Professional Documents
Culture Documents
10th Edition
Chapter 1
STRATEGIC HUMAN RESOURCE
MANAGEMENT:
AN OVERVIEW
1-1
HR Branding
Firms corporate image or culture
Embodies values and standards that guide
peoples behavior
People know what company stands for,
people it hires, fit between jobs and
people, and results it recognizes and
rewards
Important in getting highest quality
applicants to join firm
2008 by Prentice Hall
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Human
Resource
1
Management
Safety and
Health
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Staffing
Job Analysis
Human Resource Planning
Recruitment
Selection
1-5
Staffing (Cont.)
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
2008 by Prentice Hall
1-6
Staffing (Cont.)
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
1-7
Staffing (Cont.)
Selection - Process of choosing from a
group of applicants the individual best
suited for a particular position and the
organization
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Compensation
Compensation All rewards that
individuals receive
as a result of their
employment
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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.
2008 by Prentice Hall
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Interrelationships of HRM
Functions
All HRM functions
are interrelated
Each function affects
other areas
1-19
Dynamic Human
Resource
Management
Environment
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1-20
Marketing
Society
Operations
Unanticipated Events
Legal Considerations
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Customers
Safety and
Health
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Competition
Other
Functional
Areas
Labor Market
Shareholders
Economy
Human
Resource
1
Management
Finance
Technology
Unions
1-21
Labor Market
Potential employees
located within
geographic area
from which
employees are
recruited
Always changing
2008 by Prentice Hall
1-22
Legal Considerations
Federal, state
and local
legislation
Court decisions
Presidential
executive orders
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1-23
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
2008 by Prentice Hall
1-24
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
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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
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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
2008 by Prentice Hall
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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
2008 by Prentice Hall
1-28
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
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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.
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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
2008 by Prentice Hall
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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
2008 by Prentice Hall
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HR Outsourcing
Transfers
responsibility to an
external provider
Market for HR
outsourcing is
growing dramatically
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Discrete Services
One element of business process or
single set of high-volume repetitive
functions is outsourced to a thirdparty
Large majority of companies
outsource transactional HR activities,
such as 401(k) administration
2008 by Prentice Hall
1-38
Multi-process Services
Complete outsourcing of
one or more human
resource processes
Example: Procter &
Gamble outsourced
entire training
operations
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1-39
Total HR Outsourcing
Transfer majority of HR services to
third party
Example: Whirlpool Corporation
signed 10-year deal to outsource HR
business processes for 68,000
employees to Convergys Corporation
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Professional Employer
Organization (Employee Leasing)
Company that
leases employees
to other
businesses.
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Professional Employer
Organization (Cont.)
Company releases its employees who are
then hired by PEO
PEO pays the employees
PEO is the employees legal employer and
has the rights to hire, fire, discipline, and
reassign an employee
Charges a fee of from 1 to 4 percent of the
customers gross wages
2008 by Prentice Hall
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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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Measures of HR
performance
1-47
Examples of HR Metrics
1-48
HR Scorecard
Report card of
effectiveness of
specific person
Metrics that will best
suit each company
depends on variety
of factors
2008 by Prentice Hall
1-49
Human Resource
Designations
1-50
Manager,
Compensation
Benefits Analyst
Vice President,
Industrial
Relations
Manager,
Training and
Development
Manager,
Staffing
Executive:
Generalist:
Specialist:
2008 by Prentice Hall
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Characteristics of an HR
Executive
Performs one or more HR functions
A top-level manager
Reports directly to CEO or head of
major division
2008 by Prentice Hall
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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
2008 by Prentice Hall
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Characteristics of an HR
Specialist
May be an HR executive, manager, or
non-manager
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Evolution Of Human
Resource Management
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Manager,
Training and
Development
Vice President,
Operations
Manager,
Compensation
Vice President,
Finance
Manager,
Staffing
Vice President,
Human
Resources
Manager,
Safety and
Health
Manager,
Labor
Relations
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A Possible Evolving HR
Organization Example
President
and CEO
Vice
President,
Operations
Vice
President,
Strategic
Human
Resources
Training &
Development
(Outsourced)
Vice
President,
Finance
Vice
President,
Marketing
Staffing (Line
Managers, Use of
Applicant Tracking
2008 by Prentice Hall Systems)
Compensation
(Shared Service
Centers)
Director
of Safety
and
Health
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Organization of
Human Resource Management
10th Edition
PART I. INTRODUCTION
Chapter 1: Strategic Human Resource
Management: An Overview
PART II. HR ETHICAL, LEGAL, AND SOCIAL
CONSIDERATIONS
Chapter 2: Business Ethics and Corporate
Social Responsibility
Chapter 3: Workforce Diversity, Equal
Employment Opportunity, and Affirmative
Action
2008 by Prentice Hall
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Organization of
Human Resource Management
10th Edition (Cont.)
1-62
Organization of
Human Resource Management
10th Edition (Cont.)
1-63
Organization of
Human Resource Management
10th Edition (Cont.)
1-64
Organization of
Human Resource Management
10th Edition (Cont.)
PART VII. EMPLOYEE AND LABOR
RELATIONS
Chapter 12: Labor Union and Collective
Bargaining
Appendix Chapter 12: History of Unions in the
United States
Chapter 13: Internal Employee Relations
PART VIII. OPERATING IN A GLOBAL
ENVIRONMENT
Chapter 14: Global Human Resource
Management
2008 by Prentice Hall
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