HUMAN RESOURCE MANAGEMENT

If an organization is to achieve its goals, it must not only have the required resources, it must also use them effectively. The resources available to a manager are human, financial, physical, and informational. While human resources (HR have al!ays been critical to the success of any organization, they have assumed an increasingly greater importance that is being recognized inside and outside !or" organizations. Human resources departments typically include individuals !ith a !ide variety and range of "no!ledge, s"ills, and abilities !ho are e#pected to perform $ob activities in a manner that contributes to the attainment of organizational goals. Ho! effectively employees contribute to the organization depends in large part upon the quality of the HR program (including staffing, training, and compensation as !ell as the ability and !illingness of management%%from the &'( to first%line supervisors%%to create an environment that fosters the effective use of human resources.

Why Study Human Resources Management (HRM)?

)nyone !ho embar"s on a course of specialized study typically !onders about its relevance to his or her interests and goals. The ans!er to the question *Why study HR+,* should become apparent as !e e#plore the importance of HR+ and e#amine the contributions it can ma"e to an organization. Whether you are !or"ing in the HR+ function of your organization or as a staff professional or line manager, you !ill definitely need to be a!are of the various roles and responsibilities in dealing !ith employers in your organization.

The m!ortance o" HRM

-or many decades such responsibilities as selection, training, and compensation !ere considered basic functions of the area historically referred to as personnel management. These functions !ere performed !ithout much regard for ho! they related to each other. -rom this narro! vie! !e have seen the emergence of !hat is no! "no!n as human resources management. #ersonne$ management %as&c "unct&ons o" se$ect&on' tra&n&ng' com!ensat&on' etc(' &n the management o" an organ&)at&on*s !ersonne$ Human resources management (HR+ , as it is currently perceived, represents the e#tension rather than the re$ection of the traditional requirements for managing personnel effectively. )n understanding of human behavior and s"ill in applying that understanding are still required. )lso required are "no!ledge and understanding of the various personnel functions performed in managing human resources, as !ell as the ability to perform those functions in accordance !ith organizational ob$ectives. )n a!areness of e#isting economic, social, and legal constraints upon the performance of these functions is also essential. Human resources management (HRM) e+tens&on o" the trad&t&ona$ re,u&rements o" !ersonne$ management' -h&ch recogn&)es the dynam&c &nteract&on o" !ersonne$ "unct&ons -&th each other and -&th the strateg&c and !$ann&ng o%.ect&/es o" the organ&)at&on( HR+, as it is practiced today, recognizes the dynamic interaction of personnel functions !ith each other and !ith the ob$ectives of the organization. +ost important, it recognizes that HR planning must be coordinated closely !ith the organization.s strategic and related planning functions. )s a result, efforts in HR+ are being directed to!ard providing more support for the achievement of the organization.s goals, !hether it be a profit, not for profit, or governmental or%

ganization.

HRM0 Current Cha$$enges

)ccording to a survey of senior HR e#ecutives in Personnel Journal's top /00 companies (based on /112 revenues , the most challenging HR issues are health care costs, reorganizing and do!nsizing organizations, and mergers and acquisitions. These issues are follo!ed by problems in managing diverse groups of !or"ers !ho have different attitudes, values, and !or" behaviors3 managing for top%quality performance (T4+ 3 team building3 and responding to the needs of the families of employees. (ther areas presenting challenges are !or"ers. compensation, labor relations, and management development. International companies face increased global competition. (ne may e#pect to see ne! issues and challenges emerging in the future that require appropriate action. 'volving business and economic factors forge changes in the HR field requiring that preparation for change be an ongoing process.

Ro$e o" the HR 1e!artment

Top management generally recognizes the contributions that the HR program can ma"e to the organization and thus e#pects HR managers to assume a broader role in the overall organizational strategy. Thus HR managers must remember the bottom line if they are to fulfill their role. Investment in sophisticated HR practices contributes to greater financial performance and productivity and to reduced turnover. In the process of managing human resources, increasing attention is being given to the personal needs of the employees. The HR+ 5epartment activities influence both the individual and society. Increasingly, employees and the public at large are demanding that employers demonstrate greater social responsibility in managing their human resources. &omplaints that some $obs are revitalizing the lives and in$uring the health of employees are not uncommon. &harges of discrimination against !omen, minorities, the physically disabled, and the aged !ith respect to hiring, training, advancement, and compensation are being leveled against some employers. Issues such as comparable pay for comparable !or", the rising costs of health benefits, day care for children of employees, and alternative !or" schedules are concerns that many employers must address. )ll employers are finding that privacy and confidentiality of information about employees are serious matters and deserve the greatest protection that can be provided. Where employees are organized into unions, employers can encounter costly collective bargaining proposals, stri"e threats, and charges of unfair labor practices. &ourt litigation, demands for corrective action by governmental agencies, sizable damage a!ards in response to employee la!suits, and attempts to erode the employment%at%!ill doctrine valued by employers are still other hazards that contemporary employers must try to avoid.

The HR Ro$e o" Managers and Su!er/&sors

6tudents !ho are no! preparing for careers in organizations !ill find that the study of HR+ !ill provide a bac"ground of understanding that !ill be valuable in managerial and supervisory positions. )lthough HR managers have the responsibility for coordinating and enforcing policies relating to the HR functions, all managers and supervisors are responsible for performing these functions in their relations !ith subordinates. It is in such positions of leadership that the ma$ority of students !ill be employed. HR+ is therefore oriented to help you in managing subordinates more effectively, !hether you become first%line supervisor or chief e#ecutive officer. 5iscussions concerning the role of the HR department can serve to provide one !ith a better understanding of the functions performed by this department. ) familiarity !ith the role of the HR department should help you to cooperate more closely !ith the department.s staff and to utilize more fully the assistance and services available from this resource. The present status of HR+ !as achieved only after years of evolutionary development. 7ou need to understand the forces that have contributed to this process and to become more a!are of forces acting today that !ill have an effect on HR+ in the future.

1e/e$o!ment o" Human Resources Management

HR+, at least in a primitive form, has e#isted since the first attempts at group effort. &ertain HR functions, even though informal in nature, !ere performed !henever people came together for a common purpose. 5uring the course of this past century, ho!ever, the processes of managing people have become more formalized and specialized, and a gro!ing body of "no!ledge has been accumulated by practitioners and scholars. )n understanding of the events contributing to the gro!th of HR+ can provide a perspective for contemporary policies and practices. 86) HI6T(RI&)9 5':'9(;+'<T (- HR+ ;R)&TI&'6 7')R /=1> /@A@ /@@/ /@@C /@@> /1/2 /1/C /1/D /120 /12A /12= /1CD /DC1 ':'<T 'arliest authenticated stri"e in )merica3 ;hiladelphia printers see" to gain minimum !ee"ly !age of ?>. ;assage of a la! in ;hiladelphia setting a minimum !age for !or"ers in commercial occupations. Beginning of -rederic" W. Taylor.s !or" in scientific management at the +idvale 6teel ;lant in ;hiladelphia. 'stablishment of the 8.6. &ivil 6ervice &ommission. -ounding of the )merican -ederation of 9abor ()-9 . ;assage in +assachusetts of the first minimum !age la!. 'stablishment of the 8.6. 5epartment of 9abor. -irst course in personnel administration, offered at 5artmouth &ollege. -irst te#t in personnel administration, published by (rd!ay Tead and Henry &. +etcalf. ;oint method of $ob evaluation developed by the <ational 'lectric +anufacturers. )ssociation and the <ational +etal Trades )ssociation. Ha!thorne studies begun by +ayo, Roethlisberger, and 5ic"son. 'stablishment of the &ongress of Industrial (rganizations (&I( by several unions previously affiliated !ith the )-9. ;ublication of the first edition of the Dictionary of Occupational Titles.

/1A/

Beginning of 8.6. involvement in World War II, demanding the mobilization of individuals trained in personnel management and the rapid development of personnel programs in the military and in industry. +erger of the )-9 and &I(. -ederal Women.s ;rogram established by the 8.6. &ivil 6ervice &ommission to enhance the employment and advancement of !omen. Beginning of a professional accreditation (no! certification program by the ;ersonnel )ccreditation Institute. ;assage of the &ivil 6ervice Reform )ct, !hich established the (ffice of ;ersonnel +anagement ((;+ , the +erit 6ystems ;rotection Board (+6;B , and the -ederal 9abor Relations )uthority (-9R) . Beginning of the erosion of the employment%at%!ill doctrine, !ith increasing attention to *$ust cause* terminations. Increased emphasis on employee participation in organizational decision ma"ing to improve productivity and competitive position. Heightened a!areness of privacy rights of employees as employers monitor employee performance. Increased emphasis on global HR practices3 greater use of temporary employees3 observed 'mphasis on se#ual harassment3 heightened attention to greater diversity in the !or"force3 increased emphasis on total quality management3 and do!nsizing or *rightsizing* of organizations.

/1DD /1D= /1=D /1=@

/1@2 /1@D /110 /11/ /11D

The 2actory System

5uring the nineteenth century, the development of mechanical po!er made possible a factory system of production. The concentration of !or"ers in factories served to focus public attention on their conditions of employment, !hich !ere often unhealthy and hazardous. 5uring the late /@@0s, la!s !ere passed in some states to regulate hours of !or" for !omen and children, to establish minimum !ages for male labor, and to regulate !or"ing conditions that affect employee health and safety. It !as also at this time that la!s !ere enacted to provide pay% ments for in$uries suffered in industrial accidents. 'ventually, as the result of legislation and collective bargaining, employment conditions began to improve.

The Mass #roduct&on System

+ass production !as made possible by the availability of standardized and interchangeable parts designed to be used in assembly%line production. With this system came improvements in production techniques and the use of labor%saving machinery and equipment. The accompanying increases in overhead costs and !age rates, ho!ever, forced companies to see" !ays of using production facilities and labor more efficiently. -rederic" W. Taylor.s !or" at the +idvale 6teel plant in ;hiladelphia stimulated the scientific management movement. )ccording to Taylor, scientific management required accurate performance standards based on ob$ective data gathered from time studies and other sources. These standards provided a basis for re!arding the superior !or"ers financially and for eliminating the unproductive ones. TaylorEs approach !as in sharp contrast to the then%prevailing practice of attempting to gain more !or" from employees by threatening them !ith the loss of their $obs. Sc&ent&"&c management su%st&tut&on o" e+act sc&ent&"&c &n/est&gat&on and 3no-$edge "or &nd&/&dua$ .udgment o" e&ther the -or3er or the %oss

The Ha-thorne Stud&es

Begun in the /120s, the Ha!thorne studies !ere an effort to determine !hat effect hours of !or", periods of rest, and lighting might have on !or"er fatigue and productivity. These e#periments constituted one of the first cooperative industry%university research efforts. )s the studies progressed, ho!ever, it !as discovered that the social environment could have an equivalent if not greater effect on productivity than the physical environment. Ha-thorne stud&es e+!er&ments &n the 4567s to determ&ne -hat e""ect hours o" -or3' !er&ods o" rest' and $&ght&ng ha/e u!on -or3er "at&gue and !roduct&/&ty &onducted at the Western 'lectric &ompany.s Ha!thorne Wor"s near &hicago, Illinois, these studies !ere a pioneering endeavor to e#amine factors affecting productivity. HR specialists generally agree that the Ha!thorne studies played a very important role in the development of HR+.

The studies spurred efforts to humanize the !or"place and to find more%sensitive !ays to motivate !or"ers. (ut of the intervie!ing techniques used by the Ha!thorne researchers gre! the nondirective approach to counseling, !hich recognizes the importance of Ffeelings.G 8ntil that time, it !as generally considered inappropriate in employment situations to study attitudes, beliefs, behaviors, and feelings.

The Human Re$at&ons Mo/ement

The Ha!thorne studies, and related industry research, helped to give rise to the human relations movement by providing ne! insights into human behavior. This movement focused attention on individual differences among employees. It studied the influence that informal groups can have upon employee performance and behavior. It also focused attention on the necessity for managers to improve their communications and to be more sensitive to the needs and feelings of their subordinates. Human re$at&ons mo/ement mo/ement that "ocused attent&on on &nd&/&dua$ d&""erences among em!$oyees and on the &n"$uence that &n"orma$ grou!s ha/e u!on em!$oyee !er"ormance and %eha/&or This research emphasized the need for a more participative and employee%centered form of supervision. :arious principles and practices currently applied in employee involvement, !or" teams, and employee empo!erment gre! out of the !or" of researchers and practitioners of the early human relations movement.

Contr&%ut&ons o" the 8eha/&ora$ Sc&ences

)s the human relations movement evolved, it became broader in scope. The understanding of human behavior !as enhanced by contributions not only from the traditional disciplines of psychology, sociology, and anthropology, but also from social economics, political science, linguistics, and education. The interrelationships of these various disciplines are no! referred to collectively as the Fbehavioral sciences.G 8eha/&ora$ sc&ences

/ar&ous d&sc&!$&nes o" !sycho$ogy' soc&o$ogy' anthro!o$ogy' soc&a$ econom&cs' !o$&t&ca$ sc&ence' $&ngu&st&cs' and educat&on The behavioral science approach is oriented to!ard economic ob$ectives, concerned !ith the total climate or milieu, and consistent !ith the development of interpersonal competence. It is a humanistic approach. The use of groups and employee participation in the achievement of organizational ob$ectives, including the management of change, is no! a formally recognized field of study in universities !orld!ide. +anagers dra! upon the results of these studies regularly in managing staffs. It is not $ust an HR+ field of endeavor. +anagers !orld!ide apply the concepts in everyday activities.

Gro-th o" Go/ernmenta$ Regu$at&ons

;rior to the /1C0s, employer relations !ith employees and !ith their labor organizations !ere sub$ect to very fe! la!s and regulations in the 86). Ho!ever, political pressures for social reform created by the depression of the /1C0s gave rise to both federal and state legislation affecting these relations. 6tarting !ith the <ational 9abor Relations )ct in /1CD, federal regulations have e#panded to the point !here they govern the performance of virtually every HR function. -rom highly industrialized nations to developing countries, governments constantly regulate the !or"place. HR managers and supervisors are responsible for compliance !ith all la!s and regulations that govern !or" environments. These requirements are often very stringent and vary greatly from country to country in our global !or"force. )lthough employers are often critical of the demands these la!s and regulations impose on their operations, most legislation is a response to employers. lac" of social responsibility, as manifested by their poor treatment of employees in the past. )s a manager of people, !herever you !or" in the !orld, you !ill constantly be dealing !ith a great many legal regulations affecting your actions in dealing !ith employees.

ncreased S!ec&a$&)at&on o" HR 2unct&ons

Initially, the management of human resources !as limited largely to hiring, firing, and record "eeping, functions carried out by managerial and supervisory personnel. 'ventually, clerical personnel !ere employed to assist in "eeping records relating to hours !or"ed and to payroll. &omputers handle much of the general record "eeping in most parts of the !orld. By the /1A0s the typical personnel department in a medium%sized or large firm included

individuals !ith specific training andHor e#perience in carrying out various specialized functions. The ma$or functions performed in organizations today are sho!n belo!.

ncreas&ng Em!has&s on Strateg&c Management

Top management e#pects HR managers to assume a broader role in overall organizational strategy. HR+ is playing a vital role in creating and sustaining the competitive advantage of an organization. In order to carry out their e#panded role, many HR professionals !ill need to acquire competencies such as theseI /. 2. C. Business capabilities. HR professionals !ill need to "no! the business of their organization thoroughly. This requires an understanding of its financial capabilities. State-of-the-art HRM practices. HR professionals !ill be the organization.s behavioral science e#perts. HR professionals should develop competencies in staffing, development, appraisal, re!ards, team building, and communication. Manage ent of change process. HR professionals !ill have to be able to Fmanage change processesG so that HR activities are effectively merged !ith the business needs of the organization.

The ability to integrate business, HR+, and management of change is essential. By helping their organizations build a sustained competitive advantage and by learning to manage many activities !ell, HR professionals !ill become strategic business partners. +any of the most for!ard% loo"ing &'(s are see"ing top HR managers !ho !ill report directly to them and help them address "ey issues.

;rofessionalization of Human Resources +anagement

Because of the changes occurring in the !or"force, HR managers can no longer function simply as technical specialists !ho perform the various HR+ functions. Instead, they must concern themselves !ith the total scope of HR+ and its role !ithin the organization and in society as a !hole. Therefore HR managers today should be professionals !ith respect to both their qualifications and their performance. (ne of the characteristics of a profession is the development through research and e#perimentation of an organized body of "no!ledge. This "no!ledge is e#changed through conferences, seminars, and !or"shops sponsored by professional associations. The latest information in the field is communicated through the literature published by the professional associations, as !ell as by various nonprofit organizations and educational institutions. (ther characteristics of a profession include the establishment of a code of ethics and of certification requirements for its members. HR+ e#hibits all these characteristics.

#ro"ess&ona$ Assoc&at&ons and Cert&"&cat&on

Today a number of professional organizations represent general, as !ell as specialized, areas of HR+. The professional association !ith the largest membership%%more than A=,000%%is the 6ociety for Human Resource +anagement (6HR+ . )ffiliated !ith 6HR+ are more than A00 local chapters in ma$or cities throughout the 8nited 6tates, many of !hich sponsor student conferences, seminars, and !or"shops. The national annual meeting of the society is held in a different city each year. The society publishes HR Maga!ine (formerly Personnel "# inistrator$ and HR %e&s (formerly Resource$' as !ell as various boo"s and bulletins. While HR Maga!ine is available to the general public and is found in most libraries, HR %e&s is generally available only by personal or organizational sub% scription. 6HR+ frequently collaborates !ith the 8.6. Bureau of <ational )ffairs (B<) in conducting surveys in various areas of HR+. (ther leading professional associations in the field include the International ;ersonnel +anagement )ssociation, the International )ssociation for ;ersonnel Women, the )merican +anagement )ssociation ()+) , and the &onference Board (&B . )+) and &B are prominent nonprofit organizations that provide publications and educational services relating to HR+ and other functional areas. (rganizations that represent specialized areas of interest include the Human Resource ;lanning 6ociety, the )merican &ompensation )ssociation, the International -oundation of 'mployee Benefit ;lans, the )merican 6ociety for Training and 5evelopment, the )ssociation for Industrial Research, and the 6ociety for Industrial and (rganizational ;sychology of the )merican ;sychological )ssociation. -or professors in the field, there is the ;ersonnel and Human Resources 5ivision of the )cademy of +anagement.

)ll of these organizations sponsor meetings and !or"shops that promote the professional gro!th of their members. They also provide opportunities for contact !ith other organizations, including government agencies. +ost have e#cellent !ebsites for you to revie!. The professionalization of a field generally leads to some form of certification for practitioners to enhance their status and to recognize their competency. The Human Resource &ertification Institute of 6HR+ has developed such a program for professionals in HR+. The program offers t!o types of certification, each of !hich reflects the number of specialties and the amount of e#perience andHor academic training possessed by the recipient. Cert&"&cat&on recogn&t&on o" ha/&ng met certa&n !ro"ess&ona$ standards To qualify for either certification, an applicant must provide verification of e#perience and pass an intensive four%hour !ritten e#amination to demonstrate mastery of "no!ledge. The certifications, !hich must be rene!ed every three years, serve largely to indicate the qualifications of recipients and encourage others to qualify for certification. There are other certifying agencies !ith specific certification designations in the areas of compensation, employee benefits, and safety and health. )s the reputations of these programs gro! and the programs become more !idely recognized by top management, certification !ill become an important qualification for individuals see"ing positions in HR+.

Code o" Eth&cs

It is typical for professional associations to develop a code of ethics that members are e#pected to observe. The code sho!n in Highlights in HR+ 2 !as developed for HR managers by the 6HR+. +any large corporations have their o!n code of ethics to govern corporate relations !ith employees and the public at large. Soc&ety "or Human Resource Management

Code O" Eth&cs

)s a member of the 6ociety for Human Resource +anagement, I pledge myself toI

+aintain the highest standards of professional Instill in the employees and the public a sense and personal conduct. of confidence about the conduct and intentions of my employer. 6trive for personal gro!th in the field of +aintain loyalty to my employer and pursue its human resource management. ob$ectives in !ays that are consistent !ith the public interest. 6upport the 6ociety.s goals and ob$ectives for 8phold all la!s and regulations relating to my developing the human resource management employer.s activities. profession. 'ncourage my employer to ma"e the fair and Refrain from using my official positions, either equitable treatment of all employees a primary regular or volunteer, to secure special concern. privilege, gain or benefit for myself. 6trive to ma"e my employer profitable both in +aintain the confidentiality of privileged monetary terms and through the support and information encouragement of effective employment. Improve public understanding of the role of human resource management This &ode of 'thics for members of the 6ociety for Human Resource +anagement has been adopted to promote and maintain the highest standards of personal conduct and professional standards among its members. )dherence to this code is required for membership in the 6ociety and serves to assure public confidence in the integrity and service of human resource management professionals.

)dherence to a code often creates a dilemma for professionals, including those in HR+. &onsider these questions. Whom do HR professionals service, Who is the client%%management or the individual employees, In the course of serving the employees and management and maintaining respect and regard for human values, !hose needs are paramount, What happens !henJas is frequently the case in HR !or"Jthe confidential issues of management andHor the employees are in conflict,G These and similar questions are not easy to ans!er. Ho!ever, the fact that there is a code in itself focuses attention on ethical values and provides a basis for HR professionals to evaluate their plans and actions. The HR staff is concerned !ith monitoring ethics in its o!n operations. Ho!ever, HR departments have been given a greater role in communicating the organization.s values and standards, monitoring compliance !ith its code of ethics, and enforcing the standards throughout the organization. +any organizations have ethics committees and ethics ombudsmen to provide

training in ethics to employees. The ultimate goal of ethics training is to avoid unethical behavior, adverse publicity, and potential la!suits and to gain a strategic advantage. To achieve these ob$ectives, t!o approaches are frequently usedI (/ developing employee a!areness of ethics in business and (2 dra!ing attention to potential ethical issues to !hich an employee may be e#posed.

#ro"ess&ona$ 9&terature ;ersonal development in any profession requires "no!ledge of the current literature in the field. ) number of periodicals contain articles on general or specialized areas of interest in HR+. 6ome of the more important $ournals students and practitioners should be familiar !ith are sho!n belo!. Some m!ortant #ro"ess&ona$ :ourna$s (o pensation an# Benefits Re)ie& .nternational Journal of Selection an# * ployee Relations +a& Journal "ssess ent * ployee Responsibility an# Rights Journal of "pplie# Psychology HR ,ocus Journal of (ollecti)e %egotiation in the Public HR Maga!ine Sector HR %e&s Journal of +abor Research Hu an Relations Journal of Manage ent Hu an Resource Manage ent +abor +a& Journal Hu an Resource Manage ent Re)ie& Monthly +abor Re)ie& Hu an Resource Planning %ational Pro#ucti)ity Re)ie& Hu an ResourcesJournal of the Personnel .nternational Personnel Journal "ssociation for Personnel /o en Personnel Psychology .n#ustrial an# +abor Relations Re)ie& Public Personnel Manage ent .n#ustrial Relations Super)isory Manage ent .nternational Journal of Hu an Resources Training an# De)elop ent Journal Manage ent (ther periodicals that cover the general field of business and management often contain articles pertaining to HR+. )mong these are "ca#e y of Manage ent *0ecuti)e' "ca#e y of Manage ent Journal' "ca#e y of Manage ent Re)ie&' Business Hori!ons' (alifornia Manage ent Re)ie&' (ana#ian Business Re)ie&' *uropean Manage ent Journal' ,ortune' Har)ar# Business Re)ie&' Journal of Business *thics' Manage ent Re)ie&' Business /ee1' and The /all Street Journal.

Research Organ&)at&ons
The primary function of HR Research organizations is to conduct research and to ma"e their findings available to all !ho are interested. +any such organizations are found at universities. ;robably the largest university research center in the behavioral sciences is the Institute for 6ocial Research at the 8niversity of +ichigan. Its three divisions%%the 6urvey Research &enter, the Research &enter for Kroup 5ynamics, and the &enter for ;olitical 6tudies%%have together published over D,000 boo"s, articles, and reports. ) number of state universities have centers for the study of labor and industrial relations, including the 8niversities of &alifornia, +innesota, Illinois, and <e! 7or". The 6chool of Industrial and 9abor Relations at &ornell 8niversity is also !ell "no!n for its publications. (rganizations sponsored by industry, such as the )merican +anagement )ssociation ()+) and the &onference Board (&B , publish research studies that benefit managers in HR+. Rand &orporation of 6anta +onica, &alifornia, and the Broo"ings Institution of Washington, 5.&., are also recognized for their contributions to this field. The Bureau of <ational )ffairs (B<) , &ommerce &learing House (&&H , and ;rentice% Hall (;H also conduct surveys relating to HR+ policies and practices. 6urvey results from these organizations may be found in loose%leaf volumes that contain a !ealth of information about policies and practices and the legal aspects of HR+. The student of HR+ should become familiar !ith the various B<), &&H, and ;H publications that are updated regularly. These volumes are available in many college and university libraries, city libraries, and the libraries of the larger !or" organizations. The World Wide Web search engines !ill help you gain access to these organizations and HR Research.

Academ&c Tra&n&ng
With so much attention focused on the behavioral sciences during the /1>0s and /1=0s, the sub$ect of HR+ suffered from neglect at some 8.6. colleges and universities. 6ince then, ho!ever, equal employment opportunity, international HR+, employee rights, concern for productivity, cost of employee benefits, and other current issues have re"indled interest in HR+ courses and in HR+ as a ma$or field of study. In the past, many HR professionals entered the field !ith degrees in liberal arts and sciences, having perhaps ta"en a fe! business courses as electives. Ho!ever, as certification requirements and other factors became essential for professional status, a bachelorEs degree and even a master.s degree in business have become more important. In addition to business courses, students planning careers in HR+ should ta"e courses in such areas as personnel and organizational psychology, industrial sociology, economics, industrial engineering, and electronic data processing. ) "no!ledge of computer operations is essential for processing and reporting personnel data to gauge the performance of HR programs.

#rograms "or Manag&ng Human Resources

)n HR program constitutes the overall plan for managing people and for guiding managers and supervisors in decisions relating to their subordinates. It establishes the ob$ectives, policies, procedures, and budget pertaining to the HR functions to be performed. )lthough HR managers are responsible for coordinating and enforcing policies relating to HR functions, responsibility for performing these functions rests !ith all managers and supervisors !ithin an organization.

O%.ect&/es
HR ob$ectives are determined by the organizationEs ob$ectives as a !hole. +ore and more, HR ob$ectives are reflecting the increased social responsibilities of firms, !hich include not only traditional responsibilities to customers, employees, and shareholders but also responsibilities to the community and to the total society. HR o%.ect&/es goa$s to %e ach&e/ed &n the area o" HRM

#o$&c&es
&losely related to HR ob$ectives are HR policies that serve to guide the actions required to achieve these ob$ectives. ;olicies provide the means for carrying out the management processes and as such are an aid to decision ma"ing. 9i"e ob$ectives, they may be idealistic or realistic, general or specific, fle#ible or infle#ible, qualitative or quantitative, broad or narro! in scope. Ho!ever, !hile ob$ectives determine !hat is to be done, policies e#plain ho! it is to be done. HR !o$&c&es gu&des to act&ons re,u&red to ach&e/e the HR o%.ect&/es Need "or #o$&c&es &arefully developed policies are vital to HR+ because employees are sensitive to any differences, no matter ho! slight, in the treatment they may receive compared !ith others. The quic"est !ay to impair employee efficiency and morale is for a manager to sho! favoritism in decisions such as those relating to vacations, schedules, raises and promotions, overtime, and disciplinary action. 5ecisions can be made more rapidly and more consistently if policies relating to these and

other sub$ects have been formulated and communicated throughout the organization. 2ormu$at&on o" #o$&c&es The formulation of HR policies for approval by top management should be a cooperative endeavor among managers, supervisors, and members of the HR staff. In some cases it may be important to have employees. input. ;olicy committees facilitate the pooling of e#perience and "no!ledge. ;articipation by operating managers is particularly important because they are often more familiar !ith the specific areas in !hich problems arise%and also because their cooperation is required for policy enforcement. The manager and staff of the HR department have the responsibility for e#ercising leadership in formulating policies that are consistent !ith overall organizational ob$ectives. They also must ma"e certain that these policies are compatible !ith current economic conditions3 collective bargaining trends3 and la!s and regulations at federal, state, and local levels. Wr&tten #o$&cy Statements (rganizations can ma"e their HR policies more authoritative by putting them in !riting. To strengthen their effectiveness, these statements, !hich may be compiled into a policy manual, should include the reasons the policy is needed. Written policy statements can serve as invaluable aids in orienting and training ne! personnel, administering disciplinary action, and resolving grievance issues !ith employees and their unions. When distributed to employees, these policy statements can provide ans!ers to many questions that might other!ise have to be referred to supervisors. HR policy statements and employee handboo"s assume the force of a legal contract bet!een employer and employee. Lust as employers refer to policy statements as a basis for their personnel actions, employees no! cite organizational failure to adhere to established policies as a violation of their rights. This is not their intended use. +any firms insert a disclaimer or !aiver in employee manuals to the effect that the contents of the manual do not constitute a contract. The disclaimer should be prominently placed, not buried in a footnote. Wording the manual carefully (avoiding Fal!aysG and Fnever,G for e#% ample , using a conversational tone rather than legalistic $argon, and having an outside labor counsel chec" the manual can help in avoiding problems.

#rocedures
HR procedures serve to implement policies by prescribing the chronological sequence of steps to follo! in carrying out the policies. ;rocedures relating to employee selection, for e#ample, might provide that individuals first be required to complete an application form, follo!ed by an intervie! !ith an HR office representative. HR !rocedures

!rescr&%ed se,uence o" ste!s to %e "o$$o-ed &n carry&ng out HR !o$&c&es Krievances, promotions, transfers, and !age ad$ustments li"e!ise must be administered according to established procedure in order to avoid problems resulting from oversights. -or e#ample, as a step in the disciplinary procedure, the failure to give an employee !ritten !arning of a violation might prevent the organization from discharging the employee for a second violation. HR procedures, li"e HR policies, must be treated as means to an end, not as ends in themselves. When organizations become bureaucratic, complaints may be raised about e#cessive red tape, infle#ibility, and impersonality in ma"ing HR decisions. 8nfortunately, !hen procedures become too detailed or numerous, they can impair rather than further the interests of the organization and its employees. To avoid this hazard, procedures must be revie!ed periodically and modified to meet changing conditions.

Human Resources n"ormat&on Systems

'ffective HR+ requires an HR information system (HRI6 to provide current and accurate data for purposes of control and decision ma"ing. The system is composed of procedures, equipment, information, methods to compile and evaluate information, the people !ho use the information, and information management. HR &n"ormat&on system (HR S) net-or3 o" !rocedures' e,u&!ment' &n"ormat&on' and !ersonne$ to !ro/&de data "or !ur!oses o" contro$ and dec&s&on ma3&ng &omputers are not only used for storage and retrieval of information but for broader applications. These applications include production of basic reports, HR calculations, long%range forecasting and strategic planning, career and promotion planning, and evaluation of HR policies and practices. ) !ell%designed HRI6 can serve as the main management tool in the alignment of HR department goals !ith the goals of long%term strategic planning. )s HR issues have been increasingly recognized as critical factors in strategic planning decisions, the ability of the HRI6 to quantify, analyze, and model change has enhanced the status of the HRI6 in many organizations. Klobal competition is putting increasing pressure on 8.6. managers to ma"e better and faster decisions. HR information technology can improve HR+ and contribute to the competitive advantage. In addition to the ma$or uses of computer technology, !ith a ;&, the HR professional can ta"e advantage of a variety of information services. )n on%line service designed especially for HR departments is the Human Resource Information <et!or", a subsidiary of B<). It provides

up%to%the%minute information in several categories, including ne!s, research, soft!are, and services, covering all disciplines of HR+. 6HR+ has an on%line database that permits users to quic"ly search more than 2A,000 citations of boo"s and articles. In developing an effective HRI6, an organization must address privacy issues in advance. ) data%privacy policy can ma"e the HRI6 a positive factor in employee relations rather than a mistrusted disseminator of sensitive personnel information.

The 8udget
6tatements relating to ob$ectives, policies, and procedures or to a program as a !hole can be meaningful only if they are supported financially through the budget. )n HR budget is both a financial plan and a control for the e#penditure of funds necessary to support the HR program. )s such, it is one of the best indicators of managementEs real attitude to!ard the program. HR %udget "&nanc&a$ !$an and a contro$ "or the e+!end&ture o" "unds necessary to su!!ort the HR !rogram While a firm.s selection policy may be to hire only fully qualified applicants to fill vacancies, its ability to observe this policy !ill depend on !hether it budgets enough money to screen applicants carefully. 6ecuring adequate funds for the HR budget further requires the HR staff to be able to convince top management that the HR program is cost%effective and is producing results.

E/a$uat&ng the Human Resources #rogram

Lust as financial audits are conducted, audits or evaluations of the HR+ program should be conducted periodically to assure that its ob$ectives are being accomplished. )udits typically involve analyzing data relative to the program, including employee turnover, grievances, absences, accidents, and similar indicators. 6pecial attention is usually given to assessing compliance !ith la!s and regulations governing various specific areas such as equal employment opportunity and safety and health. ) comprehensive audit should encompass all aspects of the HR function. This audit should be performed by both the HR department and the operating and line managers.

The Human Resources 1e!artment

The HR manager is assuming a greater role in top%management planning and decision ma"ing. This trend reflects a gro!ing a!areness of the contributions that HR+ can ma"e to the success of the firm. )lthough managerial personnel at all levels are engaged in HR+ activities, the top manager of the HR department has the primary responsibility for developing a program that !ilt help the organization to meet its HR+ ob$ectives.

Res!ons&%&$&t&es o" the Human Resources Manager

Kovernment legislation and court decisions have had a ma$or influence on HR policies and practices. +ore recently, concern for productivity improvement, employee desires for balancing family and $ob demands, and desire of !or"ers for more equitable treatment have added to the responsibilities of the HR manager. These influences have thus required HR managers not only to be more "no!ledgeable about many issues but also to be more versatile in handling several activities. The ma$or activities for !hich an HR manager is typically responsible are as follo!sI /. Policy initiation an# for ulation. The HR manager generally proposes and drafts ne! policies or policy revisions to cover recurring problems or prevent anticipated problems. (rdinarily, these are proposed to the senior e#ecutives of the organization, !ho actually issue the policy. 2. "#)ice. The HR manager generally counsels and advises line managers. The HR staff is e#pected to be fully familiar !ith HR policy, labor agreements, past practices, and the needs and !elfare of both the organization and the employees in order to develop sound solutions to problems. C. Ser)ice. The HR manager generally engages in activities such as recruiting, selection, testing, planning of training programs, and hearing employee concerns and complaints. A. (ontrol. The HR manager generally monitors performance of line departments and other staff departments to ensure conformity !ith established HR policy, procedures, and practice. The HR manager.s authority in carrying out these activities is restricted to staff authority (policy initiation and formulation and advice giving and functional authority (service and control . Within the scope of functional authority, the HR manager generally has the right and is e#pected to issue policies and procedures for HR functions%%i.e., selection, training, performance evaluation, and so on%%throughout an organization. The only line authority the HR manager has is over subordinates in his or her department.

n;House Consu$tants
) ma$or contribution that the HR department staff can ma"e to the organization is to serve as in% house consultants to the managers and supervisors of other departments. )lerting top management to contemporary issues and changes !ithin society that affect the organization is also an important responsibility. &losely related is the responsibility of monitoring ne! developments ta"ing place in the HR field and, !hen feasible, getting top management to adopt them. )ny consultation provided by the HR staff must be based on managerial and technical e#pertise. -urthermore, the staff should be concerned !ith the operating goals of the managers and supervisors !ho are their consulting clients and should help them to ma"e sound decisions. These managers and supervisors must be convinced that the HR staff is there to assist them in increasing their productivity rather than to impose obstacles to their goals. This requires not only the ability to consider problems from the vie!point of the line managers and supervisors, but also s"ill in communicating !ith the managers and supervisors.

Outs&de Consu$tants and Outsourc&ng

HR managers often go outside the organization for professional assistance from qualified consultants. These consultants are hired to solve a variety of HR problems. In the past most consulting firms specialized in one or t!o areas of e#pertise, though many have no! broadened their bac"grounds in order to meet the e#panding needs of their clients more effectively. The areas for !hich consultants are used most frequently are pension plans, e#ecutive recruitment, health and !elfare plans, psychological assessment, !age and salary administration, $ob evaluation, and e#ecutive compensation. When using the services of a consultant, it is important to select an e#perienced, reputable individual, to educate him or her about the corporate environment, and to have a clear and mutual understanding of !hat the consultant is to do. In recent years, outsourcing (the practice of contracting !ith outside firms to handle some HR functions previously performed in%house has become a trend at companies of all sizes. Outsourc&ng !ract&ce o" contract&ng -&th outs&de /endors to hand$e s!ec&"&ed HR "unct&ons 8nli"e one%time vendor contracts, outsourcing contracts require months of study and negotiation to ma"e certain that all the ma$or and minor issues have been carefully e#amined and resolved. When outsourcing is used, the vendors are actually integrated into the firm.

1e!artment Organ&)at&on
In a small firm the HR department may consist only of a manager and a fe! assistants. In a larger firm many additional staff members may be required. Increased size eventually leads to the establishment of departmental units. The most common departments areI HR ;lanning Lob Requirements Recruitment 6election )ffirmative )ction Training &areer 5evelopment ;erformance )ppraisal &ompensation Benefits 6afety and Health 9abor Relations

HRM &n the 2uture

5uring the /110s HR+ has been in the throes of a radical transformation. The HR function is being transformed into a significant management function. Where HR departments fail to recognize their responsibilities to become vital members of the management team, line managers are reaching out to ta"e control and o!nership of the various HR functions. )lthough line managers need an understanding of HR+, the technical aspects should be delegated to professional HR staffs. 9oo"ing ahead, both line and HR e#ecutives agree that a proactive and strategically oriented HR function !ill be critical. There is a need for dramatic changes from centralized and functionally organized HR units to more fle#ible and decentralized units. This !ill necessitate more supervisory involvement in HR activities. There !ill li"ely be is a ne! role model for the HR department and its function. The future !ill support the concept of shared responsibilities bet!een line managers and HR managers. The single greatest attribute of the HR staff !ill be the ability to educate and influence line managers on HR issues. In /1@1, a study prepared for the 6ociety for Human Resource +anagement !as conducted to determine !hat pressures organizations face today, !hat they must do to remain competitive, !hat the role of HR is in providing a competitive advantage, and ho! this role is changing. ) leading question in the survey !as FWhat distinguishes superior HR performance from average performance,G The study found a clear lin" bet!een an organization.s level of success and the effectiveness of its HR leadership. 5uring the course of the study more than t!enty &'(s and more than fifty practitioners participated in determining the role they e#pect HR to play in meeting competitive and organizational challenges. This information !as used to create the 6enior%9evel HR &ompetency +odel sho!n belo!. The purpose of this model is to define and describe the competencies required of superior HR leaders from the perspective of both &'(s and HR practitioners. 6tudy the individual competencies !ithin each of the five clustersI goal and action management, functional and organizational leadership, influence management, business "no!ledge, and HR technical proficiency. While the HR competency model !as prepared as guidance for HR leaders and those !ho aspire to such positions, the "no!ledge and s"ills !ithin the individual clusters can be used as a guide by anyone !ho !ishes to succeed in a !or" organization or as an entrepreneur.

COMPETENCY CLUSTERS AND INDIVIDUAL COMPETENCIES

K()9 )<5 )&TI(< +)<)K'+'<T 'fficiency orientation ;roactivity &oncern !ith impact 5ecisiveness

T'&H<I&)9 ;R(-I&I'<&7 HR planning, selection and ;lacement Training and development 'mployee and labor relations &ompensation and benefits Health, safety, and security ;ersonnel research (rganizational development HRI6

-8<&TI(<)9 )<5 (RK)<IM)TI(<)9 9')5'R6HI; 5eveloping others Kroup management s"ills -unctional mar"eting 9eading through vision Integrity

SEN OR 9E<E9 HR COM#ETENC= MO1E9

B86I<'66 N<(W9'5K' 6trategic focus (rganizational a!areness Industry "no!ledge :alue%added perspective Keneral management s"ills

I<-98'<&' +)<)K'+'<T ;erceptual ob$ectivity &oalitionHnet!or" building &ommunication process s"ills <egotiation s"ills

SUMMAR=
HR+ represents a ne! concept of and approach to performing personnel functions. It still requires the performance of those personnel functions that have evolved over the years in response to emerging needs. Ho!ever, instead of treating these functions as separate and distinct, HR+ considers them interrelated parts of a management system that must be integrated closely !ith strategic organizational planning. HR managers are becoming more involved in the decision ma"ing of top management in a !ide variety of issues and problems. Nno!ledge of HR+ is important for individuals !ho !ill occupy managerial and supervisory roles, since they !ill also perform HR functions. The present status of HR+ !as achieved only after years of evolutionary development. 5uring the nineteenth century the factory system enabled products to be manufactured more cheaply than before. The concentration of !or"ers in factories in turn focused public attention on the need for better !or"ing conditions and greater consideration for employee health and safety. 5uring this period an ob$ective and systematic approach to improving !or"er efficiency "no!n as scientific management emerged. By the early /100s some of the "no!ledge and research from the field of psychology !as beginning to be applied to the management of personnel. 6ince the late /12(s severa/ forces have contributed significantly to the HR+ movement. The Ha!thorne studies !ere influential in humanizing the !or"place, and the human relations movement focused attention on individual differences and informal groups. )s the human relations movement evolved, it became broader in scope and included the various behavioral sciences, focusing on the achievement of organizational ob$ectives. 5uring this period political pressures gave rise to government legislation affecting HR+ around the !orld. <o! there is increasing specialization of HR functions and an emphasis on strategic management. HR+ may be referred to as a profession because it has the follo!ing characteristicsI (/ It is based upon an organized body of "no!ledge developed through research and e#perimentation, (2 the "no!ledge is disseminated through publications and professional meetings, (C professional associations promote the professional gro!th of their members, (A various types of certification allo! practitioners to increase their competency, and (D the various HR+ professional associations have developed codes of ethics that their members are e#pected to observe. ) code of ethics focuses attention on ethical values and provides a basis for HR professionals to evaluate their plans and their actions. HR departments have been given a greater role in communicating the organizationEs values and standards and in monitoring compliance !ith its code of ethics. The principal elements of an HR program are ob$ectives, policies, and procedures. HR ob$ectives are determined by the organization.s ob$ectives as a !hole. ;olicies serve to guide the actions required to achieve these ob$ectives. HR policies must be compatible !ith current economic conditions, collective bargaining trends, and la!s and regulations at all levels. HR procedures implement policies by prescribing the steps to follo! in carrying out the policies. 6tatements relating to ob$ectives, policies, and procedures can be meaningful only if they are supported financially by the budget. It is important that the HR+ program be audited periodically to assure that its ob$ectives are being accomplished.

The HR department is responsible for initiating and formulating policy3 counseling and advising line managers3 providing services such as recruiting, selection, and planning of training programs3 and monitoring the performance of line and staff departments to ensure conformity !ith established HR policy and procedures. The HR manager.s authority in carrying out these activities is restricted to staff authority and functional authority. HR managers often use the services of outside consultants, and more recently, they have outsourced some of the HR functions to vendors on a long%term basis. HR+ is in the midst of a radical transformation. 9ine managers are reaching out to ta"e control over the HR functions !here HR departments fail to recognize their responsibilities. &omprehensive research studies have sho!n that a proactive, strategically oriented perspective is critical. Both line and HR e#ecutives support the concept of shared responsibility bet!een line and HR managers. )n HR competency model emphasizes goal and action management, functional and organizational leadership, influence management, business "no!ledge, and HR technical proficiency.

Behavioral sciences &ertification Ha!thorne studies HR budget HR information system (HRI6 HR ob$ectives

>E= TERMS HR policies HR procedures Human relations movement Human resources management (utsourcing 6cientific management