Human Resource Management 4/27/2017 Human Resource Management Chapter One Introduction to HRM Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Definition Human resource management (HRM) HRM is about managing people in organizations as effectively as possible for the good of the employees, the company and society Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Key Terms HR practices—tools a company uses to manage employees Line manager—individuals responsible for supervising and directing a group of employees to perform tasks HR department—support function that designs and implements company policies for managing employees Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Why is HRM Important and Essential? The Changing Environment of HRM Globalization Extremely high level of competition A vast number of nations with low wages and highly skilled workers Dynamic legal, political and social realities Consumers demanding high quality at low prices © 2005 Prentice Hall Inc. All rights reserved.

Why is HRM Important and Essential? The Changing Environment of HRM The nature of work Rapid tecnological advances Workforce demographics Changing values and educational qualifications © 2005 Prentice Hall Inc. All rights reserved.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Sayings of CEO’s “I am the ultimate believer in people first, strategies second. To me, strategy starts with the personyou hire. If a business lacks a good strategy, then put in charge of the business someone who will develop one” (Jack Welch, CEO, General Electric) We must have people who use facts and knowledge to add something.... To add valueto our customers’ business. In an age where everyone has basically the same information at the same time, the advantage goes to people who can take information and quickly put it to effective and profitable use. It means having people with what can be called the “mind of the strategist”...people who can create a competitive advantage... Out of common knowledge” (Robarto Gouzueta, Coca-Cola Company) Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

PERSONNEL MANAGEMENT VS HR MANAGEMENT Element Personnel Management HR Manegement Employee Relations Adversarial Developmental and Collaborative Orientation Reactive and piecemeal Proaktive and business focused Organization Separate functions Integrated functions Client Management Management and employees Values Order, equity consistency Client and problem focused, tailored solutions Role of Specialist Regulatory and record keeping Problem sensing, tailored solutions Role of line management Passive ownership Active ownership Overall output Compartmentalized thinking and acting Linking various hr levers to business needs Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Goals of HRM Overall Goals Productivity Quality of Working Life Legal Compliance Competitive Advantage Workforce adaptibility Bottom Line Survival Competitiveness Growth Profitability Flexibility Specific Goals Attract Retain Motivate Retrain Human Resources Management Activities Understanding the environment Human Resources Planning Recruitment and Placement Training Performance Management Compensation Management Career Management Union Relations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Primary HR Activities Work design and workforce planning Job Design and Job Analysis Personnel Planning Managing employee competencies Recruitment&Selection Training and Development Career Management Managing employee attitudes and behaviors Performance Management Compensation Management Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Plan for this Book Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Work Design and Workforce Planning What employees do, ensuring the right people are in the right place at the right time How jobs are interconnected and aligned with the company’s objectives How employees are allocated When outsourcing, reorganization or use of contingent labor is needed Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Managing Employee Competencies Assessing knowledge, skills, abilities and other talents employees possess Recruiting potential employees with desired competencies Selecting the best candidates based on experience and/or personality Training employees in skills they need for current and future positions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Managing Employee Attitudes and Behaviors Motivating workers to improve their performance Communicating performance criteria aligned with organizational goals Providing employees with feedback Disciplining poor performers Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Who is Responsible for Managing HR There is a saying at Merck that goes like this, “Human Resources are too important not to be left to the HR Department” Then Who is Responsible???? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Line and Staff Aspects of HRM Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff manager A manager who assists and advises line managers. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Personnel Mistakes Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your department’s effectiveness Commit any unfair labor practices Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Line Managers’ HRM Responsibilities Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firm’s policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale Protecting employees’ health and physical condition Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Functions of the HR Manager A line function The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria). A coordinative function HR managers also coordinate personnel activities, a duty often referred to as functional control. Staff (assist and advise) functions Assisting and advising line managers is the heart of the HR manager’s job. © 2005 Prentice Hall Inc. All rights reserved.

Employee Advocacy HR must take responsibility for: Clearly defining how management should be treating employees. Making sure employees have the mechanisms required to contest unfair practices. Represent the interests of employees within the framework of its primary obligation to senior management. © 2005 Prentice Hall Inc. All rights reserved.

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Organization of HR Evolution of HR Department Evolution Time Introduction Growth Deployment Maturity Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The New HR Manager New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall HR as Profession HR Generalist HR Specialist Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall HR Organizations WFPMA? EAPM? PERYÖN? Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall