Human Resources Management

Chapter 1STRATEGIC HUMAN

RESOURCE MANAGEMENT: AN

OVERVIEW

1-1

Human Resource Management

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Utilization of individuals to achieve organizational objectives

All managers at every level must concern themselves with human resource management

Five functions

HUMAN RESOURCE MANAGEMENT FUNCTIONS

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1-4

1

Human Resource

Management

Human Resource

Development

Com

pens

atio

n

Staffing

Em

ployee and

Labor Relations

Safety and Health

Human Resource Management Functions

Staffing

Job Analysis Human Resource Planning Recruitment Selection

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Human Resource Development1-9

Training Development Career Planning Career Development Organizational Development Performance Management Performance Appraisal

Compensation

Compensation - All rewards that individuals receive as a result of their employment

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Compensation1-14

Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions

Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance

Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works

Safety and Health

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

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Legal Considerations

Federal, state and local legislation

Court decisions Presidential

executive orders

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HR’s Changing Role: Questions That Are Being Asked

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Can some HR tasks be performed more efficiently by line managers or outside vendors?

Can some HR tasks be centralized or eliminated altogether?

Can technology perform tasks that were previously done by HR personnel?

Many HR departments continue to get smaller.

HR’s Changing Role: Who Performs Human Resource Management Tasks?

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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Human Resource Managers HR Outsourcing HR Shared Service Centers Professional Employer Organization

(Employee Leasing) Line Managers

Human Resource Manager

Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall

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Historically, the human resource manager was responsible for each of the five HR functions

Acts in advisory or staff capacity Works with other managers to help

them deal with human resource matters

Today HR departments continue to get smaller because others are accomplishing certain functions

HR Outsourcing

Transfers responsibility to an external provider

Market for HR outsourcing is growing dramatically

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HUMAN RESOURCE AS A STRATEGIC PARTNER

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HR as a Strategic Partner

HR executives must understand complex organizational design

Sharp deviation from what has traditionally been an administrative-type role for HR

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Strategic Activities CEOs Want from HR

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Make workforce strategies integral to company strategies and goals

Leverage HR’s role in major change initiatives

Earn the right to a seat at the corporate table

Understand finance and profits Help line managers achieve their goals

Strategic Activities CEOs Want from HR (Cont.)

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HR professionals must integrate goals of HR with goals of the organization

Must focus on expanding its strategic and high-level corporate participation with an emphasis on adding value

HR must demonstrate that it can produce a return on investment for its programs

Questions to Be Answered to Determine if HR Is Involved Strategically1-26

Is HR present at mergers and acquisitions planning meetings, strategy reviews, and restructuring discussions?

Does HR provide an annual report on its ROI?

Does HR lead the people strategy? Has it developed performance indicators

for the success of that strategy?

Questions to Be Answered to Determine if HR Is Involved Strategically (Cont.)1-27

Is HR rated by its customers? Does the organization conduct strategic

versus entitlement employee surveys? Are employee and other survey

initiatives linked to customer and financial metrics?

Is there an ROI process to evaluate HR initiatives connected to the business strategy?

Human Capital Metrics

Measures of HRperformance

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Examples of HR Metrics1-29

Time to fill open positions HR headcount ratios Administrative cost per employee Turnover cost Training return on investment Quality of hire

HUMAN RESOURCE DESIGNATIONS

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Characteristics of an HR Executive1-31

Performs one or more HR functions

A top-level manager

Reports directly to CEO or head of major

division

Characteristics of an HR Generalist

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Performs tasks in various HR-related areas

Involved in several, or all, of the five HRM functions

Characteristics of an HR Specialist1-33

May be an HR executive, manager, or

non-manager

Typically concerned with only one of

the five functional areas

EVOLUTION OF HUMAN RESOURCE MANAGEMENT

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Traditional Human Resource Function in Large Firm

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Separate sections were often created Placed under an HR Manager Each HR function may have a

supervisor & staff HR Manager works closely with top

management in formulating policy

Traditional Human Resource Functions

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President and CEO

Vice President, Marketing

Vice President, Operations

Vice President, Finance

Vice President, Human

Resources

Manager, Training and Development

Manager, Compensation

Manager, Staffing

Manager, Safety and

Health

Manager, Labor

Relations

A Possible Evolving HR Organization Example

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President and CEO

Vice President, Operations

Vice President, Strategic Human

Resources

Vice President, Finance

Director of Safety

and Health

Training & Development (Outsourced)

Compensation (Shared Service

Centers)

Staffing (Line Managers, Use of Applicant Tracking

Systems)

Vice President, Marketing

Next1-38

PART II. HR ETHICAL, LEGAL, AND SOCIAL

CONSIDERATIONS

Chapter 3: Workforce Diversity, Equal

Employment Opportunity, and Affirmative Action