Management Principles Portfolio Project

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One important function of Human Resource Management is the understanding and developing policies for Equal Employment Opportunity (EEO). Equal Employment Opportunity has implications for almost every activity in HRM: hiring, recruiting, training, terminating, compensating, evaluating, planning, disciplining, and collective bargaining (Ivancevich, 2010, p. 65). With that in mind, it is vital for all levels of leadership and management in an organization to be involved in EEO policies and programs. Developing policies and programs for each area ensures the organization is complying with the law. More importantly, developing EEO policies and programs prevents discrimination in the work place. Furthermore, developing an Affirmative Action Plan (AAP) can help your organization be prepared to take action against discrimination in the work place.

As an individual with dreams of opening my own business, understanding Equal Employment Opportunity and Affirmative Action give me the tools to properly perform Human Resource Management in my future company. As previously covered, EEO cuts across almost all functions of Human Resource Management; it is imperative to develop the right policies and programs that follow these laws. Some other major functions of Human Resource Management Are Planning, Recruitment, and Selection. The degree of HRM planning that goes into an organization will be determined by many

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factors. One of the major factors that affect all organizations is the changing demographics in the United. States. With Equal Employment Opportunities in mind, organizations must plan to meet these future HRM goals. Another circumstance that requires a great deal of HRM planning is when an organization has goals for rapid expansion. HRM must plan to meet future personnel goals that are congruent with the organization’s expansion goals.

Once a goal is in place and a plan is established to meet those goals, HRM must begin to use recruitment. Recruitment is used to influence the number and types of applicants who apply for a job and whether an applicant accepts jobs when offered (Ivancevich, 2010). Recruiters use many tools to make this happen. Many organizations offer signing bonuses, or use their compensation and benefits and tools to interest applicants.

The last step in this process is selection. Once the recruitment efforts have brought in the types and number of applicants desired, the selection process will take place. Selection as a basic function is simply choosing the applicant that best meets the task required. However, this process can present challenges when multiple applicants meet the basic requirements. Selection is not always based on the quantity or quality of output but rather the optimal balance between the two. There may be certain characteristics that an organization is looking for. Depending on the job, the organization may be more concerned with intelligence, or they may be more concerned with social skills. Some jobs require a balance of both, while others may be directed to one over the other. In addition to these factors, the organization must also keep the regulations of Equal Employment Opportunity in mind as well to ensure they are not breaking any laws. In the end, the organization will select the applicant that best meets the identified characteristics it is looking for.

Another important function to human resource management is compensation. Compensation is the human resource management function that deals with every type of reward individuals receive in exchange for performing organizational tasks (Ivancevich, 2010, p. 294). Compensation serves as a system that is beneficial to both the employee and employer. It motivates employees to work hard for the employer. Compensation in the form of pay, benefits, and other rewards such as vacation days and bonuses, should create a well-balanced package that motivates the employees. Compensation can be affected by many factors but one of the most prominent is the labor market. The labor market has many effects on how organizations establish compensation packages. When the labor market is down and there are many qualified workers, compensation will tend to be lower people are desperate for work. When the market is high and there are little qualified employees available to organizations, the compensation benefits must be better to attract and retain employees. In addition to the labor market, the economic conditions can affect how much employers can afford to pay employees. If the industry is rough, it may be difficult for an employer to offer attractive compensation. Some internal factors that affect compensation are the size of the organization, the age of the organization, and labor budget of the organization. Generally speaking, the larger the organization; the higher the pay will be (Ivancevich, 2010).

Benefits are another form of compensation that adds to the attraction and retention of many employees. In addition to basic pay compensation, organizations generally add nonwage benefits as well. There are mandated benefits and benefits that the organizations offer for attraction and retention. An example of mandated benefits would be Unemployment Insurance and Social Security. Non-mandated benefits include paid holidays, paid vacations, health care plans, and so on. Some services

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that are offered my employers include: stock ownership, education programs, preretirement programs, and child care.

Another very important function of human resource management is HR development. Starting with initial orientation, employers familiarize new employees with the basics of their organizations. This serves as a tool to ease tension, provide expectations, and prepare the employee for a smooth transition to the environment. Along with orientation, many organizations will put their new members through a training program where they will learn how to perform task in the manor desired by the organization. Properly managing a training program helps determine the training needs of employees as well as providing objectives to meet. Providing good training to employees benefits the organization through quality work and high levels of output. Many organizations use performance evaluation as a way of determining training needs of employees (Ivancevich, 2010).

A labor relation is another human resource management function that is very important in understanding HRM. Labor relations are defined as the continuous relationship between a defined group of employees and management (Ivancevich, 2010, p.473). Many are concerned with labor unions as they are an organization of employees that use