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Chapter 1
Introduction to Human Resource Management
and the Environment
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Introduction
HRM is charged with programs concerned with people
Getting every manager involved
Effective use of people
Achieving individual & organizational goals
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HRM Activities
EEO compliance
HR planning
Training, development
Job analysis
Labor relations
Performance evaluation, compensation
Safety, health, wellness
Recruitment, selection, motivation, orientation
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HRM Orientation
Action
People
Future
Global
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A Brief History of HRM
Personnel departments were created to deal with:Drastic changes in technologyOrganizational growthThe rise of unionsGovernment interventionEmployee-management conflict
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Strategic Importance of HRM
Today, HRM plays a major role in:Clarifying the firm’s human resource problemsDeveloping solutions for them
Strategic HRM differs from traditional HRMTraditional arrangements… responsibility for
managing human resources lies with specialists Strategic approach… people management rests with
anyone who is in direct contact with workers or line managers
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Strategic Importance of HRM
Traditional HRM Strategic HRM
Responsibility for human resources
Specialists Line managers
Objective Better performance Improved understanding and use of human assets
Role of HRM Respond to needs Lead, inspire, understand
Time focus Short-term results Short, intermediate, long term
Control Rules, policies, position power
Flexible, based on human resources
Culture Bureaucratic, top-down, centralization
Open, participative, empowerment
Major emphasis Following the rules Developing people
Accountability Cost centers Investment in human assets
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Strategic Importance of HRM
For years, HRM was not linked to corporate profitOrganizations focused on current performanceHR managers did not have a strategic perspectiveExecutives categorized HRM in a traditional mannerIt was hard to develop metrics for HRM activities
Recognizing the importance of people made HRM a major player in developing strategic plansHRM strategies must reflect the organization’s
strategy regarding people, profit, and effectiveness
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Strategic Importance of HRM
Assess/interpret costs and benefits of HRM issues
Use realistic, challenging, specific, and meaningful goals in planning models
Key Concepts to Apply
Analyze/solve problems from a profit-oriented point of view
Prepare reports on HRM solutions to problems
Train HR staff to emphasize importance of profits
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Strategic Importance of HRM
HRM accountability resulted from:
Concerns about productivity
Organizational downsizing and redesign
Increasingly diverse workforce
Competitive need to use all organizational resources
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HRM and Organizational Effectiveness
Measure of EffectivenessMeasure of Effectiveness
Reachinggoals
Reachinggoals
Usingemployeesefficiently
Usingemployeesefficiently
Influx/retention of good
employees
Influx/retention of good
employees
Mission and strategy
Mission and strategy
Company structure
Company structure HRMHRM
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HRM and Organizational Effectiveness
Coping With Change
Growing global competition
Rapidly expanding technologies
Demand for individual, team, organizational competencies
Faster cycle times
Increasing legal and compliance scrutiny
Higher customer expectations
Mechanized, routine work now knowledge-based
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Objectives of the HRM Function
Help the organization reach goals
Employ workforce skills/abilities efficiently
Increase satisfaction, self-actualization, quality of work life
Communicate HRM policies to all employees
Maintain ethical policies, socially responsible behavior
Manage change to the mutual advantage of individuals, groups, the enterprise, and the public
HRM Contributions to Effectiveness
Provide trained, motivated employees
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Providing Trained, Motivated Workers
Reward good results
Don’t reward non-performance
Make goals clear
Measure results clearly, fairly
Provide the right people at the right time
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Increasing Job Satisfaction
This job is matches my skills perfectly
The company treats me equitably
I find this job very fulfilling
Dissatisfied workers can produce as much as satisfied workers, but they quit and are absent
more often, and produce lower-quality work
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Objectives of the HRM Function
Meaningfultasks
Meaningfultasks
Work workinghours
Work workinghours
Job safetyJob safety
Good physicalsurrounds
Good physicalsurrounds
Freedom andautonomy
Freedom andautonomy
Managementstyle
Managementstyle
Quality of Work LifeQuality of Work Life
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Objectives of the HRM Function
Communicating HRM policies to all employees:HRM policies, programs, and procedures
must be communicated fully and effectively They must be represented to outsidersTop-level managers must understand what
HRM can offer
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Ethical & Socially Responsible Behavior
Show by example that HRM activities are fair, truthful,
honorable
Show by example that HRM activities are fair, truthful,
honorable
Do not discriminateDo not discriminate
Protect the basic rights of employees
Protect the basic rights of employees
Apply to all HRM activitiesApply to all HRM activities
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Trends and Changes
TelecommutingOutsourcing
HRMFamily
medical leave
Child careSpouse
relocation assistance
Pay for skills
Benefit cost-sharing
Union-management negotiation
New lifestyles, aging
population
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Objectives of the HRM Function
Shorter cycle times mean less time to:Train, educate, and assign managersSolve sexual harassment complaintsRecruit and select talented peopleImprove the firm’s image
Learning provides a framework for decreasing cycle time
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Learning Framework
Culture that rewards learning
Emphasis on working efficiently, quickly
Key Learning Areas
Leadership behaviors
Quicker, more flexible decision making
Empowerment
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Outsourcing
Downsizing
Rapid growth or decline of business
Restructuring
Globalization
Increased competition
Contributors to HRM outsourcing
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Outsourcing
Some executives assume that outsourcing can:Reduce costsImprove flexibilityPermit the hiring of specialized expertise
There is little empirical support for these assumptions
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Developing a Competitive Advantage
These must become so important and effective that every unit in the firm knows they are needed for success:
The compensation system Training opportunitiesDiversity management programs
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HRM’s Place in Management
To educate others about the HR implications of decisions, HR executives must understand
Investments Advertising
MarketingProduction
IT
R&D
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Clarifying Meaningful HRM Objectives
More specific
Strategy: The plan that integrates major objectives
Objectives: Goals that are specific and measurable
Policies: Decision making guides
Procedures/rules: Specific directions for decision making
More specific
More specific
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HRM Policy
A policy is a general guide that expresses limits within which action should occurArises from past or potential problemsFrees managers from making certain
decisionsEnsures some consistency
in behaviorAllows managers to concentrate
on decisions where they have the most experience and knowledge
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HRM Procedures
Procedures (rules) are specific directionsIn standard operating procedure (SOP) manuals Helps ensure consistent decision makingShould be well-developed, but not excessiveDevelop for only the most vital areas
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Organization of an HR Department
HR specialists are usually located at the headquarters of an organization
Chief HR Executive
Chief HR Executive
Typically reports to the top manager
Typically reports to the top manager
Small/Medium Firms
Small/Medium Firms
NonprofitsNonprofits HRM is typically a unit in the
business office
HRM is typically a unit in the business office
HRM and another function may be in a single department
HRM and another function may be in a single department
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