1. This is our revision session on HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–1 George R.Bell BscEcon.,BAOPEN Hons.,Msc., MCMI,MIBC,FRSA,FHEA.

2. HRM HRM What are HR Functions?What are HR Functions? What is HRM all about. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–2

3. Introduction to HRM What is human resource management and why it’s important to all managers. What is human resource management and why it’s important to all managers. HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job.HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. But we need to understand that HRM is also a separate function, usually with its own human resource or “HR” manager.But we need to understand that HRM is also a separate function, usually with its own human resource or “HR” manager. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–3

4. Todays Tutorial Your tutorial to day is a revision session so make sure you have got copies of the revision notes 1&2 I put on www.- uwcentre.ac.cn/hhu Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

5. Fall 2008Management 412 / Intro to HRM Page 5 HR Functions: What We Looked At Reward Systems Legal Compliance Staffing Planning Training and Development Employee and Labor Relations

6. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–6 1.You should be able to : 2.Explain what human resource management is and how it relates to the management process. 3.Show with examples why human resource management is important to all managers. 4.Illustrate the human resources responsibilities of line and staff (HR) managers. 5.Define and give examples of evidence-based human resource management.

7. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–7 Human Resource Management at Work - defining our terms What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?  The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. OrganizationOrganization  People with formally assigned roles who work together to achieve the organization’s goals. ManagerManager  The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.

8. What does HRM involve ? Most experts agree that in general management involves five functions: planning, organizing, staffing, leading, and controlling.Most experts agree that in general management involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.In total, these functions represent the management process. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–8

9. What about HRM Processes ? Line managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people.Line managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–9

10. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–10 The Management Process Planning Organizing Leading Staffing Controlling

11. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–11 Human Resource Management Processes Acquisition Training Appraisal CompensationLabor Relations Health and Safety Fairness Human Resource Management (HRM)

12. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–12 Personnel Aspects of a Manager’s Job Conducting job analysesConducting job analyses Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates Selecting job candidatesSelecting job candidates Orienting and training new employeesOrienting and training new employees Managing wages and salariesManaging wages and salaries Providing incentives and benefitsProviding incentives and benefits Appraising performanceAppraising performance CommunicatingCommunicating Training and developing managersTraining and developing managers Building employee commitmentBuilding employee commitment

13. HR Mistakes Why are the concepts and techniques of HRM important to all managers?Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing.Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–13

14. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–14 Personnel Mistakes Hire the wrong person for the jobHire the wrong person for the job Experience high turnoverExperience high turnover Have your people not doing their bestHave your people not doing their best Waste time with useless interviewsWaste time with useless interviews Have your firm in court because of discriminatory actionsHave your firm in court because of discriminatory actions

15. Mistakes Have your firm cited by regulatory bodies [by OSHA /HASA in UK] for unsafe practicesHave your firm cited by regulatory bodies [by OSHA /HASA in UK] for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organizationHave 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 effectivenessAllow a lack of training to undermine your department’s effectiveness Commit any unfair labor practices i.e breach relevant regulatory requirements.Commit any unfair labor practices i.e breach relevant regulatory requirements. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

16. Getting it Right Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking.Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success Sustainable Competitive Advantage SCA is more likely to come through good people managementRemember that success Sustainable Competitive Advantage SCA is more likely to come through good people management Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–16

17. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–17 Basic HR Concepts The bottom line of managing: Getting resultsThe bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals.HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals. Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals.Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals.

18. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–18 Line and Staff Aspects of HRM Line ManagerLine Manager  Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff ManagerStaff Manager  Assists and advises line managers.  Has functional authority to coordinate personnel activities and enforce organization policies.

19. HR MANAGERS An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers.An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–19

20. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–20 Human Resource Managers’ Duties Line Function Line Authority Implied Authority Staff Functions Staff Authority Innovator/Advocacy Functions of HR Managers Coordinative Function Functional Authority

21. Human Resources Organization The size of the human resource department reflects the size of the employer.The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart like the one in Figure 1-1 that follows would be typical, containing a full complement of specialists for each HR function. For a very large employer, an organization chart like the one in Figure 1-1 that follows would be typical, containing a full complement of specialists for each HR function. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–21

22. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–22 FIGURE 1–1Human Resources Organization Chart for a Large Organization

23. Small organisations The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. which follows. There is generally about one human resource employee per 100 company employees.The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. which follows. There is generally about one human resource employee per 100 company employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–23

24. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–24 FIGURE 1–2Human Resources Organization Chart for a Small Company

25. There are also HRM Specialists Recruiters search for qualified job applicants.Recruiters search for qualified job applicants. In the USA Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.In the USA Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports. Job analysts collect and examine information about jobs to prepare job descriptions.Job analysts collect and examine information about jobs to prepare job descriptions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–25

26. HRM Compensation managers develop compensation plans and handle the employee benefits program.Compensation managers develop compensation plans and handle the employee benefits program. Training specialists plan, organize, and direct training activities.Training specialists plan, organize, and direct training activities. Labor relations specialists advise management on all aspects of union–management relations.Labor relations specialists advise management on all aspects of union–management relations. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

27. 1–27 Human Resource Specialties Recruiter EEO coordinator Labor relations specialist Training specialist Job analyst Compensation manager Human Resource Specialties

28. Current trends shaping HR Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges.Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–28

29. Trends Trends shaping HRM are summarized in Figure 1-4.which follows.Trends shaping HRM are summarized in Figure 1-4.which follows. Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital).Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital). Demographic trends are making finding, hiring, and supervising employees more challenging.Demographic trends are making finding, hiring, and supervising employees more challenging. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

30. 1–30 Trends Shaping Human Resource Management Globalization and Competition Trends Technological Trends Indebtedness (“Leverage”) and Deregulation Trends in the Nature of Work Workforce and Demographic Trends Economic Challenges and Trends Trends in HR Management

31. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–31 Workforce and Demographic Trends Demographic Trends Generation “Y” Retirees Nontraditional Workers Trends Affecting Human Resources

32. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–32 Important Trends in HRM The New HR Managers High-Performance Work Systems Strategic HRM Evidence-Based HRM Managing Ethics HR Certification Human Resource Management Trends

33. HR Mangers strategic planning role HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans.HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–33

34. HPWS A high-performance work system is a set of HRM policies and practices that together produce superior employee performanceA high-performance work system is a set of HRM policies and practices that together produce superior employee performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–34

35. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–35 High-Performance Work Systems Increase productivity and performance by:Increase productivity and performance by:  Recruiting, screening and hiring more effectively  Providing more and better training  Paying higher wages  Providing a safer work environment  Linking pay to performance

36. Ethical Implications Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee- related decisions.Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee- related decisions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–36

37. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–37 Managing Ethics EthicsEthics  Standards that someone uses to decide what his or her conduct should be HRM-related Ethical IssuesHRM-related Ethical Issues  Workplace safety  Security of employee records  Employee theft  Affirmative action  Comparable work  Employee privacy rights

38. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall1–38 Basic Themes of HRM HRM is the responsibility of every manager.HRM is the responsibility of every manager. The workforce is becoming increasinglyThe workforce is becoming increasingly diverse. diverse. Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services.Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services. The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.

39. Fall 2008Management 412 / Intro to HRM Page 39 Lets reflect on HRM Two questions:Two questions:  Does it matter?  Why does it matter? What is HRM?What is HRM?  Organization’s methods and procedures for managing people to enhance skills and motivation  Activities to enhance the organization’s ability to attract, select, retain and motivate people

40. Fall 2008Management 412 / Intro to HRM Page 40 Outsourcing HR Would it just make more sense to outsource HR functions?Would it just make more sense to outsource HR functions? Many organizations are doing just thisMany organizations are doing just this  Recordkeeping and administrative, perhaps  Basic functions….. Sources: Caudron (2003); Stewart & Woods (1996); Zimmerman (April 2001)

41. Fall 2008Management 412 / Intro to HRM Page 41 Human Resources and Competitive Advantage The basic idea: establishing and maintaining competitive advantage through people.The basic idea: establishing and maintaining competitive advantage through people. Competitive advantage:Competitive advantage:  Valuable, rare, inimitable, nonsubstitutable- VIRN  Achieved not through strategy, but strategy implementation Source: Pfeffer (1994, 1998)

42. Fall 2008Management 412 / Intro to HRM Page 42 Traditional Sources [non HR] of Competitive Advantage…and Where They’ve Gone Product and process technologyProduct and process technology  Technological innovations make innovation easier and faster  Development and manufacturing technology freely available Protected and regulated marketsProtected and regulated markets  Move to global economy  Deregulation Access to financial resourcesAccess to financial resources  Global capital market  Venture capital Economies of scaleEconomies of scale  Fragmented markets  Less important with advances in technology So, what’s left…peopleSo, what’s left…people Source: Pfeffer (1994, 1998)

43. Fall 2008Management 412 / Intro to HRM Page 43 Competitive Advantage Through People Viewing the work force as an asset, not an expenseViewing the work force as an asset, not an expense The result:The result:  Harder work, from increased involvement and commitment  Smarter work, through enhanced skills and competence  Lower overhead, by pushing responsibility downward High performance work systemsHigh performance work systems Source: Pfeffer (1994, 1998)

44. Fall 2008Management 412 / Intro to HRM Page 44 Aligning Strategy and HR Determine the firm’s strategyDetermine the firm’s strategy Determine the competencies needed to carry out the strategyDetermine the competencies needed to carry out the strategy Examine current management practicesExamine current management practices Determine congruenceDetermine congruence  Do the current practices work to enhance needed competencies?  Are the current practices internally consistent? Source: Pfeffer (1998)

45. Fall 2008Management 412 / Intro to HRM Page 45 HR Functions:Think of the juggler ! Reward Systems Legal Compliance Staffing Planning Training and Development Employee and Labor Relations