Human Resource Management Lecture Notes

Introduction to Human Resource Management

• Resource Definition:
  • General: Materials, money, etc., needed for production.
  • Human Resource: Related to people within a company, termed as employees.
• Human Capital: Considered a better term by some as it grows with proper use. However, "Human Resource Management" is more commonly used.

Key Questions for the Semester

1. What is Human Resource Management (HRM)?
2. Which Mega Trends determine future challenges in HRM?
3. Overview of HRM.

Mega Trends Impacting HRM

1. Innovation

• Constant evolution in technology (e.g., telephones to smartphones).
• Companies need to innovate continuously (e.g., 80% of revenue from products invented in the last four years).
• Impact on employees: Need to adapt skills and competencies (e.g., engineers in automotive industry shifting to electric vehicles).

2. Demographic Changes

• Aging population leading to a talent shortage.
• Decrease in young workforce (1% decrease per year).
• Need for companies to replace retiring experienced staff with fewer young people.

3. Globalization

• Increased global trade and export.
• Small companies may have global customers.
• Global teams and diverse skills necessary.
• Importance of international experience for employees.

4. Web 2.0

• Shift to user-generated content (e.g., Wikipedia, Facebook).
• Impact on HR: Changes in hiring processes and knowledge sharing.
• Importance of digital communication and presence.

5. Value Change

• Changing societal roles and communications (e.g., role of women, student-professor dynamics).
• Companies need to adapt to changing values in work and relationships.

Challenges and Implications for HRM

• Talent acquisition and retention.
• Lifelong learning and skill development.
• Embracing diversity and global workforce.
• Use of technology in HR processes.

HRM Landscape Overview

1. HR Strategy: Planning future workforce needs and competencies.
2. Talent Acquisition: Recruiting methods beyond job ads due to talent shortage.
3. Employee Selection: Use of interviews, assessment centers, etc.
4. Compensation and Benefits: Determining salaries and benefits.
5. Learning and Development:
   • Short-term: Training and skill acquisition.
   • Long-term: Talent development and career progression.
6. Change Management: Adapting to strategic changes and retaining talent.
7. Supporting HR Functions:
   • HRIT (Information Technology)
   • Social Media
   • HR Controlling

Conclusion

• By the end of the course, students should have a modern understanding of HRM and its components.