INTRO 2 HRM

8/8/2019 INTRO 2 HRM

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INTRODUCTION:

Human resource (or personnel) management, in the sense of getting things done

through people. It's an essential part of every manager's responsibilities, but many

organizations find it advantageous to establish a specialist division to provide anexpert service dedicated to ensuring that the human resource function is performed

efficiently.

Human resource management (HRM) is the effectivemanagement of people at work.HRM examines what can or should be done to make workingpeople more productiveand satisfied. This book has been written for individuals interestedin learning about people

working within organizations. Its goal is to help develop moreeffective managers

"People are our most valuable asset" is a clich which no member of any senior

management team would disagree with. Yet, the reality for many organizations is

that their people remain

under valued

under trained

under utilized

poorly motivated, and consequently perform well below their true capability

ACCORDING TO EDVIN FLIPPO

Edwin Flippo defies HRM as planning, organizing, directing,controlling of procurement, development, compensation,integration , maintenance and separation of human resources tothe end that individual, organizational and social objectives are

achieved.

.The following four descriptions of the HRM unit should bestressed at the outset:

1. It is action-oriented Effective HRM focuses on actionrather than on record keeping,


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written procedure, or rules. Certainly, HRM uses rules, records,and policies, but itstresses action. HRM emphasizes the solution of employmentproblems to help achieve

organizational objectives and facilitate employees developmentand satisfaction.

2. It is people-oriented Whenever possible, HRM treats eachemployee as an individual andoffers services and programs to meet the individuals needs.McDonalds, the fast-foodchain, has gone so far as to give an executive the title vicepresident of individuality.

3. It is globally oriented HRM is a globally oriented function oractivity; it is being practicedefficiently and continuously in Mexico, Poland, and Hong Kong.Many organizationsaround the world treat people fairly, with respect, and withsensitivity. Thus,American practitioners can review best-in-class HRM practices inBrazil to determineif some principles can be applied or modified to work in the United

States.

4. It is future-oriented Effective HRM is concerned with helpingan organization achieveits objectives in the future by providing for competent, well-motivated employees. Thus,human resources need to be incorporated into an organizationslong-term strategicplans.

The following HR Journal of Malden Mills Company captures HRMat the peak of effectiveness.This company did not allow a devastating fire to shut it down.Staffed by peopleof many nations of the world, the company, with the help of apeople-oriented leader, Aaron


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Feuerstein, showed tenacity, dedication, and loyalty in theirdecision to rebuild.

Features of HRM or characteristics or nature

1. HRM involves management functions like planning, organizing,directing and controlling.

2. It involves procurement, development, maintenance of humanresource

3. It helps to achieve individual, organizational and socialobjectives

4. HRM is a mighty disciplinary subject. It includes the study of

management psychology communication, economics andsociology.

5. It involves team spirit and team work.

Evolution of HRM

The evolution of HRM can be traced back to Kautilya Artha

Shastra where he recommends that government must take activeinterest in public and private enterprise. He says that governmentmust provide a proper procedure for regulating employee andemployee relation.In the medieval times there were examples of kings like AllaudinKhilji who regulated the market and charged fixed prices and


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provided fixed salaries to their people. This was done to fightinflation and provide a decent standard of livingDuring the pre independence period of 1920 the trade unionemerged. Many authors who have given the history of HRM say

that HRM started because of trade union and the First World War.The Royal commission in 1931 recommended the appointment ofa labour welfare officer to look into the grievances of workers.The factory act of 1942 made it compulsory to appoint a labourwelfare officer if the factory had 500 or more than 500 workers.The international institute of personnel management and nationalinstitute of labour management were set up to look into problemsfaced by workers to provide solutions to them. The Second WorldWar created awareness regarding workers rights and 1940s to

1960s saw the introduction of new technology to help workers.The 1960s extended the scope of human resource beyondwelfare. Now it was a combination of welfare, industrial relation,administration together it was called personnel management.With the second 5 year plan, heavy industries started andprofessional management became important. In the 70s thefocus was on efficiency of labour wile in the 80s the focus was onnew technology, making it necessary for new rules andregulations. In the 90s the emphasis was on human values and

development of people and with liberalization and changing typeof working people became more and more important there byleading to HRM which is an advancement of personnelmanagement.

Scope of HRM/functions of HRM

The scope of HRM refers to all the activities that come under thebanner of HRM. These activities are as follows-

1. Human resources planning :-Human resource planning or HRP refers to a process by which thecompany to identify the number of jobs vacant, whether thecompany has excess staff or shortage of staff and to deal withthis excess or shortage.


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2. Job analysis design :-Another important area of HRM is job analysis. Job analysis givesa detailed explanation about each and every job in the company.

Based on this job analysis the company prepares advertisements.

3. Recruitment and selection :-Based on information collected from job analysis the companyprepares advertisements and publishes them in the news papers.This is recruitment. A number of applications are received afterthe advertisement is published, interviews are conducted and theright employee is selected thus recruitment and selection are yetanother important area of HRM.

4. Orientation and induction :-Once the employees have been selected an induction ororientation program is conducted. This is another important areaof HRM. The employees are informed about the background of thecompany, explain about the organizational culture and values andwork ethics and introduce to the other employees.

5. Training and development :-

Every employee goes under training program which helps him toput up a better performance on the job. Training program is alsoconducted for existing staff that have a lot of experience. This iscalled refresher training. Training and development is one areawere the company spends a huge amount.

6. Performance appraisal :-Once the employee has put in around 1 year of service,performance appraisal is conducted that is the HR department

checks the performance of the employee. Based on theseappraisal future promotions, incentives, increments in salary aredecided.

7. Compensation planning and remuneration :-There are various rules regarding compensation and otherbenefits. It is the job of the HR department to look into


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remuneration and compensation planning.

8. Motivation, welfare, health and safety :-Motivation becomes important to sustain the number of

employees in the company. It is the job of the HR department tolook into the different methods of motivation. Apart from thiscertain health and safety regulations have to be followed for thebenefits of the employees. This is also handled by the HRdepartment.

9. Industrial relations :-Another important area of HRM is maintaining co-ordinal relationswith the union members. This will help the organization to

prevent strikes lockouts and ensure smooth working in thecompany.

Challenges before the HR manager/before modern

personnel management

Personnel management which is know as human resource

management has adapted itself to the changing work

environment, however these changes are still taking place and

will continue in the future therefore the challenges before the HR

manager are

1. Retention of the employees :-

One of the most important challenge the HR manager faces is

retention of labour force. Many companies have a very high rate

of labour turnover therefore HR manager are required to take

some action to reduce the turnover

2. Multicultural work force :-

With the number of multi cultural companies are increasing

operations in different nations. The work force consists of people

from different cultures. Dealing with each of the needs which are


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different the challenge before the HR manager is integration of

multicultural labour work force.

3. Women in the work force :-

The number of women who have joined the work force has

drastically increased over a few years. Women employees face

totally different problems. They also have responsibility towards

the family. The organization needs to consider this aspect also.

The challenge before the HR manager lies in creating gender

sensitivity and in providing a good working environment to the

women employees.

4. Handicapped employees :-

This section of the population normally faces a lot of problems on

the job, very few organization have jobs and facilities specially

designed for handicapped workers. Therefore the challenge

before the HR manager lies in creating atmosphere suitable for

such employees and encouraging them to work better.

5. Retrenchment for employees :-In many places companies have reduced the work force due to

changing economic situations, labourers or workers who are

displaced face sever problems. It also leads to a negative

atmosphere and attitude among the employees. There is fear and

increasing resentment against the management. The challenge

before the HR manager lies in implementing the retrenchment

policy without hurting the sentiments of the workers, without

antagonizing the labour union and by creating positive attitude inthe existing employees.

6. Change in demand of government :-

Most of the time government rules keep changing. While a lot of

freedom is given to companies some strict rules and regulations


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have also been passed. The government has also undertaken the

disinvestment in certain companies due to which there is fear

among the employees regarding their job. The challenge before

the HR manager lies in convincing employees that their interest

will not be sacrificed.

7. Initiating the process of change :-

Changing the method of working, changing the attitude of people

and changing the perception and values of organization have

become necessary today. Although the company may want to

change it is actually very difficult to make the workers accept the

change. The challenge before the HR manager is to make people

accept change.

Significance/importance/need of HRM

HRM becomes significant for business organization due to the

following reasons.

1. Objective :-HRM helps a company to achieve its objective from time to time

by creating a positive attitude among workers. Reducing wastage

and making maximum use of resources etc.

2. Facilitates professional growth :-

Due to proper HR policies employees are trained well and this

makes them ready for future promotions. Their talent can be

utilized not only in the company in which they are currentlyworking but also in other companies which the employees may

join in the future.

3. Better relations between union and management :-

Healthy HRM practices can help the organization to maintain co-


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ordinal relationship with the unions. Union members start

realizing that the company is also interested in the workers and

will not go against them therefore chances of going on strike are

greatly reduced.

4. Helps an individual to work in a team/group :-

Effective HR practices teach individuals team work and

adjustment. The individuals are now very comfortable while

working in team thus team work improves.

5. Identifies person for the future :-

Since employees are constantly trained, they are ready to meet

the job requirements. The company is also able to identify

potential employees who can be promoted in the future for the

top level jobs. Thus one of the advantages of HRM is preparing

people for the future.

6. Allocating the jobs to the right person :-

If proper recruitment and selection methods are followed, the

company will be able to select the right people for the right job.When this happens the number of people leaving the job will

reduce as the will be satisfied with their job leading to decrease in

labour turnover.

7. Improves the economy :-

Effective HR practices lead to higher profits and better

performance by companies due to this the company achieves a

chance to enter into new business and start new ventured thusindustrial development increases and the economy improves.


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Functional overview and strategy for HRM

This set of resources are offered to promote thought, stimulate discussion, diagnose

the organizational environment and develop a sound human resource management

strategy for your organization. We begin by looking at the seven distinguishable

function human resource management provide to secure the achievement of the

objective defined above.

Function 1: Manpower planning

Planning staff levels requires that an assessment of present and future needs of the

organization be compared with present resources and future predicted resources.

Appropriate steps then be planned to bring demand and supply into balance.

Thus the first step is to take a 'satellite picture' of the existing workforce profile

(numbers, skills, ages, flexibility, gender, experience, forecast capabilities,

character, potential, etc. of existing employees) and then to adjust this for 1, 3 and

10 years ahead by amendments for normal turnover, planned staff movements,

retirements, etc, in line with the business plan for the corresponding time frames.

Future staffing needs will derive from:

Sales and production forecasts The effects of technological change on task needs

Variations in the efficiency, productivity, flexibility of labor asa result of training, work study, organizational change, newmotivations, etc.

Changes in employment practices (e.g. use ofsubcontractors or agency staffs, hiving-off tasks, buying in,substitution, etc.)

Variations, which respond to new legislation, e.g. payrolltaxes or their abolition, new health and safety requirements

Changes in Government policies (investment incentives,regional or trade grants, etc.)

That, in turn, will involve the further planning of such recruitment, training,

retraining, labor reductions (early retirement/redundancy) or changes in workforce

utilization as will bring supply and demand into equilibrium, not just as a oneoff

but as a continuing workforce planning exercise the inputs to which will need

constant varying to reflect 'actual' as against predicted experience on the supply


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side and changes in production actually achieved as against forecast on the demand

side.

Function 2: Recruitment and selection of employees

Recruitment of staff should be preceded by:

An analysis of the job to be done (i.e. an analytical study of the tasks to be

performed to determine their essential factors) written into a job description so that

the selectors know what physical and mental characteristics applicants must

possess, what qualities and attitudes are desirable and what characteristics are a

decided disadvantage;

The main sources of recruitment are:

Internal promotion and internal introductions (at timesdesirable for morale purposes)

Careers officers (and careers masters at schools) University appointment boards Agencies for the unemployed Advertising (often via agents for specialist posts) or the use

of other local media (e.g. commercial radio)

Where the organization does its own printed advertising it is useful if it has some

identifying logo as its trade mark for rapid attraction and it must take care not tooffend the sex, race, etc. antidiscrimination legislation either directly or indirectly.

The form on which the applicant is to apply (personal appearance, letter of

application, completion of a form) will vary according to the posts vacant and

numbers to be recruited.

Interviewing can be carried out by individuals (e.g. supervisor or departmental

manager), by panels of interviewers or in the form of sequential interviews by

different experts and can vary from a five minute 'chat' to a process of several days.

Ultimately personal skills in judgment are probably the most important, but

techniques to aid judgment include selection testing for:

Aptitudes (particularly useful for school leavers) Attainments General intelligence


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(All of these need skilled testing and assessment.) In more senior posts other

techniques are:

Leaderless groups Command exercises Group problem solving

(These are some common techniques - professional selection organizations often

use other techniques to aid in selection.)

Function 3: Employee motivation

To retain good staff and to encourage them to give of their best while at work

requires attention to the financial and psychological and even physiological

rewards offered by the organization as a continuous exercise.

Basic financial rewards and conditions of service (e.g. working hours per week)

are determined externally (by national bargaining or government minimum wage

legislation) in many occupations but as much as 50 per cent of the gross pay of

manual workers is often the result of local negotiations and details (e.g. which

particular hours shall be worked) of conditions of service are often more important

than the basics. Hence there is scope for financial and other motivations to be used

at local levels.

As staffing needs will vary with the productivity of the workforce (and theindustrial peace achieved) so good personnel policies are desirable. The latter can

depend upon other factors (like environment, welfare, employee benefits, etc.) but

unless the wage packet is accepted as 'fair and just' there will be no motivation

Function 4: Employee evaluation

An organization needs constantly to take stock of its workforce and to assess its

performance in existing jobs for three reasons:

To improve organizational performance via improving theperformance of individual contributors (should be anautomatic process in the case of good managers, but (aboutannually) two key questions should be posed:


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o what has been done to improve the performance of aperson last year?

o and what can be done to improve his or herperformance in the year to come?).

To identify potential, i.e. to recognize existing talent and touse that to fill vacancies higher in the organization or totransfer individuals into jobs where better use can be madeof their abilities or developing skills.

To provide an equitable method of linking payment toperformance where there are no numerical criteria (oftenthis salary performance review takes

Basically an evaluation / appraisal scheme is a formalization of what is done in amore casual manner anyway (e.g. if there is a vacancy, discussion about internal

moves and internal attempts to put square pegs into 'squarer holes' are both the

results of casual evaluation). Most managers approve merit payment and that too

calls for evaluation. Made a standard routine task, it aids the development of talent,

warns the inefficient or uncaring and can be an effective form of motivation

Function 5: Industrial relations

Good industrial relations, while a recognizable and legitimate objective for an

organization, are difficult to define since a good system of industrial relationsinvolves complex relationships between:

(a) Workers (and their informal and formal groups, i. e. trade union, organizations

and their representatives);

(b) Employers (and their managers and formal organizations like trade and

professional associations);

(c) The government and legislation and government agencies l and 'independent'

agencies like the Advisory Conciliation and Arbitration Service.

Oversimplified, work is a matter of managers giving instructions and workers

following them - but (and even under slavery we recognize that different

'managing' produces very different results) the variety of 'forms' which have

evolved to regulate the conduct of parties (i.e. laws, custom and practice,


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observances, agreements) makes the giving and receipt of instructions far from

simple. Two types of 'rule' have evolved:

'Substantive', determining basic pay and conditions ofservice (what rewards workers should receive);

'Procedural,' determining how workers should be treated andmethods and procedures.

Determining these rules are many common sense matters like: Financial, policy

and market constraints on the parties (e.g. some unions do not have the finance to

support industrial action, some have policies not to strike, some employers are

more vulnerable than others to industrial action, some will not make changes

unless worker agreement is made first, and rewards always ultimately reflect what

the market will bear);

Broadly in the Western style economies the parties (workers and employers) are

free to make their own agreements and rules. This is called 'voluntarism'. But it

does not mean there is total noninterference by the government. That is necessary

to:

Protect the weak (hence minimum wage); Outlaw discrimination (race or sex); Determine minimum standards of safety, health, hygiene

and even important conditions of service; To try to prevent the abuse of power by either party.

Function 6: Provision of employee services

Attention to the mental and physical well-being of employees is normal in many

organizations as a means of keeping good staff and attracting others.

The forms this welfare can take are many and varied, from loans to the needy to

counseling in respect of personal problems.

Among the activities regarded as normal are:

Schemes for occupational sick pay, extended sick leave andaccess to the firm's medical adviser;

Schemes for bereavement or other special leave; The rehabilitation of injured/unfit/ disabled employees and

temporary or permanent move to lighter work;


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The maintenance of disablement statistics and registers(there are complicated legal requirements in respect ofquotas of disabled workers and a need for 'certificates'where quota are not fulfilled and recruitment must take

place); Provision of financial and other support for sports, social,

hobbies, activities of many kinds which are work related; Provision of canteens and other catering facilities; Possibly assistance with financial and other aid to employees

in difficulty (supervision, maybe, of an employee managedbenevolent fund or scheme);

Provision of information handbooks, Running of pre-retirement courses and similar fringe

activities; Care for the welfare aspects of health and safety legislation

and provision of first-aid training.

Function 7: Employee education, training and development

In general, education is 'mind preparation' and is carried out remote from the actual

work area, training is the systematic development of the attitude, knowledge, skill

pattern required by a person to perform a given task or job adequately and

development is 'the growth of the individual in terms of ability, understanding and

awareness'.

Within an organization all three are necessary in order to:

Develop workers to undertake higher-grade tasks; Provide the conventional training of new and young workers

(e.g. as apprentices, clerks, etc.); Raise efficiency and standards of performance;

Meet legislative requirements (e.g. health and safety); Inform people (induction training, pre-retirement courses,

etc.);

Evaluation of the effectiveness of training is done to ensure that itis cost effective, to identify needs to modify or extend what isbeing provided, to reveal new needs and redefine priorities and


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most of all to ensure that the objectives of the training are beingmet.

Developing a HRM strategy

Faced with rapid change organizations need to develop a more focused and

coherent approach to managing people. In just the same way a business requires a

marketing or information technology strategy it also requires a human resource or

people strategy.

In developing such a strategy two critical questions must be addressed.

What kinds of people do you need to manage and run yourbusiness to meet your strategic business objectives?

What people programs and initiatives must be designed andimplemented to attract, develop and retain staff to competeeffectively?

In order to answer these questions four key dimensions of an organization must be

addressed. These are:

Culture: the beliefs, values, norms and management style ofthe organization

Organization: the structure, job roles and reporting lines of

the organization People: the skill levels, staff potential and management

capability Human resources systems: the people focused mechanisms

which deliver the strategy - employee selection,communications, training, rewards, career development, etc.

Frequently in managing the people element of their business senior managers will

only focus on one or two dimensions and neglect to deal with the others. Typically,

companies reorganize their structures to free managers from bureaucracy and drive

for more entrepreneurial flair but then fail to adjust their training or reward

systems.

There are seven steps to developing a human resource strategy and the active

involvement of senior line managers should be sought throughout the approach


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Steps in developing HRM strategy

Step 1: Get the 'big picture'

Understand your business strategy.

Highlight the key driving forces of your business. What are they? e.g. technology,

distribution, competition, the markets.

What are the implications of the driving forces for the peopleside of your business?

What is the fundamental people contribution to bottom linebusiness performance?

Step 2: Develop a Mission Statement or Statement of Intent

That relates to the people side of the business.

Do not be put off by negative reactions to the words or references to idealistic

statements - it is the actual process of thinking through the issues in a formal and

explicit manner that is important.

What do your people contribute?

Step 3: Conduct a SWOT analysis of the organization

Focus on the internal strengths and weaknesses of the people side of the business.

Consider the current skill and capability issues.

Vigorously research the external business and market environment. High light the

opportunities and threats relating to the people side of the business.

What impact will/ might they have on business performance?

Consider skill shortages? The impact of new technology on staffing levels?

From this analysis you then need to review the capability of your personnel

department. Complete a SWOT analysis of the department - consider in detail the

department's current areas of operation, the service levels and competences of your

personnel staff.


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Step 4: Conduct a detailed human resources analysis

Concentrate on the organization's COPS (culture, organization, people, HR

systems)

Consider: Where you are now? Where do you want to be? What gaps exists between the reality of where you are now

and where you want to be?

Exhaust your analysis of the four dimensions.

Step 5: Determine critical people issues

Go back to the business strategy and examine it against your SWOT and COPS

Analysis

Identify the critical people issues namely those people issuesthat you must address. Those which have a key impact onthe delivery of your business strategy.

Prioritize the critical people issues. What will happen if youfail to address them?

Remember you are trying to identify where you should be focusing your efforts

and resources.

Step 6: Develop consequences and solutions

For each critical issue highlight the options for managerial action generate,

elaborate and create - don't go for the obvious. This is an important step as

frequently people jump for the known rather than challenge existing assumptions

about the way things have been done in the past. Think about the consequences of

taking various courses of action.

Consider the mix of HR systems needed to address the issues. Do you need to

improve communications, training or pay?

What are the implications for the business and the personnel function?

Once you have worked through the process it should then be possible to translate

the action plan into broad objectives. These will need to be broken down into the

specialist HR Systems areas of:


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employee training and development management development organization development performance appraisal

employee reward employee selection and recruitment manpower planning communication

Develop your action plan around the critical issues. Set targets and dates for the

accomplishment of the key objectives.

Step 7: Implementation and evaluation of the action plans

The ultimate purpose of developing a human resource strategy is to ensure that theobjectives set are mutually supportive so that the reward and payment systems are

integrated with employee training and career development plans.

There is very little value or benefit in training people only to then frustrate them

through a failure to provide ample career and development opportunities

Who Performs HRM Activities

Delegation of HRM duties has changed over time. In mostorganizations two Groups perform HRM activities: HR manager-specialists and operating managers. Operating managers(supervisors, department heads, vice presidents) are involved inHRM activities because they are responsible for effectiveutilization ofall the resources at their disposal. The humanresource is a very special kind of resource. If it is improperlymanaged, effectiveness declines more quickly than with otherresources. And in all but the most capital- intensive organizations,the investment in people has more effect on organizationaleffectiveness than resources such as money, materials, andequipment. Therefore, operating managers spend considerabletime managing people. Just as an operating manager is personallyresponsible if a machine breaks down and production drops, he orshe must see to the training, performance, and satisfaction of
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employees. Research indicates that a large part of an operatingmanagers day is spent in unscheduled and scheduled meetings,telephone conversations, and solving problems that have a directimpact on people. The manager, through constant contact with

many different people, attempts to solve problems, reachdecisions, and prevent future difficulties.Smaller organizations usually have no HR unit, so the operatingmanagers have many HRM responsibilities, such as schedulingwork, recruitment and selection, and compensating people. As theorganization increases in size, the operating managers work isdivided up, and some of it becomes specialized. HRM is one suchspecialized function. Usually the manager of a unit first assigns anassistant to coordinate certain HRM matters. HR specialists areemployed in organizations with about 100 to 150 employees, and

an HR department is typically created when the number ofemployees reaches 200 to 500, depending on the nature of theorganization.The Interaction of Operating and HR ManagersWith two groups of people (operating managers and HRspecialists) making HRM decisions, there can be conflict. Conflictoccurs because operating and HR managers sometimes differ onwho has authority for what decisions, or there may be otherdifferences between operating and HR managers. They have

different orientations, called line and staff, which have differentobjectives. A staffperson typically supports the primary functionssuch as marketing and production by providing advice, counsel,and information. The picture of organizational life portrayed by atextbook assumes that the staff does not wield direct authorityover the line manager. Line managers have the authority to makefinal decisions concerning their operations. However, the specificdistinction between line andstaff is not as clear-cut in actual organizations. More often thannot, members of the HR unit have much to say about variousprograms and activities. Consider recruitment and selectionpractices and the crucial role played by HR specialists. Linemanagers are generally not familiar with the legal requirementsconcerning recruitment and selection. Therefore, they welcomethe HR experts involvement and direct authority in making finaldecisions. The conflict between HR employees and operating


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managers is most pressing when there must be joint decisions onsuch issues as discipline, physical working conditions,termination,transfer, promotion, and employment planning. Research

indicates that operatingmanagers and HR specialists differ on how much authorityemployees should have over job design, labor relations,organizational planning, and certain rewards, such as bonusesand promotions. In the last decade, sweeping changes inbusiness, globalization, technology, and demography havechanged not only the role of HRM, but the role of operatingmanagers as well. Line managers now have greaterresponsibilities, managing more people and/or bigger projects

RELATIONSHIP BETWEEN HR STRATEGIES,OBJECTIVES,PLANS AND

POLICIES

HRM StrategyA firms HRM strategy is the pattern or plan that integrates themajor objectives, policies, and procedures into a cohesive whole.A well-formulated HRM strategy will help aggregate and allocate afirms resources into a unique entity on the basis of its internalstrengths and weaknesses, changes in the environment, and theanticipated actions of competitors.

The firm strongly believes that training and development of itsemployees helps the firm accomplish its strategy accomplishmentindicatorscustomer satisfaction and sustainable corporategrowth.

Clarifying Meaningful HRM ObjectivesThe objectives of an organization or department are the goals it

seeks to achieveits reason for existence. Eight objectives of theHRM function have already been pointed out, but most of theseobjectives were stated in very general terms.

To help the organization achieve these objectives, more specificstatements are developed in larger, most middle-sized, and somesmaller organizations. For example, suppose that one of a numberofHRM objectives is to increase employees satisfaction with


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opportunities for advancement. How can this objective beachieved? First, management must measure employeessatisfactionwith advancement opportunities. Management could design an

attitude survey toask employees how satisfied they are with facets of their jobs.The key issue is to determine the degree of job satisfactionassociated with advancement opportunities. Next, theorganization could use the survey information to develop plans tocorrect any deficiencies in satisfaction with advancementopportunities. These plans are calledpolicies andprocedures orrules.

Exhibit 1-2, which illustrates the relationship between objectives,

policies,and rules, indicates that objectives are the most general factor.

StrategyThe plan that integrates majorobjectives

ObjectivesGoals that are specific and

measurable

PoliciesGuides to decision making

Procedures/RulesSpecific directions for decision

HRM Policy

A policy is a general guide that expresses limits within whichaction should occur. Policies are developed from past problemareas or for potential problem areas that management considersimportant enough to warrant policy development. Policies freemanagers from having to make decisions in areas in which theyhave less competence or on matters with which they do not wish


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to become involved. Policies ensure some consistency in behaviorand allow managers to concentrate on decisions in which theyhave the most experience and knowledge.After the broadest policies are developed, some organizations

develop procedures and rules. These are more specific plans thatlimit the choices of managers and employees, as. Procedures andrules are developed for the same reasons as policies.

HRM Procedures

A procedure or rule is a specific direction to action. It tells amanager how to do a particular activity. In large organizations,procedures are collected and put into manuals, usually calledstandard operating procedures (SOPs). Organizations must be

careful to have consistent decision making that flows from a well-eveloped, but not excessive, set of policies and procedures. Someorganizations, ineffect, eliminate managerial initiative by trying to develop policiesand procedures for everything. Procedures should be developedonly for the most vital areas

INTRO 2 HRM

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