Human Resources Management

     Human resources management (HRM) is the set of activities involved in acquiring, maintaining, and developing an organization's human resources. Responsibility for HRM is shared by line and staff managers.

     Human resources planning consists of forecasting the human resources that the firm will need and those that it will have available and then planning a course of action to match supply with demand. Attrition, layoffs, early retirement, and (as a last resort) firing can be used to reduce the size of the work force Supply is increased through hiring.

     Cultural or workplace diversity refers to the differences among people in a work force due to race, ethnicity, and gender. With the increase of women, minorities, and immigrants entering the U.S. work force, management is posed with both challenges and competitive advantages. Some organizations are implementing diversity&-training programs and working to keep cultural diversity alive. With the proper guidance and management, a culturally diverse organization can prove to be beneficial to all involved.

     Job analysis provides a job description and a job specification for each position within the firm. These serve as the basis for recruiting and selecting new employees. Candidates for open positions may be recruited from within or outside the firm. In the selection process, applications, resumes, tests, interviews, references, and assessment centers may be used to obtain information about candidates. This information is then used to select the most appropriate candidate for the job. Newly hired employees should go through a formal or informal orientation program to acquaint them with the firm.

     In developing a system for compensating, or paying employees management must decide on the firm's general wage level relative to other firms, the wage structure within the firm, and individual wages. Wage surveys and job analyses are useful in making these decisions. Employees may be paid hourly wages, salaries, or commissions. They may also receive bonuses and profit&-sharing payments. Employee benefits, which are nonmonetary rewards to employees, add about one&-third to the cost of compensation.

     Employee training and management development programs enhance the ability of employees to contribute to the firm. Several training techniques are available. Because training is expensive, its effectiveness should be evaluated periodically.

     Performance appraisal, or evaluation, is used to provide employees with performance feedback, to serve as a basis for distributing rewards, and to monitor selection and training activities. Both objective and judgmental appraisal techniques are used. Their results must be communicated to employees if they are to help eliminate job&-related weaknesses. A number of laws that affect HRM practices were passed to protect the rights and safety of employees.