Oliver Aul Class 1 Comp

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Human Resource Management

Oliver Fenianos AUL

Human Resource Management 12th Edition

Global Edition

Chapter 1 STRATEGIC HUMAN RESOURCE

MANAGEMENT: AN OVERVIEW

Copyright © 2013 Oliver Fenianos, ( Pearson Education )

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Human Resource Management (HRM)

•  Utilization of individuals to achieve organizational objectives

•  Concern of all managers at every level


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HRM Functions


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Human Resource

Management

Human Resource

Development C

ompe

nsat

ion

Staffing

Employee and

Labor Relations

Safety and Health


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Staffing

Process of ensuring the organizaBon always has: •  Proper number of employees

•  Employees with appropriate skills

•  Employees in the right jobs at the right Bme


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Job Analysis

•  Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

•  Impacts virtually every aspect of HRM

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Human Resource Planning

•  Matching internal and external supply of people with anticipated job openings over specified period of time

•  Sets the stage for recruitment or other HR actions

Recruitment and Selection

Recruitment: AKracBng individuals to apply for jobs

•  Must be Bmely

•  Applicants need appropriate qualificaBons

•  Need sufficient number of applicants

Selec.on: Choosing individual best suited for a parBcular posiBon and the organizaBon


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Human Resource Development Major HRM function; includes:

– Training – Development – Career planning – Career development – Organization development – Performance management – Performance appraisal


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Training and Development

Training: Providing learners with knowledge and skills needed for their present jobs

Development: Offering learning that goes beyond present job

•  Long-‐term focus


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Career Planning and Development

Planning is an ongoing process. •  Individual sets career goals •  IdenBfies means to achieve them

Development is a formal approach used by the organizaBon.

•  Ensures a pipeline of people with proper qualificaBons and experiences


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Organization Development

Planned and systemaBc aKempt to:

– Make the organizaBon more effecBve

– Create posiBve behavioral environment

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Performance Management

Goal-‐oriented process to ensure organizaBonal processes are in place to maximize producBvity

•  Applies to employees, teams, and ulBmately, the organizaBon


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Performance Appraisal

Formal system of review and evaluation –  Individual – Team

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Compensation

All rewards that individuals receive as a result of their employment

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Financial Compensation

Direct: Pay employee receives in form of wages, salaries, bonuses, or commissions

Indirect: Benefits employee receives •  Paid vacaBons, sick leave, holidays,

medical insurance


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Nonfinancial Compensation

Satisfaction that person receives from: – Job itself – Psychological and/or physical

environment


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Safety and Health

Safety: Protecting employees from injuries caused by work-related accidents

Health: Employees' freedom from illness and their general physical and mental well-being

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Labor Unions and Collective Bargaining

•  Businesses are required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them.

•  Human resource activity with a union is often referred to as industrial relations.


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Internal Employee Relations

HRM activities associated with the movement of employees within the organization

– Promotions – Demotions – Terminations – Resignations

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Interrelationships of HRM Functions

•  All HRM functions are interrelated

•  Each function affects the others

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DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT

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Environment of Human Resource Management


Legal Considerations

•  Federal, state, and local legislation

•  Court decisions •  Presidential

executive orders

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Labor Market

•  Potential employees located within certain geographic area

•  Always changing


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Society

Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation

Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves


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Unions

•  Group of employees who have joined together to collectively bargain with their employer

•  Become a third party when dealing with the company

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Shareholders

•  Owners of corporation •  Have invested money in firm •  May at times challenge programs

considered by management to be beneficial to organization


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Competition

•  In product or service and labor markets

•  Firms must maintain a supply of competent employees

•  Bidding war often results


Customers

•  People who actually use firm’s goods and services.

•  Employment practices should not antagonize members of the market the firm serves.

•  Workforce should be capable of providing top-quality goods and services.

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Trends and Innovations: The Many Uses of Social Networking

•  Virtual community of people using the Internet to communicate

•  Encompasses wikis, blogs, LinkedIn, Facebook, and Twitter

•  Facilitates interactions among people who cannot easily meet in person


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HR Technology

Rapid technological changes provide: •  Increased sophisBcaBon •  Ability to design more useful human resource informaBon systems (HRIS)


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HRIS

•  An organized approach for obtaining information on which to base HR decisions

•  An umbrella for merging the various subsystems

•  Mainstay HR responsibilities need an HRIS

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Economy

•  When economy is booming, it is ocen more difficult to recruit qualified workers.

•  In economic downturn, more applicants are typically available.



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Unanticipated Events

•  Unforeseen occurrences in external environment

•  Require a tremendous amount of adjustment with regard to HRM

HR’S CHANGING STRATEGIC ROLE


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HR’s Changing Role: Questions

•  Can some HR tasks be performed more efficiently by line managers or outside vendors?

•  Can some HR tasks be centralized or eliminated?

•  Can technology perform tasks that were previously done by HR personnel?


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Who Performs Human Resource Management Tasks?

•  Human resource managers •  HR outsourcing •  HR shared service centers •  Professional employer organization

(employee leasing) •  Line managers


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Human Resource Manager

•  Historically, the HR manager was responsible for each of the five HR funcBons.

•  Acts in advisory or staff capacity. •  Works with other managers to help them deal with human resource maKers.

•  Today, HR departments conBnue to get smaller.


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HR Outsourcing

•  Transfers responsibility to an external provider – Discrete services – Multi-process services – Business process outsourcing

(BPO)


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Discrete Services

•  Single set of high-volume repetitive functions is outsourced to a third party

•  Typically transactional HR activities •  Example: 401(k) administration


Multi-Process Services

•  Complete outsourcing of one or more human resource processes.

•  Example: Procter & Gamble outsourced training operations.

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Business Process Outsourcing (BPO)

•  Majority of HR services are transferred to third party.

•  Example: Whirlpool Corporation signed 10-year deal to outsource HR business.

•  Kraft Foods Inc. and IBM signed a multi-year BPO agreement.


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HR Shared Service Centers (SSCs)

Takes routine, transaction-based activities that are dispersed and consolidates them in one location


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Professional Employer Organization (Employee Leasing)

Company that leases employees to other businesses

Advantages: –  Economies of scale – Greater job mobility for workers –  Job security through leasing company –  PEO can handle compliance requirements of programs


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Line Managers Performing HR Tasks

•  Involved with human resources by nature of their jobs

•  Now performing some duties typically done by HR

EVOLUTION OF HUMAN RESOURCE MANAGEMENT


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Human Resource Executives, Generalists, and Specialists

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Traditional Human Resource Function in Large Firm

•  Included separate sections. •  Sections are placed under an HR

manager. •  Each HR function may have a supervisor

and staff. •  HR manager works closely with top

management in formulating policy.


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The Evolving HR Organization •  HR outsourcing •  HR shared service centers •  Professional employer organizaBon

•  Line manager

•  HR becoming more strategic



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A Possible Evolving HR Organization Example

President and CEO

Vice President, OperaBons

Vice President, Strategic Human

Resources

Vice President, Finance

Director of Safety and Health

Training & Development (Outsourced)

CompensaBon (Shared Service

Centers)

Staffing (Line Managers, use of Applicant Tracking Systems)

Vice President, MarkeBng

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Managing Human Capital in a Borderless World

•  Throughout this text, cultural differences among countries will be identified as a major factor influencing global business.

•  Borderless world adds dramatically to the difficulty of managing human capital.

•  A country’s culture is the set of values, symbols, beliefs, languages, and norms that guide human behavior within the country.


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Oliver Aul Class 1 Comp