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Chapter 1

Human Resource Management

McGraw-Hill/Irwin

Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

HRM is charged with programs concerned with people Effective use of people

Achieving individual & organizational goals Getting every manager involved


HRM A.K.A. Personnel Industrial Relations, Employee Development
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1. Equal Employment opportunity (EEO) compliance 2. Job analysis 3. Human resource planning 4. Employee recruitment, selection, motivation and orientation 5. Performance evaluation and compensation 6. Training and development 7. Labor relations 8. Safety, health and wellness

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1. Action-oriented 2. People-oriented 3. Globally-oriented 4. Future-oriented

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English

Guilds- Masons, carpenters, leather workers, other craftspeople Revolution- Changing work conditions and social patterns

Industrial

World

Wars- Scientific management, welfare work, industrial psychology

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Today, HRM plays a major role in:


Clarifying the firms human resource problems Developing solutions for them

Strategic HRM differs from traditional HRM


Traditional arrangements responsibility for

managing human resources lies with specialists Strategic approach people management rests with anyone who is in direct contact with workers or line managers
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For years, HRM was not linked to corporate profit


Organizations focused on current performance HR managers did not have a strategic perspective Executives categorized HRM in a traditional manner It was hard to develop metrics for HRM activities

Recognizing the importance of people made HRM a major player in developing strategic plans
HRM strategies must reflect the organizations strategy regarding

people, profit, and effectiveness

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Analyze/solve

problems from a profitoriented point of view Assess/interpret costs and benefits of HRM issues Use realistic, challenging, specific, and meaningful goals in planning models Prepare reports on HRM solutions to problems Train HR staff to emphasize importance of profits
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HRM Contributions to Effectiveness


Help the organization reach goals Provide trained, motivated employees Employ workforce skills/abilities efficiently Increase satisfaction, self-actualization, quality of work life Communicate HRM policies to all employees Maintain ethical policies, socially responsible behavior

Manage change to the mutual advantage of individuals, groups, the enterprise, and the public
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Two groups normally perform HRM activities:


HR manager-specialists Operating managers

The effectiveness of the human resource declines more quickly than all other resources
An investment in people effects organizational

effectiveness more than money, materials, or equipment


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Operating Managers Meetings Phone calls Problem solving Training Scheduling work

HRM Specialist Recruiting Selection

Compensation

HR departments typically found in companies with 200+ employees

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Operating Managers (line)

Joint-decision Conflict

HRM Specialists (staff)

Discipline
Working conditions Transfer or termination Promotion Employment planning

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Operating Managers (line)

Different Viewpoints

HRM Specialists (staff)

Employee authority over job Labor relations Organizational planning Rewards

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Inflexible Over-attentive to detail

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Demography

Sweeping business changes

Forces impacting roles


Technology Globalization

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HR specialists are encouraged to Analyze every activity and prove its value Understand all aspects of the business Become strategic partner with line managers Seek out operating managers Help managers avoid problems Be flexible and open to ideas of others
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HR must be proactive, integral part of management and strategic planning

Ascertain company needs for its competence Evaluate use & satisfaction among other departments Educate everyone about HRM services Have HRM strategic plans build on firms strengths Develop competitive advantage over other firms
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To educate others about the HR implications of decisions, HR executives must understand

Production

Marketing

R&D

Investments

IT

Advertising

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These must become so important and effective that every unit in the firm knows they are needed for success:
The compensation system Training opportunities Diversity management programs

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Major Objectives

Resources

Procedures

Policies

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Basis for Resource Allocation


Organizations internal strengths/weaknesses Changes in the environment Anticipated actions of competitors

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Average HR Dept Personnel Ratio

Less than 150 people

Average = 1 specialist per 100 employees Less for construction, retail agriculture, wholesale, services More for public utilities, durable goods manufacturing, banking, Insurance, government

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Chief HR Executive Small/Medium Firms Nonprofits

Typically reports to the top manager HRM and another function may be in a single department HRM is typically a unit in the business office

HR specialists are usually located at the headquarters of an organization

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A policy is a general guide that expresses limits within which action should occur
Arises from past or potential problems Frees managers from making certain decisions Ensures some consistency in behavior Allows managers to concentrate on decisions

where they have the most experience and knowledge

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Procedures (rules) are specific directions


In standard operating procedure (SOP) manuals

Helps ensure consistent decision making


Should be well-developed, but not excessive Develop for only the most vital areas
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