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Human Resources For Nonprofit Managers


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From the online class "Nonprofit Management" from the Loyola School of Social Work, Chicago, Tom Tresser, Instructor. Presentation by Prof. Ivan Medina.

Published in: Business, Technology
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Human Resources For Nonprofit Managers

  1. 1. Human ResourcesFundamentals for NonprofitLeaders
  2. 2. What is Human Resources?Human Resources Management(HRM) is the design of formalsystems in an organization thatensure the effective and efficientuse of human talent toaccomplish organizational goals.
  3. 3. Why is Human ResourcesImportant Anyway?• Because labor costs are likely to be yourorganization’s largest expense• Because the cost of human resources relatederrors can have a significant impact on yourorganization’s ability to carry out its mission• Because to ignore human resources issues or toview them a secondary is not good businesspractice• Because successful, progressive organizationsvalue their staff and realize the benefits ofinvesting in programs and services that addresstheir needs
  4. 4. From Personnel to HR:• previously referred to as “personnelmanagement”• began as a specialized function around 1900:• primarily record keeper function• 1940s-1950s: unions and governmentregulations contributed to growth of function• 1960s-1970s: social legislation increased the• importance and visibility of HR• 1980s-today: increasingly important role to• organizational success and effectiveness
  5. 5. HR today serves three majorroles:• Administrative• Operational• Strategic
  6. 6. HR: The Administrative (Start-UpPhase)• starting point for most new organizations• focuses primarily on dealing withcompliance issues and record keeping• tasks might include filing reports requiredby state and federal law, maintainingemployee records (files), and routinebenefits administration• requires basic knowledge of HR practicesand regulations
  7. 7. HR: The Operational (GrowthPhase)• involves day-to-day HR tasks associatedwith running the organization• typically involves tasks such as recruitingfor current openings, resolving employeecomplaints, and communicating withemployees on policy and benefits• requires fundamental knowledge of HRconcepts, principles and legislation
  8. 8. HR: The Strategic (MaturityPhase)• requires investment in HR function and fullintegration into the “business” of the organization• represents strategic, long-term, forward-thinkingfocus• includes culture management, changemanagement, organizational restructuring anddeveloping performance management systemslinked to organizational outcomes• requires partnership between seniormanagement and the board and understandingof organizational mission
  9. 9. HR Today and in the Future:• supports and facilitates organizational change• emphasizes technology to improve employeeefficiency• sees diversity and work/life balance issues askey business imperatives• greater emphasis on HR as a strategic partner• includes greater emphasis on measurement,• quantification and impact on organizationaleffectiveness
  10. 10. HR & The Four-Legged StoolKey Elements of an Effective HRProgram• Acquiring Human Resources• Compensating Human Resources• Developing Human Resources• Assessing Human Resources
  11. 11. Acquiring Human ResourcesKey Questions:• Where do we want to be as anorganization? Now? One year from now?• Who do we need to hire to get us there?• How can we achieve cost-effectivestaffing?• How will we recruit to meet our mission?
  12. 12. Acquiring Human Resources• the “who” matters as much as the “what”• hire right = connect individual passion withorganizational mission• remember that the interview is a learningopportunity for both the applicant and theorganization
  13. 13. Acquiring Human ResourcesSteps to Effective Recruitment• know what you want before you start recruiting =write a position description• be strategic in use of recruitment advertising• be consistent and legal in recruitment and hiringpractices• select for skills, abilities and passion• check references thoroughly• don’t skimp on new hire orientation• put all offers of employment in writing
  14. 14. Compensating HumanResourcesCompensation is more than just base pay. Itinvolves a total rewards system that includes:• salary and benefits• flexibility and work conditions• social interaction and stability• work importance, variety and workload• status and recognition• autonomy/control/authority• opportunities for advancement/personaldevelopment
  15. 15. Compensating HumanResourcesElements of an Effective Compensation Program• Understand FLSA (know the difference betweenexempt and non-exempt staff)• Align your pay policies with your culture(entitlement vs contribution-oriented)• Offset cash compensation with flexibility andwork-life balance• Balance external equity with internal equity• Know what your competition is paying
  16. 16. Compensating HumanResourcesLook at your pay system vis-à-vis yourculture and budget. Consider:• time-based pay• performance-based pay• person (skills) based pay
  17. 17. Compensating HumanResourcesMandated benefits• social security/Medicare• unemployment insurance• workers’ compensation• COBRA• Family and Medical Leave (FMLA)• Americans With Disabilities Act (ADA)
  18. 18. Compensating HumanResources• Voluntary Benefits• health care benefits (medical, dental, vision)• leave (annual, sick, personal, bereavement)• retirement/deferred compensation plans• disability benefits (STD, LTD)• flexible spending accounts (FSAs)• others (life, long-term care, transportation,• tuition reimbursement, group legal, etc.)
  19. 19. Developing Human ResourcesStaff development includes:• training and development• career development• organizational development
  20. 20. Developing Human Resources• Why invest in the development of staff?• To support organizational mission and strategy• To increase productivity• To enhance workforce and organization flexibility• To lower or remove performance deficiencies• To increase employee engagement andeffectiveness
  21. 21. Developing Human ResourcesBenefits of developing human resources include:• improved quality and quantity of productivity• reduced learning time for employees to reachacceptable performance levels• creation of more favorable attitudes,engagement and cooperation• enables organizations to respond to changingexternal conditions more quickly
  22. 22. Assessing Human ResourcesElements of Assessing Human Resources:• positive reinforcement/employee relations• disciplinary action• employee involvement• feedback mechanisms (opinion/climatesurveys)
  23. 23. Assessing Human Resources• Positive reinforcement/employee relations• Positive organizational culture• Positive employee relations• Good morale• Good performance
  24. 24. Assessing Human ResourcesPreventive Measures to Avoid Disciplinary Action• set clear expectations and train managementstaff to do the same• hold managers accountable for their ownperformance and the performance of their staff• have written policies, procedures and workplaceguidelines (i.e. employee handbook)• establish a climate of open, honestcommunication• maintain an open-door policy that can be usedwithout retaliation
  25. 25. Assessing Human ResourcesBenefits of Employee Involvement:• fosters consensus decision making• fosters employee commitment toorganizational goals and objectives• produces better decisions• improves quality of work life by meetingemployee needs for involvement• provides a constructive outlet foremployee criticism
  26. 26. Assessing Human ResourcesFeedback Mechanisms• attitude/climate surveys• open-door/person-to-person meetings• department meetings• employee participation committees