question 2

What are the 8 activities in the HRM Process?

Answer 2

1. Human Resource Planning
2. Recruitment
3. Selection
   [Identify and select competent employees]
4. Orientation
5. Training
   [Provide employees with up-to-date skills and knowledge]
6. Performance Management
7. Compensation and Benefits
8. Career Development
   [Retain competent and high-performing employees]

Question 3

What is involved in Identifying and Selecting Competent Employees?

Answer 3

Human resource planning - ensuring that the organisation has the right number and kinds of capable people in the right places and at the right times
•Involves two step - Assessing current human resources; and Meeting future HR needs

Question 4

What is involved in Recruitment and Decruitment

Answer 4

• Recruitment - locating, identifying, and attracting capable applicants
• Decruitment - reducing an organisation’s workforce

Question 5

What is Selection?

Answer 5

•Selection - screening job applicants to ensure that the most appropriate candidates are hired
–Using selection procedures that are valid and reliable
–Predicting which applicant will be successful if hired

•Realistic Job Preview (RJP) - a preview of a job that provides both positive and negative information about the job and the company

Question 6

What is Orientation and Training?

Answer 6

•Orientation - introducing a new employee to his or her job and the organisation
–Work unit orientation - familiarising with the goals of the unit, clarifying contribution to the unit’s goals, and introduction to their new co-workers
–Organisation orientation - informing organisation’s mission, history, philosophy, procedures and rules

•Training - to update the skills and knowledge of the employees for better performance
–As job demands change, employee skills have to change

Question 7

What is involved in Employee Performance Management?

Answer 7

• Performance management system - establishes performance standards that are used to evaluate employee performance
• Used to arrive at objective HR decisions and to provide documentation in support of those decisions.
• Also identifies training and development needs

Question 8

What is involved in Compensation and Benefits?

Answer 8

Helps attract and retain high-performance employees and has impact on the strategic performance of organisation.
Types of compensation and benefits
–Base wage or salary
–Wage and salary add-ons, e.g. overtime allowance
–Incentive payments e.g. performance bonus
–Skill-based pay e.g. specialist allowance
–Variable pay e.g. sales commissions

• Skill-based pay - a pay system that rewards employees for the job skills they can demonstrate
• Variable pay - a pay system in which an individual’s compensation is contingent on performance