Chapter 1

MANAGING HUMAN
RESOURCES

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 What Do I Need to Know?

L O 1-1 Define human resource management, and explain how

HRM contributes to an organization’s performance.
L O 1-2 Identify the responsibilities of human resource
departments.
L O 1-3 Summarize the types of competencies needed for
human resource management.
L O 1-4 Explain the role of supervisors in human resource
management.
L O 1-5 Discuss ethical issues in human resource management.
L O 1-6 Describe typical careers in human resource
management.

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 POLLING QUESTION In an organization, who should be concerned
with HRM?
A. Only the HR department
B. Only managers
C. Only top-level managers
D. All of the above

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 Human Resource Management (HRM)

The policies, practices,

and systems that
influence employees’:
• Behavior
• Attitudes
• Performance
©nd3000/Shutterstock

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 Figure 1.1 HRM Practices

Jump to long description in appendix.

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 Figure 1.2 Impact of HRM

Jump to long description in appendix.

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 Human Resources and Company Performance 3

High-Performance Work System

• Technology, organizational structure, people, and
processes all work together to give an organization a
competitive advantage
• As technology changes the ways organisations
manufacture, transports, communicate, and keep track of
information
• HRM must ensure that the organisation has the right kinds
of people to meet the new challenges

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 Human Resources and Company Performance 2

Sustainable Competitive Advantage

• An organization is better than competitors at something
and can hold that advantage over a sustained period of
time
• HR give organizations advantages because human
resources:
• Are valuable
• Are rare
• Cannot be imitated
• Have no good substitutes

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 Responsibilities of Human Resource Departments 1
Let’s think of HR as a business within the company with
3 Product Lines
Administrative services and transactions - Handling
administrative tasks (for example, hiring employees and
answering questions about benefits) efficiently and with a
commitment to quality.
Business partner services - Developing effective HR systems
that help the organization meet its goals for attracting,
keeping, and developing people with the skills it needs.
Strategic partner - Contributing to the company’s strategy
through an understanding of its existing and needed human
resources and ways HR practices can give the company a
competitive advantage.
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 Table 1.1 Responsibilities of HR Departments 1

Function Responsibilities
Analysis and Work analysis; job design; job descriptions
design of work
Recruitment and Recruiting; job postings; interviewing; testing;
selection coordinating use of temporary labor
Training and Orientation; skills training; career development
development programs
Performance Performance measures; preparation and
management administration of performance appraisals; discipline
Compensation Wage and salary administration; incentive pay;
and benefits insurance; vacation leave administration; retirement
plans; profit sharing; stock plans

Sources: Bureau of Labor Statistics, “Human Resources Managers,” Occupational Outlook Handbook, 2014–2015, January 8, 2014,
[Link] SHRM-BNA Survey No. 66, “Policy and Practice Forum: Human Resource Activities, Budgets, and Staffs, 2000–2001,” Bulletin
©McGraw-Hill Education. to Management, Bureau of National Affairs Policy and Practice Series (Washington, DC: Bureau of National Affairs, June 28, 2001).
 Table 1.1 Responsibilities of HR Departments 2

Function Responsibilities
Employee Attitude surveys; labor relations; employee
relations handbooks; company publications; labor law
compliance; relocation and outplacement services
Personnel policies Policy creation; policy communication
Employee data Record keeping; HR information systems;
and workforce analytics
information
systems
Compliance with Policies to ensure lawful behavior; reporting;
laws posting information; safety inspections;
accessibility accommodations
Support for Human resource planning and forecasting; talent
strategy management; change management

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 Responsibilities of Human Resource Departments 2
Job Analysis
• Process of getting
detailed information
about jobs
Job Design
• Process of defining
the way work will be
performed and the
tasks that a given job ©Lars A. Niki

requires

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 Responsibilities of Human Resource Departments 3

Recruitment
• Process through which the organization seeks applicants
for potential employment
Selection
• Process by which the organization identifies applicants
with the necessary knowledge, skills, abilities, and other
characteristics that will help the organization achieve its
goals

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 Responsibilities of Human Resource Departments 4

Training
• A planned effort to enable employees to learn job-related
knowledge, skills, and behavior
Development
• Acquisition of knowledge, skills, and behaviors that
improve an employee’s ability to meet changes in job
requirements and in customer demands

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 Responsibilities of Human Resource Departments 5

Performance Management
• Process of ensuring employees’ activities and outputs
match the organization’s goals
• HR may be responsible for developing or obtaining
questionnaires and other devices for measuring
performance

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 Responsibilities of Human Resource Departments 6
Planning Pay & Benefits Administrating Pay & Benefits
• Determine how much • Need systems for keeping
salary, wages, bonuses, track of employees’
commissions, and other earnings and benefits
performance-related pay to • Employees need
offer
information about benefits
• Determine which benefits plans
to offer and how much of • Requires extensive record
the cost is shared by
keeping and reporting
employees

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 Responsibilities of Human Resource Departments 7

Maintaining Positive Employee Relations

• Preparing and distributing employee handbooks and
company publications
• Dealing with and responding to communications from
employees
• Negotiating union contracts and maintaining
communication with union representatives

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 Responsibilities of Human Resource Departments 8

Establishing and Administering Personnel Policies

• Hiring
• Discipline
• Promotions
• Benefits
HR personnel communicate through a variety of
channels

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 Responsibilities of Human Resource Departments 9

Managing and Using Human Resource Data

• Workforce analytics: Use of quantitative tools and
scientific methods to analyze data from human resource
databases and other sources to make evidence-based
decisions that support business goals

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 Responsibilities of Human Resource Departments 10

Ensuring Compliance with Labor Laws

• Government requirements include:
• Filing reports and displaying posters
• Avoiding unlawful behavior

• Managers depend on HR to help them track these

requirements
• Lawsuits continue to influence HRM practices concerning
job security
• Employment at will, age discrimination, etc.

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 Responsibilities of Human Resource Departments 11

Supporting the Organization’s Strategy

• HR planning: Identifying the numbers and types of
employees the organization requires to meet objectives
• Talent management: Systematic, planned effort to attract,
retain, develop, and motivate highly skilled employees and
managers
• Evidence-based HR: Collecting and using data to show
human resource practices have a positive influence on
company’s bottom line or key stakeholders

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 Responsibilities of Human Resource Departments 12

Supporting the Organization’s Strategy continued

• Managing change
• Sustainability: Ability to profit without depleting
resources, including employees, natural resources, and
support of surrounding community
• Stakeholders: Parties with an interest in the company’s
success
• Typically includes shareholders, community, customers, and
employees

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 POLLING QUESTION _____ is the HR function that is primarily
concerned with ensuring employees are
capable of doing their current jobs, while
_____ is the HR function that ensures
employees are satisfied with their rewards.
A. Development; employee relations
B. Training; pay and benefits
C. Selection; pay and benefits
D. Training; legal compliance

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 Skills of HRM Professionals

SHRM HR Success Competencies

• Define knowledge and skills associated with success in
HRM
• Four clusters of competencies:
• Technical
• Interpersonal
• Business
• Leadership

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Figure 1.3 Competencies for HR Professionals

Jump to long description in appendix.

Source: Based on Society for Human Resource Management, SHRM

 HR Responsibilities of Supervisors

The company’s founders are the first supervisors

Supervisors have many HR responsibilities
• Consider the ways that decisions and policies will affect
their employees

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 Figure 1.4 Supervisors’ Involvement in HRM

Jump to long description in appendix.

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 Ethics in Human Resource Management 1

Ethics
• Fundamental principles of right and wrong
Ethical behavior
• Behavior that is consistent with those principles
Many ethical issues in the workplace involve HRM

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 Ethics in Human Resource Management 2

Employee Rights
• Right of free consent – People have the right to be treated only as they
knowingly and willingly consent to be treated.
• Right of privacy – People have the right to do as they wish in their private
lives, and they have the right to control what they reveal about private
activities.
• Right of freedom of conscience – People have the right to refuse to do what
violates their moral beliefs, as long as these beliefs reflect commonly
accepted norms.
• Right of freedom of speech – People have the right to criticize an
organization’s ethics, if they do so in good conscience and their criticism does
not violate the rights of individuals in the organization.
• Right to due process – If people believe their rights are being violated, they
have the right to a fair and impartial hearing.

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 Figure 1.5 Standards for Identifying Ethical Practices

Jump to long description in appendix.

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 Careers in Human Resource Management

• Salaries vary depending on education and

experience
• Some positions are generalists, some are specialized
• Most positions require a college degree

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 Figure 1.6 Median Salaries for HRM Positions

Jump to long description in appendix.

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Source: Data from O*NET OnLine, [Link]
Appendix of Image Long
Descriptions
 Appendix to Figure 1.1 HRM Practices

The important H R M practices that should support the

organization’s business strategy include analysis and
design of jobs, H R planning, recruiting, selection,
training and development, performance management,
compensation, and employee relations.

Return to original slide

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 Appendix to Figure 1.2 Impact of HRM

Human resource management impacts the type of

human capital, which includes training, experience,
judgment, intelligence, relationships, and insight; and
the behavior of human capital, which includes
motivation and effort. They both lead to organizational
performance, which includes quality, profitability, and
customer satisfaction.

Return to original slide

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 Appendix to Figure 1.3 Competencies for HR Professionals

The Technical competency includes Human Resource

Expertise.
The Interpersonal competency includes Relationship
Management, Communications, and Global and
Cultural Effectiveness.
The Business competency includes Consultation, Critical
Evaluation, and Business Acumen.
The Leadership competency includes Leadership and
Navigation and Ethical Practice.

Return to original slide

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 Appendix to Figure 1.4 Supervisors’ Involvement In HRM

Some common areas of involvement for supervisors

include: help define jobs; forecast HR needs; provide
training; interview and select candidates; appraise
performance; recommend pay increases and
promotions; communicate policies; and motivate, with
support from pay, benefits, and other rewards.

Return to original slide

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 Appendix to Figure 1.5 Standards for Identifying
Ethical Practices
1. greatest good for greatest number; 2. respect for
basic human rights; and 3. fair and equitable.

Return to original slide

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 Appendix to Figure 1.6 Median Salaries for HRM Positions

Median salaries are:

$120,000 for compensation and benefits manager
$110,000 for human resource manager
$110,000 for training and development manager
$65,000 for instructional designer or technologist
$65,000 for labor relations specialist
$60,000 for human resource specialist
$60,000 for training and development specialist
$40,000 for human resource assistant

Return to original slide

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