Human Resource Management 10th Edition Chapter 1 STRATEGIC HUMAN RESOURCE

MANAGEMENT:
AN OVERVIEW

Human Resource Management

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

Human Resource 1 Management

Safety and Health

Staffing
Job Analysis Human Resource Planning Recruitment

Selection

Human Resource 1 Management

Safety and Health

Staffing
Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

Staffing
Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time . Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

Staffing
Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

Human Resource Development

Training Development Career Planning Career Development Organizational Development Performance Management Performance Appraisal
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Safety and Health

Human Resource Development

Training - Designed to provide learners with knowledge and skills needed for their present jobs Development - Involves learning that goes beyond today's job; it has more long-term focus Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

Human Resource Development

Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

Human Resource Development

Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization Performance appraisal - Formal system of review and evaluation of individual or team task performance

Compensation
Compensation - All rewards that individuals receive as a result of their employment
Human Resource 1 Management

Safety and Health

Compensation
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.

Human Resource 1 Management

Safety and Health

Safety and Health

Safety - Involves protecting employees from injuries caused by work-related accidents Health - Refers to employees' freedom from illness and their general physical and mental well being

Employee and Labor Relations

Business is required by law to recognize a union and bargain with it in good faith if the firms employees want the union to represent them Human resource activity is often referred to as industrial relations Most firms today would rather have a union-free environment

Human Resource Research

Human Resource Research

Human resource research is not separate function. It pervades all HR functional areas.

Interrelationships of HRM Functions

All HRM functions are interrelated Each function affects other areas

Dynamic Human Resource Management Environment

Environment of Human Resource Management

Unions
Legal Considerations

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

Society

Technology

Marketing

Operations Unanticipated Events

Human Resource 1 Management

Economy

Finance

Safety and Health

Other Functional Areas

Shareholders

Customers

Competition

Labor Market

Unions
Group of employees who have joined together for purpose of dealing collectively with their employer Become a third party when dealing with the company

Labor Market
Potential employees located within geographic area from which employees are recruited

Society
No longer content to accept, without question, the actions of business Ethics - Discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation Social responsibility - Implied, enforced or felt obligation of managers to serve or protect interests of groups other than themselves

Legal Considerations
Federal, state and local legislation Court decisions Presidential executive orders

Shareholders
Owners of corporation Because they have invested money in firm, they may at times challenge programs considered by management to be beneficial to organization

Competition
Firms may face intense competition in both their product or service and labor markets Must maintain a supply of competent employees Bidding war often results

Customers
People who actually use firms goods and services Management has task of ensuring its employment practices do not antagonize members of market it serves Workforce should be capable of providing top-quality goods and services

Technology
The world has never before seen technological changes occur as rapidly as they are today. Created new roles for HR professionals Additional pressures on them to keep abreast of technology

Economy
In general, when economy is booming, it is often more difficult to recruit qualified workers. When a downturn is experienced, more applicants are typically available.

Unanticipated Events
Occurrences in the external environment that could not be foreseen Every disaster, whether manmade or by nature, requires a tremendous amount of adjustment with regard to human resource management

Cyberwork
Possibility of never-ending workday BlackBerrys, cell phones, text messaging, and e-mail create endless possibilities for communication Some workers believe their employer wants them available 24/7

Human Resource Designations (Executive, Specialist, Generalist)

Characteristics of an HR Executive
Performs one or more HR functions

A top-level manager
Reports directly to CEO or head of major division

Characteristics of an HR Generalist
Often an executive Performs tasks in various HR related areas Involved in several, or all, of the five HRM functions

Characteristics of an HR Specialist
May be an HR executive, manager, or
non-manager

Typically concerned with only one of the

five functional areas

QUESTIONS FOR REVIEW

1. Justify the statement that All managers are involved in human resource management
MANAGEMENT: Leads Organize Lead Control

Means developing an Organizational structure which results in jobs that must be staffed

 Human Resource Management - Utilization of individuals to achieve organizational objectives

THEREFORE managers are involved in this area since it is a part of their job description. Managers get things done through the efforts of others, which requires human resource management.

2. Distinguish between human resource management and human resource manager

Human resource management is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws.

Human resource manager

Individual within an organization responsible for hiring new employees, supervising employee evaluations, mediation between employees and bosses as necessary, and general overseeing of the personnel department.

Human Resource Manager

Acts in advisory or staff capacity Works with other managers to help them deal with human resource matters

3. What Human Resource Management Function Must be performed regardless of the organizations size

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Safety and Health

4. BY DEFINITION AND EXAMPLE DISTINGUISAMONG HUMAN RESOURCE EXECUTIVES, GENERALIST AND SPECIALIST

Characteristics of an HR Executive
Performs one or more HR functions

A top-level manager
Reports directly to CEO or head of major division

Characteristics of an HR Generalist
Often an executive Performs tasks in various HR related areas Involved in several, or all, of the five HRM functions

Characteristics of an HR Specialist
May be an HR executive, manager, or
non-manager

Typically concerned with only one of the

five functional areas

Human Resource Executives, Generalists, and Specialists

Vice President, Human Resources Vice President, Industrial Relations

Manager, Compensation

Manager, Training and Development

Manager, Staffing

Benefits Analyst

Executive: Generalist: Specialist:

5. How does the human resource function change as firms grow? Briefly describe each stage of the development

The Evolving HR Organization

HR Outsourcing HR Shared Service Centers Professional Employer Organization Line Manager
Evolve to make HR more strategic

Traditional Human Resource Function in Large Firm

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 in a Large Firm

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

President and CEO
Vice President, Strategic Human Resources Director of Safety and Health

Vice President, Operations

Vice President, Finance

Vice President, Marketing

Training & Development (Outsourced)

Compensation (Shared Service Centers)

Staffing (Line Managers, Use of Applicant Tracking Systems)

 In summary Human resource functions tend to change as firms grow and become more complex- as HRM becomes more important. Although the basic purpose of human resource management remains the same, the approach followed in accomplishing its objective often changes

6. Define profession. Do you believe that the field of human resource management is a profession
A profession is a vocation founded upon specialized educational training, the purpose of which is to supply objective counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain. YES it is a profession since Human Resource management requires education and training to be able to achieve its basic definition which is the utilization of human resource to achieve organizational objectives

7. Define Ethics. Why is Ethics important to the field of human resource management?

Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending and recommending concepts of right and wrong conduct. Professionalization of human resource management created a need for uniform code of ethics. Individuals working in HRM constantly make decisions that have ethical implications

INCIDENT 1
QUESTION 1
1. Trace Eds progression to vice president of human resources. Do you believe that this progression qualifies him for the job?

Eds Regression to HR VP

Human Resource Manager Compensation Manager

(3 yrs later) (for a small Duncan Plant in Chicago) (few years later)

Human Resource Manager

(for a large New York
(4years later)

Corporate Vice President

(After 15 years of work ship)

Asst. Compensation Manager

(fresh graduate)

1. Yes, this progression qualifies him for his new job.

QUESTION 2
What problems do you imagine Ed will face in his new role that he didn't have to deal with as plant human resource manager?
As a plant human resource manager, he is only accountable for providing a full range of HR support to the plant . Being the new VP, his range of work will be bigger than being a manager, and there will be more tasks assigned in him. He will be responsible for directing all of the people functions of the organization and its subsidiaries in accordance with its policies and practices, the ethical and social consciences of business and society and laws, regulations and administrative rulings of governmental organizations and other regulatory and advisory authorities and organizations.

QUESTION 3
What future challenges do you think Ed will confront in the field of human resources? He will lead the development and execution of the Human Resources strategic plan and shorter term plans and initiatives He will work with executive leadership to develop effective internal communications He will provide leadership to the HR team and build organizational capability and effectiveness. Provide HR advice and counsel to executive leadership on HR issue Lead or oversee support to the Board/Executive Chairman related to executive compensation and benefits and company-wide talent management/succession planning. Lead or oversee teams working with HR on various people initiatives. Promote quality, safety and security in all HR activities.