PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

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Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

Dr Vijay PithadiaDr Vijay Pithadia

Introduction to Human Resource ManagementIntroduction to Human Resource Management

Chapter 1Chapter 1

Part 1 | IntroductionPart 1 | Introduction

Dr Vijay Pithadia 1–2

Human Resource Management at WorkHuman Resource Management at Work

• What Is Human Resource Management What Is Human Resource Management (HRM)?(HRM)? The policies and practices involved in carrying out The policies and practices involved in carrying out

the “people” or human resource aspects of a the “people” or human resource aspects of a management position, including recruiting, management position, including recruiting, screening, training, rewarding, and appraising.screening, training, rewarding, and appraising.

Dr Vijay Pithadia 1–3

Basic HR ConceptsBasic HR Concepts

• The bottom line of managing: The bottom line of managing: Getting resultsGetting results

• HR creates value by engaging HR creates value by engaging in activities that produce the in activities that produce the employee behaviors that the employee behaviors that the company needs to achieve company needs to achieve its strategic goals.its strategic goals.

Dr Vijay Pithadia 1–4

Line and Staff Aspects of HRMLine and Staff Aspects of HRM

• Line managerLine manager A manager who is authorized to direct the work of A manager who is authorized to direct the work of

subordinates and is responsible for accomplishing subordinates and is responsible for accomplishing the organization’s tasks.the organization’s tasks.

• Staff managerStaff manager A manager who assists and advises line managers.A manager who assists and advises line managers.

Dr Vijay Pithadia 1–5

Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities

1.1. Placing the right person on the right jobPlacing the right person on the right job

2.2. Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)

3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them

4.4. Improving the job performance of each personImproving the job performance of each person

5.5. Gaining creative cooperation and developing smooth working Gaining creative cooperation and developing smooth working relationshipsrelationships

6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures

7.7. Controlling labor costsControlling labor costs

8.8. Developing the abilities of each personDeveloping the abilities of each person

9.9. Creating and maintaining department moraleCreating and maintaining department morale

10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

Dr Vijay Pithadia 1–6

High-Performance Work System PracticesHigh-Performance Work System Practices

• Employment securityEmployment security

• Selective hiringSelective hiring• Extensive trainingExtensive training• Self-managed teams/decentralized decision makingSelf-managed teams/decentralized decision making• Reduced status distinctionsReduced status distinctions

• Information sharingInformation sharing

• Contingent (pay-for-performance) rewardsContingent (pay-for-performance) rewards

• Transformational leadershipTransformational leadership• Measurement of management practicesMeasurement of management practices• Emphasis on high-quality workEmphasis on high-quality work

Dr Vijay Pithadia 1–7

Benefits of a High-Performance Benefits of a High-Performance Work System (HPWS)Work System (HPWS)

• Generate more job applicantsGenerate more job applicants

• Screen candidates more effectivelyScreen candidates more effectively

• Provide more and better trainingProvide more and better training

• Link pay more explicitly to performanceLink pay more explicitly to performance

• Provide a safer work environmentProvide a safer work environment

• Produce more qualified applicants per positionProduce more qualified applicants per position

• Hiring based on validated selection testsHiring based on validated selection tests

• Provide more hours of training for new employeesProvide more hours of training for new employees

• Conduct more performance appraisalsConduct more performance appraisals

Dr Vijay Pithadia 1–8

Measuring HR’s ContributionMeasuring HR’s Contribution

• The HR ScorecardThe HR Scorecard

Shows the quantitative standards, or Shows the quantitative standards, or “metrics” the firm uses to measure “metrics” the firm uses to measure HR activities.HR activities.

Measures the employee behaviors Measures the employee behaviors resulting from these activities.resulting from these activities.

Measures the strategically relevant Measures the strategically relevant organizational outcomes of those organizational outcomes of those employee behaviors.employee behaviors.

Dr Vijay Pithadia 1–9

The Human Resource Manager’s The Human Resource Manager’s ProficienciesProficiencies

• New ProficienciesNew Proficiencies

HR proficienciesHR proficiencies

Business proficienciesBusiness proficiencies

Leadership proficienciesLeadership proficiencies

Learning proficienciesLearning proficiencies

Dr Vijay Pithadia 1–10

HR CertificationHR Certification

• HR is becoming more professionalized.HR is becoming more professionalized.

• Society for Human Resource Management Society for Human Resource Management (SHRM)(SHRM)

SHRM’s Human Resource Certification SHRM’s Human Resource Certification Institute (HRCI)Institute (HRCI)

SPHR (senior professional in HR) SPHR (senior professional in HR) certificatecertificate

PHR (professional in HR) PHR (professional in HR) certificatecertificate

Dr Vijay Pithadia 1–11

The Human Resource Manager’s The Human Resource Manager’s Proficiencies (cont’d)Proficiencies (cont’d)

• Managing within the LawManaging within the Law

Equal employment lawsEqual employment laws

Occupational safety and health lawsOccupational safety and health laws

Labor lawsLabor laws

• Managing EthicsManaging Ethics

Ethical lapsesEthical lapses

What is HR?What is HR?

• Human Resources is the part of the Human Resources is the part of the organization that deals with peopleorganization that deals with people

• Managing the human resourceManaging the human resource

• This means acquiring developing This means acquiring developing and supporting staff as well as and supporting staff as well as ensuring they fulfill their role at workensuring they fulfill their role at work

Dr Vijay Pithadia 1–12

Human Resource Management (HRM)Human Resource Management (HRM)

HRM defined asHRM defined as

“ “HRM is management function concerned HRM is management function concerned

with hiring , motivating and maintaining with hiring , motivating and maintaining

people in an organization. It focuses on people in an organization. It focuses on

people in organization”people in organization”

(Aswathappa, 2008)(Aswathappa, 2008)

Dr Vijay Pithadia 1–13

HRMHRM

• The Policies and practices in carrying out the The Policies and practices in carrying out the “people” or human resource aspects of a “people” or human resource aspects of a management position including, recruiting, management position including, recruiting, screening, training, rewarding and appraising. screening, training, rewarding and appraising.

(Dessler G.) (Dessler G.)

• The Charted Institute of Personnel The Charted Institute of Personnel Management “ The design, implementation and Management “ The design, implementation and maintenance of strategies to manage people for maintenance of strategies to manage people for optimum business performance including the optimum business performance including the development of policies and process to support development of policies and process to support these strategies”these strategies”

Dr Vijay Pithadia 1–14

HRM: Peoples Dimensions In Organizations HRM: Peoples Dimensions In Organizations

• HRM: the application of management functions and HRM: the application of management functions and principles related to employeesprinciples related to employees

• HRM functions applicable every where (not for profit and HRM functions applicable every where (not for profit and profit driven organizations)profit driven organizations)

• Employees decisions are integrated Employees decisions are integrated

• Employee decision brings effectiveness/efficiency in Employee decision brings effectiveness/efficiency in organizationorganization

• HRM includes all major activities in professional life of a HRM includes all major activities in professional life of a workerworker

• All activities from employee entry to managing All activities from employee entry to managing performance and training until s/he leavesperformance and training until s/he leaves

Dr Vijay Pithadia 1–15

HRM ActivitiesHRM Activities• HR PlanningHR Planning

• Job Analysis and DesignJob Analysis and Design

• Recruitment and SelectionRecruitment and Selection

• Training and DevelopmentTraining and Development

• RemunerationRemuneration

• WelfareWelfare

• Safe and Healthy Work EnvironmentSafe and Healthy Work Environment

• Industrial RelationsIndustrial Relations

Dr Vijay Pithadia 1–16

‘‘4 C's' or HR policies that have to be achieved:4 C's' or HR policies that have to be achieved:

• Commitment (Promise)Commitment (Promise)• Congruence (Similarity)Congruence (Similarity)• Competence (Ability) &Competence (Ability) &• Cost effectiveness Cost effectiveness

Dr Vijay Pithadia 1–17

Scope Of HRMScope Of HRM

1.1. Introduction to HRMIntroduction to HRM

2.2. Employee HiringEmployee Hiring

3.3. Employee RemunerationEmployee Remuneration

4.4. Employee MotivationEmployee Motivation

5.5. Employee MaintenanceEmployee Maintenance

6.6. Industrial RelationsIndustrial RelationsDr Vijay Pithadia 1–18

The SemanticsThe Semantics

• There two terms There two terms

1.1. PM (Personnel Management )PM (Personnel Management )

2.2. HRM (Human Resource Management )HRM (Human Resource Management )

• PM and HRM are different in scope and PM and HRM are different in scope and orientation orientation

• HRM is broad conceptHRM is broad concept

• PM and HRD (Human Resource PM and HRD (Human Resource Development) are part of HRMDevelopment) are part of HRM

Dr Vijay Pithadia 1–19

HRM Functions and Objectives HRM Functions and Objectives

• The main objective of HRM is to ensure the The main objective of HRM is to ensure the

availability of willing and competent force to an availability of willing and competent force to an

organization. There are other objective of HRM too;organization. There are other objective of HRM too;

1.1. Societal objectivesSocietal objectives

2.2. Functional objectivesFunctional objectives

3.3. Organizational objectivesOrganizational objectives

4.4. Personal objectives Personal objectives

Dr Vijay Pithadia 1–20

Organization Of HR DepartmentOrganization Of HR Department

Two issues Two issues 1. HR department placement in overall 1. HR department placement in overall setupsetup 2. Composition of HR department2. Composition of HR department

Structure of HR Structure of HR

• Structure of organization depend on whether Structure of organization depend on whether organization is small or large organization is small or large

• In small organization there is no need to have In small organization there is no need to have separate department to deals with activities separate department to deals with activities relating to peoplerelating to people

• Many small organizations even do not have Many small organizations even do not have personnel managerspersonnel managers

Dr Vijay Pithadia 1–21

Outsourcing HR ActivitiesOutsourcing HR Activities

Outsourcing or Subcontracting: Outsourcing or Subcontracting:

Transfer activities to specialist organizationsTransfer activities to specialist organizations

Reasons: Reasons: Restructuring, Downsizing, Restructuring, Downsizing,

Growth in business, Decline in businessGrowth in business, Decline in business

Benefits: Benefits: Cost efficiency, Access to expertiseCost efficiency, Access to expertise

Dr Vijay Pithadia 1–22

Factors Affecting HRFactors Affecting HR

• Legislation Legislation

• The Economic environmentThe Economic environment

• The global economy The global economy

• The structure of the labor marketThe structure of the labor market

• The Political environmentThe Political environment

• Changes in technologyChanges in technology

• Need to constantly retrain staffNeed to constantly retrain staff

Dr Vijay Pithadia 1–23