1. The Nature of Human Resource Management 1 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

2. LEARNING OUTCOMES 2 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 1Describe contemporary human resource perspectives 2Trace the evolution of the human resource functions in organizations 3Identify and discuss the goals of human resource management 4Discuss the setting for human resource management 5Describe the job of human resource managers from the perspectives of professionalism and careers

3. 3 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Contemporary Human Resource Management Perspectives HRM practices and policies affect the ability to formulate and implement strategy in any area Outsourcing: Process of hiring external firms to handle basic HRM functions

4. 4 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Evolution of the Human Resource Function First study of management practice Scientific management: Concerned with structuring individual jobs to maximize efficiency and productivity Origins of the human resource function Hawthrone studies: Instigated the human resources era -Human relations era: Supplanted scientific management as the dominant approach to management during the 1930s

5. 5 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Scientific Management (Taylorism) https://www.mindtools.com/pages/article/newTMM_Taylor.htm

6. 6 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Hawthorne Studies The Hawthorne studies, which were conducted by Elton Mayo and Fritz Roethlisberger in the 1920s with the workers at the Hawthorne plant of the Western Electric Company, were part of an emphasis on socio-psychological aspects of human behavior in organizations. https://en.wikipedia.org/wiki/Hawthorne_effect

7. 7 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Evolution of the Human Resource Function Hierarchy of human needs: Developed during the human relations era Theory X and Theory Y: Framework grew from the human relations movement

8. 8 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Abraham Maslow’s Hierarchy of Needs http://www.simplypsychology.org/maslow.html https://en.wikipedia.org/wiki/Abraham_Maslow

9. 9 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Douglas McGregor https://en.wikipedia.org/wiki/Douglas_McGregor

10. 10 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 McGregor’s Theory X & Theory Y

11. 11 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Evolution of the Human Resource Function Personnel management: New type of management function that grew from the recognition that human resources needed to be managed Personnel departments: Specialized organizational units for hiring and administering human resources -Became popular during 1930s and 1940s

12. 12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Evolution of the Human Resource Function Human resource management in the electronic age Knowledge workers: Employees whose jobs are concerned with the acquisition and application of knowledge -Contribute to an organization through what employees know and how they apply what they know

13. 13 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Goals of Human Resource Management Facilitating organizational competitiveness Enhancing productivity and quality Complying with legal and social obligations Promoting individual growth and development Psychological contract: Overall set of expectations held by: -The employee with regard to what they have contributed to the organization -The organization with regard to what it will provide to the individual in return

14. 14 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 The Setting for Human Resource Management Line managers: Directly responsible for creating goods and services Staff managers: Responsible for an indirect or support function that would have costs Bottom-line contributions were less direct

15. 15 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 The Setting for Human Resource Management The human resource management in smaller versus larger organizations Smaller organizations require line managers to handle their basic HR functions When firms grow beyond a certain size, a separate HR unit becomes necessity -Issues involved become much more complicated

16. 16 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 The Setting for Human Resource Management Human resource management: Integrated and interrelated approach to managing human resources Recognizes interdependence among the various tasks and functions that must be performed Utility analysis: Attempt to measure the impact and effectiveness of HRM practices in terms of metrics such as firm’s financial performance

17. 17 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Human Resource Managers Contemporary HR executives must possess general management abilities that reflect conceptual, diagnostic, and analytical skills Recognizing human resource management as the firm’s most critical source of information is important for everyone in the organization

18. 18 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Figure HRM3 | CH3 1.4 Human Resource Management as a Center for Expertise

19. 19 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Human Resource Managers Human resource departments are viewed as cost centers Goal - Providing clear and measuring financial benefits to the organization Society for human resource management (SHRM) - Largest professional HR association Publishes professional journals covering current developments in the field Sponsors workshops and conferences

20. 20 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Human Resource Managers Human resource certification institute (HRCI) Professional in human resources (PHR) Senior professional in human resources (SPHR) Global professional in human resources (GPHR) Careers in human resource management Degree in human resource management will provide an entry-level employment opportunity as an HR manager Line management can be used as a route to HRM

21. SUMMARY 21 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Latest trend - To outsource HR firms to handle payroll, insurance, recruitment and other benefits Human resource departments are viewed as cost centers Certification is required to progress in HR career

22. KEY TERMS 22 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Hawthorne studies Hierarchy of human needs Human relations era Human resource management (HRM) Human resource management system Human resources Knowledge workers Line managers Outsourcing Personnel departments Personnel management Personnel manager Productivity Psychological contract

23. KEY TERMS 23 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3 Quality Scientific management Staff managers Theory X and Theory Y Utility analysis

24. 24 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM3 | CH3