Human Resource Management - Definitions

Competitiveness – it is when a company has an ability to gain and sustain market share. The competitiveness reflects the relations with stakeholders and it is related to company effectiveness. While competitive advantage is something that is rare, difficult to imitate, valuable and tailor to the organization.

HRM – set of policies, practices and systems that influence employees' behavior, attitudes, and performance.

Strategic approach to HRM uses the policies and practices so that they are in line with the goals of company and to maximize their influence on company performance.

HRM practices: planning – determining HR needs, recruitment - attracting, selection-choosing, training and development, compensation, performance management, employee relations.

If this practiced used strategically, they can influence employees and customers satisfaction, degree of innovation and creativity, work productivity, positive reputation.

HRM is not just functional responsibility, but daily managerial activity. HRM shifts from administrative role to a role of strategic partner.

Four Basic Roles:

- Management of the Firm's Infrastructure – delivering efficient HR processes such as staffing, training, appraisal, and reward systems.

- Management of Strategic Human Resources - aligning HR strategies and practices with the strategic needs of the business.

- Management of Employee Contribution - Keeping close tabs on employees' needs and problems and seeing that these needs are met and problems are solved.

- Management of Transformation and Change - HR's role in changing both the culture of the firm and the processes used within the firm.

Internal factors: change of work role, integration of technology and social systems, relations with stakeholder.

External factors: change of society, globalization, legislation, competition/market.

Main areas of HRM practices: environment (external, internal), acquiring and preparation of HR, assessment and development, compensation.

Strategic HRM – set of planned steps and activities in the area of HRM that are intended to enable the organization to achieve its goals. Question: "With what?"

There are: administrative, one-way, two-way, integrative.

Strategy formulation: mission, goals, SWOT analysis (external – oppor., threats; internal – strength, weaknesses)

Influences: b strategy, performance, org structure, work design, selection/training/development of people, compensation system.

Nature of Organization-

-financial condition;

-technology and productivity,

-business strategy: corporate-level, unit-level, functional level; defenders, that operate in few stable product markets (e.g. telecom , utilities), prospectors, that continually seek new products and markets, and regularly take risks (e.g. technological companies), analyzers, that operate in many product markets, some stable – some changing (e.g. pharmaceutical companies)

- organization structure

- networks

Nature of the Work

Work design – integrates work content, qualifications and rewards for each job in a way that meets the needs of employees and the organization.

Scientific