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

1. Human Resources
Fundamentals for Nonprofit
Leaders

2. What is Human Resources?
Human Resources Management
(HRM) is the design of formal
systems in an organization that
ensure the effective and efficient
use of human talent to
accomplish organizational goals.

3. Why is Human Resources
Important Anyway?
• Because labor costs are likely to be your
organization’s largest expense
• Because the cost of human resources related
errors can have a significant impact on your
organization’s ability to carry out its mission
• Because to ignore human resources issues or to
view them a secondary is not good business
practice
• Because successful, progressive organizations
value their staff and realize the benefits of
investing in programs and services that address
their needs

4. From Personnel to HR:
• previously referred to as “personnel
management”
• began as a specialized function around 1900:
• primarily record keeper function
• 1940s-1950s: unions and government
regulations 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. HR today serves three major
roles:
• Administrative
• Operational
• Strategic

6. HR: The Administrative (Start-Up
Phase)
• starting point for most new organizations
• focuses primarily on dealing with
compliance issues and record keeping
• tasks might include filing reports required
by state and federal law, maintaining
employee records (files), and routine
benefits administration
• requires basic knowledge of HR practices
and regulations

7. HR: The Operational (Growth
Phase)
• involves day-to-day HR tasks associated
with running the organization
• typically involves tasks such as recruiting
for current openings, resolving employee
complaints, and communicating with
employees on policy and benefits
• requires fundamental knowledge of HR
concepts, principles and legislation

8. HR: The Strategic (Maturity
Phase)
• requires investment in HR function and full
integration into the “business” of the organization
• represents strategic, long-term, forward-thinking
focus
• includes culture management, change
management, organizational restructuring and
developing performance management systems
linked to organizational outcomes
• requires partnership between senior
management and the board and understanding
of organizational mission

9. HR Today and in the Future:
• supports and facilitates organizational change
• emphasizes technology to improve employee
efficiency
• sees diversity and work/life balance issues as
key business imperatives
• greater emphasis on HR as a strategic partner
• includes greater emphasis on measurement,
• quantification and impact on organizational
effectiveness

10. HR & The Four-Legged Stool
Key Elements of an Effective HR
Program
• Acquiring Human Resources
• Compensating Human Resources
• Developing Human Resources
• Assessing Human Resources

11. Acquiring Human Resources
Key Questions:
• Where do we want to be as an
organization? Now? One year from now?
• Who do we need to hire to get us there?
• How can we achieve cost-effective
staffing?
• How will we recruit to meet our mission?

12. Acquiring Human Resources
• the “who” matters as much as the “what”
• hire right = connect individual passion with
organizational mission
• remember that the interview is a learning
opportunity for both the applicant and the
organization

13. Acquiring Human Resources
Steps 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 hiring
practices
• select for skills, abilities and passion
• check references thoroughly
• don’t skimp on new hire orientation
• put all offers of employment in writing

14. Compensating Human
Resources
Compensation is more than just base pay. It
involves 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/personal
development

15. Compensating Human
Resources
Elements of an Effective Compensation Program
• Understand FLSA (know the difference between
exempt and non-exempt staff)
• Align your pay policies with your culture
(entitlement vs contribution-oriented)
• Offset cash compensation with flexibility and
work-life balance
• Balance external equity with internal equity
• Know what your competition is paying

16. Compensating Human
Resources
Look at your pay system vis-à-vis your
culture and budget. Consider:
• time-based pay
• performance-based pay
• person (skills) based pay

17. Compensating Human
Resources
Mandated benefits
• social security/Medicare
• unemployment insurance
• workers’ compensation
• COBRA
• Family and Medical Leave (FMLA)
• Americans With Disabilities Act (ADA)

18. Compensating Human
Resources
• 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. Developing Human Resources
Staff development includes:
• training and development
• career development
• organizational development

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 and
effectiveness

21. Developing Human Resources
Benefits of developing human resources include:
• improved quality and quantity of productivity
• reduced learning time for employees to reach
acceptable performance levels
• creation of more favorable attitudes,
engagement and cooperation
• enables organizations to respond to changing
external conditions more quickly

22. Assessing Human Resources
Elements of Assessing Human Resources:
• positive reinforcement/employee relations
• disciplinary action
• employee involvement
• feedback mechanisms (opinion/climate
surveys)

23. Assessing Human Resources
• Positive reinforcement/employee relations
• Positive organizational culture
• Positive employee relations
• Good morale
• Good performance

24. Assessing Human Resources
Preventive Measures to Avoid Disciplinary Action
• set clear expectations and train management
staff to do the same
• hold managers accountable for their own
performance and the performance of their staff
• have written policies, procedures and workplace
guidelines (i.e. employee handbook)
• establish a climate of open, honest
communication
• maintain an open-door policy that can be used
without retaliation

25. Assessing Human Resources
Benefits of Employee Involvement:
• fosters consensus decision making
• fosters employee commitment to
organizational goals and objectives
• produces better decisions
• improves quality of work life by meeting
employee needs for involvement
• provides a constructive outlet for
employee criticism

26. Assessing Human Resources
Feedback Mechanisms
• attitude/climate surveys
• open-door/person-to-person meetings
• department meetings
• employee participation committees