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ObjectivesDefine the term human resource management.Describe the strategic importance of human

resource management (HRM) activities.Explain what career opportunities are available

in the HRM field.Discuss the role that specialists and operating

managers play in performing HRM activities.List the main objectives pursued by HRM units.

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“RESOURCES”……..ARE THEY…????

Jack Welch- Winning“Elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers. In fact, the best HR types are pastors and parents in the same package.”

“The head of human resources at any company should be at least as important as the CFO.”

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Assets

Physical Financial Intangible Human

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Human Capital

The collective value of the capabilities, knowledge,

skills, life experiences, and motivation of an

organizational workforce.

Core Competency

A unique capability that creates high value and

differentiates an organization from its

competition.

Leaders are ReadersPeter DruckerThe Essential Drucker (2008)“Business management must always, in every

decision and action, put economic performance first.”

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Human Resource Management:

A strategic approach to managing employment relations which emphasizes that leveraging people’s capabilities is critical to achieving competitive advantage. This being

achieved through a distinctive set of integrated employment policies, programmes

and practices.

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Human resource management (HRM) is the effective management of people at workThe goal: make workers more satisfied and

productiveWhen an organization is concerned about

people, its total philosophy, culture, and orientation reflect it

Every manager must be concerned with people, whether or not there is a human resources department

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Management:

The science perspective

The political perspective

The control perspective

The practice perspective

The Nature of Human Resource Management

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The meaning of ‘management’

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Leaders are ReadersGood to GreatJim Collins (2001)“Good is the enemy of great.”

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Describes dynamic interlocking relations that exist between individuals and their work

organizations.

Considers economic, legal, social and psychological relations.

The Nature of the Employment Relationship

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Economic – exchange of pay for work.

Legal – network of common law and statutory rights and obligations affecting

both parties.

Social – ‘social norms’ influence employees’ actions in the workplace.

Psychological – dynamic, two-way exchange of perceived promises and obligations.

The Nature of the Employment Relationship

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Figure 1.2 The employment and psychological contracts between employer and employee

The Nature of the Employment Relationship

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Figure 1–216

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The Manager’s Human ResourceManagement Jobs

Management process The five basic functions of planning,

organizing, staffing, leading, and controlling.

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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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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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Line Managers’ HRM Responsibilities

1. Place the right person on the right job

2. Orientate new employees

3. Train employees for jobs new to them

4. Improve the job performance of each person

5. Gain creative cooperation and developing smooth working relationships

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Line Managers’ HRM Responsibilities

6. Interpret the company’s policies and procedures

7. Control costs

8. Develop the abilities of each person

9. Maintain morale

10.Protect employees’ health and physical condition

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Carries out 3 distinct functions:-

1. Line function

2. Coordination function

3. Staff function

Functions of the HR Manager

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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).

Functions of the HR Manager

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A coordinative function HR managers also coordinate

personnel activities, a duty often referred to as functional control.

Functions of the HR Manager

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Staff (assist and advise) functions Assisting and advising line managers

is the heart of the HR manager’s job.

Functions of the HR Manager

Typical Division of HR ResponsibilitiesHR Unit

Develops legal, effective interviewing techniques

Trains managers in conducting selection interviews

Conducts interviews and testing

Sends top three applicants to managers for final review

Checks referencesDoes final interviewing and

hiring for certain job classifications

ManagersAdvise HR of job

openingsDecide whether to do

own final interviewingReceive interview

training from HR unitDo final interviewing and

hiring where appropriateReview reference

information Provide feedback to HR

unit on hiring/rejection decisions

Figure 1–127

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Figure 1–529

HR Management RolesAdministrative Role

Clerical and administrative support operations (e.g., payroll and benefits work, leaves)

Now e-HREmployee Advocate Role

“Champion” for employee concerns Employee crisis management Responding to employee complaints

Operational RoleIdentification and implementation of HR

programs and policies—EEO, hiring, training, and other activities that support the organization.

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Strategic Role for HRHR becomes a strategic business partner by:

Focusing on developing HR programs that enhance organizational performance .

Involving HR in strategic planning at the onset.Participating in decision making on mergers,

acquisitions, and downsizing.Redesigning organizations and work processesAccounting and documenting the financial

results of HR activities.

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Note: Example percentages are based on various surveys.

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Figure 1–734

A Brief History of HRMHRM can be traced to England, where

craftspeople organized guildsThey used unity to improve working conditions

The Industrial Revolution in the 18th century laid the basis for a new, complex industrial societyChanging work conditions, social patterns, and

labor created a gap between workers and owners

During the world wars era, scientific management, welfare work, and industrial psychology merged

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A Brief History of HRMFrederick W. Taylor, the father of

scientific management, summarized scientific management as:Science (not rules of thumb)Harmony (not discord)Cooperation (not individualism)Maximum output (not restricted output)

Industrial psychology, initiated in 1913, focused on:The workerIndividual differencesThe maximum well being of the worker

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A Brief History of HRMPersonnel departments were created to

deal with:Drastic changes in technologyOrganizational growthThe rise of unionsGovernment intervention

concerning working peopleAround the 1920s, more organizations

noticed and acted on employee-management conflict

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A Brief History of HRMThe Hawthorne studies (1924 to 1933):

Were to determine the effects of illumination on workers and their output

Rather, it pointed out the importance of social interaction on output and satisfaction

Until the 1960s, the personnel function was concerned only with blue-collar employeesFile clerk, house-keeper, social worker,

firefighter, and union trouble defuser

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Malden Mills (Lawrence, Massachusetts)

Aaron, FeuersteinDec 11, 19951400 displaced employeesSalary for 3 monthsExtended health benefits600 employees completed courses (computer

skills for running new machines)More than 90% returned to work.

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OutsourcingOutsourcing HRM activities is growing in

popularity because of:DownsizingRapid growth or decline of businessGlobalizationIncreased competitionRestructuring

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OutsourcingSome executives assume that outsourcing

can:Reduce costsImprove flexibilityPermit the hiring of specialized expertise

The choice to outsource HRM activities is being made with little empirical support

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Necessary HRM Competencies

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Record keepingTraining/development

Accounting/financeEmployment law

Benefit designRecruiting/staffing

Compensation designLeadership

ForecastingProblem solving

TechnologyCommunication

HR Management Competencies and CareersHR Generalist

A person with responsibility for performing a variety of HR activities.

HR SpecialistA person with in-depth knowledge and

expertise in a limited area of HR.Important HR Capabilities:

Knowledge of business and organizationInfluence and change managementSpecific HR knowledge and expertise

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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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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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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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The New HR Manager

New Proficiencies

HR proficiency

Business proficiency

Leadership proficiency

Learning proficiency

The New HR Manager