McGraw-Hill/Irwin © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. CHAPTER 1 MANAGING HUMAN RESOURCES

1-2 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 1.Definition of HRM and how HRM contributes to an organization’s performance. 2.Responsibilities of HR departments. 3.Types of skills needed for HRM. 4.Role of supervisors. 5.Ethical issues in HRM. 6.Typical careers HRM. Need To Know

1-3 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Human Resource Management (HRM) The policies, practices, and systems that influence employees:  behavior  attitudes  performance

1-4 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.1 HRM Practices

1-5 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Employees and customers tend to be more satisfied. The companies tend to:  be more innovative  have greater productivity  develop a more favorable reputation in the community Companies With Effective HRM:

1-6 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Human Capital Human Capital – an organization’s employees described in terms of their:  training  experience  judgment  intelligence  relationships  insight The concept of HRM implies that employees are resources of the employer.

1-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.2 Impact of HRM

1-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part..  An organization can succeed if it has sustainable competitive advantage.  HR give organizations advantages because human resources are valuable, cannot be imitated, have no good substitutes and with needed skills and and knowledge are sometimes rare. HRM and Sustainable Competitive Advantage

1-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. An organization in which technology, organizational structure, people, and processes all work together to give an organization a competitive advantage. High-Performance Work System

1-10 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Administrative services and transactions Business partner services Strategic partner HR Product Lines

1-11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Table 1.1 Responsibilities of HR Departments

1-12 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Analyzing and Designing Jobs Job Analysis Process of getting detailed information about jobs. Job Design Process of defining the way work will be performed and the tasks that a given job requires.

1-13 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Recruiting and Hiring Employees Recruitment The process through which the organization seeks applicants for potential employment. Selection The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals.

1-14 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Which of the following are top qualities employers look for in employees? 1. Teamwork skills 2. Decision making, problem solving 3. Planning, prioritizing tasks 4. Verbal communication skills 5. Gathering/processing information 6. All the above Top Qualities Employers Look For in Employees

1-15 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Training and Developing Employees Training A planned effort to enable employees to learn job-related knowledge, skills, and behavior. Development Acquisition of knowledge, skills, and behaviors that improve an employee’s ability to meet changes in job requirements and in customer demands.

1-16 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Performance Management – The process of ensuring that employees’ activities and outputs match the organization’s goals. HR may be responsible for developing or obtaining questionnaires and other devices for measuring performance. Managing Performance

1-17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Planning & Administering Pay & Benefits Planning Pay & Benefits  How much salary, wages bonuses, commissions, and other performance-related pay to offer.  Which benefits to offer and how much of the cost will be shared by employees. Administering Pay & Benefits  Systems for keeping track of employees’ earnings and benefits are needed.  Employees need information about their benefits plan.  Extensive record keeping and reporting is needed.

1-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Preparing and distributing:  employee handbooks and policies  company publications and newsletters Dealing with and responding to communications from employees questions:  about benefits and company policy, possible discrimination or harassment, safety hazards, etc. Collective bargaining and contract administration. HR negotiates union contracts and maintains communication with union representatives to ensure that problems are resolved. Maintaining Positive Employee Relations

1-19 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Organizations depend on HR to help establish and communicate policies related to:  hiring  discipline  promotions  benefits All aspects of HRM require careful and discreet record keeping. Establishing and Administering Personnel Policies

1-20 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Workforce Analytics - use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals. Workforce Analytics

1-21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Government requirements include:  filing reports and displaying posters  avoiding unlawful behavior Managers depend on HR professionals to help them keep track of these requirements. Lawsuits will continue to influence HRM practices concerning job security. Ensuring Compliance with Labor Laws

1-22 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. One reason W.L. Gore is repeatedly named one of the 100 Best Companies to Work For in the United States is the company’s unusual corporate hierarchy that dispenses with titles in favor of small teams and direct communication among employees.

1-23 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. HR planning – identifying the numbers and types of employees the organization will require to meet its objectives. Talent Management- a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers. Evidence-based HR– Collecting and using data to show that human resource practices have a positive influence on the company’s bottom line or key stakeholders. Supporting the Organization’s Strategy

McGraw-Hill/Irwin © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Corporate Social Responsibility A company’s commitment to meeting the needs of its stakeholders. Corporate Social Responsibility The parties with an interest in the company’s success (typically, shareholders, the community, customers, and employees.) Sustainability An organization’s ability to profit without depleting its resources, incl. employees, natural resources, and support of surrounding community. Supporting the Organization’s Strategy

1-25 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.3 Competencies and Behaviors for HR Professionals

1-26 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. In an organization, who should be concerned with HRM? A.Only HR B.Only managers C.Managers, supervisors and HR Who is Responsible for HR?

1-27 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.4 Supervisors’ Involvement In HRM ALERT

1-28 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Ethics – fundamental principles of right and wrong. Ethical behavior is behavior that is consistent with those principles. Many ethical issues in the workplace involve HRM. Ethics – fundamental principles of right and wrong. Ethical behavior is behavior that is consistent with those principles. Many ethical issues in the workplace involve HRM. Ethics In HRM

1-29 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. free consentprivacy freedom of conscience freedom of speech due process Employee Rights

1-30 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. 1.In their relationships with customers, vendors, and clients, ethical companies emphasize mutual benefits. 2.Employees assume responsibility for the actions of the company. 3.The company has a sense of purpose or vision that employees value and use in their day-to-day work. 4.They emphasize fairness. Ethical companies act according to four principles:

1-31 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.5 Standards for Identifying Ethical Practices

1-32 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Figure 1.6 Median Salaries for HRM Positions

1-33 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Which HR functions are primarily concerned with 1.ensuring employees are capable of doing their current job and 2.ensuring that employees are satisfied with their rewards? A.1) Development 2) Employee Relations B.1) Training 2) Legal Compliance C.1) Selection 2) Pay & Benefits D.1) Training2) Pay & Benefits Test Your Knowledge

1-34 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. HRM consists of an organization’s“people practices”  policies, practices, and systems that influence employees’ behavior, attitudes, and performance.  influences who works for the organization and how those people work.  responsible for a variety of functions related to acquiring and managing employees. Summary

1-35 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. HRM requires human relations skills, including:  communicating  negotiating  team development HR professionals also need to :  understand the language of business  be a credible with line managers and executives  be strategic partners HRM requires human relations skills, including:  communicating  negotiating  team development HR professionals also need to :  understand the language of business  be a credible with line managers and executives  be strategic partners Summary (continued)

1-36 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part..  Non-HR managers must be familiar with the basics of HRM and their own role with regard to managing HR.  Supervisors typically have responsibilities related to all HR functions such as analyzing work, interviewing, training and performance appraisals.  HR professionals should make decisions consistent with sound ethical principles. Summary (continued)

1-37 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.. Decisions of HR professionals should:  result in the greatest good for the largest number of people.  respect basic rights of privacy, due process, consent, and free speech.  treat employees and customers equitably and fairly. Careers in HRM may involve specialized work in fields such as recruiting, training, or compensation Summary (continued)