1. ETA WAHAB, PhD ROOM : DEPUTY DEAN (ACADEMIC & INTERNATIONAL) FPTP TEL : H/P : LECTURE: MONDAY PM

2. Introduction to Human Resource Management1
Introduction to Human Resource Management
The purpose of this chapter is toexplain what human resourcemanagement is, and why it’simportant to all managers. We’ll seethat human resource managementactivities such as hiring, training,appraising, compensating, anddeveloping employees are part ofevery manager’s job. And we’ll seethat human resource management is also a separate function, usually witits own human resource or “HR”manager. The main topics we’llcover include the meaning ofhuman resource management; whyhuman resource management is important to all managers, globaland competitive trends, humanresource management trends, andthe plan of this book. The frameworkabove (which introduces eachchapter) makes this point: That toformulate and apply HR practiceslike testing and training you shouldunderstand the strategic and legalcontext in which you’re managing.

3. Learning Objectives
What human resource management is and how it relates to the management process.
Show with examples why human resource management is important to all managers.
Illustrate the human resources responsibilities of line and staff (HR) managers.
Discuss and illustrate each of the important trends influencing human resource management
LEARNING OBJECTIVES
After studying this chapter, you will be able to:
Explain what human resource management is and how it relates to the management process.
Show with examples why human resource management is important to all managers.
Illustrate the human resources responsibilities of line and staff managers.

4. Explaining what human resource (HR) management is and how it relates to the management process.
Working for any organization means that you and those around you share common goals among which include an interest in the growth and continuing development of the organization. Some of those common goals include how work is accomplished within the organization.
We now begin our study of the elements of the management process and how they relate to human resource management.

5. Human Resource Management at Work
Human Resources Management 12e Gary Dessler
Human Resource Management at Work
Organization
People with formally assigned roles who work together to achieve the organization’s goals.
Manager
The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.
Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
1–5
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1–5

6. The Management Process
Human Resources Management 12e Gary Dessler
The Management Process
Planning
Organizing
Leading
Staffing
Controlling
Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1–6

7. What is human resource (HR) management and why
is it important?
Organizations have been described in various ways. We will focus our early efforts on understanding an organization as groups of individuals with formally assigned roles. Note that such individuals generally work together to achieve the common goals of an organization.

8. Human Resource Management at Work
Human Resources Management 12e Gary Dessler
Human Resource Management at Work
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.
Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
1–8

9. Human Resource (HR) Responsibilities of Line and Staff Managers
Line and staff managers focus their energies in different yet related and complementary ways. Let’s talk about the two types of managers and what each does for the firm.

10. Line and Staff Managers
Line authority gives you the right to issue orders
Staff authority gives you the right to advise others in the organization
If you are a line manager, you will hold responsibilities to issue orders, provide directions and establish rules and procedures. For example, as a sales manager, you will be responsible for requiring adherence to your rules relative to sales quotas and goals.
On the other hand, an HR manager is a staff manager and, like all staff managers, is responsible for influencing and advising others. Within the HR department you may be responsible for establishing goals and giving orders to those in your department thus serving as a line manager within HR. Your principal duty to the organization as a whole, however, is that of a staff function, much the same as a purchasing department.
Staff departments may include finance, accounting, and logistics. Sales, production, and operations departments generally are considered line functions.

11. Line and Staff Aspects of HRM
Human Resources Management 12e Gary Dessler
Line and Staff Aspects of HRM
Line Manager
Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.
Staff Manager
Assists and advises line managers.
Has functional authority to coordinate personnel activities and enforce organization policies.
Line managers manage operational functions that are crucial for the company’s survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control.
Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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12. Human Resource Duties Line Managers Job placement
Orientation & Training
Performance
Cooperation
Labor costs
Development
If you are a line manager, your duties and responsibilities concern how well you can successfully orient and integrate new hires into your unit, maintain their health and safety, supervise and motivate them, and effectively manage department costs.

13. Human Resource Manager’s Duties
Line function inside of HR department
Coordination
Assist and advise
Line managers require support to perform their jobs properly. If you are a line manager, you will have the help of the people in your HR department. HR professionals ensure adherence to company policies, provide training, advice on motivating your employees, and other support as needed.
Sample HR organizational chart for a small company

14. Review Profits and performance
HR is a line function within HR department
HR is a staff function to support line management
Right person, right job
HR exists to contribute to employee well-being, profits,and performance in many ways. Such contributions include:
Avoiding costly personnel mistakes
Managing compensation and benefits
Recruiting, hiring, and retaining good employees
Managing performance and providing effective training and development
HR is a staff function for the firm yet serves in a line capacity within the HR department. An HR manager’s duties also may include advising the CEO regarding strategies, helping managers with legal compliance, handling grievances, and functioning as an innovator.

15. Important Trends in Human Resource Management
In the continuing development of human resource management, there exist various trends that will help shape its practice and evolution in the coming years. Human Resource responsibilities have become broader and more strategic over time in response to a number of trends. The role of HR has evolved from primarily being responsible for hiring, firing, payroll, and benefits administration to one that is more strategic.

16. Trends in Human Resource Management
Globalization
Competition
Deregulation
Increased indebtedness
Technological innovation
More high-tech & service jobs
Many trends are emerging and will continue to change the shape, size, and function of HR management. Some of these trends we will discuss shortly include:
Globalization
Competition
Deregulation
Increased indebtedness
Technological innovation
More high-tech & service jobs

17. Trends in Human Resource Management
More knowledge work
Aging workforce
Economic downturn
De-leveraging
Deregulation slowdown
Slower economic growth
In addition, we will discuss other trends such as:
More knowledge work
Aging workforce
Economic downturn
De-leveraging
Deregulation slowdown
Slower economic growth

18. Globalization
Firms extend sales, ownership and manufacturing to other countries
Sales expansion
Lower labor costs
Forming partnerships
Offshoring
Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Dell, for example, is planning to supply PCs to China. China is expected to become the largest market for computers in the world. Companies such as Toyota, BMW, and Honda build and sell some of their vehicles here in the U.S. and even ship them to other countries from the U.S.
The reasons for going global are many including: reaching new markets, selling more products or services, lower labor costs, forming partnerships, and becoming more competitive.

19. Indebtedness and Deregulation
Stock brokering by banks
Lending practices
No money down
Spending > Income
Balance of payments
Treasury bonds
Due to the softening of U.S. banking regulations, many banks were able to offer stocks and other financial instruments in addition to traditional banking services. Such actions contributed to increased risks for the average banking customer. Questionable lending practices led to easy credit for developers and homebuyers alike. Perhaps you have experienced some of these practices or know of people who have. Like many Americans, credit practices have allowed, even encouraged, you and me to buy what we want when we want it. Such practices encourage spending in excess of what we may earn.
The U.S. and other countries have imported more than they’ve created and exported. Such practices are referred to as the balance of payments. Rating firms such as Standard and Poor’s have threatened to and even lowered the ratings of some debtor nations. Such steps and other actions have contributed to economic volatility and changes in the way firms conduct business and employee people.

20. Technological Trends Smart phones Tablet computers Facebook
Job seeking
The impact and growth in the use of smart phones and tablet computers, such as the iPad, have opened doors to people and the workplace in a way that previously has never occurred. The speed of information exchange has contributed to the growth of social networking sites such as Facebook and LinkedIn. Facebook, for example, offers Facebookrecruiting which provides a rapid conduit between employers and job-seekers.

21. Trends in the Nature of Work
High-tech jobs
Service jobs
Knowledge work and human capital
As you enter the workforce or continue in your jobs, you are more likely to enter commands into a computer than perform dangerous physical labor. The “brawn to brains” changes have been fueled by moving manufacturing jobs to low-wage countries. Just-in-time (JIT) manufacturing processes have connected the customer with the manufacturer and the distributor in real time resulting in more precise scheduling, production and delivery. Another trend, human capital, refers to the knowledge, education, training, skills, and expertise of a firm’s workers. Today’s (and tomorrow’s) best jobs will go to the individuals with the best reading, math, and communication skills. In other words, the best knowledge workers will be hired first.

22. Workforce and Demographic Trends
Although you are in college now – perhaps some or many of you work as well – throughout your careers you will need to understand the people around you. One aspect of the changing nature of the workplace has to do with the age of the people with whom you work. Other factors include whether those around you come from other countries and the cultural qualities they represent. Conversely, if you are a nontraditional or older worker or come from abroad, understanding the nature of those around you will enable you to be more productive and make greater contributions.

23. Demographic Trends
According to the Bureau of Labor Statistics, during the twenty-year period between 1998 and 2018, the number of white, non-Hispanic workers will decrease in the United States. The black and Asian workforce will increase. In fact, those members of the workforce of Hispanic origin will increase more than 7% while the percentage of younger workers will decrease. Most telling, perhaps, is that workers over the age of 55 will almost double from 12.4% to 23.9%!

24. “Generation Y” Workers
Considered to be high-performance and high-maintenance
Fair and direct supervisors
Creative challenges
Day 1 impact
Small goals
Faster and better workers
“Generation Y” workers (those born from , also called “Millenials”) have, according to one expert, “…been pampered, nurtured, and programmed with a slew of activities….” Consequently, this generation:
Is considered to be both high-performance and high-maintenance
Wants fair and direct supervisors who are highly engaged in their professional development
Seeks out creative challenges and view colleagues as vast resources from whom to gain knowledge
Wants to make an important impact on Day 1
Wants small goals with tight deadlines so they can build up ownership of tasks, and
Aims to work faster and better than other workers
Consider to what extent you identify with any or all of these elements and what they might mean to those around you who are not of your generation.Keep in mind these descriptions are in comparison to baby-boomers and Generation X workers who have different characteristics.

25. Retirees, Nontraditional Workers, Workers from Abroad
Bringing retirees back
Multiple jobs
Contingent workers
Alternative work arrangements
Workers from abroad
According to one survey, 41% of employers are bringing retirees back into the workplace. Thirty-one percent of employers are offering employment options to attract semi-retired workers. Many workers hold multiple jobs or work in “contingent” arrangements such as two people sharing one job.
Technology enables employees to work from home. Technology also has helped create “co-working” sites where people may be working at a shared site for the same or different companies or even independently.
One controversial trend involves the granting of H1-B visas for skilled foreign workers when enough U.S. workers with the proper skills are not available in a given location.
Have you experienced or do you know of family members or friends who have had experiences with such workers or workplaces? What do such experiences suggest to you with respect to the role of HR?

26. Economic Challenges and Trends
GNP growth boom 2001 – 2008
Falling off a cliff
Debt accumulation
Worthless loans
Economy tanks
An important measure of U.S. total economic output, the Gross National Product (GNP), boomed between 2001 and Home prices soared and unemployment was low. Economically speaking, somewhere between 2007 and 2008, however, everything fell off a cliff. Today, unemployment remains at a high and sustained 9.1% while home prices may have dropped 20% or more.
Financial institutions held enormous amounts of worthless debt on their books while lending dried up. In effect, the economy tanked. While this situation will improve, global economic impacts have been felt and will continue to be felt for some time. The human resource management profession must continually evolve and change keeping pace with the changes in the global economy.