HR Management in Organizations

MGMT 3510

Patricia Meglich, Ph.D., SHRM-SCP, SPHR

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15ed
Key concepts

 Human capital management

 Core HR areas of responsibility
 The role of HR in organizations
 Forces driving change in organizations
 Ethics and sustainability
 Bottom-line impact; measuring effectiveness
 History and evolution of HR as a profession

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Organizational assets

Physical Financial
• Buildings • Cash
• Equipment • Investments
• Software • Receivables

Intellectual Property Humans

• Patents • Talents and know-how
• Copyrights • Drive and motivation
• Proprietary processes

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Human capital management

 Collective value of the capabilities, skills,

knowledge, experience, and motivation of the
organization’s workforce
 Shared responsibility of HR professionals
and line managers
 Finding, attracting, retaining, and rewarding
individuals that further the organization’s
mission in line with its values

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Collective assets of people

 Employees must have the necessary skills,

experience, and training to carry out their
respective roles
 Selection
 Development
 Performance management
 Employees must be willing to use their
talents for the organization’s purpose
 Rewards

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Shared responsibility
 HR professionals
Line managers
 ImplementHRM
Establish HRMprocedures,
procedures,practices,
practicesand
andmethods
methods
 MonitorHR
Advise andprofessionals
evaluate HRM regarding
practicesspecific needs and
 problems
Advise/assist managers on HRM-related matters

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Finding and retaining talent

 Acquiring qualified individuals to join the

organization
 Keeping those individuals on board
 Matching the individual’s values and skills
with those of the organization
 Organization mission
 Organization’s values

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 Strategic
HRM

Employee &
Labor EEO
Relations

HR
Activities
Risk
Management Staffing

Total Talent
Rewards Management

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Core HR areas of responsibility
 Strategic HRM
 EEO
 Staffing
 Talent development & performance
management
 Total rewards
 Risk management
 Employee & labor relations

Underscored by legal compliance and global issues

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Strategic HRM

 Understanding the needs of the organization

 Partnering with leaders in other functions
within the organization
 Forecasting future talent needs and
implementing programs to ensure an
adequate supply of talent
 Measuring effectiveness of HRM activities –
data analytics as evidence-based practice

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EEO

 Understanding laws relating to fair, non-

discriminatory employment practices
 Establishing compliance policies and
practices
 Training managers and supervisors in good
HR practice
 Investigating problems; dealing with
violations

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Staffing

 Recruiting qualified individuals

 Enhancing the organization’s performance
through effectively sourcing talent
 Increasing workforce diversity
 Implementing effective, legal methods to
screen and select the highest-quality
individuals

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Talent management
 Orientation to get new hires started on the
right foot
 Interpersonal and skills training to assure that
employees are qualified
 Remedial training where needed
 Planning for the future by getting employees
ready for the next step(s) in the organization
 Developing leaders for the future through
effective succession planning

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Performance management
 Helping line managers to establish
performance standards
 Providing the means and method for line
managers to periodically review employee
performance
 Assisting line managers in effective
performance management techniques
 Working with employees to overcome
performance deficiencies

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Total rewards
 Evaluating jobs for internal and external
fairness and competitiveness
 Establishing appropriate pay plans in line
with the organization’s mission and values
 Maintaining up-to-date benefit programs that
enhance employee commitment and
retention
 Providing cost-effective benefit programs for
employees and the organization

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Risk management

 Identifying and eliminating hazards to

employees
 Identifying and eliminating risks to
organizational assets
 Implementing safeguards to protect all
stakeholders
 Contingency planning for disasters

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Employee and labor relations

 Assuring organizational justice through fair

and consistent treatment of all employees
 Providing an avenue for employees to be
“heard”
 Dealing with organized labor in a legal and
cost-effective manner
 Creating an organizational culture of respect

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The role(s) of HR in organizations

Strategic

Administrative Operational

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HR’s administrative role

 Assuring that the organization complies with

all employment-related laws and regulations
 Maintaining necessary records
 Compiling required reports for operating and
legal purposes

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HR’s operational role

 Fulfilling the daily requirements of running the

organization from a “people” perspective
 Carrying out tasks related to acquiring talent,
developing talent, providing appropriate
rewards, and overseeing safety and security
matters
 Serving as employee advocate

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HR’s strategic role

 Pro-active, forward-focused emphasis on

helping the organization meet the challenges
of the future
 Understanding the business environment and
the internal and external trends and events
that impact the organization

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Forces driving change in organizations

 Economic shifts, competition, and

organizational cost pressures
 Globalization
 Workforce demographic shifts/diversity
 Technological changes

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Economic shifts

 Occupational shifts from manufacturing to

service economy
 Corporate downsizing practices
 Supply chain/outsourcing trends
 Mergers and acquisitions
 Workforce shortages
 Union decline

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Globalization

 Organizations sell globally, source globally,

and operate globally
 Competition as well as collaboration
 Offshoring/international outsourcing
 Cultural differences

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Workforce diversity

 Generational differences
 Racial composition
 Ethnic composition
 Gender issues
 Aging workforce
 Family composition

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Technological changes

 Changing nature of jobs and how work gets

done
 Blurring lines between work and personal time
 Increasing use of teams
 Speed of communication and change
 “Virtual” communities
 24/7 mentality

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Bottom line impact

 Utilize human talent most efficiently and

effectively to achieve organizational goals
 Weigh costs and benefits of all HR programs
and initiatives (ROI)
 Guide line managers in their quest for
success
 Assure that the organization acts in a socially
responsible manner

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Ethics
 Influence of organizational culture, policies,
and practices
 Leaders and their actions
 Global differences
 HR activities and ethical conduct
 Staffing
 Compensation
 Employee relations/safety & health

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Sustainability and HR practices

 Triple bottom line

 People
 Planet
 Profit
 Corporate social responsibility
 HR practices impact employer brand
 Ethical and moral conduct guided by HR practices

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History & evolution of HR as a profession

 Pre-1900’s the profession did not exist

 Early 1900’s primary focus on labor relations
 1930’s began employment regulations and
the need for compliance practices
 WWII introduced sophisticated selection
practices
 1960’s introduced civil rights legislation and
related employment practices

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History & evolution of HR as a profession

 1980’s introduced mergers, social justice,

and Wall Street dominance
 1990’s shifted focus to global issues and cost
containment techniques
 2000’s people viewed as competitive
resource and advantage
 2010’s introducing competencies

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HR as a profession

 Competencies needed by HR professionals

 Specialists vs. generalists
 Professional certification
 HRCI (PHR and SPHR)
 SHRM-CP and SHRM-SCP (new in 2015)
 Many other specialty certifications

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SHRM* competency model
 Leadership &
navigation
 Business acumen
 Ethical practice
 Relationship
management
*SHRM.org 15ed
 Consultation
 Critical evaluation
 Global & cultural
effectiveness
 Communication
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Guiding principles

1. Evolutionary
2. Shared responsibility
3. Competitive advantage

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