Introduction to Human Resource Management 1-1 Copyright 2013
Pearson Education, Inc. Publishing as Prentice Hall 1
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Learning Objectives 1.Explain what human resource management is
and how it relates to the management process. 2.Show with examples
why human resource management is important to all managers.
3.Illustrate the human resources responsibilities of line and staff
(HR) managers. Copyright 2013 Pearson Education, Inc. Publishing as
Prentice Hall 1-2
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Learning Objectives 4.Briefly discuss and illustrate each of
the important trends influencing human resource management. 5.List
and briefly describe important traits of todays human resource
managers. Copyright 2013 Pearson Education, Inc. Publishing as
Prentice Hall 1-3
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What is human resource (HR) management and why is it important?
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1-4
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The Management Process Planning Organizing (Staffing) Leading
Controlling Copyright 2013 Pearson Education, Inc. Publishing as
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HRM Conducting job analysis Planning labor needs Acquiring
talented employees Orienting and training new hires and existing
managers and employees Creating and administering effective
performance appraisals Managing wages (compensating employees)
Attending to concerns about labor relations, health, safety, and
fairness Copyright 2013 Pearson Education, Inc. Publishing as
Prentice Hall 1-6
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Human Resource (HR) Responsibilities of Line and Staff Managers
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1-7
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All managers are HR managers because they all get involved in
activities like recruiting, interviewing, selecting and training.
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1-8
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You can do everything else right as a manager; o Make brilliant
plans o Draw clear organization charts o Set-up world class
assembly lines But still fail!!! By hiring the wrong people or by
not motivating your subordinates On the other hand, many managers
have been successful even with inadequate plans, organizations or
controls. They were successful because they had the right people
for the right jobs and motivating, appraising and developing them.
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Line and Staff Managers Line authority gives you the right to
issue orders Staff authority gives you the right to advise others
in the organization Copyright 2013 Pearson Education, Inc.
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Line and Staff Managers If you are a line manager, you will
hold responsibilities to issue orders, provide directions and
establish rules and procedures. Staff authority gives the manager
the right to advise other managers or employees. HR manager is a
staff manager and like all staff managers, is responsible for
influencing and advising others. Within the HR department you may
be responsible for establishing goals and giving orders to those in
your department thus serving as a line manager within HR. Copyright
2013 Pearson Education, Inc. Publishing as Prentice Hall 1-11
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HR Managers HR managers are usually staff managers. They assist
and advise line managers in areas like recruiting, hiring and
compensation. However, line managers still have human resource
duties. Copyright 2013 Pearson Education, Inc. Publishing as
Prentice Hall 1-12
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HR Managers A line function: HR managers directs the activities
of people in his or her department or in the related areas. A
coordinative function: HR manager also coordinates personnel
activities with his functional authority. He ensures that line
managers are implementing the firms HR policies and practices.
Staff function: Assisting and advising line managers. He advises
the CEO so the CEO can better understand the HR aspects of the
companys strategic options. Copyright 2013 Pearson Education, Inc.
Publishing as Prentice Hall 1-13
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Human Resource Duties Job placement Orientation & Training
Performance Cooperation Labor costs Development Copyright 2013
Pearson Education, Inc. Publishing as Prentice Hall 1-14 Line
Managers
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Human Resource Duties Staff Managers Copyright 2013 Pearson
Education, Inc. Publishing as Prentice Hall 1-15 Line function
inside of HR department Coordination Assist and advise Sample HR
organizational chart for a small company
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Line and Staff HR Management The line manager describes the
qualifications of employees need to fill specific positions. The
the HR team takes over: o they develop sources of qualified
applicants, o then conduct initial screening interviews, o
administer the appropriate tests, o refer the best applicants to
the line manager. Copyright 2013 Pearson Education, Inc. Publishing
as Prentice Hall 1-16
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Evolution of HRM Period before industrial revolution The
society was primarily an agriculture economy with limited
production. Number of specialized crafts was limited and was
usually carried out within a village or community with apprentices
assisting the master craftsmen. Communication channel were limited.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall
1-17
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Evolution of HRM Period of industrial revolution (1750 to 1850)
Industrial revolution marked the conversion of economy from
agriculture based to industry based. Modernization and increased
means if communication gave way to industrial setup. A department
was set up to look into workers wages, welfare and other related
issues. This led to emergence of personnel management with the
major task as o Workers wages and salaries o Workers record
maintenance o Workers housing facilities and health care Copyright
2013 Pearson Education, Inc. Publishing as Prentice Hall 1-18
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Evolution of HRM An important event in industrial revolution
was growth of Labour Union (1790) The works working in the
industries or factories were subjected to long working hours and
very less wages. With growing unrest, workers across the world
started protest and this led to the establishment of labour unions.
To deal with labour issues at one end and management at the other
Personnel Management department had to be capable of politics and
diplomacy, thus the industrial relation department emerged.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall
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Evolution of HRM Post Industrial revolution The term Human
resource Management saw a major evolution after 1850. Various
studies were released and many experiments were conducted during
this period which gave HRM altogether a new meaning and importance.
A brief overview of major theories release during this period is
presented below: Frederick W. Taylor gave principles of scientific
management (1857 - 1911) led to the evolution of scientific human
resource management approach which was involved in o Workers
training o Maintaining wage uniformity o Focus on attaining better
productivity Copyright 2013 Pearson Education, Inc. Publishing as
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Evolution of HRM Hawthorne studies, conducted by Elton Mayo
& Fritz Roethlisberger (1927 to 1940). Observations and
findings of Hawthorne experiment shifted the focus of human
resource from increasing workers productivity to increasing workers
efficiency through greater work satisfaction. Douglas McGregor
Theory X and Theory Y (1960) and Abraham Maslows Hierarchy of needs
( 1954) These studies and observations led to the transition from
the administrative and passive Personnel Management approach to a
more dynamic Human Resource Management approach which considered
workers as a valuable resource.Personnel Management approach to a
more dynamic Human Resource Management approach Copyright 2013
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Evolution of HRM As a result of these principles and studies,
Human resource management became increasingly line management
function, linked to core business operations. Some of the major
activities of HR department are listed as; o Recruitment and
selection of skilled workforce. o Motivation and employee benefits
o Training and development of workforce o Performance related
salaries and appraisals. Copyright 2013 Pearson Education, Inc.
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Evolution of HRM Strategic Human Resource Management Approach
With increase in technology and knowledge base industries and as a
result of global competition, Human Resource Management is assuming
more critical role today. Its major accomplishment is aligning
individual goals and objectives with corporate goals and
objectives. Strategic HRM focuses on actions that differentiate the
organization from its competitors and aims to make long term impact
on the success of organization. Copyright 2013 Pearson Education,
Inc. Publishing as Prentice Hall 1-23
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Important Trends in Human Resource Management Copyright 2013
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Trends in Human Resource Management Globalization Competition
Technological innovation More high-tech & service jobs More
knowledge work Copyright 2013 Pearson Education, Inc. Publishing as
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Globalization Globalization refers to the tendency of firms to
extend their sales, ownership and manufacturing to new markets
abroad. Sales expansion Lower labor costs Forming partnerships
Becoming more competitive Copyright 2013 Pearson Education, Inc.
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Globalization Dell, for example, is planning to supply PCs to
China. China is expected to become the largest market for computers
in the world. Companies such as Toyota, Ford, Hyundai build and
sell some of their vehicles here in different countries and even
ship them to other countries. Copyright 2013 Pearson Education,
Inc. Publishing as Prentice Hall 1-28
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Globalization Copyright 2013 Pearson Education, Inc. Publishing
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Globalization Companies expand for several reasons; o Sales
expansion o Cut labor costs o New foreign products o Forming
partnerships Copyright 2013 Pearson Education, Inc. Publishing as
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Technological Trends Smart phones Tablet computers Facebook Job
seeking Copyright 2013 Pearson Education, Inc. Publishing as
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Technological Trends The impact and growth in the use of smart
phones and tablet computers, such as the iPad, have opened doors to
people and the workplace in a way that previously has never
occurred. The speed of information exchange has contributed to the
growth of social networking sites such as Facebook and LinkedIn.
Facebook, for example, offers Facebookrecruiting which provides a
rapid conduit between employers and job-seekers. Copyright 2013
Pearson Education, Inc. Publishing as Prentice Hall 1-32
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Technological Trends Dell and thousands of other employees
established call-center jobs to India. Zara does not need expensive
inventories. Zara operates its own internet based worldwide
distribution network Copyright 2013 Pearson Education, Inc.
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Trends in the Nature of Work Technology has also had a huge
impact on how people work and on the skills and training todays
workers need. High-tech jobs Service jobs Knowledge work and human
capital Copyright 2013 Pearson Education, Inc. Publishing as
Prentice Hall 1-34
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Trends in the Nature of Work Another trend, human capital,
refers to the knowledge, education, training, skills, and expertise
of a firms workers. Todays (and tomorrows) best jobs will go to the
individuals with the best reading, math, and communication skills.
In other words, the best knowledge workers will be hired first
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall
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Workforce and Demographic Trends Copyright 2013 Pearson
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Demographic Trends Copyright 2013 Pearson Education, Inc.
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Generation Y Workers Many younger workers may have different
work values than their parents. Older employees were more
work-centric but younger workers tend to be more family-centric or
dual-centric. Considered to be high-performance and
high-maintenance Fair and direct supervisors Creative challenges
Faster and better workers Copyright 2013 Pearson Education, Inc.
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Economic Challenges and Trends Inflation rates Interest rates
Gross National Income Economic crisis Recessions Copyright 2013
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Copyright 2013 Pearson Education, Inc. Publishing as Prentice
Hall 1-40 The New Human Resource Managers Transactional Services
Talent Management Competencies Big picture Ethics Employee
Engagement Performance, results, evidence- based practice