Please enable JavaScript.
Coggle requires JavaScript to display documents.
TOPIC 10: HUMAN RESOURCES MANAGEMENT - Coggle Diagram
TOPIC 10: HUMAN RESOURCES MANAGEMENT
10.1. People or Human Resources in the Company
Companies need: raw materials, financing, technology, information, people
People perform:
Management tasks
Operational-level tasks
Characteristics of Human Resources:
Own interests and objectives (different from top management)
Influence and power (unions, collective bargaining)
High cost (salaries)
Main asset and key competitive differentiator
HR require special management attention because:
People have needs, motivations, behaviors
Need balance between:
Economic efficiency (company goals)
Social efficiency (employee goals)
10.2. The Human Resources (HR) Subsystem
Fulfills the personnel function
Goal: obtain the personnel the company needs in:
Quantity -> sufficient
Quality -> efficient
Timing -> at the right moment
Cost-effectiveness -> productivity + labor cost control
Made up of all individuals in the organization
Also aims to influence behavior toward company objectives (integration + motivation)
Ensures:
Development of employees
Evaluation of employees
Attraction of appropriate workforce
Retention of talent
Tasks of the personnel function:
Promotion
Training and professional development
Recruitment and selection
Performance evaluation
Compensation, social security, and benefits (e.g., pension plans)
Personnel planning
Personnel function is NOT only done by the HR department:
It is distributed across the whole organization
In SMEs → often no formal HR department
10.3. The HR Department and Its Activity
Exists in medium/large companies.
Alternative names:
People Operations
Talent Management
Talent
People & Culture
People
HR department contributes to personnel function via two relationships:
Staff (Advisory):
HR advises managers/supervisors
Recommendations are NOT mandatory
Functional (Mandatory):
Examples: salary limits, training rules, promotion criteria
Ensures consistency across all departments
HR enforces general management policies
General Management:
Sets HR policies aligned with company strategy
Delegates execution to HR department
10.4. Main Functions of HR Management
10.4.1. Personnel Planning
Ensures the company has:
Right place
Right time
Right skills
Cost-effective conditions
Right number of people
Phases of personnel planning:
2- Diagnosis: compare current vs. desired situation
3- Setting HR objectives derived from company strategy
1- Analysis of current personnel situation
Forecast natural changes: retirements, exits, promotions
Forecast future needs
4- Personnel policies and plans: define actions to reach desired future
5- Monitoring results
10.4.2. Recruitment or External Selection
Process should be systematized.
May be handled internally or outsourced (recruitment agencies, headhunters).
Goal: find the candidate best suited to the job.
Stages of the recruitment & selection process:
1- Needs Analysis
Define functions, tasks, responsibilities
Create Job Specification:
Required skills
Knowledge
Physical conditions
2- Recruitment Stage
Select recruitment sources
Pre-screen candidates
Selection Stage
Tests
Examinations
Interviews
Hiring decision
4- Final Stage
Hiring paperwork
Onboarding
Probation period
Integration and acceptance
Monitoring results
10.4.3. Promotion or Internal Recruitment
Transfer = move to same level
Demotion = move to lower level
Promotion = move to a higher level
Purposes of promotion:
Meet important personal needs (security, status, achievement → motivation)
Improve company efficiency by placing capable people in key positions
Companies often look internally before external hiring
Conditions for successful promotion:
Employees with potential exist and are identified
Employees are willing to be promoted
Opportunities available (organizational structure allows promotion)
Training and preparation are provided
Company genuinely wants to promote (clear promotion policy)
10.4.4. Training
Helps employees acquire:
Knowledge
Skills
Behaviors
Necessary due to changing environments and job requirements
Third way to meet personnel needs (after external recruitment + internal promotion)
Training needs = difference between:
Current employee profile
Ideal profile for current/future tasks
Types of training:
On-the-job training:
Guided by experienced employee
Best for simple, practice-based tasks
Learning by doing
Off-the-job training:
No pressure from daily tasks
Examples: courses, seminars, master's programs
Outside regular work environment
10.4.5. Compensation Management
Salary is main financial reward but not the only one
Compensation includes:
Monetary elements:
Base salary
Incentives, bonuses, premiums
Fringe benefits:
Pension plan
Life insurance
Stock options
Company car
Interest-free loans
Employer contributions:
Social security
Unemployment insurance
Employment relation = exchange of services for compensation
Non-monetary elements:
Work-life balance (flexible schedules, remote work)
Support and recognition
Training & professional development
Job evaluation factors determine pay:
Required skills (education, experience)
Availability of candidates
Level of responsibility & authority
Contribution to company objectives
Salary levels for similar positions
Job risk
Work schedule
Type of workday (full-time, part-time)
Effective compensation system:
Internally fair
Individually motivating
Externally competitive
10.4.6. Performance Evaluation
Objectives:
Inform employees (strengths, weaknesses, feedback, areas for improvement)
Support management decisions (training, compensation, promotion, job changes, dismissal)
What is evaluated:
Job knowledge
Attitude
Achievement of objectives
Commitment
Work quantity
Initiative
Work quality
Teamwork
Steps in evaluation:
Analyze actual performance
Compare results
Define expected reference performance
Who evaluates:
Subordinates
Subordinates
Peers
Self-evaluation
Supervisor (most common)
360° evaluation = evaluation from all these sources