1 MGMT 471: Human Resource Management Top 5 Skill Areas Demanded by US Occupations 1.Active Listening 2.Reading Comprehension 3.Speaking 4.Critical Thinking 5.Active Learning

2 MGMT 471: Human Resource Management Human Resource (HR) Management Human Resource (HR) Management –Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. Who Is an HR professional? Who Is an HR professional? –Every manager performs HR functions. –HR professionals/consultants design processes and systems that managers help implement.

3 Types of Organizational Assets/Resources Physical Physical Financial Financial Intangible Intangible Human Human

4 Human Capital Collective value of the capabilities, knowledge, skills, life experiences, and motivation of an employee or workforce. Core Competency A unique capability that creates high value and differentiates an organization from its competition.

5 HR Activities 1. Strategic HR Mgmt: Consulting 2. Equal Employment Opportunity 3. Planning, Recruiting and Staffing 4. HR Development & Performance management 5. Compensation and Benefits 6. Health, Safety, and Security 7. Employee and Labor Relations

6 HR Activities

7 Smaller Organizations and HR Management Competing for qualified workers Competing for qualified workers Relative cost of benefits Relative cost of benefits Rising taxes, overhead Rising taxes, overhead Government regulation compliance Government regulation compliance

8 HR Cooperation with Line Managers: Interviewing Example HR Unit HR Unit –Develops legal, effective interviewing techniques –Trains managers in conducting selection interviews –Conducts interviews and testing –Sends top three applicants to managers for final review –Checks references –Does final interviewing and hiring for certain job classifications Managers Managers –Advise HR of job openings –Decide whether to do own final interviewing –Receive interview training from HR unit –Do final interviewing and hiring where appropriate –Review reference information –Provide feedback to HR unit on hiring/rejection decisions

9 FIGURE Training Example: A Typical Division of HR Responsibilities

10 HR Management Roles Administrative Administrative Operational and employee advocate Operational and employee advocate Strategic Strategic

11 Changing Roles of HR Management

12 Old vs. New Paradigm

13 Contemporary HR Management Challenges Globalization Globalization Economic conditions Economic conditions Technological changes Technological changes Workforce demographics and diversity Workforce demographics and diversity Organizational pressures/issues Organizational pressures/issues –Restructuring –Budget constraints

14 Employee-Friendly Benefit Offerings

15 HR and Technology Human Resource Management System (HRMS) Human Resource Management System (HRMS) –An integrated system providing information used by HR management in decision making. –Purposes and Benefits of HRMS Administrative and operational efficiency Administrative and operational efficiency Availability of data for HR strategic planning, etc. Availability of data for HR strategic planning, etc. Automation of payroll / benefit activities Automation of payroll / benefit activities EEO/affirmative action tracking, DOCUMENTATION EEO/affirmative action tracking, DOCUMENTATION ROI data compilation ROI data compilation

16 Ethical Behavior and Organizational Culture Organizational Culture Organizational Culture –The shared values and beliefs in an organization Fostering Ethical Behavior (Sarbanes-Oxley) Fostering Ethical Behavior (Sarbanes-Oxley) –Have a written code of ethics and conduct standards –Provide ethical behavior training and advice –Establish confidential reporting systems for ethical misconduct –Provide whistle-blower vehicle, protection –Support HR’s role as keeper and voice of organizational ethics

17 Examples of Ethical Misconduct related to HR Activities Types of MisconductExamples of Employee, Supervisor, and Managerial Behavior Compensation Misrepresenting hours and time worked Falsifying expense reports Personal bias in performance appraisals and pay increases Inappropriate overtime classifications Employee Relations Employees lying to supervisors Executives/managers providing false information to public, customers, and vendors Personal gains/gifts from vendors Misusing/stealing organizational assets and supplies Intentionally violating safety/health regulations Staffing and Equal Employment Favoritism in hiring and promotion Sexual harassment Sex, race, and age discrimination in hiring, discipline, and termination

18 Assessing HR Effectiveness HR Audit HR Audit –Formal research effort evaluating the current state of HR management in an organization –Audit areas: Legal compliance Legal compliance Administrative processes Administrative processes Recordkeeping Recordkeeping Employee retention Employee retention Benefits Benefits Absenteeism and turnover control Absenteeism and turnover control Performance management system Performance management system

19 Trends related to HR Diversity Diversity Unemployment rate Unemployment rate Boomers Boomers Employees, employer less committed Employees, employer less committed Health coverage costs up 78%, workers worried Health coverage costs up 78%, workers worried Only 43% satisfied with current jobs Only 43% satisfied with current jobs 31% plan to look for a new job in % plan to look for a new job in 2008 Housing market Housing market Time, flexibility highly important to 65% Time, flexibility highly important to 65% Ethics, privacy Ethics, privacy Technology Technology Outsourcing Outsourcing

20 HR Competencies and Careers Competencies Competencies –Strategic consultation –Business knowledge –HR practice development –Implementation of HR practice –Technological expertise –Credibility, ethicality

21 HR Management as a Career HR GeneralistHR Specialist A person who has responsibility for performing a wide variety of HR activities. A person who has in-depth knowledge and expertise in a limited area of HR.

22 FIGURE 1-8 HR Specialists Source: HR Department Benchmarks and Analysis 2007 (Washington, DC: Bureau of National Affairs, 2007), 131. To purchase this publication and find out more about BNA HR solutions, visit or call Used with permission.

23 Median HR Salaries (2007) HR Generalist $55,900 $55,900 Training Specialist $55,500 $55,500 Compensation Analyst $62,400 $62,400 Benefits Manager $89,200 $89,200 HR Manager $80,700 $80,700 Top HR Executive $170,000

24 FIGURE 1-9 HR Certification Details on these certifications are available from the Human Resources Certification Institute, The Human Resource Certification Institute (HRCI) offers three professional certifications for HR generalists.

25 HR Organizations Society for Human Resource Management (SHRM) Society for Human Resource Management (SHRM) American Society for Training & Development (ASTD) American Society for Training & Development (ASTD) Academy of Human Resource Development (AHRD) Academy of Human Resource Development (AHRD) Society for Industrial and Organizational Psychologists (SIOP) Society for Industrial and Organizational Psychologists (SIOP)

26 Local SHRM Opportunities ISU Student Chapter of SHRM ISU Student Chapter of SHRM – Cyclone Chapter (professional) Cyclone Chapter (professional) – Greater Des Moines Chapter Greater Des Moines Chapter –

27 Why YOU should join the ISU SHRM chapter: HR interest HR interest Guest speakers Guest speakers Free Cyclone SHRM membership Free Cyclone SHRM membership Networking Networking Leadership opportunities Leadership opportunities Resume building Resume building Food Food

28 Other websites of interest