HRM Defined Management is responsible for maintaining order; leadership is responsible for producing change. Concerns the personnel policies, managerial practices and system that influence the workforce by influencing employees’: -behavior -attitudes -performance HRM plays a major role in: Clarifying an organization’s human resource problems Developing solutions for them Two groups normally perform HRM activities: HR manager-specialists Operating managers HRM strategies must reflect the organization’s strategy regarding people, profit, and effectiveness An investment in people effects organizational effectiveness more than money, materials, or equipment

HRM and Organizational Effectiveness For a firm to survive and prosper, reasonable goals must be achieved in: Performance Legal compliance Employee satisfaction Absenteeism Turnover Training effectiveness and ROI Grievance rates Accident rates

Objectives of the HRM Function HRM Contributions to Effectiveness Help the organization reach goals Provide trained, motivated employees Employ workforce skills/abilities efficiently Increase satisfaction, self-actualization, quality of work life Communicate HRM policies to all employees Maintain ethical policies, socially responsible behavior Manage change to the mutual advantage of individuals, groups, the enterprise, and the public

Impact of Human Resource Management For an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience. This view means that employees in today’s organizations are not interchangeable, easily replaced by parts of a system, but the source of the company’s success or failure. By influencing who works for the organization and how these people work, human resources management therefore contributes to such basic measures of an organization’s success as quality, profitability, and customer satisfaction. Figure 1.2 (reproduced in this slide) shows this relationship. 4

HRM Activities Five major domains of HRM Organizational design: the interaction of people, technology and tasks performed in the context of the mission, goals, and strategic plan of the organization. Staffing: recruitment, orientation, selection, promotion and termination. Performance Management & Appraisal: assessments of individual, unit or other aggregated levels of performance to measure, and improve work performance. Employee Training & Organizational Development: establishing, fostering, and maintaining employee skills based on organizational and employee needs. Reward Systems, Benefits, & Compliance: any type of reward or benefits available to employees 1-5

HR Competencies HR Professional Professional & Business Technical Knowledge Business Competence HR Professional Integration Competence Ability to Manage and/or Lead Change 6

A Brief History of HRM English Guilds Masons, carpenters, leather workers, other craftspeople Industrial Revolution Changing work conditions and social patterns World Wars Scientific management, welfare work, industrial psychology

Strategic Importance of HRM Traditional HRM = focus on specialists Strategic HRM = all managers are responsible Responsibility for human resources Specialists Line managers Objective Better performance Improved understanding and use of human assets Role of HRM Respond to needs Lead, inspire, understand Time focus Short-term results Short, intermediate, long term Control Rules, policies, position power Flexible, based on human resources Culture Bureaucratic, top-down, centralization Open, participative, empowerment Major emphasis Following the rules Developing people Accountability Cost centers Investment in human assets

Skills of HRM Professionals With such varied responsibilities, the human resource department needs to bring together a large pool of skills. These skills fall into the four basic categories shown in Figure 1.3 on this slide. Human Relations Skills: The ability to understand and work well with other people is important to virtually any career, but human relations skills are especially significant for human resource management today. Decision-Making Skills: HR managers must make a wide variety of decisions that affect whether employees are qualified and motivated and whether the organization is operating efficiently and complying with the law. Leadership Skills: HR managers need to play a leadership role with regard to the organization’s human resources. In today’s environment, leadership often requires helping the organization manage change. Technical Skills: In HRM, professionals need knowledge of state-of-the-art practices in such areas as staffing, development, rewards, organizational design, and communication. Professionals must be able to evaluate the worth of new techniques and critically evaluate them in light of HRM principles and business value to determine which are beneficial. 9

Median Salaries for HRM Positions There are many different types of jobs in the HRM Profession. Figure 1.6 on this slide shows selected HRM positions and their salaries. The salaries vary depending on education and experience, as well as the type of industry in which the person works. As you can see from Figure 1.6, some positions involve work in specialized areas of HRM such as recruiting, training, or labor and industrial relations. The vast majority of HRM professionals have a college degree, and many also have completed post graduate work. HR professionals can increase their career opportunities by taking advantage of training and development programs. Some HRM professionals have a professional certification in HRM, but many more are members of professional associations. The primary professional organization for HRM is the Society for Human Resource Management (SHRM) with more than 210,000 members. 10

Organization of an HR Department Chief HR Executive Typically reports to the top manager Small/Medium Firms HRM and another function may be in a single department Nonprofits HRM is typically a unit in the business office HR specialists are usually located at the headquarters of an organization

HRM’s Place in Management To educate others about the HR implications of decisions, HR executives must understand Production Marketing R&D Investments IT Advertising

Changes in the Professional World Work in small groups and identify five changes in the professional world in the past 5 to 10 years. Identify one positive and one negative implication of each change from an HR perspective. Record your changes and select a speaker from your group to present your findings to the large group. 13