The Nature of Human Resource Management Chapter 1

Chapter 1 Objectives 1.Describe contemporary human resource management perspectives. 2.Trace the evolution of the human resource function in organizations. 3.Identify and discuss the fundamental goals of human resource management. 4.Describe the job of human resource managers from the perspectives of professionalism and careers. 5.Discuss the setting for human resource management. 1.Describe contemporary human resource management perspectives. 2.Trace the evolution of the human resource function in organizations. 3.Identify and discuss the fundamental goals of human resource management. 4.Describe the job of human resource managers from the perspectives of professionalism and careers. 5.Discuss the setting for human resource management.

What are Human Resources? The people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards.

What is Human Resource Management? The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce— human resources—in ways that contribute to organizational effectiveness.

 Recognizing the importance of people as a source of competitive advantage  Hiring, rewarding, and managing people effectively within the limits of the law  Balancing legal and ethical concerns with the needs of the organization  Recognizing the importance of people as a source of competitive advantage  Hiring, rewarding, and managing people effectively within the limits of the law  Balancing legal and ethical concerns with the needs of the organization What are Some Contemporary HRM Perspectives?

How has HRM Evolved? Evolution of the Human Resource Function Scientific Management, Was concerned with how to structure jobs to maximize efficiency and productivity. The Human Relations Era Emphasized keeping workers happy, since “happy workers were productive workers.” Personnel Management. Organizations grew and created personnel departments to work with employees. HR Specialists The 1964 Civil Rights Act and other legal regulations made hiring and promoting employees more complex

What is HRM Like in the Electronic Age? Electronic technology has not drastically affected how human resources are managed, but certainly is affecting on how HRM systems are delivered.

What are Some Emerging HRM Challenges?

Did You Know? Human Capital What are Some Emerging HRM Challenges?

What are the Goals of HRM? Facilitating Organizational Competitiveness Enhancing Productivity and Quality Complying with Legal and Social Obligations Promoting Individual Growth and development

What are the Goals of HRM? Facilitating Organizational Competiveness Firms gain competitive advantage by effectively managing their human resources. Competitive advantage is a status achieved by a company when gaining a superior marketplace position relative to its competition. This is accomplished through cost leadership or product differentiation.

What are the Goals of HRM? The competitive advantage achieved through HRM practices is likely to be more sustainable. –Competitors rarely have access to a firm’s HRM practices; the practices are not very visible to outsiders. –Even when these practices are visible, their impact may not be as favorable when used by competitors. Management of human resources is less susceptible to imitation. Facilitating Organizational Competiveness

What are the Goals of HRM? Enhancing Productivity and Quality Studies have indicated: A strong link between HRM effectiveness and productivity. The impact of a broad range of HRM practices on shareholder return; 15–30 percent of the total value of a company could be attributed to the quality of its HRM practices.

Employment securityTraining and skill development Selectivity in recruitingCross-utilization and cross-training High wagesSymbolic egalitarianism Incentive payWage compression Employee ownershipPromotion from within Information sharingLong-term perspective Participation and empowermentMeasurement of practices Teams and job redesignOverarching philosophy Jeffrey Pfeffer identified these 16 HRM practices as contributing to productivity and quality: What are the Goals of HRM? Enhancing Productivity and Quality

What are the Goals of HRM? Complying with Legal and Social Obligations Impact of anti-discrimination laws The impact of government intervention Impact of social obligations

What are the Goals of HRM? Promoting Individual Growth and Development  Education  Skills training  Career development

Who is Responsible for Developing and Implementing HRM Practices? Human resource professionals (staff): –Establish HRM procedures and methods. –Monitor and evaluate HR practices. –Advise and assist managers on HRM-related matters. Line managers: –Direct employees’ day-to-day tasks. –Implement HRM practices. –Provide HR professionals with needed inputs for developing effective practices.

How is HRM Handled in Smaller Companies? Small organizations use operating managers to handle basic HR functions. Small independent businesses generally operate in the same way as small organizations. Very small organizations are exempt from many legal regulations. Small organizations use operating managers to handle basic HR functions. Small independent businesses generally operate in the same way as small organizations. Very small organizations are exempt from many legal regulations.

How is HRM Handled in Larger Companies? As an organization grows, a separate HR unit becomes a necessity. –At 200 to 250 employees, it establishes a self-contained HR department. –As growth continues, the HR department develops into specialized departments. As an organization grows, a separate HR unit becomes a necessity. –At 200 to 250 employees, it establishes a self-contained HR department. –As growth continues, the HR department develops into specialized departments.

How is HRM Handled in Larger Companies? HRM Function at Texas instruments

What is a Human Resource Management System?

The HRM subsystem both affects and is affected by other organizational subsystems. Utility Analysis –The attempt to measure, in objective terms, the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance. The HRM subsystem both affects and is affected by other organizational subsystems. Utility Analysis –The attempt to measure, in objective terms, the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance.

How Does Someone Enter the HR Field? Careers in HR are expected to continue to grow. How to enter the HR field:  Earn a degree—a master of science or MBA in HR.  Seek an entry level job, and become a line manager.  Join SHRM Careers in HR are expected to continue to grow. How to enter the HR field:  Earn a degree—a master of science or MBA in HR.  Seek an entry level job, and become a line manager.  Join SHRM