HUMAN RESOURCE MANAGEMENT
Chapter 1
Introduction to
Human Resource
Management
Part 1 Introduction
WHERE WE ARE NOW…
1–2
LEARNING OUTCOMES
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.
4. Briefly discuss and illustrate each of the important
trends influencing human resource management.
5. List and briefly describe important trends in human
resource management.
6. Define and give an example of evidence-based human
resource management
1–3
Human Resource Management at Work
• What Is Human Resource Management (HRM)?
The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.
• Organization
People with formally assigned roles who work together to
achieve the organization’s goals.
• Manager
The person responsible for accomplishing the organization’s
goals, and who does so by managing the efforts of the
organization’s people.
1–4
The Management Process
Planning
Controlling Organizing
Leading Staffing
1–5
Directing, being one of the preeminent
functions of Human Resource Management
that falls under __________
A) Operative functions
B) Technical functions
C) Managerial functions
D) Behavioral functions
1–6
Human Resource Management Processes
Acquisition
Fairness Training
Human
Resource
Management
Health and Safety (HRM) Appraisal
Labor Relations Compensation
1–7
Personnel Aspects of a Manager’s Job
• Conducting job analyses
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment
1–8
Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your firm in court because of discriminatory actions
• Have your firm using unsafe practices
• Have some employees think their salaries are unfair and
inequitable relative to others in the organization
• Allow a lack of training to undermine your department’s
effectiveness
• Commit any unfair labor practices
1–9
Basic HR Concepts
• The bottom line of managing:
Getting results
• HR creates value by engaging in activities
that produce the employee behaviors that
the organization needs to achieve its
strategic goals.
• Looking ahead: Using evidence-based
HRM to measure the value of HR activities
in achieving those goals.
1–10
Line and Staff Aspects of HRM
• Line Manager
Is authorized (has line authority) to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks.
• Staff Manager
Assists and advises line managers.
Has functional authority to coordinate personnel activities
and enforce organization policies.
1–11
Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth
working relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
1–12
Human Resource Managers’ Duties
Functions of
HR Managers
Line Function Coordinative Staff Functions
Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy
1–13
FIGURE 1–1 Human Resources Organization Chart for a Large Organization
1–14
FIGURE 1–2 Human Resources Organization Chart for a Small Company
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Human Resource Specialties
Recruiter
Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist Job analyst
Compensation
manager
1–16
New Approaches to Organizing HR
New HR Services Groups
Transactional HR Corporate Embedded Centers of
group HR group HR unit Expertise
1–17
Trends Shaping Human Resource
Management
Globalization
and Competition
Trends
Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends
Economic
Challenges and
Trends
1–18
FIGURE 1–4 Trends Shaping Human Resource Management
1–19
FIGURE 1–5 Employment Exodus: Percent of employers who said they
planned as of 2008 to offshore a number of these jobs
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Trends in the Nature of Work
Changes in How We Work
High-Tech Service Knowledge Work
Jobs Jobs and Human Capital
1–21
How has HRM become one of the highly
focused jobs?
A) It focuses on obtaining as well as
maintaining a satisfied workforce.
B) It results in maximum output with the
increased customer satisfaction.
C) It promotes group satisfaction with
individual development.
D) Optimum utilization of manpower by
motivation and improving efficiency.
1–22
TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016
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Workforce and Demographic Trends
Demographic Trends
Generation “Y”
Trends Affecting
Human Resources
Retirees
Nontraditional Workers
1–24
FIGURE 1–6 Gross National Product (GNP)
1–25
Important Trends in HRM
The New HR
Managers
Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based
Trends Managing
HRM Ethics
HR
Certification
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Meeting Today’s HRM Challenges
The New Human Resource
Managers
Acquire broader
Focus more on Find new ways
business
“big picture” to provide
knowledge and
(strategic) transactional
new HRM
issues services
proficiencies
1–27
TABLE 1–2 Some Technological Applications to Support HR
Technology How Used by HR
Application service providers ASPs provide software application, for instance, for processing
(ASPs) and technology employment applications. The ASPs host and manage the services
outsourcing 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- Used to track employees’ Internet and e-mail activities or to monitor
monitoring software their performance
Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping
Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate
and payment payments to employees and suppliers
Data warehouses and Help HR managers monitor their HR systems. For example, they
computerized analytical make it easier to assess things like cost per hire, and to compare
programs current employees’ skills with the firm’s projected strategic needs
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FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes
1–29
High-Performance Work Systems
• Increase productivity and performance by:
Recruiting, screening and hiring more effectively
Providing more and better training
Paying higher wages
Providing a safer work environment
Linking pay to performance
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Evidence-Based HRM
Providing Evidence for
HRM Decision Making
Actual Existing Research
measurements data studies
1–31
Managing Ethics
• Ethics
Standards that someone uses to decide
what his or her conduct should be
• HRM-related Ethical Issues
Workplace safety
Security of employee records
Employee theft
Affirmative action
Comparable work
Employee privacy rights
1–32
HR Certification
• HR is becoming more professionalized.
• Society for Human Resource Management (SHRM)
SHRM’s Human Resource Certification Institute (HRCI)
SPHR (Senior Professional in HR) certificate
GPHR (Global Professional in HR) certificate
PHR (Professional in HR) certificate
1–33
KEY TERMS
organization
manager
management process
human resource management (HRM)
authority
line authority
staff authority
line manager
staff manager
functional authority
globalization
human capital
1–34