1. Human Resource Management
4/22/2017
Human Resource Management
Chapter One
Introduction to HRM
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

2. The Manager’s Human Resource Management Jobs
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
© 2005 Prentice Hall Inc. All rights reserved.

3. 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.

4. 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.

5. Characteristics Of Successful Organizations
Global, flatter, populated by cross-functional teams
Oriented toward differentiation, producing high value-added goods and services, creating niche markets
Total quality conscious, cost conscious
More responsive, concerned about speed
Faster to innovate
Reliant on highly trained and flexible people
Networks of competencies and partnerships
Continually evolving strategies, structures and practices
Customer-focused, concerned about ethics and environment
© 2005 Prentice Hall Inc. All rights reserved.

6. 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)
© 2005 Prentice Hall Inc. All rights reserved.

7. 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 ht levers to business needs
© 2005 Prentice Hall Inc. All rights reserved.

8. 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
© 2005 Prentice Hall Inc. All rights reserved.

9. HRM Activities Understanding the environment and meeting its demands
Conducting job analyses (determining the nature of each employee’s job)
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment
© 2005 Prentice Hall Inc. All rights reserved.

10. Understanding The Environment
External Environment
Domestic and International Competition
The Emerging Workforce
Demographics
Economic and Organizational trends
Internal Environmet
Top Management’s Goals and Values
Organizational Strategy
Corporate Culture
Technology
Organizational Structure
Organizational Size
© 2005 Prentice Hall Inc. All rights reserved.

11. 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????
© 2005 Prentice Hall Inc. All rights reserved.

12. 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.
© 2005 Prentice Hall Inc. All rights reserved.

13. 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
© 2005 Prentice Hall Inc. All rights reserved.

14. 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
© 2005 Prentice Hall Inc. All rights reserved.

15. Cooperative Line and Staff HR Management
The line manager’s responsibility is to specify the qualifications employees need to fill specific positions.
HR staff then develops sources of qualified applicants and conduct initial screening interviews
HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants.
© 2005 Prentice Hall Inc. All rights reserved.

16. Employment and Recruiting—Who Handles It? (percentage of all employers)
Note: length of bars represents prevalence of activity among all surveyed employers.
Figure 1–3
Source: HR Department Benchmarks and Analysis,” BNA/Society for Human Resource Management, 2002.
© 2005 Prentice Hall Inc. All rights reserved.

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).
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.

18. 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.

19. Organization of HR Evolution of HR Department Evolution Time Maturity
Introduction
Growth
Deployment
Maturity
© 2005 Prentice Hall Inc. All rights reserved.

20. HR Department Organizational Chart (Large Company)
Figure 1–1
Source: Adapted from BNA Bulletin to Management, June 29, 2000.
© 2005 Prentice Hall Inc. All rights reserved.

21. HR Organizational Chart (Small Company)
Figure 1–2
© 2005 Prentice Hall Inc. All rights reserved.

22. The New HR Manager New Proficiencies HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
© 2005 Prentice Hall Inc. All rights reserved.

23. The New HR Manager (cont’d)
The Need to “Know Your Employment Law”
Equal employment laws
Occupational safety and health laws
Labor laws
© 2005 Prentice Hall Inc. All rights reserved.

24. The New HR Manager Ethics and HR Sarbanes-Oxley Act in 2003
Ethical lapses (e.g., Enron, Martha Stewart)
Sarbanes-Oxley Act in 2003
Intended to curb erroneous corporate financial reporting:
Requires CEOs and CFOs to certify their companies’ periodic financial reports.
Prohibits personal loans to executive officers and directors.
Requires CEOs and CFOs to reimburse their firms for bonuses and stock option profits if corporate financial statements subsequently require restating.
© 2005 Prentice Hall Inc. All rights reserved.

25. HR as Profession HR Generalist HR Specialist
© 2005 Prentice Hall Inc. All rights reserved.

26. HR Professional Certification
HR is becoming more professionalized.
Society for Human Resource Management (SHRM)
SHRM’s Human Resource Certification Institute (HRCI)
SPHR (senior professional in HR)
PHR (professional in HR) certificate
© 2005 Prentice Hall Inc. All rights reserved.

27. HR Professional Certification
WFPMA?
EAPM?
PERYÖN?
© 2005 Prentice Hall Inc. All rights reserved.