The New Human Resource Management Process Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon Chapter 1

Video Did You Know 2009 http://www.youtube.com/watch?v=HPbO0TBxUZs Career Paths http://www.youtube.com/watch?v=-VasGrFLqW8&feature=related Workforce of Tomorrow http://www.youtube.com/watch?v=aM1YQVtlxHk&feature=related Outsourcing to India http://www.youtube.com/watch?v=FwwgXCOEYks&feature=youtu be_gdata_player Remembering the Triangle Shirtwaist Fire http://www.youtube.com/watch?v=4ulaG9x4GpE&feature=fvsr Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Why Study HRM? To learn how to engage employees more effectively. Employee engagement is a combination of both job satisfaction and a willingness to perform for the organization at a high level over an extended period of time. Organizations that engage and manage their people more successfully than their competitors have a much greater chance of being more productive and profitable than their competition. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process HRM: Past versus Present HR managers = paper pushers who organized personnel files HR = cost center or revenue center HR managers improve organizational revenues and profits by creating the right working environment HR = productivity and profit center Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process What is Productivity? Definition: The amount of output that an organization gets per unit of input, usually expressed in units of time. Productivity requires: Effectiveness: getting the job done whenever and however it must be done; “Did we do “the right things?” Efficiency: how many organizational resources we used in getting the job done; “Did we do things right?” Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process HR Managers’ Challenges: Control HR managers have no direct control over people, specifically their: Productivity. Job satisfaction. Turnover. Absenteeism. Therefore they must create workplace conditions that foster employee willingness and desire to come to work and perform effectively and efficiently. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process HR Managers’ Challenges: Job Satisfaction, Turnover and Absenteeism They are all interrelated with productivity, and affect employee (and therefore organizational) performance. Job satisfaction: the extent to which people like their jobs and the environment in which they work. Turnover: the permanent loss of workers, which costs the organization in many ways. Absenteeism: failure of an employee to report to work as scheduled. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process The HRM Strategic View HRM’s shift from reactive to proactive (i.e. taking on a strategic role), which took hold within the past 30 years, gives the organization a sustainable competitive advantage, because HRM efforts are critical to being able to carry out organizational plans and reach goals that have been defined by the overall strategic plan. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process The Main Goals of Strategic HRM To encourage employees through motivation, leadership, environmental analysis and organizational changes that work to improve job satisfaction. Doing so engages employees, which in turn increases productivity and job satisfaction, and lowers absenteeism and turnover. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Technology and Knowledge The job of the HR manager changed from administrator to strategic partner primarily because the type of work we do today has changed from requiring labor-intensive skills to technology-intensive and knowledge skills. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process 21st Century Talent Pool and Demographic Challenges for HR Managers They will compete to hire and retain technologically skilled workers due to a shortage of people with the knowledge to perform these increasingly complex jobs. They will need to be more culturally aware and able to deal with individuals with significantly different work ethics, cultural norms and even language differences. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

David Gergen Advisor to 4 Presidents, Director of Harvard’s Center for Political Leadership, and Senior Political Analyst for CNN Interview with David Gergen—Cited in a book: John Coleman, Daniel Gulati, & W. Oliver Segovia (2012). Passion & Purpose. Harvard Business Review Press. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

David Gergen’s Metaphor Don’t be afraid of failure. Climbing Ladders Riding Waves Companies come and go quickly. You will have at least 7 or 8 jobs over the course of a lifetime—3 of which have not been invented when you graduate from college (p. 53). Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Rita G. McGrath (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Boston, MA: Harvard Business Review Press. Harvard Business Review Press. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Rita G. McGrath People with skills and capabilities to help organizations surf successive waves are being rewarded. The resources that underlie competitive advantage are increasingly embedded in the relationships between people. Individuals need to be investing to maintain their skills, stay relevant, and have compelling stories of accomplishment to market their value to others. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Skills for Successful HR Management Technological skills – using methods and techniques to perform a task. Human relations skills – the ability to work well with individuals and groups. Conceptual and design skills – the ability to evaluate a situation, identify and select reasonable alternatives, and make decisions that implement solutions. Business skills – analytical and quantitative skills that help the manager understand and contribute to the profitability of the organization. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Line vs. Staff Management Line managers control what the organization does by creating and maintaining the processes and people who create what the business sells. Staff managers (HR managers) advise line management about issues that are within their fields of specialized knowledge. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Major HR Responsibilities of Line Management Legal considerations Labor cost controls Leadership and motivation Training and development Appraisal and promotion Safety and security of employees Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process HR Manager Responsibilities: Disciplines within HRM Legal: EEO and Diversity Management Staffing Training and Development Employee Relations Labor and Industrial Relations Compensation and Benefits Safety and Security Ethics and Sustainability Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process HRM Careers Professional associations and certification programs that help you obtain and advance in HR jobs: The Society for Human Resource Management (SHRM). American Society for Training and Development (ASTD) WorldatWork—Compensation, benefits, performance management. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Professional Liability The organization and managers with authority to make organizational decisions can be sued by employees who feel their rights under employment laws have been violated. Therefore you need to understand HRM concepts as thoroughly as possible. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Practitioner’s Model for HRM Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Practitioner’s Model for HRM - Section I: Strategy, the legal environment and diversity management are the basis for everything else that a 21st century HR manager does; they are the most critical to the organization’s basic stability and success. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Practitioner’s Model for HRM Getting the right people into the right jobs allows the organization to get its work done successfully over long periods of time. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

High Performance Work Systems Comprehensive employee recruitment and selection Compensation and Performance Management Information sharing Employment involvement and training Purpose: talented and motivated workforce Sustained competitive advantage Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Jeffery Pfeffer Thomas D. Dee Professor of Organizational Behavior at the Stanford Graduate School of Business (1998) The Human Equation: Building profits by putting people first. Harvard Business Review Press Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Pfeffer’s Seven (7) Practices of Successful Organizations 1. Employment security 2. Selective hiring of new personnel 3. Self-managed teams and decentralization 4. Comparatively high compensation contingent on organizational performance 5. Extensive training 6. Reduced status distinctions and barriers 7. Extensive sharing of financial and performance information throughout the organization Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

Google Google’s campus in San Francisco, CA has 23 restaurants. Google provides free food and drinks to employees and their guests Google issues electronic devices to employees so that they can work at anytime, anywhere Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Practitioner’s Model for HRM Managing people through training, evaluation, development, counseling, and employee and labor relations to keep them satisfied and productive. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.

The New Human Resource Management Process Practitioner’s Model for HRM Rewarding and maintaining workers through compensation and benefits packages, and protecting worker safety and health, to ensure ongoing organizational success. Human Resource Management: Functions, Applications, Skill Development by Robert N. Lussier and John R. Hendon © 2012 SAGE Publications, Inc.