1. Human Resources Management 11th Edition Chapter 1 strategic Human Resource Management: an overview

2. Human Resource Management
Utilization of individuals to achieve organizational objectives
All managers at every level must concern themselves with human resource management
Five functions

3. Human Resource management functions

4. Human Resource Management Functions1
Staffing
Human Resource Management
Human Resource Development
Employee and Labor Relations
Compensation
Safety and Health

5. Staffing
Job Analysis
Human Resource Planning
Recruitment
Selection

6. Staffing (Cont.)
Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives
Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization
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7. Staffing (Cont.)
Human resource planning - Systematic process of matching internal and external supply of people with job openings anticipated in the organization over specified period of time
Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization
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8. Staffing (Cont.)
Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

9. Human Resource Development
Training
Development
Career Planning
Career Development
Organizational Development
Performance Management
Performance Appraisal

10. Human Resource Development (Cont.)
Training - Designed to provide learners with knowledge and skills needed for their present jobs
Development - Involves learning that goes beyond today's job; more long-term focus
Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

11. Human Resource Development (Cont.)
Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed
Organization development - Planned and systematic attempts to change the organization, typically to a more behavioral environment

12. Human Resource Development (Cont.)
Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization
Performance appraisal - Formal system of review and evaluation of individual or team task performance

13. Compensation
Compensation - All rewards that individuals receive as a result of their employment

14. Compensation
Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions
Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance
Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works

15. Safety and Health
Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

16. Safety and Health
Safety - Involves protecting employees from injuries caused by work-related accidents
Health - Refers to employees' freedom from illness and their general physical and mental well being

17. Legal Considerations Federal, state and local legislation
Court decisions
Presidential executive orders

18. HR’s Changing Role: Questions That Are Being Asked
Can some HR tasks be performed more efficiently by line managers or outside vendors?
Can some HR tasks be centralized or eliminated altogether?
Can technology perform tasks that were previously done by HR personnel?
Many HR departments continue to get smaller.

19. HR’s Changing Role: Who Performs Human Resource Management Tasks?
Human Resource Managers
HR Outsourcing
HR Shared Service Centers
Professional Employer Organization (Employee Leasing)
Line Managers
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20. Human Resource Manager
Historically, the human resource manager was responsible for each of the five HR functions
Acts in advisory or staff capacity
Works with other managers to help them deal with human resource matters
Today HR departments continue to get smaller because others are accomplishing certain functions
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

21. HR Outsourcing Transfers responsibility to an external provider
Market for HR outsourcing is growing dramatically

22. Human Resource as a strategic partner

23. HR as a Strategic Partner
HR executives must understand complex organizational design
Sharp deviation from what has traditionally been an administrative-type role for HR

24. Strategic Activities CEOs Want from HR
Make workforce strategies integral to company strategies and goals
Leverage HR’s role in major change initiatives
Earn the right to a seat at the corporate table
Understand finance and profits
Help line managers achieve their goals

25. Strategic Activities CEOs Want from HR (Cont.)
HR professionals must integrate goals of HR with goals of the organization
Must focus on expanding its strategic and high-level corporate participation with an emphasis on adding value
HR must demonstrate that it can produce a return on investment for its programs

26. Questions to Be Answered to Determine if HR Is Involved Strategically
Is HR present at mergers and acquisitions planning meetings, strategy reviews, and restructuring discussions?
Does HR provide an annual report on its ROI?
Does HR lead the people strategy?
Has it developed performance indicators for the success of that strategy?

27. Questions to Be Answered to Determine if HR Is Involved Strategically (Cont.)
Is HR rated by its customers?
Does the organization conduct strategic versus entitlement employee surveys?
Are employee and other survey initiatives linked to customer and financial metrics?
Is there an ROI process to evaluate HR initiatives connected to the business strategy?

28. Human Capital Metrics
Measures of HR
performance

29. Examples of HR Metrics Time to fill open positions HR headcount ratios
Administrative cost per employee
Turnover cost
Training return on investment
Quality of hire

30. Human Resource Designations

31. Characteristics of an HR Executive
Performs one or more HR functions
A top-level manager
Reports directly to CEO or head of major division

32. Characteristics of an HR Generalist
Performs tasks in various HR-related areas
Involved in several, or all, of the five HRM functions

33. Characteristics of an HR Specialist
May be an HR executive, manager, or non- manager
Typically concerned with only one of the five functional areas

34. Evolution of Human Resource Management

35. Traditional Human Resource Function in Large Firm
Separate sections were often created
Placed under an HR Manager
Each HR function may have a supervisor & staff
HR Manager works closely with top management in formulating policy

36. Traditional Human Resource Functions
President and CEO
Vice President, Marketing
Vice President, Operations
Vice President, Finance
Vice President, Human Resources
Manager, Training and Development
Manager, Compensation
Manager, Staffing
Manager, Safety and Health
Manager, Labor Relations

37. A Possible Evolving HR Organization Example
President and CEO
Vice President, Operations
Vice President, Strategic Human Resources
Vice President, Finance
Vice President, Marketing
Director of Safety and Health
Training & Development (Outsourced)
Compensation (Shared Service Centers)
Staffing (Line Managers, Use of Applicant Tracking Systems)

38. Next
PART II. HR ETHICAL, LEGAL, AND SOCIAL CONSIDERATIONS Chapter 3: Workforce Diversity, Equal Employment Opportunity, and Affirmative Action