Human Resource Management
Sixteenth Edition, Global Edition
Chapter 1
Introduction to Human
Resource Management
Learning Objectives
1.1 Explain what human resource management is and how
it relates to the management process
1.2. Overview of HR functions.
1.3. Briefly discuss and illustrate the important trends
influencing human resource management.
1.4: Briefly Describe Six Important Components or Pillars of
Human Resource Management Today
1.5. List at Least Four Important Human Resource Manager
Competencies
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Learning Objective 1.1: Explain What Human
Resource Management Is, How It Relates to
the Management Process and overview HR
functions
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What Is Human Resource Management?
• The Management Process
– Planning
– Organizing
– Staffing
– Leading
– Controlling
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What Is Human Resource Management?
➢ HRM (Human Resource Management) consists of policies and systems that influence the
behavior, attitude, and job performance of employees within an organization.
➢ The process of acquiring, training, appraising, and compensating employees, and of attending
to their labor relations, health and safety, and fairness concerns.
(Dessler, 2013)
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Why Is Human Resource Management
Important to All Managers?
• To avoid personnel mistakes
• To improve profits and performance
• You may spend some time as an HR manager
• You may end up as your own human resource manager
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Why Is Human Resource Management
Important to All Managers?
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Why Is Human Resource Management
Important to All Managers?
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Who Manages HR?
Senior Leaders HR Managers Department Line Managers
Managers
Set strategic HR direction Handle organizational HR Directly supervise
and policies. functions; guide line Manage team HR: hiring, employees; daily HR
managers; strategic training, performance. implementation
guidance, policy (performance reviews,
development, compliance, employee concerns),
and training resources for ensuring consistent policies
effective HR practices. and a positive work
environment.
[Link]
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Line and Staff Aspects of Human
Resource Management
• Authority is the right to make decisions, to direct the work
of others, and to give orders. Managers usually distinguish
between line authority and staff authority.
– Line authority gives you the right to issue orders
– Staff authority gives you the right to advise others in
the organization
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Line Manager’s HR Management
Responsibilities (1 of 2)
• Placing the right person in the right job
• Starting new employees in the organization (orientation)
• Training employees for jobs that are new to them
• Improving the job performance of each person
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Line Manager’s HR Management
Responsibilities (2 of 2)
• Gaining creative cooperation and developing smooth
working relationships
• Interpreting the company policies and procedures
• Controlling labor cost
• Developing the abilities of each person
• Creating and maintaining departmental morale
• Protecting employees’ health and physical conditions
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Roles and Authority of the HR Department
Advisory Informational
Providing expert advice, explanations, and consultations to Collecting data and information to help address HR issues and
managers at all levels on HR matters. guide decision-making.
Coordinative Regulatory
Organizing and facilitating collaboration between the HR Monitoring and ensuring compliance with HR policies and
department and other functional areas. procedures across the organization: Ex: Termination
[Link]
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HR in a Small Business
[Link]
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HR in a Large Corporation
[Link]
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Learning Objective 1.2: Overview of HR
functions
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HR Functions
• HR planning
• Conducting job analyses
• Employee recruitment and selection
• Training and Development
• Appraising performance
• Compensation & Benefits
• Building positive employee relations.
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HR Planning
Workforce (or employment or personnel) planning is the process of deciding what positions the firm
will have to fill, and how to fill them
Environment
Organization Internal labor External labor
Strategy and supply supply
Goals
Forecast of labor Balance Forecast of labor
demand supply
Personnel
planning
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Job Analysis
Job analysis is the procedure through which you determine the duties of the company’s positions and
the characteristics of the people to hire for them.
- Job description
- Job specification
- Performance standards
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Job Analysis
Job analysis is the procedure through which you determine the duties of the company’s positions and
the characteristics of the people to hire for them.
- Job descriptions
- Job specification
- Performance standards
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Employee Recruitment and selection
(Staffing)
Selection Employee Placement
Recruitment
Assigning personnel to different
Employee recruiting means Selecting the best candidate for
positions within the organization.
finding and/or attracting the job
applicants for the employer’s
open positions.
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Training and Development
➢ Training
➢ Development
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Appraising Performance
Performance appraisal means evaluating an employee’s current and/or past performance
relative to his or her performance standards.
❖ Evaluate systematically and formally
✓Actual work performance
✓Compare with performance standards
✓Discuss with employees
❖ Performance Appraisal Methods
❖ The performance appraisal process
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Compensation and Benefits
o Establishing the strategic pay plans
o Individual employee incentive and recognition programs
o Salary Plan/Commission Plan/Combination Plan
o Benefits: Pay for time not worked, insurance benefits, retirement benefits,
personal services and family-friendly benefits….
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Motivation
Where does employee motivation come from?
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Employee relations
❖ Maintain and develop good relationships between employers and
employees within the organization.
❖ Labor contracts
❖ Resolve disputes and grievances
❖ Improve working conditions and quality of life for employees
❖ Occupational safety, healthcare, insurance...
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Learning Objective 1.4: Briefly Discuss and
Illustrate the Important Trends Influencing
Human Resource Management
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Trends in Human Resource Management
• Workforce Demographics and Diversity Trends
• Trends in Jobs People Do, and how people work
• Globalization Trends
• Economic Trends
• Technology Trends
→ GROUPWORK
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Trends in Human Resource Management
• GROUP WORK
Analyze the impact of those factors on HRM operations.
Give an example of a company
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Workforce and Demographic Trends
Demographic Trends
Generation “Z”
Trends Affecting
Human Resources
Retirees
Nontraditional Workers
1–30
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Workforce Demographics and Diversity Trends
Source: GSO (2022)
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Who is Gen Z?
- Born between 1997 – 2012
- Grew up with technology and social media
- Bringing new challenges to the workplace
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Who is Gen Z?
- Born between 1997 – 2012
- Grew up with technology and social media
- Bringing new challenges to the workplace
→ Priorities?
- Flexibility & Work-life balance
- Well-being & Supportive Environment
- Technology Integration
- Collaborative Work Culture
- Diversity, Equity & Inclusion (DEI)
- Career development opportunities
- Ethical & Corporate Responsibility
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Non-traditional workers - HRM Changes
• On-demand workers
• Single knowledge workers
• Temporary workers
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Trends in Jobs People do
Changes in How We Work
High-Tech Service Knowledge Work
Jobs Jobs and Human Capital
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Trends in how people do
- from manual to mental or knowledge work
- from face - to - face and hands - on to mediated work
- from work in a single location to work in multiple/mobile
locations
- from persistent to temporary work
- from ongoing to fragmented work
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Trends in how people do
- from fixed to flexible hours
- from work with stable content and demands to work with variable content
and demands
- from routine to creative work
- from individual to team work
- from supervised with assigned goals to non - supervised work with self -
set goals
- from supply to demand driven work
- from single - role to multirole work.
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Globalization trends
❖ Extending sales, ownership, and/or manufacturing to new markets abroad
Ex: Apple assembles iPhones in China.
❖ Free-trade areas—agreements that reduce tariffs and barriers among trading
partners
❖ Cultural differences: [Link]
❖ Institutional contexts
- Labour laws
- Social dialogue systems (role of trade union)
- Social security system (pension system)
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More on HR Technology Trends
• There are six main types of digital technologies driving
HR professionals to automation:
– Social Media
– Mobile Applications
– Cloud Computing
– Data Analytics
– Artificial Intelligence
– Augmented Reality
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More on HR Technology Trends
– Cloud Computing
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Learning Objective 1.5: Briefly Describe
Six Important Components or Pillars of
Human Resource Management Today
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1. Strategic Human Resource Management
• Strategic human resource management – means
formulating and executing human resource policies and
practices that produce the employee competencies and
behaviors that the company needs to achieve its
strategic aims.
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2. HR and Evidence-Based Management
• Evidence-based human resource management – is the
use of data, facts, analytics, scientific rigor, critical
evaluation, and critically evaluated research/case studies
to support human resource management proposals,
decisions, practices, and conclusions.
– Actual measurements
– Existing data
– Research studies
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3. HR and Adding Value
• Adding value – means helping the firm and its employees
improve in a measurable way as a result of the human
resources manager’s actions.
• HR & Branding
• Employee productivity
• Reducing employee turnover
• Employee engagement
• Strong company culture
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4. Sustainability and HRM
• It is about measuring companies in terms of maximizing
profits but also on their environmental and social
performance as well.
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Sustainability and HRM
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5. Employee Engagement and HRM
• Employee engagement refers to being psychologically
involved in, connected to, and committed to getting one’s
job done.
Ex:
- Recognition and rewards
- Career development and training
- Work-life balance and flexible working arrangements
- Employee feedback and open communication
- Employee empowerment and autonomy
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6. Ethics and HRM
• Ethics means the standards someone uses to decide what
his or her conduct should be.
• Ex
- Fair hiring and equal opportunity
- Transparent and fair compensation
- Confidentiality and employee privacy
- Preventing harassment and discrimination
- Ethical performance management
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Learning Objective 1.5: Human
Resource Manager Certification
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Human Resource Manager Certification
• HRCI Certifications
– PHR – Professional in Human Resources
– SPHR – Senior Professional in Human Resources
• SHRM now has its own competency and knowledge
based testing
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