Strategy for Human Resource

Management
Lecture 5
Fundamentals of HRM

HRM 765
 Last Lecture
• Labor supply
– Do We Have a Shortage of Skilled Labor?
– Why Do Organizations Lay Off During Shortages?
– How Do Organizations Balance Labor Supply?
– Issues Contingent Workers Create for HRM

• Continuous improvement program

– Focus on the customer
– Concern for continuous improvement
– Improvement in the quality of everything
– Accurate measurement
– Empowerment of employees

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Last Lecture
• Employee involvement
– Delegation
– Work teams
– Empower

• Involvement programs can achieve:

– greater productivity
– increased employee loyalty and commitment
• A look at ethics
– three views of ethics
– Utilitarian View – decisions are made on the basis of their outcomes or consequences
– Rights View – decisions are made with concern for respecting and protecting individual
liberties and privileges
– Theory of Justice View – decisions are make by enforcing rules fairly and impartially.
– Code of ethics

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Learning Outcomes
• After reading this chapter, you will be able to
• Explain what we mean by strategic human resource management.
• Identify the primary external influences affecting human resource management.
• Characterize how management practices affect human resource management.
• Discuss the effect of labor unions on human resource management.
• Outline the components and the goals of the staffing, training, and development
• List the components and goals of the motivation and maintenance functions.
• Outline the major activities in the employment, training and development,
• compensation and benefits, and employee relations departments of human
• resource management.
• Explain how human resource management practices differ in small businesses and
• in international settings.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Management Essentials
• Management involves setting goals and
allocating scarce resources to achieve
them.
• Management is the process of efficiently
and effectively achieving the objectives of
the organization with and through people.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Management Essentials
• Primary Functions of Management
– Planning – establishing goals
– Organizing – determining what activities need
to be done
– Leading – assuring the right people are on the
job and motivated
– Controlling – monitoring activities to be sure
goals are met

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Why is HRM Important to an
Organization?
• The role of human resource managers has
changed. HRM jobs today require a new level of
sophistication.
– Jobs have become more technical and skilled.
– Traditional job boundaries have become blurred with
the advent of such things as project teams and
telecommuting.
– Global competition has increased demands for
productivity.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Why is HRM Important to an
Organization?
• The Strategic Nature – HRM must be
– a strategic business partner and represent
employees.
– forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
– concerned with the total cost of its function
and for determining value added to the
organization.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Why is HRM Important to an
Organization?
• HRM is the part of the organization
concerned with the “people” dimension.
• HRM is both a staff, or support function
that assists line employees, and a function
of every manager’s job.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Why is HRM Important to an
Organization?
Four basic
functions:
• Staffing
• Training and
Development
• Motivation
• Maintenance

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 How External Influences Affect
HRM

• Strategic Environment
• Governmental Legislation
• Labor Unions
• Management Thought
Fundamentals of Human Resource
Management 8e, DeCenzo and Robbins
 How External Influences Affect
HRM
• Governmental Legislation
– Laws supporting employer and employee
actions
• Labor Unions
– Act on behalf of their members by negotiating
contracts with management
– Exist to assist workers
– Constrain managers

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 How External Influences Affect
HRM
• Management Thought
– Management principles, such as those from
scientific management or based on the
Hawthorne studies influence the practice of
HRM.

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins
 Summary
Primary Functions of Management
The Strategic Nature of HRM (Partner)
Four basic functions:
– Staffing
– Training and Development
– Motivation
– Maintenance

• How External Influences Affect HRM

Fundamentals of Human Resource

Management 8e, DeCenzo and Robbins