CH_Final Exam Prep.docx - Final Exam Prep Unit 1 u2013...

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Final Exam PrepUnit 1 – Introduction to HRMReview your Progress1.Why do organizations and individuals enter into an employment relationship?Organizations and individuals enter into employment relationships because there is an exchange of value between the two parties. The worker provides his/her time and skill inexchange for the employer’s remunerationEmployers hire employees to accomplish the tasks at hand—meaning employment is an economic relationship between the two whereby there is an exchange of value between the worker and the employer. The worker provides their time and skills (the labour)to the employer in exchange of remuneration, such a wages and benefits). The employer’s wants particular tasks performed and in return for the performance, will pay the employee for the work performed.Workers enter into this relationship because they must exchange their labour with someone to acquire money so that they can purchase the necessities of life. The agreement that workers strike with employers is called the wage-rate bargain.In terms of employment, this usually means:The duties and obligations of the employer and employee are asymmetrical meaning that the employer issues orders of tasks to complete/accomplish, and the employee obeys themEmployers must profit or fail; thus, employers face pressure to cheapen intensitylabour as one means to increase their profitabilityEmployers’ interests are to maximize profits, whereas the employee’s interests are to maximize their wages and control their conditions of work.2.What does the word resourcein the term human resource managementsuggest about the nature of the employment relationship?Basically Human Resource Management implies that employees (people) are resources to the employer. And these employees drive the performance of their organization (along with resources such as money, material, and information). Successful organizations are particularly adept at bringing together different kinds of people to achieve a common purpose. Human resource management (HRM) centres on the practices, policies and systems that influence employees’ behaviors, attitudes, and performance. As a type of resource, human capital means the organization’s employees, described in terms of their training,
experience, judgement, intelligence, relationships, and insight—the employee characteristics that can add economic value to the organization. In other words, whetherit assembles vehicles or forecasts the weather, for an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of skills and experience. This view means employees in today’s organizations are not interchangeable, easily replaced parts of a system but the source of the company’s success or failure. By influencing who works for the organization and how those people work, human resource management therefore contribute to such basic measures of an organization success as quality, profitability and customer satisfaction.

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