• The nature of Human Resource Management

• LEARNING OUTCOMES
• HUMAN RESOURCE MANAGEMENT
• HUMAN RESOURCE MANAGEMENT (HRM)
• Comprehensive set of managerial activities and tasks that help develop and maintain a qualified workforce.
• HRM FUNCTION
• Requires professionals who can balance ethical and legal concerns with organizational needs
• Properly managed human resources can provide a competitive advantage
• CONTEMPORARY HRM PERSPECTIVES
• HRM function:
• Requires professionals who can balance ethical and legal concerns with organizational needs
• Can provide a competitive advantage
• Shrinking of the traditional HR manager role
• Outsourcing : Process of hiring external firms to handle basic HRM functions
• Evolution of the Human Resource Function
• Evolution of the Human Resource Function

• Scientific management: Concerned with structuring individual jobs to maximize efficiency and productivity
• Frederick Taylor-father of scientific management
• Frank and Lilian Gilbreth-time and motion studies
• ORIGIN OF THE HUMAN RESOURCE FUNCTION
• Businesses such as GM, Bethlehem Steel (1899), Ford Motor company (1903), Boeing (1916) grew into big companies
• BF Goodrich was first company to establish a corporate employment department—employee concerns.
• ORIGIN OF THE HUMAN RESOURCE FUNCTION
• National Cash Register 1902—employee grievances, wages and salaries, and record keeping.
• Ford Employment Department
Both military and major suppliers became interested in better matching people with jobs.
• ORIGIN OF THE HUMAN RESOURCE FUNCTION
– Hawthorne studies: Instigated the human relations era and helped develop other theories to understand employee character
(Roethlisberger and Mayo)
• Hierarchy of human needs (Abraham Maslow)
• Theory X and Theory Y (Douglas McGregor)
• ORIGIN OF THE HUMAN RESOURCE FUNCTION
• Personnel management: Grew from the recognition that human resources needed to be managed
– Personnel departments: Specialized organizational units for hiring and administering human resources
– Personnel manager-the manager who ran the department.
Evolved during World War II 1930’s-1940s
• ORIGIN OF THE HUMAN RESOURCE FUNCTION
• Both military and major suppliers became interested in better matching people with jobs; psychologists were consulted to develop
selection tests;
• 1950’s-post-war lessons were adapted by private industry;
• Lead to new and more sophisticated techniques in the area of testing, reward and incentive systems; presence of labor unions;
• Role of HR Manager has grown into the role of strategic partner in response to new technological innovations.
• Human Resource Management in the Electronic Age
• Electronic systems:
• Employees use of a digital tool to comment on each other’s work (Washington-based living social)
• Find candidates directly via LinkedIn
• Crowdsourcing (glassdoor, careerbliss, careerleak, and JobBite
• Human Resource Management in the Electronic Age
• Electronic systems:
• Enable ease of surveillance and communication
• Pose legal concerns regarding ethics and privacy
• Human Resource Management in the Electronic Age
• Increased need for knowledge workers
• Employees whose jobs are concerned with the acquisition and application of knowledge;
• Contribute through specialized knowledge and application of that knowledge .
• Emerging Human Resource Challenges
• New challenges are faced on a daily basis
• Determining how and when to initiate layoffs
• Managing the effect of world events on existing and potential employees
• Measures taken
• Adopting corporate social responsibility
• Indulging in conscious capitalism or triple bottom line
• Human Resource Management Functions
• Recruiting and selecting
• Training and developing
• Compensation and benefits
• Performance appraisal and career management
• Managing Labor relations
• RECRUITMENT and SELECTION
• Used to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve its goal.
• TRAINING and DEVELOPMENT
• Ensures that organizational members develop the skills and abilities that will enable them to perform their jobs effectively in the
present and the future;
 • Changes in technology and the environment require that organizational members learn new techniques and ways of working.
• COMPENSATION and BENEFITS
• Rewarding high performing organizational members with raises, bonuses and recognition.
• Increased pay provides additional incentive.
• Benefits, such as health insurance, reward membership in firm.
• PERFORMANCE APPRAISAL and FEEDBACK
• Provides managers with the information they need to make good human resources decisions about how to train, motivate, and reward
organizational members;
• Feedback from performance appraisal serves a developmental purpose for members of an organization.
• MANAGING LABOR RELATIONS
• Steps that managers take to develop and maintain good working relationships with the labor unions that may represent their
employees’ interests.
• GOALS OF HUMAN RESOURCE MANAGEMENT
• Facilitating organizational competitiveness
• Enhancing productivity and quality
• Complying with legal and social obligations
• Promoting individual growth and development
• HRM is viewed as part of a psychological contract with employees .
• HRM as a STAFF versus LINE FUNCTION
• Line managers: Directly responsible for creating goods and services.
• Staff managers: Responsible for an indirect or support function that would have costs
• Bottom-line contributions are less direct
• Recent trend
• HRM activities are carried out by line managers .
• Some firms have HR departments structured around centers of excellence
• HR DEPARTMENTS in SMALLER versus LARGER ORGANIZATIONS
• Smaller organizations
• Require line managers to handle their basic HR functions
• Employees receive less training
• Exempt from many legal regulations
• Larger organizations
• Separate HR unit is a necessity
• Require one full-time manager and a secretary
• HR functions have specialized subunits
• Trends Shaping Human Resource Management
• Workforce Demographics and Diversity Trends
• Trends in how people work
• Technological trends
• Globalization
• Economic Trends
• Workforce Demographics and Diversity Trends
• The composition of the workforce will continue to become more diverse with
• More women
• Minority group members
• Older workers in the workforce
• TRENDS ON HOW PEOPLE WORK
• On-Demand Workers --freelancers and independent contractors who work when they can & what they want to work on, or when the company
needs them.
• Human Capital --employers giving emphasis on their workers’ knowledge, education, training, skills, and expertise.
• Globalization Trends
• Free flow of trade among countries increased international competition;
• More globalization means more competition;
• More competition meant pressure to be “world class”
• ECONOMIC TRENDS
• Labor force trends
• The unbalanced labor force

• TECHNOLOGY TRENDS
• Employers use social media for recruiting employees
• New mobile applications for monitor location
• Gaming support
• Cloud computing
• Data analytics—talent analytics
• HUMAN RESOURCE MANAGEMENT SYSTEM
• Integrated and interrelated approach to managing human resources
– Recognizes interdependence among various tasks and functions that must be performed
• HRM subsystems affect and are affected by other organizational sub-systems
– Utility analysis: Attempts to measure the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial
performance
• CHARACTERISTICS of CONTEMPORARY HR MANAGERS
• Understand different specialized areas such as:
– Legal environment
– Process of change management
– Labor relations
• Possess general management abilities that reflect conceptual, diagnostic, and analytical skills
• 1.4 Human Resource Management as a Center for Expertise
• CAREERS in HUMAN RESOURCE MANAGEMENT
• Obtain a degree in Human Resource Management
– Provides an entry-level employment opportunity as an HR manager
• Line management can be used as a route to HRM
– Enabled via rotation of managers through the HR function
CHAPTER 5 : INFORMATION FOR MAKING HUMAN RESOURCE DECISIONS

• Forecasting the Supply of Human Resources

• Managers can use several mechanisms while
forecasting
– Observe trends in the organization
– Check the extent to which people leave jobs
voluntarily or involuntarily
• Human resource information system
– Integrated and increasingly automated
system for maintaining a database
regarding the employees in an organization
• Labor Force Trends and Issues
• Reasons for diversity in the workforce
– Aging of the baby boom generation
– Declining birth rates for the post–baby
boom generation
– Improved health and medical care
– Mandatory retirement ages
– Gender differences
– Changing ethnicity
– Labor Force Trends and Issues (Continued)
• Usage of external data to predict supply of labor
– Immigration patterns
– Mathematical trend models
• Executive succession: Systematically planning for
future promotions into top management positions
• Forecasting the Demand for Human Resources
• Can be assessed by viewing the firm’s strategic plans
regarding anticipated:
– Growth
– Stability
– Decline
• Requires managers to consider larger, broader
trends in the economy

• Modeling Competencies and the End of the Job

• Concept of a job is becoming obsolete

• Traditional job-analysis methods cannot be

applied in modern organizations

• Competency

• Broader than abilities

• Exists at a deeper level and underlies

abilities

• Competencies are identified by a team of top

managers who work with consultants

• Legal Issues in Job Analysis

• Federal guidelines on selection include:

• Discussion of the appropriate ways to

conduct job analysis

• Careful analysis before establishing the job

relatedness of a selection instrument

• Issues regarding accuracy of job-analysis

information

• Gender discrimination

• Creation of autonomous work teams

CHAPTER 6 :HUMAN RESOURCE DECISION MAKING IN ORGANIZATIONS
• Ethics and Human Resource Management
• Ethics: Individual’s beliefs about what is right and wrong and what is good and bad
• Formed by the societal context in which people and organizations function
• May or may not coincide with the law
• Business ethics is complicated in the global environment of business
• Different countries and different cultures have different values and norms
• RIGHTSIZING
• Monitoring and adjusting the composition of the organization’s workforce to its optimal size
• Managing the workforce size involves:
• Layoffs or early-retirement programs
• Retention programs
• Using temporary workers as a bridge between the current state of affairs and growth or reduction
• Dealing with Increased Demand for Employees
• Overtime: Hours worked above the normal 40-hour workweek, for which there is usually a pay premium
• Fair Labor Standards Act stipulates compensation at a rate of one and a half times the normal hourly rate
• Unionized organizations have contracts that specify decision rules to be followed
• Could lead to increased fatigue and anxiety
• Dealing with Increased Demand for Employees - Employee Leasing
• Paying a fee to a leasing company to provide a pool of employees who are available on a temporary basis
• Employees are:
• Required to handle most of the organization’s work needs in specific areas
• Temporarily available and cost more
• More likely to be less committed and attached to the firm
• Dealing with Increased Demand for Employees - Part-Time Workers
• Individuals who are regularly expected to work less than 40 hours a week
• Usually do not receive benefits
• Provide scheduling flexibility to the organization that hires them
• Dealing with a Declining Need for Employees
• Cutting back on the contingent workforce and retaining only permanent members
• Works best in cyclical industries
• Early retirement and natural attrition
• Provide incentives for other employees to retire early
• Plans must be voluntary
• Failure to do so could elicit legal actions
• STRATEGIES FOR LAYOFFS
• Layoffs lead some employees to:
• Sue the organization for wrongful termination
• React aggressively or violently toward those perceived responsible
• Employee’s perception of the justice involved in the layoff process is a critical determinant of his/her reaction

• Effectiveness of Downsizing
• Most studies suggest that downsizing is an ineffective strategy
• Strategy preferred by stockholders
• Downsizing results in negative effects on stock prices and other financial indexes
• Survivor syndrome
• Existing employees’ morale and commitment drop dramatically
• Alternatives to layoffs may result in job loss
• Managing Involuntary Turnover
• Involuntary turnover: Terminating employees whose services are no longer desired
• Represents a failure in the HR system
• Managers should always start with an effort to rectify the problem before termination
• Employee assistance programs (EAPs)
• Help employees and reduce the costs associated with lost workdays and poor productivity
• Progressive Discipline
• Designed to try to improve performance through the use of punishment and discipline
• Progressive disciplinary plans: Severity of punishment increases over time or across the problem
• Steps involved include verbal warnings, written warnings, suspension, and termination
• Employment at Will
• Employer can terminate any employee, at any time, for any reason, or for no reason at all
• Key to successful termination is documentation
• Some firms use positive discipline
• Emphasizes positive changes instead of punishment
• Employee Retention
• Ways of reducing the voluntary turnover of desired employees
• HR analytics plays an important role
• Regular employee satisfaction survey and exit interviews provide valuable information
Job Dissatisfaction
• Feelings of being unhappy with one’s job
• Major cause of voluntary turnover
• Increasing job satisfaction is complicated
• Economy and labor market play a role
• Causes
• Nature of work
• Pay and benefits
• Supervisors and co-workers
• Measuring and Monitoring Job Satisfaction
• Attitude surveys
• Job descriptive index (JDI) - Assesses satisfaction with specific job aspects
• Usage of instruments that include questions about desired versus experienced levels of satisfaction
• Example - Faces scale
• Retention Strategies
• Job enrichment
• Making work meaningful and giving more autonomy and opportunity to use skills
• Realistic job previews: Pre-employment previews that provide accurate and realistic information to the job applicant
• Stock options: Rights given to employees to purchase a certain number of shares of stock at a given price
• Managing HR during Mergers and Acquisitions
• Employees are concerned with job security
• Mergers and acquisition threaten a worker’s self-identity and core beliefs
• HR managers can serve as the center of communication
• Important to build employee identification with the new corporate identity