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Introduction to Human ResourceManagement

LectureLecture

11

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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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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