AEIS: 607 Lecture 1: Introduction to Human Resource Management Md. Mahbubul Alam, PhD Associate Professor

Intended Learning Outcomes (ILOs) Explain what human resource management is and how it relates to the management process. Understand the concept and technique of human resource management. Illustrate the human resources responsibilities of line and staff (HR) managers. Illustrate HR’s role in formulating and executing company strategy. Discuss why metrics and measurement are crucial to today’s HR managers. 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD What is HRM? Organization: Consists of people with formally assigned roles who work together to achieve the organization’s goals. Manager: A person who is responsible for accomplishing the organization’s goal. Management Process: Five Functions Planning: Setting goals, standards, developing rule & Procedures, plans and forecasting Organizing: coordinating subordinates’ work. Staffing: hiring, recruiting, training & developing, setting performance standards, evaluating performance. Leading: Getting others to get the job done! Controlling: Setting standards such as sales quotas, quality standards, taking corrective action 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD What is HRM? (cont’d) A process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Conducting job analysis Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training Managing wages and salaries Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitment 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD Why Is HRM? Avoid personnel mistakes Hire the wrong person Experience high turnover Have your people not doing their best Waste time with useless interviews Commit any unfair labor practice Allow a lack of training to undermine your dept’s effectiveness Improve profits and performance 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD Basic HR Concepts The bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals. ‘Capital’ is NOT the bottleneck rather company’s inability to recruit and maintain a good workforce is responsible for low performance. 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Line and Staff Aspects of HRM Authority: Is the right to make decisions, to direct the work of others, and to give orders. Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Creates a superior (order giver) -> subordinate (order receiver) relationship. e.g., (President) Get the sales presentation ready by Tuesday (Sales Director) Manages department like sales or production Staff manager A manager who assists and advises line managers. Gives a manager the right to advise other managers or employees. e.g., (HR Manager) suggests (plant manager) to use a particular selection test Manages departments that are advisory or supportive, like purchasing, HR 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Line Managers’ HRM Duties Placing the right person on 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 Gaining 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 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD HR Managers’ Duties A line function Directing activities in own dept. A coordinate function Functional authority -> ensures line managers are implementing the firm’s HR policies and practices. Staff (assist and advise) functions Assist and advise line managers. Advise CEO about company’s strategic options. Assist in hiring, training, evaluating, rewarding, counseling, promoting and firing employees. 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Who Does What? Line or Staff Managers? 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD HR Specialists: Types Recruiters Equal Employment Opportunity (EEO) Coordinators Job Analysts Compensation Managers Training Specialists Labor Relations Specialist New Approach Transactional HR group: Support day-to- day transactional activities Corporate HR group: Support “Top Level” Embedded HR: Relationship manager or HR business partner Centers of expertise: support in organizational change 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

HR Manager’s Competencies Talent Managers/Organization Designers: Mastery on HRM practice. Culture and Change Stewards: create HR practice that support firm’s cultural values. Strategy Architects: Able to establish the firm’s overall strategy. Operational Executors: Able to anticipate, draft, implement HR practices. Business Allies: Competent to apply business knowledge. Credible Activists: Respected, admired, listen to. 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

High-Performance Work System Practices Employment security Selective hiring Extensive training Self-managed teams/decentralized decision making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Benefits of a High-Performance Work System (HPWS) Generate more job applicants Screen candidates more effectively Provide more and better training Link pay more explicitly to performance Provide a safer work environment Produce more qualified applicants per position Hiring based on validated selection tests Provide more hours of training for new employees Conduct more performance appraisals 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Measuring HR’s Contribution The HR Scorecard Shows the quantitative standards, or “metrics” the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities. Measures the strategically relevant organizational outcomes of those employee behaviors. Evidence-Based HRM Use of data, facts, analytics, scientific rigor, critical evaluation and critically evaluated research/case studies to support human resource management proposal, decisions, practices and conclusions. Deliberate use of the best available evidence in making decision about the HRM practices. Evidence many come from actual measurements such as, how do the trainees like this program, or what happened to company profits after installing a particular training program? 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Prepared & Presented by Md. Mahbubul Alam, PhD 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) GPHR (Global Professional in HR) PHR (Professional in HR) certificate 4/27/2019 Prepared & Presented by Md. Mahbubul Alam, PhD

Question Please ? Acknowledgement: “Human Resource Management” by Garry Dessler, 13th Edition, Pearson.