Human Resources Management 12e Gary Dessler Copyright © 2011 Pearson Education

Human Resources Management 12e Gary Dessler HUMAN RESOURCE MANAGEMENT Global Edition 12e Human Resources Management 12e Gary Dessler Chapter 1 Introduction to Human Resource Management GARY DESSLER Copyright © 2011 Pearson Education

After studying this chapter, you should be able to: Explain what HRM is and how it relates to the management process. Discuss how managers can use HR concepts. Compare the HR responsibilities of line and staff managers. Explain the changing role of HR managers. Discuss the changing environment of HRM. Discuss HRM as a profession.

What are the five basic functions of the management process What are the five basic functions of the management process? Explain some of the specific activities involved in each function. Which function is most closely associated with human resource management? Planning Organizing Leading Staffing Controlling

Planning activities include establishing goals and standards, developing rules and procedures, and developing plans and forecasting. Organizing activities include giving specific task assignments to subordinates, establishing departments, delegating authority to subordinates, and establishing channels of authority and communication. Staffing activities include determining what type of people should be hired, recruiting prospective employees, and setting performance standards. Leading activities include maintaining morale and motivating subordinates Controlling activities include setting standards such as sales, and quality standards and taking corrective action as needed. Staffing is the function most readily related to human resource management. However, HR managers actually perform all 5 functions.

The Manager’s Human Resource Management Jobs Management process The five basic functions of planning, organizing, staffing, leading, and controlling.

Human Resource Management at Work Human Resources Management 12e Gary Dessler Human Resource Management at Work What Is Human Resource Management (HRM)? The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.. 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. Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Copyright © 2011 Pearson Education

Why Is HR Management Important to All Managers? Managers don’t want to make mistakes while managing.

Personnel Aspects Of A Manager’s Job Conducting job analyses (determining the nature of each employee’s job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment Understanding employment laws Knowing employee health and safety issues

Human Resource Management Processes Human Resources Management 12e Gary Dessler Human Resource Management Processes Acquisition Training Appraisal Compensation Labor Relations Health and Safety Fairness Human Resource Management (HRM) HRM involves several processes. The topics we’ll discuss will provide you with concepts and techniques needed to perform the “people” or personnel aspects of your job as a manager. Copyright © 2011 Pearson Education

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 company in court because of discriminatory actions 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

Getting results Basic HR Concepts The bottom line of managing HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.

Line and Staff Aspects of HRM Authority The right to make decisions, direct others’ work, and give orders. Line manager (Line Authority) A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff manager (Staff Authority) A manager who assists and advises line managers.

Line Managers’ HRM Responsibilities Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs new to them Improving the job performance of each person creative cooperation and developing smooth working relationships Interpreting the firm’s policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale Protecting employees’ health and physical condition

Functions of the HR Manager Line Function Line Authority Implied Authority Staff Functions Staff Authority Functions of HR Managers Coordinative Function Functional Authority A line function: The HR manager directs the activities of the people in his or her own department and in related service areas. A coordinative function: HR managers also coordinate personnel activities, a duty often referred to as functional control. Staff (assist and advise) functions:Assisting and advising line managers is the heart of the HR manager’s job.

Employee Advocacy HR must take responsibility for: Clearly defining how management should be treating employees. Making sure employees have the mechanisms required to contest unfair practices. Represent the interests of employees within the framework of its primary obligation to senior management.

Size of HR Department Depends on company size Small Company: Only a few personnel Large Company: Full range of HR specialist for each different function

HR in Small Business Small firms (say, with less than 100 employees) generally can’t afford a full-time human resource manager FIGURE 1–2 Human Resources Organization Chart for a Small Company

Example of HR department in a large company

Human Resource Specialties Human Resources Management 12e Gary Dessler Human Resource Specialties Recruiter EEO coordinator Labor relations specialist Training specialist Job analyst Compensation manager 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. Copyright © 2011 Pearson Education

Examples of HRM Job Duties 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.

Examples of HR Job Duties (cont’d) 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.

New Approaches to Organizing HR Human Resources Management 12e Gary Dessler New Approaches to Organizing HR Transactional HR group Corporate HR group Embedded HR unit New HR Services Groups Centers of Expertise Employers are experimenting with offering HR services in new ways. For example, some employers organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise. Copyright © 2011 Pearson Education

The New Human Resources Organization Transactional HR group Focuses on using centralized call centers and vendors to provide specialized support in day-to-day transactional HR activities. Embedded HR group Assigns HR generalists to departments like sales and production to provide the assistance the departments need Corporate HR group Focuses on assisting top management in “top-level” issues. Centers of expertise groups Provide specialized assistance in areas such as organizational change

Cooperative Line and Staff HR Management Some common practices:

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Environment of Human Resource Management EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT Unions Society Technology 1 Marketing Operations Legal Considerations Staffing Human Resource Management Human Resource Development Employee and Labor Relations Finance Compensation Other Functional Areas Economy Safety and Health Shareholders Customers Competition Labor Market © 2008 by Prentice Hall

The Changing Environment of Human Resource Management Major changes or trends as follows: A_Globalization and Competition B-Indebtedness (“Leverage”) and Deregulation C-Technological Trends D-Trends in the Nature of Work Changes and Trends in Human Resource Management E-Workforce Demographic Trends F-Economic Challenges and Trends

The Changing Environment Of HR Management A- Globalization Tendency of companies to extend sales, ownership, or production to other countries . More competition  more pressure to be “world class”  Lower costs and to increase productivity of employees E.g. Toyota produces cars in China, Thailand and many other countries.

The Changing Environment Of HR Management B-Indebtedness (“Leverage”) and Deregulation. - In many countries, government stipends stripped away rules and regulations. C-Technological Advances HR faces the challenge of quickly applying technology to the task of improving its own operations

D-Trends in the Nature of Work Human Resources Management 12e Gary Dessler D-Trends in the Nature of Work High-Tech Jobs Service Jobs Changes in How We Work Knowledge Work and Human Capital Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital). Copyright © 2011 Pearson Education

1-High-Tech Jobs :More jobs have gone high tech, requiring workers to have more education and skills. Even traditional jobs require more math, reading, writing and computer skills than ever before 2- Service Jobs: Most newly created jobs are and will continue to be in the service sector. 3-Human Capital :refers to the knowledge, education, training, skills, and expertise of a firm’s workers.

E- Changes in workforce demographics Diversified workforce  staff employed are of different race, religion, nationality, gender, age and culture Challenge for HR manager 1-Demographic 2- “Generation Y” 3-Retirees 4-Nontraditional Workers 5- Workers from Abroad

Important Trends in HRM Human Resources Management 12e Gary Dessler Important Trends in HRM The New HR Managers High-Performance Work Systems Strategic HRM Evidence-Based HRM Managing Ethics HR Certification Human Resource Management Trends Trends like these translate into changes in HRM practices, and in what employers expect from their human resource managers. Copyright © 2011 Pearson Education

Meeting Today’s HRM Challenges Human Resources Management 12e Gary Dessler Meeting Today’s HRM Challenges Focus more on “big picture” (strategic) issues Find new ways to provide transactional services   The New Human Resource Managers Acquire broader business knowledge and new HRM proficiencies  HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans. Copyright © 2011 Pearson Education

The Changing Role Of HR Management Strategic Planning The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. 3 questions in strategic planning Current business position Future business position expected to be How to get to expected future business position

The Changing Role Of HR Management Strategic HRM Formulating HR policies and introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals. HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies Top management wants to see how the HR manager’s plans will make the company more valuable.

High-Performance Work Systems(HPWS) Human Resources Management 12e Gary Dessler High-Performance Work Systems(HPWS) 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 A high-performance work system is a set of HRM policies and practices that together produce superior employee performance. Copyright © 2011 Pearson Education

Human Resources Management 12e Gary Dessler Evidence-Based HRM Actual measurements Existing data Providing Evidence for HRM Decision Making Research studies Evidence-based HRM is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on. Copyright © 2011 Pearson Education

Human Resources Management 12e Gary Dessler 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 Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee-related decisions. Copyright © 2011 Pearson Education

Human Resources Management 12e Gary Dessler 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 As the human resource manager’s job becomes more demanding, HRM is becoming more professionalized. The Society for Human Resource Management’s (SHRM) HR professional certification exams test the HR professional’s knowledge of all aspects of HRM. Copyright © 2011 Pearson Education

Strategy and the Basic HR Process

KEY TERMS management process human resource management (HRM) authority line manager staff manager line authority implied authority functional control employee advocacy globalization nontraditional workers human capital strategy metrics HR Scorecard outsourcing