2. After studying this chapter, you should be able to:
Explain what HRM is and how it relates to the management process.
Discuss how managers can use HR concepts.
Compare the HR responsibilities of line and staff managers.
Explain the changing role of HR managers.
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3. After studying this chapter, you should be able to:
Discuss the changing environment of HRM.
Discuss HRM as a profession.
Explain how HR practices are influenced by cultural and religious values.
Know the plan of this book.
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4. The Manager’s Human Resource Management Jobs
Management process
The five basic functions of planning, organizing, staffing, leading, and controlling.
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5. The Manager’s Human Resource Management Jobs
Human resource management (HRM)
The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, training, appraising and rewarding.
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6. HR Aspects Of A Manager’s Job
Conducting job analyses (determining the nature of each employee’s job)
Planning manpower needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
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7. HR Aspects Of A Manager’s Job
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Building employee commitment
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8. HR Aspects Of A Manager’s Job
Understanding employment laws
Knowing employee health and safety issues
Handle grievances and employment relations
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9. Personnel Mistakes Hire the wrong person for the job
Experience high turnover
Your people not doing their best
Waste time with useless interviews
Have your company sued for discriminatory actions
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10. Personnel Mistakes Have your company fined for unsafe practices
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 employment practices
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11. Basic HR Concepts Getting results
The bottom line of managing
HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.
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12. Line and Staff Aspects of HRM
Authority
The right to make decisions, direct others’ work, and give orders.
Staff authority (Advisory)
The authority gives right to the HR manager to advise other managers or employees.
Line authority (Superior-Subordinate)
The authority of managers to direct people in his or her own department.
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13. Line and Staff Aspects of HRM
Line manager (Line Authority)
A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.
Staff manager (Staff Authority)
A manager who assists and advises line managers.
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14. Line Managers’ HRM Responsibilities
Place the right person on the right job
Orientate new employees
Train employees for jobs new to them
Improve the job performance of each person
Gain creative cooperation and developing smooth working relationships
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15. Line Managers’ HRM Responsibilities
Interpret the company’s policies and procedures
Control costs
Develop the abilities of each person
Maintain morale
Protect employees’ health and physical condition
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16. Functions of the HR Manager
Carries out 3 distinct functions:-
Line function
Coordination function
Staff function
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17. 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).
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18. Functions of the HR Manager
A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional control.
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19. Functions of the HR Manager
Staff (assist and advise) functions
Assisting and advising line managers is the heart of the HR manager’s job.
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20. Size of HR Department Depends on company size Small Company:
Only a few personnel
Large Company:
Full range of HR specialist for each different function
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21. Size of HR Department Example of HR department in a small company:
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22. Size of HR Department Example of HR department in a large company:
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23. Duties of HR Specialists
Training Specialist
Plan, organize and direct training
Advise managers on training
Job Analyst
Collect information about jobs
Prepare job description
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24. Duties of HR Specialists
Recruiter
Collect information about jobs
Interview and recommend suitable candidates
EEO (Equal Employment Opportunity) Coordinator
Investigate EEO grievances
Examine HR practices for potential violations
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25. Duties of HR Specialists
Compensation Manager
Develop compensation plans
Handle employee benefits program
Employment relations specialist
Advise managers on ER issues
Negotiate with unions
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26. Cooperative Line and Staff HR Management
Differentiating HR duties to be carried out by line managers and HR managers:
No standard rule for all organizations
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27. Cooperative Line and Staff HR Management
Some common practices:
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28. The Changing Environment Of HR Management
HR managers must be able to respond to changes that are happening every day
Major changes or trends as follows:
Globalization
Technological advances
Changes in nature of work
Changes in workforce demographics
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29. The Changing Environment Of HR Management
Globalization
Tendency of companies to extend sales, ownership, or production to other countries
More competition  more pressure to be “world class”  Lower costs and to increase productivity of employees
E.g. Toyota produces cars in China, Thailand and many other countries.
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30. The Changing Environment Of HR Management
Technological Advances
Use of internet and information communication technology (ICT) to increase competitiveness in business
Enabled businesses to outsource their non-core activities to other countries where costs are lower
Causes changes in nature of work
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31. The Changing Environment Of HR Management
Changes in nature of work
Caused by technological advances as well
From manufacturing jobs to service jobs
Usage of “non-traditional” workers  staff holding multiple jobs, or part-time staff
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32. The Changing Environment Of HR Management
Changes in workforce demographics
Diversified workforce  staff employed are of different race, religion, nationality, gender, age and culture
Challenge for HR managers
E.g. Workers from Bangladesh, China, India, Indonesia, Pakistan and Thailand in Singapore’s construction sector
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33. The Changing Role Of HR Management
Changes in environment  HR managers to take on new responsibilities
HR functions more strategic
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34. The Changing Role Of HR Management
Strategic Planning
The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
3 questions in strategic planning
Current business position
Future business position expected to be
How to get to expected future business position
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35. The Changing Role Of HR Management
Strategic HRM
Formulating HR policies and introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.
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36. The Changing Role Of HR Management
Strategic HRM
HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies
Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable.
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37. The Changing Role Of HR Management
Outsourcing HR Activities
Computer-based systems easy to outsource HR activities by providing access to service providers to the company’s HR information database
E.g. Payroll, Benefits, Wellness Programs and Employee Training
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38. The Changing Role Of HR Management
High Performance Work Systems (HPWS)
Integrated set of HRM policies and practices that together produce superior staff performance
Need to focus on performance
No fixed rule of items that comprises HPWS but should include:
Employment security
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39. The Changing Role Of HR Management
High Performance Work Systems (HPWS)
No fixed rule of items that comprises HPWS but should include (cont):
Selective hiring
Extensive training
Self managed teams and decentralized decision making
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40. The Changing Role Of HR Management
High Performance Work Systems (HPWS)
No fixed rule of items that comprises HPWS but should include (cont):
Reduced status distinctions among managers and workers
Information sharing among managers
Pay-for-performance rewards
Emphasis on high quality work
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41. The Changing Role Of HR Management
High Performance Work Systems (HPWS)
Benefits of HPWS
Generate more job applicants
Screen candidates more effectively
Provide more and better training
Link pay more explicitly to performance
Provide a safer work environment
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42. The Changing Role Of HR Management
High Performance Work Systems (HPWS)
Benefits of HPWS (cont)
Produce more qualified applicants per position
More employees are hired based on validated selection tests
Provide more hours of training for new employees
Higher percentages of employees receiving regular performance appraisals.
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43. The Changing Role Of HR Management
Measuring HRM Team’s Performance
Employees expect HR teams to provide measurable proof of the effectiveness of their programs
Require quantitative measures
Metrics and HR Scorecard are used
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44. The Changing Role Of HR Management
Measuring HRM Team’s Performance
Metrics
A set of quantitative performance measures that HR managers use to assess their operations
E.g. of HR Metrics
Absence Rate
[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100
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45. The Changing Role Of HR Management
Measuring HRM Team’s Performance
Metrics
E.g. of HR Metrics (cont)
Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires
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46. The Changing Role Of HR Management
Measuring HRM Team’s Performance
Metrics
E.g. of HR Metrics (cont)
Health Care Costs per Employee
Total cost of health care ÷ Total Employees
HR Expense Factor
HR expense ÷ Total operating expense
Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey;
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47. The Changing Role Of HR Management
Measuring HRM Team’s Performance
HR Scorecard
Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals
Concise and simple measurement system
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48. The Changing Role Of HR Management
Measuring HRM Team’s Performance
HR Scorecard
Use to measure:
HR activities (testing, training, compensation and safety)
Employee behaviors resulting from such activities
Organizational outcomes of those employee behaviors (higher performance, and company profit)
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49. The New HR Manager New Proficiencies HR proficiency
Business proficiency
Leadership proficiency
Learning proficiency
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50. The New HR Manager
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51. HRM and Professionalism
HR Certification
HR is becoming more professionalized.
Professional institutes
Certification
Upgrading skills and expertise
Exchange views
Contribute to community
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52. HRM and Professionalism
Is HR a profession?
To look at criteria for a Profession
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53. HRM and Professionalism
Professional Institutes
Training and education
Up-to-date knowledge and information
Maintain links with similar organizations in other countries
Active in regional associations
International conferences
Authority to specify qualification of members
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54. HR and Cultural Values Confucianism Sun Tzu’s Art of War
Harmonious relationship
Mutual obligations
Hierarchy
Social order
Sun Tzu’s Art of War
Explains theories of organization, planning, leadership and strategies
Importance of training, discipline and loyalty
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55. HR and Cultural Values Han Fei Tzu: Reward and Punishment
A leader should:
Find talented subordinates
Set up a system of rules
Explain these rules to subordinates
Appropriate time and place to deal with problems
Strictly administer reward and punishment
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56. HR and Cultural Values Han Fei Tzu: Reward and Punishment
Role of a leader (summarized)
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57. HR and Cultural Values Other approaches Thailand: Buddhist approach
Malaysian cultural values
National Values:
Indonesia: Pancasila
Malaysia: Rukunegara
Singapore: National Shared Values
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58. HR and Cultural Values
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59. The Plan of This Book: Basic Themes
HR management is the responsibility of every manager—not just those in the HR department.
HR managers must be ready to defend their plans and contributions in measurable terms.
An HR department’s performance is measured relative to achieving the company’s strategic aims.
HR managers increasingly rely on IT to help support the company’s strategic aims.
Virtually every HR-related decision managers make has legal implications.
Globalization and diversity are important HR issues today.
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60. Strategy and the Basic HR Process
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