HUMAN RESOURCE MANAGEMENT

Global Editio13e

Chapter 1
Introduction to
Human Resource
Management

Part 1 Introduction

PowerPoint Presentation by Charlie Cook

Copyright © 2011 Pearson Education GARY DESSLER The University of West Alabama
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.

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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 Human Resource Management
Processes
Acquisition

Fairness Training

Human
Resource
Management
Health and
(HRM) Appraisal
Safety

Labor Relations Compensation

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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
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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 cited by OSHA for 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

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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.

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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. Ex Team leader, Operation manager
• Staff Manager
 Assists and advises line managers.
 Has functional authority to coordinate personnel activities
and enforce organization policies. Ex HR Manager

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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

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Human Resource Managers’ Duties

Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

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 HUMAN RESOURCE MANAGERS’
DUTIES
 Line Function: The HR manager/manager directs the activities of the
people in his/her own department. General activities of the department.
HR department general activities are performance evaluation, job
description preparation, prepare HR report etc.
 Coordinative function: The HR manager also coordinates personnel
activities. Here he/she ensures that line managers implementing the
firms HR policies and practices. Ex stick to apply 360 degree method for
performance appraisal.
 Staff function: Assisting and advising the line manager is the key
responsibility of HR manager. HR manager advices the CEO so that the
CEO can better understand the employee needs. Ex CEO always wants
employees should stay longer hours in the office but HR makes the CEO
understand that this is against health and safety policy and there will be
no work life balance if employees stay longer.
1–11
 Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training
Job analyst
specialist

Compensation
manager

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 Human Resource Specialties
• Recruiters search for qualified job applicants.
• Equal employment opportunity (EEO) coordinators
investigate and resolve EEO grievances; examine
organizational practices for potential violations; and
compile and submit EEO reports.
• Job analysts collect and examine information about jobs
to prepare job descriptions.
• Compensation managers develop compensation plans
and handle the employee benefits program.
• Training specialists plan, organize, and direct training
activities.
• Labor relations specialists advise management on all
aspects of union–management relations.
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New Approaches to Organizing HR

New HR Services Groups

Transactional Corporate Embedded Centers of

HR group HR group HR unit Expertise

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 • Transactional HR: Traditional HR activity like hiring
employees, training, performance measure and exit
interview.
• Corporate HR group: focuses on assisting top
management in big picture issues such as developing
and explaining the personnel characteristics of the
company’s long term strategic plans
• Embedded HR unit: assigns HR generalists directly to
department like sales and production. They provide
the localized HRM assistance the department need
• Center of expertise: specialized HR consulting firms
within the company for instance they provide
specialized assistance in areas like organizational
change

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 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

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Trends in the Nature of Work

Changes in How We
Work

Knowledge Work
High-Tech Service
and Human
Jobs Jobs
Capital

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 High tech job: All the manufacturing factories are
becoming automated day by day. So they need
technical knowledge people
 Service jobs: Service based businesses are now
increasing day by day
 Knowledge work and human capital: Human
capital refers to the knowledge, education, training,
skills and expertise of a firms worker.

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Workforce and Demographic
Trends

Demographic Trends

Generation “Y”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

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 WORKFORCE AND
DEMOGRAPHIC TRENDS

Demographic Trend: number of migrant workers are increasing and white

workers are replaced by black workers.
Generation Y: Individuals who were born between 1980s and 1990s. This
generations seek more creative challenge and aim work faster and better
than others.
Retirees: Senior workers are going for retirement and there is not enough
young capable workers to fill that position.
Nontraditional workers: Workers who hold multiple jobs. Does not confine in
one job.
Workers from abroad: Companies now hire managers from abroad if they
can not find the manager in the local market.

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 Important Trends in HRM

The New HR
Managers

Strategic High-
HRM Performance
Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

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 Strategic HRM
• Strategic Human Resource Management means
formulating and executing hr policies and practices that
produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
• It makes a connection between the business goal and
HR goal.
• Strategic human resource management do not work
independently within a silo; they interact with other
departments within an organization in order to
understand their goals and then create strategies that
align with those objectives, as well as those of the
organization.

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 Meeting Today’s HRM Challenges

The New Human

Resource Managers

Acquire
Focus more Find new
broader
on “big ways to
business
picture” provide
knowledge
(strategic) transactional
and new HRM
issues services
proficiencies

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 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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High-Performance Work Systems
• Creating such an environment to 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

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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

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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

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