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    1

    Introduction to Human ResourceManagement

    LectureLecture

    11

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    2

    After studying this chapter, you should be

    able to:

    After studying this chapter, you should be

    able to:

    1. Explain what human resource management is

    and how it relates to the management process.

    2. Illustrate the human resources responsibilities of

    line and staff (HR) managers.3. Provide a good example that illustrates HRs

    role in formulating and executing company

    strategy.

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    3

    Introduction

    This lecture explains what Human Resource

    Management is,

    how it relates to the management process,

    how it is changing in response to trends in the workplace.

    It illustrates how

    allmanagers can use HR concepts and techniques,

    HRs role in strategic planning and improved

    organizational performance,

    the competencies required of HR managers and the plan of

    the course.

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    The Importance Of HRM

    Human Resources play a key role in helping

    companies meet the challenges of global competition.

    Strategic objectives to

    lower costs,

    improve productivity

    and increase organizational effectiveness

    are changing the way every part of the organization,including the HR department.

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    Human Resource Management at Work

    The Management process involves the

    following functions:

    planning,

    organizing,

    staffing,

    leading, and controlling.

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    The people or personnel aspects of

    management jobs involve:

    conducting job analyses;

    planning labor needs

    recruiting job candidates;

    selecting job candidates;

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    managing wages and salaries;

    appraising performance;

    providing incentives and benefits;

    training and developing managers;

    building employee commitment;

    being knowledgeable about equal opportunity,

    employee health and safety; and handling labor relations.

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    The Management Process

    Planning

    Organizing

    Leading Staffing

    Controlling

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    Human Resource Management at Work

    Acquisition

    Training

    Appraisal

    CompensatingLabor Relations

    Health and

    Safety

    Fairness

    Human

    Resource

    Management

    (HRM)

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    Personnel Mistakes

    Hire the wrong person for the job

    Experience high turnover

    Have your people not doing their best

    Waste time with useless interviews

    Have your company in court because of discriminatory actions

    Have some employees think their salaries are unfair and

    inequitable relative to others in the organization

    Allow a lack of training to undermine your departments

    effectiveness

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    Basic HR Concepts

    The bottom line of managing:

    HR creates value by engaging in activities that

    produce the employee behaviors that the company

    needs to achieve its strategic goals.

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    Line Versus Staff Authority

    Authority is the right to make decisions,

    to direct the work of others, and to give orders.

    Line managers are authorized to direct the work of

    subordinates. Their subordinates are generally involved in work

    that directly produces or sells the companys

    product or service, like Sales or Manufacturing.

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    Staff managers are authorized to assist and

    advise line managers in accomplishing their

    basic goals.

    The subordinates of staff managers are generally

    involved in work that supports the products or

    services, in departments like Purchasing, or Quality

    Control. HR managers are generally staff managers.

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    Line Managers HRM Responsibilities

    1. Placing the right person on the right job

    2. Starting new employees in the organization

    (orientation)

    3. Training employees for jobs that are new to them

    4. Improving the job performance of each person

    5. Gaining creative cooperation and developing smoothworking relationships

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    6. Interpreting the firms policies and procedures

    7. Controlling labor costs

    8. Developing the abilities of each person

    9. Creating and maintaining department morale

    10. Protecting employees health and physical condition

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    Human Resource Specialties

    Recruiters

    EEO

    Coordinators

    Labor Relations

    Specialists

    Training

    SpecialistsJob Analysts

    Compensation

    Managers

    Human

    Resource

    Specialties

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    HR Organizational Chart (Small Company

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    The Changing Environment of HR

    Human Resource responsibilities have become broader and

    more strategic over time in response to a number of trends.

    The role of HR has evolved from primarily being responsible

    for

    hiring,

    firing, payroll,

    and benefits administration

    to a more strategic role in employee selection, training and

    promotion,

    as well as playing an advisory role to the organization in areas

    of labor relations.

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    The Changing Environment of

    Human Resource Management

    Globalization Trends

    Technological Trends

    Trends in the Nature of Work

    Workforce Demographic Trends

    Changes and Trends

    in Human Resource

    Management

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    The Changing Role of

    Human Resource Management

    New

    Responsibilities

    for HR Managers

    Measuring the HRM

    Teams Performance

    Managing with the

    HR Scorecard

    Process

    Creating High-

    Performance Work

    Systems

    Strategic Human

    Resource

    Management

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    Globalization Trends

    Globalization refers to the tendency of firms to

    extend their

    sales,

    ownership, manufacturing to new markets abroad.

    Globalization of the world economy and other trends

    has a big changes in how companies organize,

    manage and use their HR departments.

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    The rate of globalization continues to be high, and

    has several strategic implications for firms.

    More globalization means more

    competition, and more competition means more

    pressure to lower costs,

    make employees more productive,

    and do things better and less expensively.

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    Technological Applications for HR

    Technological Trendssuch asvirtual online communities,

    virtual design environments

    and Internet-based distribution systems

    All have enabled firms to become more

    competitive.

    HR faces the challenge of quickly applying

    technology to the task of improving its own

    operations.

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    High-Performance Work SystemPractices

    Employment security

    Selective hiring

    Extensive training

    Self-managed teams/decentralized decision making Reduced status distinctions

    Information sharing

    Contingent (pay-for-performance) rewards

    Transformational leadership Measurement of management practices

    Emphasis on high-quality work

    Benefits of a High

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    Benefits of a High-Performance

    Work System (HPWS) Generate more job applicants Screen candidates more effectively

    Provide more and better training

    Link pay more explicitly to performance

    Provide a safer work environment

    Produce more qualified applicants per position

    Hiring based on validated selection tests

    Provide more hours of training for new employees

    Conduct more performance appraisals

    Average # of employees during month

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    FIGURE 15Five Sample HR Metrics

    Average # of employees during month # of workdays

    Cost perhire

    Advertising + agency fees + employee referrals +travel cost of

    applicants and staff + relocation costs + recruiterpay and benefits

    Number of hires

    HR expensefactor

    HR expense

    Total operating expense

    Time to fill Total days elapsed to fill jobrequisitions

    Number hired

    Turnoverrate

    Number of separations during month 100

    Average number of employees duringmonth

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    Measuring HRs Contribution

    The HR Scorecard

    Shows the quantitative standards,or metrics the firm uses tomeasure HR activities.

    Measures the employee behaviorsresulting from these activities.

    Measures the strategically

    relevant organizational outcomesof those employee behaviors.

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    The Human ResourceManagers Proficiencies

    New Proficiencies

    HR proficiencies

    Business proficiencies

    Leadership proficiencies

    Learning proficiencies

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    FIGURE 16Effects CFOs Believe HumanCapital Has on Business Outcomes

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    HR Certification

    HR is becoming more professionalized.

    Society for Human Resource Management(SHRM)

    SHRMs Human Resource CertificationInstitute (HRCI)

    SPHR (senior professional in HR)certificate

    PHR (professional in HR)certificate

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    FIGURE17

    2004SHRM

    LearningSystemModuleDescrip

    tions

    The Human Resource

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    The Human ResourceManagers Proficiencies

    (contd) Managing within the Law Equal employment laws

    Occupational safety and health laws

    Labor laws

    Managing Ethics Ethical lapses

    Sarbanes-Oxley in 2003

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    The Plan of This Book: BasicThemes

    HRM is the responsibility of every manager.

    HR managers must defend their plans andcontributions in measurable terms.

    All personnel actions and decisions havestrategic implications.

    All managers rely on information technology.

    Virtually every personnel decision has legalimplications.

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    FIGURE 18Strategy and the Basic HumanResource Management Process

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    K E Y T E R M S

    management processhuman resource

    management(HRM)

    authorityline manager

    staff manager

    line authority

    staff authorityimplied authority

    functional control

    employee advocacy

    globalization

    human capital

    strategy

    strategic plan

    metrics

    HR Scorecard

    outsourcing

    ethics

    strategic human resourcemanagement

    high-performance worksystem