2 Fundamentals of HRM

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Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins

Chapter 2Fundamentals of HRM

Fundamentals of HumanResource ManagementEighth Edition

DeCenzo and Robbins


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Management involves setting goals and allocatingscarce resources to achieve them.

Management is the process of efficiently achieving

the objectives of the organization with and throughpeople.




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Primary Functions of Management Planning establishing goals

Organizing determining what activities need to be done

Leading assuring the right people are on the job and

motivated Controlling monitoring activities to be sure goals are

met




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The role of human resource managers haschanged. HRM jobs today require a new level ofsophistication.

Federal and state employment legislation has placednew requirements on employers.

Jobs have become more technical and skilled.

Traditional job boundaries have become blurred withthe advent of such things as project teams andtelecommuting.

Global competition has increased demands forproductivity.




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The Strategic NatureHRM must be

a strategic business partner and represent employees.

forward-thinking, support the business strategy, andassist the organization in maintaining competitive

advantage. concerned with the total cost of its function and for

determining value added to the organization.




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HRM is the part of the organization concernedwith the people dimension.

HRM is both a staff, or support function that

assists line employees, and a function of everymanagers job.




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HRM Certification Colleges and universities offer HR programs.

The Society for Human Resource Management andHuman Resource Certification Institute offer

professional certification.




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Four basicfunctions:

Staffing

Training andDevelopment

Motivation

Maintenance




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Strategic Environment

Governmental Legislation

Labor Unions

Management Thought




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HRM Strategic Environment includes: Globalization Technology Work force diversity

Changing skill requirements Continuous improvement Work process engineering Decentralized work sites

Teams Employee involvement Ethics




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Governmental Legislation Laws supporting employer and employee actions

Labor Unions Act on behalf of their members by negotiating contracts

with management

Exist to assist workers

Constrain managers

Affect non unionized workforce




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Management Thought Management principles, such as those from scientific

management or based on the Hawthorne studiesinfluence the practice of HRM.

More recently, continuous improvement programs havehad a significant influence on HRM activities.




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Employment planning ensures that staffing will contribute to the organizations

mission and strategy

Job analysis determining the specific skills, knowledge and abilities

needed to be successful in a particular job

defining the essential functions of the job




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Recruitment the process of attracting a pool of qualified applicants

that is representative of all groups in the labor market

Selection the process of assessing who will be successful on thejob, and

the communication of information to assist job

candidates in their decision to accept an offer




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Activities in HRM concerned withassisting employees to develop up-to-date skills, knowledge, and abilities

Orientationand socializationhelpemployees to adapt

Four phases of training and development Employee training

Employee development Organization development

Career development




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Activities in HRM concerned with helpingemployees exert at high energy levels.

Implications are:

Individual Managerial

Organizational

Function of two factors:

Ability Willingness

Respect




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Managing motivation includes: Job design

Setting performance standards

Establishing effective compensation and benefits

programs Understanding motivational theories




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Classic Motivation Theories Hierarchy of NeedsMaslow Theory X Theory YMcGregor Motivation Hygiene Herzberg Achievement, Affiliation, and Power Motives

McClelland

Equity Theory Adams Expectancy Theory - Vroom




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Activities in HRM concerned with maintainingemployees commitment and loyalty to theorganization. Health

Safety Communications Employee assistance programs

Effective communications programs provide for

2-way communication to ensure that employeesare well informed and that their voices areheard.




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Four Functions: Employment

Training and development

Compensation/benefits

Employee relations




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Employment - Employment specialists: coordinate the staffing function advertising vacancies perform initial screening

interview make job offers do paperwork related to hiring

Training and Development

help employees to maximize their potential serve as internal change agents to the organization provide counseling and career development




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Compensation and Benefits establish objective and equitable pay systems

design cost-effective benefits packages that help attractand retain high-quality enployees.

help employees to effectively utilize their benefits, suchas by providing information on retirement planning.




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Employee Relations involves: communications

fair application of policies and procedures

data documentation

coordination of activities and services that enhanceemployee commitment and loyalty

Employeerelations should not be confused with laborrelations, which refers to HRM in a unionized

environment.




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Purpose and Elements of HRM Communications Keep employees informed of what is happening and

knowledgeable of policies and procedures.

Convey that the organization values employees.

Build trust and openness, and reinforce company goals.




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Effective Communication programs involve: Top Management Commitment

Effective Upward Communication

Determining What to Communicate

Allowing for Feedback Information Sources

Fundamentals of Human ResourceManagement 8e, DeCenzo and Robbins


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Research has shown that a fully functioning HRdepartment does make a difference.

Organizations that spend money to have qualityHR programs perform better than those who

dont. Practices that are part of superior HR services

include: rewarding productive work

creating a flexible work-friendly environment properly recruiting and retaining quality workers effective communications



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General managers may perform HRMfunctions, HRM activities may beoutsourced, or a single generalist mayhandle all the HRM functions.

Benefits include freedom from many government regulations

an absence of bureaucracy

an opportunity to share in the success of thebusiness



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HRM functions are more complex whenemployees are located around the world.

Consideration must be given to such things asforeign language training, relocation and

orientation processes, etc. HRM also involves considering the needs of

employees families when they are sent overseas.



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HRM must: Make sure employees know about corporate ethics

policies

Train employees and supervisors on how to act ethically



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The Sarbanes-Oxley Act passed in 2002,establishes procedures for public companiesregarding how they handle and report theirfinancial status. Establishes penalties for noncompliance.

Provides protection for employees who report executivewrongdoing.

Requires that companies have mechanisms in place

where complaints can be received and investigated.


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