1 introduction to hrm

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Chapter 1

Introduction to Human Resource Management

and the Environment

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Introduction

HRM is charged with programs concerned with people

Getting every manager involved

Effective use of people

Achieving individual & organizational goals

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HRM Activities

EEO compliance

HR planning

Training, development

Job analysis

Labor relations

Performance evaluation, compensation

Safety, health, wellness

Recruitment, selection, motivation, orientation

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HRM Orientation

Action

People

Future

Global

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A Brief History of HRM

Personnel departments were created to deal with:Drastic changes in technologyOrganizational growthThe rise of unionsGovernment interventionEmployee-management conflict

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Strategic Importance of HRM

Today, HRM plays a major role in:Clarifying the firm’s human resource problemsDeveloping solutions for them

Strategic HRM differs from traditional HRMTraditional arrangements… responsibility for

managing human resources lies with specialists Strategic approach… people management rests with

anyone who is in direct contact with workers or line managers

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Traditional HRM Strategic HRM

Responsibility for human resources

Specialists Line managers

Objective Better performance Improved understanding and use of human assets

Role of HRM Respond to needs Lead, inspire, understand

Time focus Short-term results Short, intermediate, long term

Control Rules, policies, position power

Flexible, based on human resources

Culture Bureaucratic, top-down, centralization

Open, participative, empowerment

Major emphasis Following the rules Developing people

Accountability Cost centers Investment in human assets

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For years, HRM was not linked to corporate profitOrganizations focused on current performanceHR managers did not have a strategic perspectiveExecutives categorized HRM in a traditional mannerIt was hard to develop metrics for HRM activities

Recognizing the importance of people made HRM a major player in developing strategic plansHRM strategies must reflect the organization’s

strategy regarding people, profit, and effectiveness

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Assess/interpret costs and benefits of HRM issues

Use realistic, challenging, specific, and meaningful goals in planning models

Key Concepts to Apply

Analyze/solve problems from a profit-oriented point of view

Prepare reports on HRM solutions to problems

Train HR staff to emphasize importance of profits

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HRM accountability resulted from:

Concerns about productivity

Organizational downsizing and redesign

Increasingly diverse workforce

Competitive need to use all organizational resources

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HRM and Organizational Effectiveness

Measure of EffectivenessMeasure of Effectiveness

Reachinggoals

Reachinggoals

Usingemployeesefficiently

Usingemployeesefficiently

Influx/retention of good

employees

Influx/retention of good

employees

Mission and strategy

Mission and strategy

Company structure

Company structure HRMHRM

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HRM and Organizational Effectiveness

Coping With Change

Growing global competition

Rapidly expanding technologies

Demand for individual, team, organizational competencies

Faster cycle times

Increasing legal and compliance scrutiny

Higher customer expectations

Mechanized, routine work now knowledge-based

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Objectives of the HRM Function

Help the organization reach goals

Employ workforce skills/abilities efficiently

Increase satisfaction, self-actualization, quality of work life

Communicate HRM policies to all employees

Maintain ethical policies, socially responsible behavior

Manage change to the mutual advantage of individuals, groups, the enterprise, and the public

HRM Contributions to Effectiveness

Provide trained, motivated employees

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Providing Trained, Motivated Workers

Reward good results

Don’t reward non-performance

Make goals clear

Measure results clearly, fairly

Provide the right people at the right time

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Increasing Job Satisfaction

This job is matches my skills perfectly

The company treats me equitably

I find this job very fulfilling

Dissatisfied workers can produce as much as satisfied workers, but they quit and are absent

more often, and produce lower-quality work

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Meaningfultasks

Meaningfultasks

Work workinghours

Work workinghours

Job safetyJob safety

Good physicalsurrounds

Good physicalsurrounds

Freedom andautonomy

Freedom andautonomy

Managementstyle

Managementstyle

Quality of Work LifeQuality of Work Life

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Communicating HRM policies to all employees:HRM policies, programs, and procedures

must be communicated fully and effectively They must be represented to outsidersTop-level managers must understand what

HRM can offer

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Ethical & Socially Responsible Behavior

Show by example that HRM activities are fair, truthful,

honorable

Show by example that HRM activities are fair, truthful,

honorable

Do not discriminateDo not discriminate

Protect the basic rights of employees

Protect the basic rights of employees

Apply to all HRM activitiesApply to all HRM activities

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Trends and Changes

TelecommutingOutsourcing

HRMFamily

medical leave

Child careSpouse

relocation assistance

Pay for skills

Benefit cost-sharing

Union-management negotiation

New lifestyles, aging

population

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Shorter cycle times mean less time to:Train, educate, and assign managersSolve sexual harassment complaintsRecruit and select talented peopleImprove the firm’s image

Learning provides a framework for decreasing cycle time

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Learning Framework

Culture that rewards learning

Emphasis on working efficiently, quickly

Key Learning Areas

Leadership behaviors

Quicker, more flexible decision making

Empowerment

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Outsourcing

Downsizing

Rapid growth or decline of business

Restructuring

Globalization

Increased competition

Contributors to HRM outsourcing

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Outsourcing

Some executives assume that outsourcing can:Reduce costsImprove flexibilityPermit the hiring of specialized expertise

There is little empirical support for these assumptions

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Developing a Competitive Advantage

These must become so important and effective that every unit in the firm knows they are needed for success:

The compensation system Training opportunitiesDiversity management programs

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HRM’s Place in Management

To educate others about the HR implications of decisions, HR executives must understand

Investments Advertising

MarketingProduction

IT

R&D

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Clarifying Meaningful HRM Objectives

More specific

Strategy: The plan that integrates major objectives

Objectives: Goals that are specific and measurable

Policies: Decision making guides

Procedures/rules: Specific directions for decision making

More specific

More specific

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HRM Policy

A policy is a general guide that expresses limits within which action should occurArises from past or potential problemsFrees managers from making certain

decisionsEnsures some consistency

in behaviorAllows managers to concentrate

on decisions where they have the most experience and knowledge

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HRM Procedures

Procedures (rules) are specific directionsIn standard operating procedure (SOP) manuals Helps ensure consistent decision makingShould be well-developed, but not excessiveDevelop for only the most vital areas

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Organization of an HR Department

HR specialists are usually located at the headquarters of an organization

Chief HR Executive

Chief HR Executive

Typically reports to the top manager

Typically reports to the top manager

Small/Medium Firms

Small/Medium Firms

NonprofitsNonprofits HRM is typically a unit in the

business office

HRM is typically a unit in the business office

HRM and another function may be in a single department

HRM and another function may be in a single department

1 introduction to hrm

Recruiting & HR

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