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Fundamentals of HRM


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Fundamentals of Human Resource Management
All corporate strengths are dependent on people.
Adi Godrej
DeCenzo and Robbins

Published in: Recruiting & HR
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Fundamentals of HRM

  1. 1. Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins Chapter 2 Fundamentals of HRM Fundamentals of Human Resource
  2. 2. Management Essentials • Management involves setting goals and allocating scarce resources to achieve them. • Management is the process of efficiently achieving the objectives of the organization with and through people. Fundamentals of Human Resource
  3. 3. 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
  4. 4. Why is HRM Important to an Organization? • The role of human resource managers has changed. HRM jobs today require a new level of sophistication. – Federal and state employment legislation has placed new requirements on employers. – 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
  5. 5. 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
  6. 6. 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
  7. 7. Why is HRM Important to an Organization? • HRM Certification – Colleges and universities offer HR programs. – The Society for Human Resource Management and Human Resource Certification Institute offer professional certification. Fundamentals of Human Resource
  8. 8. Why is HRM Important to an Organization? Four basic functions: • Staffing • Training and Development • Motivation • Maintenance Fundamentals of Human Resource
  9. 9. How External Influences Affect HRM • Strategic Environment • Governmental Legislation • Labor Unions • Management Thought Fundamentals of Human Resource
  10. 10. How External Influences Affect HRM • HRM Strategic Environment includes: – Globalization – Technology – Work force diversity – Changing skill requirements – Continuous improvement – Work process engineering – Decentralized work sites – Teams – Employee involvement – Ethics Fundamentals of Human Resource
  11. 11. Staffing Function Activities • Employment planning – ensures that staffing will contribute to the organization’s mission and strategy • Job analysis – determining the specific skills, knowledge and abilities needed to be successful in a particular job – defining the essential functions of the job Fundamentals of Human Resource
  12. 12. Staffing Function Activities • Recruitment – the process of attracting a pool of qualified applicants that is representative of all groups in the labor market • Selection – the process of assessing who will be successful on the job, and – the communication of information to assist job candidates in their decision to accept an offer Fundamentals of Human Resource
  13. 13. Goals of the Training and Development Function • Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities • Orientation and socialization help employees to adapt • Four phases of training and development – Employee training – Employee development – Organization development – Career development Fundamentals of Human Resource
  14. 14. The Motivation Function • Activities in HRM concerned with helping employees exert at high energy levels. • Implications are: – Individual – Managerial – Organizational • Function of two factors: – Ability – Willingness • Respect Fundamentals of Human Resource
  15. 15. The Motivation Function • Managing motivation includes: – Job design – Setting performance standards – Establishing effective compensation and benefits programs – Understanding motivational theories Fundamentals of Human Resource
  16. 16. The Motivation Function • Classic Motivation Theories – Hierarchy of Needs –Maslow – Theory X – Theory Y –McGregor – Motivation – Hygiene – Herzberg – Achievement, Affiliation, and Power Motives – McClelland – Equity Theory – Adams – Expectancy Theory - Vroom Fundamentals of Human Resource
  17. 17. How Important is the Maintenance Function • Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. – Health – Safety – Communications – Employee assistance programs • Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard. Fundamentals of Human Resource
  18. 18. Translating HRM Functions into Practice • Four Functions: – Employment – Training and development – Compensation/benefits – Employee relations Fundamentals of Human Resource
  19. 19. Translating HRM Functions into Practice • Employment - Employment specialists: – coordinate the staffing function – advertising vacancies – perform initial screening – interview – make job offers – do paperwork related to hiring • Training and Development – – help employees to maximize their potential – serve as internal change agents to the organization – provide counseling and career development Fundamentals of Human Resource
  20. 20. Translating HRM Functions into Practice • Compensation and Benefits – – establish objective and equitable pay systems – design cost-effective benefits packages that help attract and retain high-quality employees. – help employees to effectively utilize their benefits, such as by providing information on retirement planning. Fundamentals of Human Resource
  21. 21. Translating HRM Functions into Practice • Employee Relations – involves: – communications – fair application of policies and procedures – data documentation – coordination of activities and services that enhance employee commitment and loyalty – Employee relations should not be confused with labor relations, which refers to HRM in a unionized environment. Fundamentals of Human Resource
  22. 22. Translating HRM Functions into Practice • Purpose and Elements of HRM Communications – Keep employees informed of what is happening and knowledgeable of policies and procedures. – Convey that the organization values employees. – Build trust and openness, and reinforce company goals. Fundamentals of Human Resource
  23. 23. Translating HRM Functions into Practice • Effective Communication programs involve: – Top Management Commitment – Effective Upward Communication – Determining What to Communicate – Allowing for Feedback – Information Sources Fundamentals of Human Resource
  24. 24. Does HRM Really Matter? • Research has shown that a fully functioning HR department does make a difference. • Organizations that spend money to have quality HR programs perform better than those who don’t. • Practices that are part of superior HR services include: – rewarding productive work – creating a flexible work-friendly environment – properly recruiting and retaining quality workers – effective communications Fundamentals of Human Resource
  25. 25. HRM in an Entrepreneurial Enterprise • General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions. • Benefits include – freedom from many government regulations – an absence of bureaucracy – an opportunity to share in the success of the business Fundamentals of Human Resource
  26. 26. HRM in a Global Village • HRM functions are more complex when employees are located around the world. • Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. • HRM also involves considering the needs of employees’ families when they are sent overseas. Fundamentals of Human Resource
  27. 27. HR and Corporate Ethics • HRM must: – Make sure employees know about corporate ethics policies – Train employees and supervisors on how to act ethically Fundamentals of Human Resource