CH 1 BSAD 310 Fall 2019

Chapter 1
The Nature of Human Resource
Management
Copyright ©2020 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

LEARNING OUTCOMES
2
Copyright © 2020 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. HR5 | CH1
1. Describe the contemporary human resource
perspectives
2. Trace the evolution of the human resource
function in organizations
3. Identify and discuss the goals of human
resource management
4. Discuss the setting for human resource
management
5. Describe the job of human resource managers
from the perspectives of professionalism and
careers

3
Introduction to Human Resource
Management
• Human resources (HR)
• People employed by an organization to carry out
various jobs, tasks, and functions in exchange
for wages, salaries, and other rewards
• Human resource management (HRM)
• Comprehensive set of managerial activities and
tasks that help develop and maintain a qualified
workforce in ways that contribute to
organizational effectiveness

4
Contemporary HRM Perspectives
• HRM function needs people who can
balance ethical and legal concerns with
organizational needs
• Properly managed human resources can
provide competitive advantage
• Many organizations outsource their HRM
functions
• Outsourcing: Process of hiring external firms to
handle basic HRM functions
- Can provide competitive advantage
LO 1

5
Evolution of the Human Resource Function
• First study of management practice
• Based on scientific management, which was
concerned with structuring individual jobs to
maximize efficiency and productivity
• Many organizations created specialized
units to hire new employees
• Human relations era
• Supplanted scientific management as the
dominant approach during the 1930s
• Instigated by Hawthorne studies
LO 2

6
Evolution of the Human Resource Function
(Continued)
• Witnessed the growth of Abraham Maslow’s
hierarchy of human needs and Douglas
McGregor’s Theory X and Theory Y framework
• Personnel management
• Grew from the recognition that human
resources needed to be managed
• Evolved further during World War Two
• Personnel departments: Specialized units for
hiring and administering human resources
• Passage of the Civil Rights Act in 1964 led to
an increased importance of the HRM role
LO 2

7
Human Resource Management in the
Electronic Age
• Electronic systems
• Allow firms to compile large amounts of data,
keep better track of employees, and analyze
data to monitor employee behavior
• Enable ease of surveillance and communication
• Pose legal concerns regarding ethics and privacy
• Increase the need for knowledge workers
- Knowledge workers: Employees whose jobs
are concerned with the acquisition and
application of knowledge
LO 2

8
Emerging Human Resource Challenges and
Ways to Address Them
• Challenges
• Me Too movement
• Spotlight on sexual harassment and sexual
misconduct at work
• Increasing pressure on companies to address
social issues
• Ways to address the challenges
• Adopting corporate social responsibility
• Indulging in conscious capitalism or the triple
bottom line
LO 2

9
Goals of Human Resource Management
• Facilitating organizational competitiveness
• Enhancing productivity and quality
• Complying with legal and social obligations
• Promoting individual growth and
development
• HRM is viewed by firms as part of a
psychological contract with their employees
LO 3

10
HRM as a Staff versus Line Function
• Line managers: Directly responsible for
creating goods and services
• Staff managers: Responsible for an indirect
or support function that would have costs
• Their bottom-line contributions are less direct
• Recent trends
• HRM activities are carried out by line managers
• Some firms have HRM departments structured
around centers of excellence
• HRM department is becoming a self-funding
operation
LO 4

11
HR Departments in Small Organizations
• Require line managers to handle their basic
HR functions
• Employees handling HR duties receive
relatively little training
• Exempt from many legal regulations and
hence a single manager can handle the HR
function
LO 4

12
HR Departments in Large Organizations
• Separate HR unit is a necessity
• Require one full-time manager and a
secretary for a firm size of 250
• HR functions have specialized subunits
LO 4

13
Human Resource Management System
• Integrated and interrelated approach to
managing human resources that recognizes
the interdependence among the various
tasks and functions that must be performed
• HRM subsystems affect and are affected by
other organizational subsystems
• Global perspective on HRM includes the
need to understand:
• The domestic similarities and differences in
managing human resources in different
countries
LO 4

14
Human Resource Management System
(Continued)
• The role of international assignments and
experiences in the development of HR skills and
abilities
• Utility analysis helps determine the
contribution of HRM activities to a firm’s
bottom line
• Utility analysis: Attempt to measure the impact
and effectiveness of HRM practices in terms of
metrics such as a firm’s financial performance
LO 4

15
Characteristics of Contemporary HR
Managers
• Understand different specialized areas such
as:
• Legal environment
• Process of change management
• Labor relations
• Possess general management abilities that
reflect conceptual, diagnostic, and
analytical skills
LO 5

16
Human Resource Management as a Center
for Expertise
• Various functions that affect and are
affected by HRM functions include:
• Finance function
• Marketing function
• Operations function
• Other fundamental organizational functions
LO 5

17
Professionalism and Human Resource
Management
• HR departments are viewed as cost centers
with the goal of providing clear and
measurable financial benefits to the
organization
• Many HR managers today belong to the
Society for Human Resource Management
(SHRM), which:
• Publishes professional journals and sponsors
workshops and conferences
• Created the Human Resource Certification
Institute (H R C I)
LO 5

18
Careers in Human Resource Management
• Obtain a degree in human resource
management
• Provides an entry-level employment opportunity
as an HR manager
• Line management can be used as a route to
HRM
• Enabled via rotation of managers through the
HR function
LO 5

KEY TERMS
19
• Human resources (HR)
• Human resource
management (HRM)
• Outsourcing
• Scientific
management
• Human relations era
• Hawthorne studies
• Hierarchy of human
needs
• Theory X and Theory
Y
• Personnel
departments
• Personnel
management
• Personnel manager
• Knowledge workers
• Productivity
• Quality

KEY TERMS
20
• Psychological contract
• Line managers
• Staff managers
• Human resource
management system
• Utility analysis

SUMMARY
21
• HRM practices and policies affect the ability
to formulate and implement strategies
• Practice of management has been of special
interest and concern for about 100 years
• Understanding HR goals helps provide a
framework for evaluating HR activities
• HR activities are carried out by both line
and staff managers today
• HR can be conceptualized as a center of
expertise within an organization

CH 1 BSAD 310 Fall 2019

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CH 1 BSAD 310 Fall 2019