CHAPTER 1
Human Resource Management
in Organizations
SECTION 1 Environment for Human Resource Management
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Nature of Human Resource Management
• Human Resource (HR) Management
➢ Designing management systems to ensure that
human talent is used effectively and efficiently to
accomplish organizational goals.
1–2
What is HR?*
• I. A Profession: an occupation that:
➢ Requires extensive training
➢ Requires study and mastery of specialized
knowledge
➢ Has a professional association
➢ Has a Code of Ethics
➢ Has a process of certification
*From “HR Competencies: Mastery at the Intersection of People and Business”, Ulrich,
Brockbank, et al
1–3
What is HR?
• II. An HR Department
➢ A department or a function
➢ Can be simple or complex depending on size of
organization
➢ Can be a Business within the Business
❖ Strategies, goals
❖ DELIVERS VALUE TO THE ORGANIZATION
1–4
HR Myths
• People go into HR because they like people.
• Anyone can do HR.
• HR deals with the soft side of business and is
therefore not accountable.
• HR focuses on costs, which must be controlled.
• HR’s job is to be the policy police and the
health-and-happiness patrol.
• HR is full of fads.
• HR is staffed by nice people.
• HR is HR’s job.
1–5
HR Management Roles
HR Management Roles
Operational and
Administrative Employee Strategic
Advocate
1–6
FIGURE 1–9 Roles of HR Management
1–7
HR Management Competencies
Strategic
Contribution
Business Knowledge
HR
HR Delivery
Competencies
HR Technology
Personal Credibility
1–8
SHRM – HR Management Competencies
• Human Resource Technical Expertise and
Practice
• Relationship Management
• Consultation
• Organizational Leadership and Navigation
• Communication
• Global and Cultural Effectiveness
• Ethical Practice
• Critical Evaluation
• Business Acumen
1–9
HR Management as a Career Field
HR Generalist HR Specialist
A person who has A person who has in-
responsibility for depth knowledge and
performing a variety expertise in a limited
of HR activities. area of HR.
1–10
Types of Organizational Assets
Assets
Physical Financial Intangible Human
1–11
FIGURE 1–2
HR Management
Functions
1–12
HR Management: Interlinked Functions
1. Strategic HR Management
2. Equal Employment Opportunity
3. Staffing
4. Talent Management and Development
5. Total Rewards: Compensation and Benefits
6. Risk Management and Worker Protection
7. Employee and Labor Relations
1–13
Current HR Management Challenges
Organizational Cost Economics
Pressures and and
Restructuring Job Changes
Human
Resource
Management
Globalization of Workforce
Organizations Demographics
and HR and Diversity
1–14
Economics and Job Changes
Future
Job Change
Concerns
Workforce Growth in
Occupational Talent
Availability and Contingent
Shifts Management
Quality Workforce
1–15
HR Technology
• Human Resource Management System (HRMS)
➢ An integrated system providing information used by
HR management in decision making.
• Purposes of HRMS Data Collection
➢ Administrative and operational efficiency in :
❖ Automation of payroll and benefit activities
❖ EEO/affirmative action tracking
❖ Web-based communication with employees
➢ Availability of data for HR strategic planning
1–16
Uses of a Web-Based HRMS
HRMS on
the Internet
Bulletin Data Employee Extended
Boards Access Self-Service Linkage
1–17
Smaller Organizations and HR Management
HR Issues
Shortage of Increasing Government
Qualified Costs of Rising Taxes Regulation
Workers Benefits Compliance
1–18
HR Cooperation with Operating and Line Managers
• HR Unit • Managers
➢ Develops legal, effective ➢ Advise HR of job openings
interviewing techniques ➢ Decide whether to do own
➢ Trains managers in final interviewing
conducting selection ➢ Receive interview training
interviews from HR unit
➢ Conducts interviews and ➢ Do final interviewing and
testing hiring where appropriate
➢ Sends top three applicants ➢ Review reference
to managers for final review information
➢ Checks references ➢ Provide feedback to HR unit
➢ Does final interviewing and on hiring/rejection decisions
hiring for certain job
classifications
1–19
Organizational Culture and HR
• Organizational Culture
➢ Is the shared values and beliefs in an organization.
➢ Is the internal “climate” of the organization that
employees, managers, customers, and others
experience.
➢ Positively affects service and quality, productivity,
and financial results when aligned with HR values
and organizational goals.
➢ Is affected by differences in cultural dimensions
from country to country and even within countries.
1–20
Organizational Productivity
Productivity Unit Labor Cost
A measure of the quantity A measure of HR productivity
and quality of work done, computed by dividing the
considering the cost of average cost of workers by
the resources used. their average levels of
output.
1–24
FIGURE 1–3 Approaches to Improving Organizational Productivity
Restructuring the Organization Re-Designing Work
• Revising organizational structure • Changing workloads and combining
jobs
• Reducing staff
• Reshaping jobs due to technology
• Aiding in mergers and acquisitions changes
Goals
• Increase
organizational
productivity
• Reduce unit
labor costs
Aligning HR Activities
Outsourcing
• Attracting and retaining employees
• Using domestic vendors/contractors
• Training, developing, and evaluating instead of employees
employees
• Outsourcing operations
• Compensating employees and other
internationally
HR activities
1–25
Social Responsibilities and HR
• HR Advantages and Social Responsibilities
➢ Attracting and retaining employees
➢ Achieving sustainability in dealing
with economic challenges
➢ Creating a “green culture”
• Global Social Responsibility and HR
➢ Results in higher organizational images globally,
better employee morale and loyalty, and more
competitive advantages with consumers
1–26
Customer Service and Quality Linked to HR
• Linking HR to social responsibility, customer
service, and quality significantly affects
organizational effectiveness.
Human Resource Management
Social Customer
Quality
Responsibility Service
1–27
Employee Engagement and HR Culture
• Employee Engagement
➢ Is the extent to which individuals feel linked to
organizational success and how the organization
performs positively.
• Social Networking
➢ Involves communicating to other employees, nonwork
friends, community contacts, and others.
➢ Has evolved from personal contacts and oral
communications to include:
❖ E-mail and text messages
❖ Twitters
❖ Blogs
1–28
FIGURE 1–4 Business Ethics and HR Management Consequences
1–29
Ethical Behavior and Organizational Culture
Ethics Program
Elements
Written code Employee Adv ice to Confidential
of ethics and training on employees reporting of
standards of ethical on ethical ethical
conduct behav iors situations problems
1–30
HR’s Role in Organizational Ethics
Legal Question Ethical Question
• Does the behavior or • Does the behavior or
result meet all result meet both
applicable laws, organizational standards
regulations, and and professional
government codes? standards of ethical
behavior?
1–31
FIGURE 1–5 Examples of HR-Related Ethical Misconduct Activities
1–32
Thought Questions
• What is the role of Human Resources in
ensuring ethical behavior?
• How can HR staff avoid being co-opted?
1–39
