Chapter 1 Strategic Role of HRM

Know HR Critical for all managers So you don’t make mistakes Lawsuits Turnover Low productivity High costs of mistakes

Managers achieve goals with and through others Management Functions Planning Organizing Staffing…..HR Focus Leading Controlling

Line and Staff aspects of HR Authority…the right to direct others Line authority Staff authority Implied authority

Staffing Functions Job analysis Personnel planning Selection, hiring, terminations Performance appraisals Legal compliance Training and Development Compensation Safety Labor relations Testing

HR walks a fine line Must assist management but still be an advocate for employees Look page #8 HR Org. Chart Look Page #9 Who handles what?

HR’s Changing Role 1. Becoming broader 2. Globalization 3. Tech advances 4. Exporting jobs by million jobs will move off shore 5. Nature of work Increase in nontraditional workers Increase need for knowledge workers Human Capital Service workers

Changing role cont. 6. Workforce demographics Decreased numbers of older workers Asian increase of 81% since 92 Hispanic increase of 8% since 92 45% working women have children under age 3

The HR Scorecard Measures HR contribution to the organizations strategic direction Measures value creation METRICS performance measures page 15 HR on average =.8% operating exp. 1 HR person to 100 employees

HPWS High Performance Work Systems HR policies and practices designed for a particular set of strategic goals. better at hiring, screening training, testing etc.

New HR Proficiencies You must: 1. Know HR functions 2. Have business knowledge 3. Leadership 4. Be a great learner 5. Know law

Ethics and HR HR is involved in initiation of ethical values and Codes of Ethics Example Sarbanes Oxley Erroneous financial reporting No personal loans to execs Execs give up stock options and bonuses in reports are not accurate

Society of Human Resource Management SHRM HR Certifications PHR Student PHR SPHR Look #19 Body of knowledge covered on certification tests Back of book page # 685

___refers to the tendency of firms to extend their business to new markets abroad. A. Exporting B. Employment exodus C. Globalization

Today over ____ of the U.S. workforce is employed in producing and delivering services not products. ½ ¾ 2/3

______ are being used more and more to help contain costs. More than 13 million people in U S workforce Human capital Non traditional workers Metrics

____ ____ refers to the knowledge, education, training, skills and expertise of a firms workers. Non traditional workers Human capital Metrics

A ____ is a firm’s plan for how it will balance its internal strengths and weaknesses with external strengths and opportunities. Metrics Strategy Demographics

Between 1992 and 2005 Asian workers and others will jump by just over ____ percent

Hispanics represent ___ of the civilian labor force in % 80% 11%

Employers have to replace more and more _____ workers Female Retiring Asian

Today’s HR managers must be able to envision how HR policies and practices will support _____. Higher levels of productivity Strategic change All above

_____ are sets of performance measures HR uses to provide quantitative evidence to assess operation of their policies and practices ROI Turnover rates Metrics

Median HR expenses as a proportion of operational expense should be about _____%

There is usually ___ HR staff for every _____employees 2,100 1/100 5,5000

The _________ measures the HR functions effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals HR metric system HRPW HR Scorecard