PowerPoint Presentation by Charlie Cook The University of West Alabama SECTION 1 Environment for Human Resource Management © 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. CHAPTER 1 Human Resource Management in Organizations

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–2 Chapter Objectives Define human capital and identify the seven categories of HR activities.Define human capital and identify the seven categories of HR activities. Discuss how organizational culture and HR are related and identify four areas that are part of these relationships.Discuss how organizational culture and HR are related and identify four areas that are part of these relationships. Explain how organizational ethical issues affect HR management.Explain how organizational ethical issues affect HR management. Provide an overview of six challenges facing HR today.Provide an overview of six challenges facing HR today. Describe how the major roles of HR management are being transformed.Describe how the major roles of HR management are being transformed. Explain the key competencies needed by HR professionals and why certification is important.Explain the key competencies needed by HR professionals and why certification is important. After you have read this chapter, you should be able to:

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–3 Nature of Human Resource Management Human Resource (HR) ManagementHuman Resource (HR) Management  Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals. Who Is an HR Manager?Who Is an HR Manager?  In the course carrying out their duties, every operating manager is, in essence, an HR manager.  HR specialists design processes and systems that operating managers help implement.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–4 Types of Organizational Assets Assets PhysicalFinancialIntangibleHuman

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–5 FIGURE 1–1 Core Competencies in Possible HR Areas

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–6 Human Capital in Organizations Human Capital The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce. Core Competency A unique capability that creates high value and differentiates an organization from its competition.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–7 FIGURE 1–2 HR Management Functions

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–8 HR Management: Interlinked Functions 1.Strategic HR Management 2.Equal Employment Opportunity 3.Staffing 4.Talent Management and Development 5.Total Rewards: Compensation and Benefits 6.Risk Management and Worker Protection 7.Employee and Labor Relations

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–9 Organizational Culture and HR Organizational CultureOrganizational Culture  Is the shared values and beliefs in an organization.  Is the internal “climate” of the organization that employees, managers, customers, and others experience.  Positively affects service and quality, productivity, and financial results when aligned with HR values and organizational goals.  Is affected by differences in cultural dimensions from country to country and even within countries.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–10 Hofstede’s Dimensions of Culture Inequality of Power Individualism/ Group Orientation Masculinity/ Femininity Long-term/ Short-term Orientation Uncertainty Avoidance Culture

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–11 Organizational Productivity Productivity A measure of the quantity and quality of work done, considering the cost of the resources used. Unit Labor Cost A measure of HR productivity computed by dividing the average cost of workers by their average levels of output.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–12 FIGURE 1–3 Approaches to Improving Organizational Productivity Goals Increase organizational productivity Reduce unit labor costs Restructuring the Organization Revising organizational structure Reducing staff Aiding in mergers and acquisitions Re-Designing Work Changing workloads and combining jobs Reshaping jobs due to technology changes Outsourcing Using domestic vendors/contractors instead of employees Outsourcing operations internationally Aligning HR Activities Attracting and retaining employees Training, developing, and evaluating employees Compensating employees and other HR activities

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–13 Social Responsibilities and HR HR Advantages and Social ResponsibilitiesHR Advantages and Social Responsibilities  Attracting and retaining employees  Achieving sustainability in dealing with economic challenges  Creating a “green culture” Global Social Responsibility and HRGlobal Social Responsibility and HR  Results in higher organizational images globally, better employee morale and loyalty, and more competitive advantages with consumers

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–14 Customer Service and Quality Linked to HR Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness.Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness. Human Resource Management Social Responsibility Customer Service Quality

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–15 Employee Engagement and HR Culture Employee EngagementEmployee Engagement  Is the extent to which individuals feel linked to organizational success and how the organization performs positively. Social NetworkingSocial Networking  Involves communicating to other employees, nonwork friends, community contacts, and others.  Has evolved from personal contacts and oral communications to include:  and text messages  Twitters  Blogs

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–16 FIGURE 1–4 Business Ethics and HR Management Consequences

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–17 Ethical Behavior and Organizational Culture Ethics Program Elements Written code of ethics and standards of conduct Employee training on ethical behaviors Advice to employees on ethical situations Confidential reporting of ethical problems

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–18 HR’s Role in Organizational Ethics Legal QuestionEthical Question Does the behavior or result meet all applicable laws, regulations, and government codes? Does the behavior or result meet both organizational standards and professional standards of ethical behavior?

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–19 FIGURE 1–5 Examples of HR-Related Ethical Misconduct Activities

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–20 HR Ethics and Sarbanes-Oxley (SOX) Reduce the likelihood of illegal and unethical behaviors by:Reduce the likelihood of illegal and unethical behaviors by:  Having a written code of ethics and conduct standards  Providing ethical behavior training and advice  Establishing confidential reporting systems for ethical misconduct  Providing whistle-blower protection  Supporting HR’s role as “keeper and voice” of organizational ethics

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–21 Current HR Management Challenges Human Resource Management Organizational Cost Pressures and Restructuring Economics and Job Changes Workforce Demographics and Diversity Globalization of Organizations and HR

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–22 Economics and Job Changes Future Job Change Concerns Occupational Shifts Workforce Availability and Quality Talent Management Growth in Contingent Workforce

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–23 FIGURE 1–6 Fastest Growth in Job Changes to 2016 Source: U.S. Bureau of Labor Statistics,

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–24 FIGURE 1–7 Hourly Compensation Costs for Manufacturing Production Workers Source: U.S. Bureau of Labor Statistics,

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–25 HR Technology Human Resource Management System (HRMS)Human Resource Management System (HRMS)  An integrated system providing information used by HR management in decision making. Purposes of HRMS Data CollectionPurposes of HRMS Data Collection  Administrative and operational efficiency in :  Automation of payroll and benefit activities  EEO/affirmative action tracking  Web-based communication with employees  Availability of data for HR strategic planning

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–26 Uses of a Web-Based HRMS HRMS on the Internet Bulletin Boards Data Access Employee Self-Service Extended Linkage

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–27 Smaller Organizations and HR Management HR Issues Shortage of Qualified Workers Increasing Costs of Benefits Rising Taxes Government Regulation Compliance

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–28 HR Cooperation with Operating and Line Managers HR UnitHR 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 ManagersManagers  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

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–29 FIGURE 1–8 Typical Division of HR Responsibilities: Recruiting

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–30 HR Management Roles Administrative Operational and Employee Advocate Strategic

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–31 FIGURE 1–9 Roles of HR Management

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–32 HR Management Competencies and Careers HR Competencies Strategic Contribution Business Knowledge HR Delivery HR Technology Personal Credibility

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–33 HR Management as a Career Field HR GeneralistHR Specialist A person who has responsibility for performing a variety of HR activities. A person who has in- depth knowledge and expertise in a limited area of HR.

© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.1–34 FIGURE 1–10 HR Certifications at a Glance * In addition to meeting the exam eligibility requirements, successful exam candidates usually have the above work experience.