Introductory Discussion in Human Resource Management

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Carl Mark B. Miniano, Ph.D.

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What is Human Resource

Management?The policies and practices involved in carrying out the

people or human resource aspects of a management

position, including recruiting, screening, training,rewarding, and appraising.

Garry Dessler

The design of formal systems in an organization to ensure

effective and efficient use of human talent to accomplishorganizational goals.

Mathis & Jackson

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y M anaging people and designing jobs to effectively and efficiently achieve organizational goals

y H eizer and Render y The design of formal systems in an organization to ensure

effective and efficient use of human talent to accomplishorganizational goals.

y Torrington

y A range of management activities which aim to achieveorganizational objectives through effective use of employees

y N ayir

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Personnel Aspects Of A Managers

Joby Conducting job analyses (determining the nature of each employees

job)

y Planning labor needs and recruiting job candidates

y Selecting job candidates

y Orienting and training new employees

y Managing wages and salaries (compensating employees)

y Providing incentives and benefits

y Appraising performancey Communicating (interviewing, counseling, disciplining)

y Training and developing managers

y Building employee commitment

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Personnel Mistakesy Hire the wrong person for the job

y Experience high turnover

y Have your people not doing their best

y Waste time with useless interviews

y Have your company in court because of discriminatory actions

y Have your company receive penalties for unsafe practices

y

Have some employees think their salaries are unfair and inequitablerelative to others in the organization

y Allow a lack of training to undermine your departments effectiveness

y Commit any unfair labor practices

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Basic HR ConceptsyGetting results

y The bottom line of managing

yHR creates value by engagingin activities that producethe employee behaviorsthe company needs toachieve its strategicgoals.

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Line and Staff Aspects of HRMy Line manager

y A manager who is authorized to direct the work of

subordinates and is responsible for accomplishing theorganizations tasks.

y Staff manager

y A manager who assists and advises line managers.

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Line Managers HRM

Responsibilities1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth workingrelationships

6. Interpreting the firms policies and procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department morale

10. Protecting employees health and physical condition

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Functions of the HR Managery A line function

y The HR manager directs the activities of the people in

his or her own department and in related service areas(like the plant cafeteria).

y A coordinative function

y HR managers also coordinate personnel activities, a duty

often referred to asfu

nctional control.y Staff (assist and advise) functions

y Assisting and advising line managers is the heart of theHR managers job.

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HR and Authorityy Authority

y The right to make decisions, direct others work, andgive orders.

y Implied authority y The authority exerted by an HR manager by virtue of

others knowledge that he or she has access to topmanagement.

y Line authority y The authority exerted by an HR manager by directing

the activities of the people in his or her own departmentand in service areas.

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Employee Advocacyy HR must take responsibility for:

y Clearly defining how management should be treating

employees.

y Making sure employees have the mechanisms requiredto contest unfair practices.

y R epresent the interests of employees within theframework of its primary obligation to seniormanagement.

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Examples of HR Job Dutiesy R ecruiters

y Search for qualified job applicants.

y Equal employment opportunity (EEO) coordinatorsy Investigate and resolve EEO grievances, examine

organizational practices for potential violations, andcompile and submit EEO reports.

y Job analystsy Collect and examine information about jobs to prepare

job descriptions.

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Examples of HR Job Duties (contd)y Compensation managers

y Develop compensation plans and handle the employee

benefits program.y Training specialists

y Plan, organize, and direct training activities.

y Labor relations specialists

y Advise management on all aspects of unionmanagement relations.

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A Changing HR Environmenty Globalization

y Technological Advances

y Exporting Jobs

y The Nature of Work

y Workforce Demographics

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Measuring HRs Contributiony Strategy

y The companys long-term plan for how it will balance its

internal strengths and weaknesses with its externalopportunities and threats to maintain a competitiveadvantage.

y HR managers today are more involved in partnering with their

top managers in both designing and implementing theircompanies strategies.

y Top management wants to see, precisely, how the HR managers plans will make the company more valuable.

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HR Metricsy Absence R ate

[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100

y Cost per Hire

(Advertising + Agency Fees + Employee R eferrals + Travel cost of applicants and staff + R elocation costs + R ecruiter pay andbenefits) ÷ Number of Hires

y Health Care Costs per EmployeeTotal cost of health care ÷ Total Employees

y HR Expense FactorHR expense ÷ Total operating expense

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Figure 15

S ources: R obert Grossman, Measuring Up, HR M agazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. R ich,Improving the R eturn on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320;Thomas E.Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human R esource Practices: Using Customers, Employees, andFinancial Metrics, Human Resource M anagement 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing HouseIncorporated, July 17, 1996;] S HR M/EMA 2000 Cost Per Hire and S taffing M etrics S urvey; www.shrm.org.



HR Metrics (contd)y H

uman CapitalR

OIR evenue (Operating Expense [Compensation cost + Benefit

cost]) ÷ (Compensation cost + Benefit cost)

y Human Capital Value Added

R evenue (Operating Expense ([Compensation cost + BenefitCost]) ÷ Total Number of FTE

y R evenue Factor

R evenue ÷ Total Number of FTE

y Time to fill

Total days elapsed to fill requisitions ÷ Number hired

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Figure 15 (contd)

S ources: R obert Grossman, Measuring Up, HR M agazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. R ich, Improving the R eturn on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach toHuman R esource Practices: Using Customers, Employees, and Financial Metrics, Human Resource M anagement 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] S HR M/EMA 2000 CostPer Hire and S taffing M etrics S urvey; www.shrm.org.



HR Metrics (contd)y

Training Investment FactorTotal training cost ÷ Headcount

y Turnover Costs

Cost to terminate + Cost per hire + Vacancy Cost + Learning curve

lossy Turnover R ate

[Number of separations during month ÷ Average number of employees during month] × 100

y

Workers Compensation Cost per EmployeeTotal WC cost for Year ÷ Average number of employees

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Figure 15 (contd)

S ources: R obert Grossman, Measuring Up, HR M agazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. R ich, Improving the R eturn on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach toHuman R esource Practices: Using Customers, Employees, and Financial Metrics, Human Resource M anagement 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] S HR M/EMA 2000 CostPer Hire and S taffing M etrics S urvey; www.shrm.org.



Measuring HRs Contributiony The HR Scorecard

y Shows the quantitative standards, or metrics thefirm uses to measure HR activities.

y Measures the employee behaviors resulting fromthese activities.

y Measures the strategically relevant organizationaloutcomes of those employee behaviors.

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Benefits of a High Performance

Work System (HPWS)

y Generate more job applicants

y Screen candidates more effectively

y Provide more and better training

y Link pay more explicitly to performancey Provide a safer work environment

y Produce more qualified applicants per position

y More employees are hired based on validated selection

testsy Provide more hours of training for new employees

y Higher percentages of employees receiving regularperformance appraisals.

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HR and Technologyy Benefits of technological applications forHR

y Intranet-based employee portals through which

employees can self-serviceHR

transactions.y The availability of centralized call centers staffed withHR specialists.

y Increased efficiency of HR operations.

y

The development of data warehouses of HR -relatedinformation.

y The ability to outsourceHR activities to specialistservice providers.

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Referencesy David A. DeCenzo and Stphen P. R obbins(2007),

F undamentals of Human Resource M anagement,Tenth edition, John Wiley & Sons Inc.

y

y Gary Dessler and ChweeHuat Tan(2005), HumanResource M anagement: An Asian Perspective, PearsonEducation

y

y Derek Torrington, Laura Hall, Carol Atkinson andStephen Taylor(2011 ) , Human Resource M anagement,E igth E dition, Financial Times/PrenticeHall

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y Peter Boxall and John Purcell(2011 ) , S trategy and Human Resource M anagement: M anagement, Work

and Organizations, Third edition, Palgrave Macmillany R aymond A. Noe, John R . Hollenbeck, Barry Gerhart

and Patrick M. Wright(2006), Human Resource M anagement: Gaining a Competitive Advantage, F ifthE

dition, McG

raw-H

ill Irwin

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Introductory Discussion in Human Resource Management

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