Emil VelinovITC-Prague

What is HRM? Theories and Evolution of HRM Why learn about HRM? Activities of Major HRM functions

Recruitment and Selection Employee and Labor Relations Safety and Health Human Resource Development (HRD) Compensation and Benefits Performance Appraisal

Strategic HRM (SHRM) Global HRM E-HR

Human Resource Management emcompasses those activities designed to provide for and cooreinate the human

resources of an organization.

Traditionally know as ”personnel administration” or ”personnel

management”

Soft HRM emphasizes the importance of high commitment, learning, enlightened leadership; human resources are valuable assets, not variable costs. Models and theories focus on tapping the human potential, based on organizational behavior theories (e.g. Maslow, 1954; Herzberg, 1966; McGregor, 1960)

Hard HRM emphasizes the calculative, quantitative and strategic management aspects of managing the workforce in a rational way (Storey, 1989).

• Review Classical Theories of OrganizationsReview Classical Theories of Organizations• Taylor’s Theory of Scientific ManagementTaylor’s Theory of Scientific Management• Fayol’s Administrative TheoryFayol’s Administrative Theory• Weber’s Theory of BureaucracyWeber’s Theory of Bureaucracy

• Humanistic Theories of OrganizationsHumanistic Theories of Organizations• Human Relations TheoryHuman Relations Theory

• The Hawthorne Studies• Chester Barnard• McGregor’s Theory X and Theory Y

• Human Resources TheoryHuman Resources Theory• Likert’s Systems Theory (Four Systems of Management)• Blake and Mouton’s (Blake and McCanse) Managerial

Grid

• Classical Theories of Organizations Classical Theories of Organizations • Taylor’s Theory of Scientific Management Taylor’s Theory of Scientific Management

(tasks)(tasks)• Fayol’s Administrative Theory (mgmt)Fayol’s Administrative Theory (mgmt)• Weber’s Theory of Bureaucracy (org structure)Weber’s Theory of Bureaucracy (org structure)

• All 3 theories attempt to enhance All 3 theories attempt to enhance management’s ability to predict and control the management’s ability to predict and control the behavior of their workersbehavior of their workers

• Considered only the Considered only the task functiontask function of of communication (ignored relational and communication (ignored relational and maintenance functions of communication)maintenance functions of communication)

• Designed to predict and control behavior in Designed to predict and control behavior in organizationsorganizations

• Classical theories emphasized coercion, control, and Classical theories emphasized coercion, control, and punishment (FOCUS ON TASKS /PRODUCTION).punishment (FOCUS ON TASKS /PRODUCTION).

• Maintain predictability and controlMaintain predictability and control• Decision-making power at top of hierarchyDecision-making power at top of hierarchy• Minimize input from lower-level employeesMinimize input from lower-level employees• Rely on science and rules to guide behaviorRely on science and rules to guide behavior• Regulate communication to increase predictability and Regulate communication to increase predictability and

decrease misunderstandingsdecrease misunderstandings• Result: Result:

• Workers feel they have no control over their work situationWorkers feel they have no control over their work situation• Management does not care about their ideasManagement does not care about their ideas• Feelings and ideas of workers are unimportantFeelings and ideas of workers are unimportant

• Humanistic theories were developed to promote the Humanistic theories were developed to promote the CONCERNS of the individual worker in an atmosphere CONCERNS of the individual worker in an atmosphere that was too focused on production (FOCUS ON that was too focused on production (FOCUS ON RELATIONAL & MAINTENANCE FUNCTIONS)RELATIONAL & MAINTENANCE FUNCTIONS)

• Human relations theory is characterized by a shift in Human relations theory is characterized by a shift in emphasis from TASK to WORKERemphasis from TASK to WORKER

• Go beyond physical contributions to include creative, Go beyond physical contributions to include creative, cognitive, and emotional aspects of workerscognitive, and emotional aspects of workers

• Based on a more dyadic (two-way) conceptualization of Based on a more dyadic (two-way) conceptualization of communication.communication.

• SOCIAL RELATIONSHIPS are at the heart of SOCIAL RELATIONSHIPS are at the heart of organizational behavior--effectiveness is contingent on organizational behavior--effectiveness is contingent on the social well-being of workersthe social well-being of workers

• Workers communicate opinions, complaints, Workers communicate opinions, complaints, suggestions, and feelings to increase satisfaction and suggestions, and feelings to increase satisfaction and productionproduction

• Origins (Hawthorne Studies & work of Chester Barnard)Origins (Hawthorne Studies & work of Chester Barnard)• Human Relations School of Management - Elton Mayo Human Relations School of Management - Elton Mayo

(Harvard(Harvard

• ““The Hawthorne StudiesThe Hawthorne Studies• Hawthorne Works of Western Electric CompanyHawthorne Works of Western Electric Company• 1924 - Chicago1924 - Chicago• Research focus: Relation of quality and quantity of Research focus: Relation of quality and quantity of

illumination to efficiency in industryillumination to efficiency in industry• Four Important StudiesFour Important Studies

• Illumination StudyIllumination Study (November 1924) (November 1924)• Designed to test the effect of lighting intensity on worker productivityDesigned to test the effect of lighting intensity on worker productivity• Heuristic value: influence of human relations on work behaviorHeuristic value: influence of human relations on work behavior

• Relay Assembly Test Room StudyRelay Assembly Test Room Study (1927-1932) (1927-1932)• Assembly of telephone relays (35 parts - 4 machine screws) Assembly of telephone relays (35 parts - 4 machine screws) • Production and satisfaction increased regardless of IV manipulationProduction and satisfaction increased regardless of IV manipulation• Workers’ increased production and satisfaction related to supervisory Workers’ increased production and satisfaction related to supervisory

practicespractices• Human interrelationships are important contributing factors to worker Human interrelationships are important contributing factors to worker

productivityproductivity• Bottom Line: Supervisory practices increase employee morale AND Bottom Line: Supervisory practices increase employee morale AND

productivityproductivity• Interviewing ProgramInterviewing Program (1928-1930) (1928-1930)

• Investigate connection between supervisory practices and employee moraleInvestigate connection between supervisory practices and employee morale• Employees expressed their ideas and feelings (e.g., likes and dislikes)Employees expressed their ideas and feelings (e.g., likes and dislikes)• Process more important than actual resultsProcess more important than actual results

• Bank Wiring Room Observation StudyBank Wiring Room Observation Study (November 1931 - May (November 1931 - May 1932)1932)

• Social groups can influence production and individual work behaviorSocial groups can influence production and individual work behavior• RQ: How is social control manifested on the shop floor?RQ: How is social control manifested on the shop floor?• Informal organization constrains employee behavior within formal Informal organization constrains employee behavior within formal

organizational structureorganizational structure

• Illumination StudyIllumination Study (November 1924) (November 1924)• The mere practice of observing people’s behavior tends to alter their The mere practice of observing people’s behavior tends to alter their

behavior (Hawthorne Effect)behavior (Hawthorne Effect)• Relay Assembly Test Room StudyRelay Assembly Test Room Study (1927-1932) (1927-1932)

• Relationships between workers and their supervisors are powerfulRelationships between workers and their supervisors are powerful• Human interrelationships increase the amount and quality of worker Human interrelationships increase the amount and quality of worker

participation in decision makingparticipation in decision making• Interviewing ProgramInterviewing Program (1928-1930) (1928-1930)

• Demonstrated powerful influence of upward communicationDemonstrated powerful influence of upward communication• Workers were asked for opinions, told they mattered, and positive Workers were asked for opinions, told they mattered, and positive

attitudes toward company increasedattitudes toward company increased• Bank Wiring Room Observation StudyBank Wiring Room Observation Study (November 1931 - May (November 1931 - May

1932)1932)• Led future theorists to account for the existence of informal Led future theorists to account for the existence of informal

communicationcommunication

• Taken together, these studies helped to document the Taken together, these studies helped to document the powerful nature of social relations in the workplace and powerful nature of social relations in the workplace and moved managers more toward the interpersonal aspects moved managers more toward the interpersonal aspects of organizing.of organizing.

• Not conducted with the appropriate scientific rigor Not conducted with the appropriate scientific rigor necessarynecessary

• Too few subjects (N=5)Too few subjects (N=5)• No control groupsNo control groups• Subjects replaced with more “cooperative” participantsSubjects replaced with more “cooperative” participants

• WORTHLESSWORTHLESS• GROSS ERRORSGROSS ERRORS• INCOMPETENCEINCOMPETENCE

• Chester BarnardChester Barnard• Considered a bridge between classical and human relations Considered a bridge between classical and human relations

theoriestheories• The Functions of the Executive (The Functions of the Executive (1938)1938)• Argues for . . . Argues for . . .

• strict lines of communication - classical theorystrict lines of communication - classical theory• a “human-based system of organization”a “human-based system of organization”• The potential of every worker and the centrality of The potential of every worker and the centrality of

communication to the organizing processcommunication to the organizing process• Six Issues Relevant to Organizational CommunicationSix Issues Relevant to Organizational Communication

• Formal vs. Informal OrganizationFormal vs. Informal Organization• CooperationCooperation• CommunicationCommunication• IncentivesIncentives• AuthorityAuthority• Zone of IndifferenceZone of Indifference

• Formal vs. Informal OrganizationFormal vs. Informal Organization• Formal Organization - a system of consciously coordinated activities or forces of two or Formal Organization - a system of consciously coordinated activities or forces of two or

more persons. (definite, structured, common purpose)more persons. (definite, structured, common purpose)• Persons are able to communicate with one anotherPersons are able to communicate with one another• Willing to contribute actionWilling to contribute action• To accomplish a common purposeTo accomplish a common purpose

• Informal Organization - based on myriad interactions that take place thourghout an Informal Organization - based on myriad interactions that take place thourghout an organization’s history.organization’s history.• IndefiniteIndefinite• StructurelessStructureless• No definite subdivisions of personnelNo definite subdivisions of personnel• Results: customs, mores, folklore, institutions, social norms, ideals -- may lead to formal organizationResults: customs, mores, folklore, institutions, social norms, ideals -- may lead to formal organization

• CooperationCooperation• Necessary component of formal organizationNecessary component of formal organization• The expression of the net satisfactions or dissatisfactions experienced or anticipated by The expression of the net satisfactions or dissatisfactions experienced or anticipated by

each individual in comparison with those experienced or anticipated through alternative each individual in comparison with those experienced or anticipated through alternative opportunitiesopportunities

• CommunicationCommunication• Critical to cooperationCritical to cooperation• The most universal form of human cooperation, and perhaps the most complex, is The most universal form of human cooperation, and perhaps the most complex, is

speechspeech• The most likely reason for the success of cooperation and the reason for its failureThe most likely reason for the success of cooperation and the reason for its failure• System of communication: known, formal channels which are as direct (short) as System of communication: known, formal channels which are as direct (short) as

possible, where the complete line of communication is used, the supervisory heads must possible, where the complete line of communication is used, the supervisory heads must be competent, the line of communication should not be interrupted, and every be competent, the line of communication should not be interrupted, and every communication should be authenticated.communication should be authenticated.

• Barnard’s system lacks relationship formation and maintenance mechanismsBarnard’s system lacks relationship formation and maintenance mechanisms

• IncentivesIncentives• Should be availableShould be available• Not discussed in detailNot discussed in detail

• AuthorityAuthority• Associated with securing cooperation for organizational membersAssociated with securing cooperation for organizational members• The interrelationship among the originator of the communication, the The interrelationship among the originator of the communication, the

communication itself, and the receivercommunication itself, and the receiver• Authority of position OVER Authority of Leadership (knowledge & ability).Authority of position OVER Authority of Leadership (knowledge & ability).

• Zone of Indifference - orders followedZone of Indifference - orders followed• Marks the boundaries of what employees will consider doing without Marks the boundaries of what employees will consider doing without

question, based on expectations developed on entering the organization.question, based on expectations developed on entering the organization.

Barnard drew attention away from formal organizational Barnard drew attention away from formal organizational structures toward communication, cooperation, and the informal structures toward communication, cooperation, and the informal organization. organization. His work was integrated by other theorists in the human relations movement.

• Douglas McGregor (1906-1964)Douglas McGregor (1906-1964)• Articulated basic principles of human relations theory• The Human Side of Enterprise (1960, 1985)• To understand human behavior, one must discover the

theoretical assumptions upon which behavior is based• Especially interested in the behavior of managers toward

workers• “Every managerial act rests on assumptions, generalizations,

and hypotheses--that is to say, on theory . . . Theory and practice are inseparable.”

• Two Objectives:• Predict and control behavior• Tap Unrealized potential

• Theory X - Classical Theory• Theory Y - Human Relations Theory• FOCUS: Manager’s assumptions about HUMAN NATURE

• Theory X - Classical TheoryTheory X - Classical Theory• Three Assumptions

• The average human being has an inherent dislike of work and will avoid it.• Most people must be coerced, controlled, directed, and threatened with

punishment• The average human being prefers to be directed, wishes to avoid responsibility,

has relatively little ambition, wants security.• Neither explains nor describes human nature

• Theory Y - Human Relations TheoryTheory Y - Human Relations Theory• AssumptionsAssumptions

• Physical and mental effort in work is similar to play / rest.Physical and mental effort in work is similar to play / rest.• External control and the threat of punishment are not the only strategiesExternal control and the threat of punishment are not the only strategies• Commitment to objectives is a function of the rewards associated with their Commitment to objectives is a function of the rewards associated with their

achievementachievement• The average human being learns, under proper conditions, not only to accept but The average human being learns, under proper conditions, not only to accept but

to seek responsibilityto seek responsibility• The capacity to exercise a high degree of imagination, ingenuity, and creativity in The capacity to exercise a high degree of imagination, ingenuity, and creativity in

the solution of organizational problems is widely distributed in the populationthe solution of organizational problems is widely distributed in the population• Intellectual potentialities of the average human being are underutilizedIntellectual potentialities of the average human being are underutilized

• A more positive perspective of human natureA more positive perspective of human nature• The KEY to control and quality production is The KEY to control and quality production is commitment to commitment to

organizational objectivesorganizational objectives

• Participative ManagementParticipative Management• Two Central FeaturesTwo Central Features

• Cost-reduction sharing for organizational members - Cost-reduction sharing for organizational members - sharing the sharing the economic gains from improvements in organizational performanceeconomic gains from improvements in organizational performance

• Effective participation Effective participation - a formal means of providing opportunities to - a formal means of providing opportunities to every member of the organization to contribute ideas for improving every member of the organization to contribute ideas for improving organizational effectiveness.organizational effectiveness.

• Must be implemented appropriatelyMust be implemented appropriately• Wastes time and undermines managerial power?Wastes time and undermines managerial power?• Magic formula for every organizational problem?Magic formula for every organizational problem?• CONCERN for RELATIONSHIPS in the organization.CONCERN for RELATIONSHIPS in the organization.• As the need to increase commitment grows, so does the need to develop As the need to increase commitment grows, so does the need to develop

strong, communication-based relationships among organizational strong, communication-based relationships among organizational members, particularly between supervisor and subordinate.members, particularly between supervisor and subordinate.

• Difficult to adopt principles of human relations theory -- Difficult to adopt principles of human relations theory -- misapplications and misunderstandings of both classical theory and misapplications and misunderstandings of both classical theory and human relations theory led to Human Resources Theoryhuman relations theory led to Human Resources Theory

• The key element to Human Relations Theory, participation, was used The key element to Human Relations Theory, participation, was used only to make workers only to make workers feelfeel as if they were part of the organizational as if they were part of the organizational decision-making processesdecision-making processes

• Key to classical and human relations theory is compliance with Key to classical and human relations theory is compliance with managerial authoritymanagerial authority

• Workers are told that they are important but were not treated as Workers are told that they are important but were not treated as suchsuch

• Major Distinctions between Human Resources and Human Relations Major Distinctions between Human Resources and Human Relations TheoryTheory

• All people (not just managers) are reservoirs of untapped resources - manager All people (not just managers) are reservoirs of untapped resources - manager responsibility to tap physical and creative resourcesresponsibility to tap physical and creative resources

• Many decisions can be made more effectively and efficiently by workers most directly Many decisions can be made more effectively and efficiently by workers most directly involved with their consequencesinvolved with their consequences

• Relationship between employee satisfaction and performance - improved satisfaction and Relationship between employee satisfaction and performance - improved satisfaction and morale contribute back to improved decision making and controlmorale contribute back to improved decision making and control

• Increased satisfaction is related to the improved decision making and Increased satisfaction is related to the improved decision making and self-control that occurs due to participation that is genuinely solicited self-control that occurs due to participation that is genuinely solicited and heardand heard

• Two prevalent Human Resources TheoriesTwo prevalent Human Resources Theories• Rensis LikerRensis Liker• Blake & Mouton (Blake & McCanse)Blake & Mouton (Blake & McCanse)

• Four Systems of Management: Rensis Likert (Figure 3.2, p. 56)Four Systems of Management: Rensis Likert (Figure 3.2, p. 56)• Management is crticial to all organizational activities and outcomesManagement is crticial to all organizational activities and outcomes• Continuum that ranges from more classically oriented system to one based Continuum that ranges from more classically oriented system to one based

on human resources theoryon human resources theory• Of all the tasks of management, managing the human component is the Of all the tasks of management, managing the human component is the

central and most important taskcentral and most important task• High producing departments and organizations tend toward System IV; low High producing departments and organizations tend toward System IV; low

producing units favor System Iproducing units favor System I• System I - Exploitative AuthoritativeSystem I - Exploitative Authoritative• System II - Benevolent AuthoritativeSystem II - Benevolent Authoritative• System III - ConsultativeSystem III - Consultative• System IV - ParticipativeSystem IV - Participative

• Stresses interrelationship between production (task) and peopleStresses interrelationship between production (task) and people• Management’s main purpose is to promote a culture in the Management’s main purpose is to promote a culture in the

organization that allows for high production at the same time that organization that allows for high production at the same time that employees are fostered in their professional and personal employees are fostered in their professional and personal developmentdevelopment

• Managerial Grid - now Leadership Grid (Blake & McCanse) (Figure Managerial Grid - now Leadership Grid (Blake & McCanse) (Figure 3.3, p. 59)3.3, p. 59)

• FOCUS: Manger’s Assumptions about CONCERN for PEOPLE and FOCUS: Manger’s Assumptions about CONCERN for PEOPLE and CONCERN for PRODUCTIONCONCERN for PRODUCTION

• Concern for PEOPLEConcern for PEOPLE• Degree of personal commitment to one’s jobDegree of personal commitment to one’s job• Trust-based accountability (vs. obedience-based accountability)Trust-based accountability (vs. obedience-based accountability)• Self-esteem for the individualSelf-esteem for the individual• Interpersonal relationships with co-workersInterpersonal relationships with co-workers

• Concern for PRODUCTIONConcern for PRODUCTION• Use of people and technology to accomplish organizational tasksUse of people and technology to accomplish organizational tasks• Concern for is not about quantity or qualityConcern for is not about quantity or quality

• Assessment instrument does not represent personality traits of the Assessment instrument does not represent personality traits of the manager -- instead, indicate a specific orientation to production and manager -- instead, indicate a specific orientation to production and peoplepeople

•Authority Compliance (9,1)

•Classical theory

•Country Club (1,9)

•Informal grapevine

•Impoverished (1,1)

•Laissez-faire

•Middle-of-the-Road (5,5)

•Compromise (carrot & stick)

•Team (9,9)

•Human Resources Approach

•Promote the conditions that integrate creativity, high productivity, and high morale through concerted team action

• Humanistic Theories of OrganizationsHumanistic Theories of Organizations• Human Relations TheoryHuman Relations Theory

• The Hawthorne Studies• Chester Barnard• McGregor’s Theory X and Theory Y

• Human Resources TheoryHuman Resources Theory• Likert’s Systems Theory (Four Systems of Management)• Blake and Mouton’s (Blake and McCanse) Managerial

Grid

• The principles of human resources theory attempt to integrate the concern for production from classical theory with the concern for the worker from human relations theory -- more effective and satisfying!

1917-18: 1st formal personnel department created to deal with tight labor market, high turnover, waste and inefficiency, widespread strikes, union growth, government intervention, takeovers

1920’s: HR used to “win” worker cooperation, through ensuring job security, benefits, etc.

1930’-50’s: “Human Relations” recognizes that there are psychological and social influences to worker satisfaction, cooperation, performance; first focus on groups (not teams).

1960’s: Work design, rather than communication and cooperation in groups, is the key to increasing worker motivation. Small work group design leads to greater employee effort, group work provides opportunities for “self-actualization”; work is more interesting and fulfilling.

1970’s: Quality of Work Life (QWL): emphasis on the value of human resources. PM becomes HR.

1990’s-Present: TQM, reengineering, globalization, strategic HR, new technologies, diversity, contingency models, holistic approaches to HR. HRM models include “high involvement”, “high commitment”, “high performance work system”, “innovative work practices”. HR becomes HRM.

HR issues are relevant to everyone in all organizations

Provides understanding of systems and processes needed to develop and utilize talents of employees

Staffing is the #1 issue for executives.

EXTERNAL ENVIRONMENTINTERNAL ENVIRONMENT

StaffingEmployee

& Labor Relations

Safety& Health

Compensation& Benefits

Human Resource

Development

HR ManagementFunctions

Conducting job analyses to establish th specific requirements of individual jobs within the organization.

Forecasting the human resource requirements the organization needs to achieve its objectives.

Developing tand implementing a plan to meet these requirements.

Recruiting the human resources to fill specific jobs within the organization.

JA: the process of determining and reporting pertinent information relating to the nature of a specific job. Involves the determination of the tasks which comprise the job and of the “KSA’s” and responsibilities required of the person(s) holding that job, for successful job performance; defines the what, how, why of a job.

Methods of conducting JA: observation, motion and time study, interviews, questionnaires (off-the-shelf; custom)

JA leads to the job description (summary statement + duties and responsibilities) and job specifications (skills, education, experience required).

JA is the foundation for all traditional HR functions (as well as some others!).

How do we know who will perform successfully?

The job description helps us know how successful performance of the job can be measured, “criteria of job success” (performance appraisals, production data, personnel data).

The job specification helps identify factors that can predict successful job performance, “criterion predictors” (education, work experience, test scores, interview data).

Validity: how accurately does a predictor actually predict the criteria of job success?

Included in the reading packet for this class are samples of CV’s and job application forms, including explanations of the various elements and why they are (often) included.

Remember the content, style, and form of the CV and letter of application is highly dependent on geographical customs. If in doubt, ASK!

Training is a learning process that involves the acquisition of skills, concepts, rules, or attitudes; designed to enhance performance (also through helping employees meet own objectives of job security, financially and intellectually rewarding work, recognition, status, responsibility, achievement).

Orientation On-the job training; apprenticeships

Intended to develop the experience, attitudes, and skills necessary to be an effective manager

Should be tied to organizational objectives Often include team work, project work, and

leadership training Methods include coaching, job rotation,

project assignments, classroom training (case studies, role playing, in-basket techniques, business games.

On going formal effort to develop and enrich the organization’s human resources so as to meet both the organization’s and employees objectives; concrete action plan for the individual to meet these goals.

Increases attractiveness of company to job seekers

Supports retention Addresses needs of minorities, women, >50

professionals Mechanism for dealing with downsizing,

reengineering, restructuring

PA is a feedback system that involves the direct evaluation of individual or group performance by a supervisor, manager, or peers.

Used for performance feedback, pay administration, counseling and developing employees.

Represents an importan link between goal-setting processes and reward systems.

Goal setting (MBO) 360-degree feedback Work standards approach Critical-incident appraisal Graphic rating scales Behaviorally Anchored Rating Scale

(BARS)

Both intrinsic and extrinsic rewards received as a result of employment by the organization.

Ideally, rewards are linked to performance. Rewards “cause” satisfaction Rewards based on performance “cause”

improved performance Satisfaction does not (necessarily) “cause”

better performance; performance “causes” satisfaction

Workplace support (flexible schedules, child care, etc), autonomy; meaningfulness; opportunities for leaning and advancement and job security are highly related to job satisfaction; pay and benefits have little effect on job satisfaction.

Job satisfaction leads to organizational commitment; job dissatisfaction may lead to turnover, absenteeism, tardiness, accidents, strikes, grievances.

Job satisfaction is NOT the same as motivation!

Skill-based pay plans General Mills, General Foods, Northern Telecon

All salaried workforce IBM, Gillette, Dow Chemical

Lump-sum salary increases Timex, BFGoodrich, Westinghouse

Performance-based pay (indiv, group, org) American Express, DuPont

Gain Sharing Georgia Pacific, GE

Legally mandated Unemployment; workers’ compensation

Traditional Health insurance; paid vacations

Recent Child care; parent leave; education;

retirement plans Based on position vs ”Cafeteria-style”

Administration of discipline and grievance-handling procedures.

Organizational discipline: action taken against an employee who has violated an organizational rule or whose performance is below satisfactory.

“Should be” viewed as a learning opportunity for the employee and a tool to improve productivity and human relations.

Most industrial countries have formal agencies for the purpose of planning, monitoring, evaluating, and ensuring employee safety.

Safety most often measured by accident frequency and severity.

Organizational safety programs emphasize accident prevention, from standardizing operating procedures to redesigning work to establishing “contests”, holding periodic safety workshops, seminars, etc., clearly posting safety rules and regulations.

Occupational diseases may cost industry as much or more than occupational accidents.

Number of job-related accidents has decreased; number of job-related illnesses has risen.

Many diseases and health-related problems that are not necessarily job-related may affect job performance (alcohol & drug abuse, AIDS).

Many companies now offer wellness programs, including fitness centers, EAP programs.

Stress is the mental and physical condition that results from a perceived threat of danger (physical or emotional) and the pressure to remove it. Sources include: Threat of job loss; job mismatch; conflicting expectations; role ambiguity; role overload; fear/responsibility; working conditions; working relationships, alienation.

Signs of stress in the workplace include absenteeism, job turnover, lower productivity, and increased mistakes. Stress-related disorders include tension and migraine headaches, coronary heart disease, high blood pressure, sleep disorders, problems with concentration, appetite, etc.

Burnout: work is no longer meaningful

Fewer and fewer HR departments have retained or are limited to traditional, standard HR functions.

Corporate universities are becoming common place; HRM supporting the “Learning Factory”; outsourcing often used for benefit and training functions; staffing being delegated to line managers and autonomous teams.

“The process of linking HR practices to business strategy” (Ulrich, 1997, p. 89); “the process by which organizations seek to link the human, social, and intellectual capital of their members to the strategic needs of the firm” (Bamberger & Meshoulam (2000, p. 6).

Affirms the importance of the effective management of people as a source of competitive advantage.

GHRM: utilization of global human resources to achieve organizational objectives without regard to geographic boundaries.

“Going Global” has a major impact on all HRM functions, from planning, recruitment, and selection to compensation and benefits, to human resource development, to safety and health issues, to employee and labor relations. Each of the various functions has an even greater impact on organizational performance than in domestic companies.

Additional challenges include: political and legal factors, cultural/language issues and maintaining corporate identity/culture, economic factors, and labor-management relations.

E.HR: the application of conventional, web, voice and m-technologies to improve HR administration, transactions and process performance. “Speed” and “agility” have become key words for HRM.

E-HR survey in 91 international organizations: 76% have redesigned or introduced new HR technologies/systems in the past year and 90% of the remaining expect to do so within the coming year.

While very cutting edge, total e-HR is expensive and time consuming. Many companies focus on recruitment, web training and web approaches to reporting, appraisal, and reporting. 1998: 17% of Fortune Global 500 companies recruited on

the net; 1999, 45% $1.7 billion on recruitment in 2003 Estimated 2.5 million resumes on the internet