Session # 01- Introduction to HRM.ppt

Introduction to Human Introduction to Human Resource Management Resource Management

Chapter 1Chapter 1

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–2

Human Resource Management at Human Resource Management at WorkWork• What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?

The process of acquiring, training, appraising, and The process of acquiring, training, appraising, and compensating employees, and of attending to their labor compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.relations, health and safety, and fairness concerns.

• OrganizationOrganization People with formally assigned roles who work together to People with formally assigned roles who work together to

achieve the organization’s goals.achieve the organization’s goals.

• ManagerManager The person responsible for accomplishing the organization’s The person responsible for accomplishing the organization’s

goals, and who does so by managing the efforts of the goals, and who does so by managing the efforts of the organization’s people.organization’s people.


1.1. Explain what human resource management is and how Explain what human resource management is and how it relates to the management process.it relates to the management process.

2.2. Show with examples why human resource management Show with examples why human resource management is important to all managers.is important to all managers.

3.3. Illustrate the human resources responsibilities of line Illustrate the human resources responsibilities of line and staff (HR) managers.and staff (HR) managers.

4.4. Briefly discuss and illustrate each of the important Briefly discuss and illustrate each of the important trends influencing human resource management.trends influencing human resource management.

5.5. List and briefly describe important trends in human List and briefly describe important trends in human resource management.resource management.

6.6. Define and give an example of evidence-based human Define and give an example of evidence-based human resource management.resource management.

7.7. Outline the plan of this book.Outline the plan of this book.

LEARNING OUTCOMESLEARNING OUTCOMES


The Management ProcessThe Management Process

Planning

Organizing

Leading Staffing

Controlling

Evolution of HR Evolution of HR ManagementManagement• HR management as a specialized function in organizations began its HR management as a specialized function in organizations began its

formal emergence shortly before 1900. formal emergence shortly before 1900. • Before that time, most hiring, firing, training, and pay-adjustment Before that time, most hiring, firing, training, and pay-adjustment

decisions were made by individual supervisors.decisions were made by individual supervisors.• The scientific management studies conducted by Frederick W. Taylor The scientific management studies conducted by Frederick W. Taylor

and others, beginning in 1885, helped management identify ways to and others, beginning in 1885, helped management identify ways to make work more efficient and less fatiguing, thus increasing worker make work more efficient and less fatiguing, thus increasing worker productivity.productivity.

• As organizations grew larger, many managerial functions such as As organizations grew larger, many managerial functions such as purchasing and personnel began to be performed by specialists.purchasing and personnel began to be performed by specialists.

• The growth of organizations also led to the establishment of the first The growth of organizations also led to the establishment of the first personnel departments about 1910.personnel departments about 1910.

• Work by individuals such as Frank and Lillian Gilbreth dealt with task Work by individuals such as Frank and Lillian Gilbreth dealt with task design and efficiency.design and efficiency.

• The Hawthorne Studies, conducted by Elton Mayo in the mid-The Hawthorne Studies, conducted by Elton Mayo in the mid-1920s, revealed the impact of work groups on individual workers.1920s, revealed the impact of work groups on individual workers.

• Ultimately, these studies led to the development and use of Ultimately, these studies led to the development and use of employee counseling and testing in industry.employee counseling and testing in industry.

Evolution of HR Evolution of HR ManagementManagement• 1930s TO 1950s1930s TO 1950s• In the 1930s, the passage of several major labor laws, such as the In the 1930s, the passage of several major labor laws, such as the

National Labor Relations Act of 1935, led to the growth of unions.National Labor Relations Act of 1935, led to the growth of unions.• . The importance of collective bargaining and union/management . The importance of collective bargaining and union/management

relations following the labor unions’ rise to power in the 1940s and relations following the labor unions’ rise to power in the 1940s and 1950s expanded the responsibilities of the personnel area in many 1950s expanded the responsibilities of the personnel area in many organizations, especially those in manufacturing, utilities, and organizations, especially those in manufacturing, utilities, and transportation.transportation.

• Such work as keeping payroll and retirement records, arranging Such work as keeping payroll and retirement records, arranging stockholder visits, managing school relations, and organizing stockholder visits, managing school relations, and organizing company picnics was often the major role of personnel departments.company picnics was often the major role of personnel departments.

• The role of the HR department in the organization as a staff function The role of the HR department in the organization as a staff function to support operational (line) departments expanded during this to support operational (line) departments expanded during this period, and line/staff issues grew to influence HR departments in the period, and line/staff issues grew to influence HR departments in the following decades.following decades.

Evolution of HR Evolution of HR ManagementManagement• 1960s TO 1980s1960s TO 1980s• Increased legal requirements and constraints arising from Increased legal requirements and constraints arising from

the social legislation of the 1960s and 1970s forced the social legislation of the 1960s and 1970s forced dramatic changes in the HR departments of most dramatic changes in the HR departments of most organizations.organizations.

• HR departments had to become much more professional HR departments had to become much more professional and more concerned about the legal ramifications of and more concerned about the legal ramifications of policies and practices. Also, organizations took a new policies and practices. Also, organizations took a new look at employee involvement and quality of work as a look at employee involvement and quality of work as a result of concerns about the impact of automation and job result of concerns about the impact of automation and job design on worker productivity.design on worker productivity.

• During the 1980s, the strategic role of HR management During the 1980s, the strategic role of HR management became essential as organizations reduced staff, closed became essential as organizations reduced staff, closed plants, or “restructured.” Outplacing employees and plants, or “restructured.” Outplacing employees and retraining the rest became prime concerns of HR retraining the rest became prime concerns of HR departments. Containing the costs of health-care benefits departments. Containing the costs of health-care benefits also grew in importance.also grew in importance.

Evolution of HR Evolution of HR ManagementManagement• 1990s -Present1990s -Present• Changing demographics and increasing Changing demographics and increasing

shortages of workers with the needed capabilities shortages of workers with the needed capabilities have grown in importance.have grown in importance.

• Related to the demographic shifts, HR Related to the demographic shifts, HR management has had to address the issues and management has had to address the issues and implications of workforce diversity.implications of workforce diversity.

• Both the out-scourcing of HR activities and the Both the out-scourcing of HR activities and the computerization of the administrative aspects of computerization of the administrative aspects of HR activities, even in small firms, have receivedHR activities, even in small firms, have received

attention as well.attention as well.


Personnel Aspects of a Manager’s Personnel Aspects of a Manager’s JobJob• Conducting job analyses Conducting job analyses

• Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates

• Selecting job candidatesSelecting job candidates

• Orienting and training new employeesOrienting and training new employees

• Managing wages and salariesManaging wages and salaries

• Providing incentives and benefitsProviding incentives and benefits

• Appraising performanceAppraising performance

• Communicating Communicating

• Training and developing managersTraining and developing managers

• Building employee commitmentBuilding employee commitment


Personnel MistakesPersonnel Mistakes• Hire the wrong person for the jobHire the wrong person for the job

• Experience high turnoverExperience high turnover

• Have your people not doing their bestHave your people not doing their best

• Waste time with useless interviewsWaste time with useless interviews

• Have your firm in court because of discriminatory actionsHave your firm in court because of discriminatory actions

• Have your firm cited by OSHA for unsafe practicesHave your firm cited by OSHA for unsafe practices

• Have some employees think their salaries are unfair and Have some employees think their salaries are unfair and inequitable relative to others in the organizationinequitable relative to others in the organization

• Allow a lack of training to undermine your department’s Allow a lack of training to undermine your department’s effectivenesseffectiveness

• Commit any unfair labor practicesCommit any unfair labor practices


Human Resource Management Human Resource Management ProcessesProcesses

Acquisition

Training

Appraisal

CompensationLabor Relations

Health and Safety

Fairness

Human Resource

Management (HRM)


Basic HR ConceptsBasic HR Concepts• The bottom line of managing:The bottom line of managing:

Getting resultsGetting results

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

• Looking ahead: Using evidence-based Looking ahead: Using evidence-based HRM to measure the value of HR activities HRM to measure the value of HR activities in achieving those goals.in achieving those goals.

“HR should be defined not by what it does, but by what it delivers”

David Ulrich

HR Management In HR Management In TransitionTransition• The changing role of HR requires that there The changing role of HR requires that there

should be a balance between being an employee should be a balance between being an employee advocate and being a strategic business advocate and being a strategic business contributorcontributor

• HR management has three roles in HR management has three roles in organizations.organizations.

1.1.The administrative roleThe administrative role2.2.The operational roleThe operational role3.3.The strategic roleThe strategic role• The traditional administrative and operational The traditional administrative and operational

roles of HR management have broadened to roles of HR management have broadened to include more strategic facets.include more strategic facets.

Administrative Role of HR Administrative Role of HR ManagementManagement• The administrative role of HR management is heavily The administrative role of HR management is heavily

oriented to processing and record keeping.oriented to processing and record keeping.• Maintaining employee files and HR-related databases, Maintaining employee files and HR-related databases,

processing employee benefits claims, answering processing employee benefits claims, answering questions about tuition and/or sick leave policies, and questions about tuition and/or sick leave policies, and compiling and submitting required state and federal compiling and submitting required state and federal government reports are all examples of the administrative government reports are all examples of the administrative nature of HR management.nature of HR management.

• These activities must be performed efficiently and These activities must be performed efficiently and promptly.promptly.

• This role resulted in HR management in some This role resulted in HR management in some organizations getting the reputation of paper shufflers organizations getting the reputation of paper shufflers who primarily tell managers and employees what cannot who primarily tell managers and employees what cannot be done.be done.

• If limited to the administrative role, HR staff are seen If limited to the administrative role, HR staff are seen primarily as clerical and lower-level administrative primarily as clerical and lower-level administrative contributors to the organization.contributors to the organization.

Operational Role of HR Operational Role of HR ManagementManagement• Operational activities are tactical in nature.Operational activities are tactical in nature.

- Compliance with laws must be ensured- Compliance with laws must be ensured- employment applications must be processed- employment applications must be processed- current openings must be filled through interviews,- current openings must be filled through interviews,- supervisors must be trained- supervisors must be trained- wages and salaries must be administered..- wages and salaries must be administered..

• In short, a wide variety of the efforts performed typically are In short, a wide variety of the efforts performed typically are associated with coordinating the management of HR activities with associated with coordinating the management of HR activities with the actions of managers and supervisors throughout the organizationthe actions of managers and supervisors throughout the organization

• This operational emphasis still exists in some organizations, partly This operational emphasis still exists in some organizations, partly because of:because of:- individual limitations of HR staff members - individual limitations of HR staff members - top management’s resistance to an expanded HR role- top management’s resistance to an expanded HR role

• The operational role requires HR professionals to identify and The operational role requires HR professionals to identify and implement operational programs and policies in the organization.implement operational programs and policies in the organization.

• They are the major They are the major implementors implementors of the HR portion of organizational of the HR portion of organizational strategic plans developed by top management, rather than being strategic plans developed by top management, rather than being deeply involved in developing those strategic plans.deeply involved in developing those strategic plans.

Strategic Role of HR ManagementStrategic Role of HR Management

• Organizational human resources have grown as strategic Organizational human resources have grown as strategic emphasis because effective use of people in the emphasis because effective use of people in the organization can provide a organization can provide a competitive advantagecompetitive advantage

• The strategic role of HR management emphasizes that The strategic role of HR management emphasizes that the people in an organization are valuable resources the people in an organization are valuable resources representing significant organizational investments.representing significant organizational investments.

• For HR to play a strategic role it must focus on the longer-For HR to play a strategic role it must focus on the longer-term implications of HR issues.term implications of HR issues.

- How changing workforce demographics and workforce How changing workforce demographics and workforce shortages will affect the organization, what means will be shortages will affect the organization, what means will be used to address the shortages over timeused to address the shortages over time

• The importance of this role has been the subject of The importance of this role has been the subject of extensive discussion recently in the field, and those extensive discussion recently in the field, and those discussions have emphasized the need for HR discussions have emphasized the need for HR management to become a greater strategic contributor to management to become a greater strategic contributor to the success of organizations.the success of organizations.


Line and Staff Aspects of HRMLine and Staff Aspects of HRM• Line ManagerLine Manager

Is authorized (has line authority) to direct the work of Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the subordinates and is responsible for accomplishing the organization’s tasks.organization’s tasks.

• Staff ManagerStaff Manager Assists and advises line managers.Assists and advises line managers. Has functional authority to coordinate personnel activities Has functional authority to coordinate personnel activities

and enforce organization policies.and enforce organization policies.


Line Managers’ HRM Line Managers’ HRM ResponsibilitiesResponsibilities1.1. 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 Gaining creative cooperation and developing smooth working relationshipsworking relationships

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


Human Resource Managers’ DutiesHuman Resource Managers’ Duties

Line FunctionLine Authority

Implied Authority

Staff FunctionsStaff Authority

Innovator/Advocacy

Functions ofHR Managers

Coordinative Function

Functional Authority


FIGURE 1–1 Human Resources Organization Chart for a Large Organization


FIGURE 1–2 Human Resources Organization Chart for a Small Company


Human Resource SpecialtiesHuman Resource Specialties

Recruiter

EEO coordinatorLabor relations

specialist

Training specialist

Job analyst

Compensation manager

Human Resource

Specialties


Trends Shaping Human Resource Trends Shaping Human Resource ManagementManagement

Globalization and Competition

Trends

Technological Trends

Indebtedness (“Leverage”)

and Deregulation

Trends in the Nature of Work

Workforce and Demographic

Trends

Economic Challenges and

Trends

Trends in HR Management


FIGURE 1–4 Trends Shaping Human Resource Management


Trends in the Nature of WorkTrends in the Nature of Work

High-Tech Jobs

Service Jobs

Changes in How We Work

Knowledge Work and Human

Capital


Workforce and Demographic Workforce and Demographic TrendsTrends

Demographic Trends

Generation “Y”

Retirees

Nontraditional Workers

Trends Affecting Human

Resources


Important Trends in HRMImportant Trends in HRM

The New HR Managers

High-Performance

Work Systems

Strategic HRM

Evidence-Based HRM

Managing Ethics

HR Certification

Human Resource

Management Trends


Meeting Today’s HRM ChallengesMeeting Today’s HRM Challenges

Focus more on “big picture”

(strategic) issues

Find new ways to provide

transactional services

The New Human Resource Managers

Acquire broader business

knowledge and new HRM proficiencies


TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers (ASPs) and technology outsourcing

ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively

Internet- and network-monitoring software

Used to track employees’ Internet and e-mail activities or to monitor their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping

Electronic bill presentment and payment

Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers

Data warehouses and computerized analytical programs

Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees’ skills with the firm’s projected strategic needs


FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes


High-Performance Work SystemsHigh-Performance Work Systems

• Increase productivity and performance by:Increase productivity and performance by: Recruiting, screening and hiring more effectivelyRecruiting, screening and hiring more effectively Providing more and better trainingProviding more and better training Paying higher wagesPaying higher wages Providing a safer work environmentProviding a safer work environment Linking pay to performanceLinking pay to performance


Evidence-Based HRMEvidence-Based HRM

Actual measurements

Existingdata

Providing Evidence for HRM Decision

Making

Research studies


Managing EthicsManaging Ethics• EthicsEthics

Standards that someone uses to decide Standards that someone uses to decide what his or her conduct should bewhat his or her conduct should be

• HRM-related Ethical IssuesHRM-related Ethical Issues Workplace safetyWorkplace safety Security of employee recordsSecurity of employee records Employee theftEmployee theft Affirmative actionAffirmative action Comparable workComparable work Employee privacy rightsEmployee privacy rights

Documents

Session # 01- Introduction to HRM.ppt