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HRM Functions and Strategy
Importance of HRM
HRM has a dual nature:
.
Strategic HRM provides a clear connection between the
organization’s goals and the activities of employees.
supports the
organization’s strategy
represents and advocates
for the employees
The HRM Functions
HRM has four basic functions:
In other words, hiring people, preparing them, stimulating
them, and keeping them.
staffing
training and
development
motivation
maintenance
The HRM Functions
Staffing has fostered the most change in HR departments
during the past 30 years.
staffing
 strategic human resource planning: match prospects’ skills to
the company’s strategy needs
 recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants
 selection: thin out pool of applicants to find the best choice
The HRM Functions
The goal is to have competent, adapted employees.
training and
development
 orientation: teach the rules, regulations, goals, and culture of the
company
 employee training: help employees acquire better skills for the job
 employee development: prepare employee for future position(s) in the
company
 organizational development: help employees adapt to the company’s
changing strategic directions
 career development: provide necessary information and assessment
in helping employees realize career goals
The HRM Functions
motivation
 theories and job design: environment and well-constructed jobs
factor heavily in employee performance
 performance appraisals: standards for each employee; must provide
feedback
 rewards and compensation: must be link between compensation and
performance
 employee benefits: should coordinate with a pay-for-performance
plan
The HRM Functions
Job loyalty has declined over the past decade.
maintenance
 safety and health: caring for employees’ well-being has a big
effect on their commitment
 communications and employee relations: keep employees
well-informed of company doings, and provide a means of
venting frustrations
External Influences on HRM
management
thought
labor
unions
laws and
regulationsHRM
dynamic
environment
External influences affect HRM functions.
External Influences on HRM
dynamic
environment
“The only constant in life is change.”
globalization decentralized work sites
technology
teams
workforce diversity
employee involvement
ethicschanging skill requirements
continuous improvement
External Influences on HRM
laws and
regulations
 legislation has an enormous effect on HRM
 laws protect employee rights to union representation, fair
wages, family medical leave, and freedom from discrimination
based on conditions unrelated to job performance
External Influences on HRM
labor unions
assist workers in dealing with company management
negotiate wages, hours, and other terms of employment
promote and foster a grievance procedure between workers
and management
When a union is present, employers can not fire workers for
unjustified reasons.
External Influences on HRM
management
thought
Frederick Taylor developed principles to enhance worker productivity
Hugo Munsterberg devised improvements to worker testing, training,
evaluations, and efficiency
Mary Parker Follet advocated people-oriented organizations
Elton Mayo’s Hawthorne Studies: dynamics of informal work groups
have a bigger effect on worker performance than do wage incentives
The Hawthorne Studies gave rise to the human relations movement:
benefits, healthy work conditions, concern for employee well-being.
Structure of the HR Department
employment
training and
development
compensation /
benefits
employee
relations
There are four areas in a typical HR department:
Many HR departments also offer services such as operating the
company’s credit union, making child-care arrangements,
providing security, or running in-house medical or food services.
Structure of the HR Department
promotes staffing activities, recruits new
employees, but may not make hiring decision
helps workers adapt to change in the company’s
external and internal environments
pays employees and administers their benefits
package
ensures open communication within the company by
fostering top management commitment, upward and
accurate communication, feedback, and effective
information sources
compensation/
benefits
employee
relations
training and
development
employment
Careers in HR
HR positions include:
 assistants who support other HR professionals
 generalists who provide service in all four HR functions
 specialists who work in one of the four HR functions
 executives who report to top management and coordinate HR
functions to organizational strategy
Interpersonal communication skills and ambition are two
factors that HR professionals say advance their careers.
Careers in HR
Organizations that spend money for quality HR
programs perform better than those that don’t.
Quality programs:
reward productive work
offer a flexible, work-friendly environment
properly recruit and retain quality employees
provide effective communications
Make sure HR services match the overall
organizational strategy.
HR Trends and Opportunities
 more than half of all companies outsource all or some
parts of their HR functions
 professional employer organizations help small- to
medium-size companies attract stronger candidates and
handle new laws in HR
 shared services allow organizations with several divisions
or locations to consolidate some HR functions into one
central location while retaining certain functions in divisional
locations
Match the Fours
Four major HR positions
Four HR department
areas
Four quality programs
Four HRM functions
Four external influences
on HRM
staffing, training, motivation, maintenance
environment, laws, labor unions, management
thought
employment, training, compensation,
employee relations
assistants, generalists, specialists, executives
reward productive work
offer a flexible, work-friendly environment
properly recruit and retain quality employees
provide effective communications
I’d love to hear your thoughts on HR’s strategic role in the organization. What are
the most important characteristics of a superstar HR manager in the 21st century?
Leave a comment below with the following characteristics placed in order of
priority:
• A. Good with people
B. Operationally efficient
C. Has a strategic mindset
D. Knows HR content
E. Understands the business/industry
F. Compliance Expert
G. Compassionate
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

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StrategicHRM

  • 1. HRM Functions and Strategy
  • 2. Importance of HRM HRM has a dual nature: . Strategic HRM provides a clear connection between the organization’s goals and the activities of employees. supports the organization’s strategy represents and advocates for the employees
  • 3. The HRM Functions HRM has four basic functions: In other words, hiring people, preparing them, stimulating them, and keeping them. staffing training and development motivation maintenance
  • 4. The HRM Functions Staffing has fostered the most change in HR departments during the past 30 years. staffing  strategic human resource planning: match prospects’ skills to the company’s strategy needs  recruiting: use accurate job descriptions to obtain an appropriate pool of applicants  selection: thin out pool of applicants to find the best choice
  • 5. The HRM Functions The goal is to have competent, adapted employees. training and development  orientation: teach the rules, regulations, goals, and culture of the company  employee training: help employees acquire better skills for the job  employee development: prepare employee for future position(s) in the company  organizational development: help employees adapt to the company’s changing strategic directions  career development: provide necessary information and assessment in helping employees realize career goals
  • 6. The HRM Functions motivation  theories and job design: environment and well-constructed jobs factor heavily in employee performance  performance appraisals: standards for each employee; must provide feedback  rewards and compensation: must be link between compensation and performance  employee benefits: should coordinate with a pay-for-performance plan
  • 7. The HRM Functions Job loyalty has declined over the past decade. maintenance  safety and health: caring for employees’ well-being has a big effect on their commitment  communications and employee relations: keep employees well-informed of company doings, and provide a means of venting frustrations
  • 8. External Influences on HRM management thought labor unions laws and regulationsHRM dynamic environment External influences affect HRM functions.
  • 9. External Influences on HRM dynamic environment “The only constant in life is change.” globalization decentralized work sites technology teams workforce diversity employee involvement ethicschanging skill requirements continuous improvement
  • 10. External Influences on HRM laws and regulations  legislation has an enormous effect on HRM  laws protect employee rights to union representation, fair wages, family medical leave, and freedom from discrimination based on conditions unrelated to job performance
  • 11. External Influences on HRM labor unions assist workers in dealing with company management negotiate wages, hours, and other terms of employment promote and foster a grievance procedure between workers and management When a union is present, employers can not fire workers for unjustified reasons.
  • 12. External Influences on HRM management thought Frederick Taylor developed principles to enhance worker productivity Hugo Munsterberg devised improvements to worker testing, training, evaluations, and efficiency Mary Parker Follet advocated people-oriented organizations Elton Mayo’s Hawthorne Studies: dynamics of informal work groups have a bigger effect on worker performance than do wage incentives The Hawthorne Studies gave rise to the human relations movement: benefits, healthy work conditions, concern for employee well-being.
  • 13. Structure of the HR Department employment training and development compensation / benefits employee relations There are four areas in a typical HR department: Many HR departments also offer services such as operating the company’s credit union, making child-care arrangements, providing security, or running in-house medical or food services.
  • 14. Structure of the HR Department promotes staffing activities, recruits new employees, but may not make hiring decision helps workers adapt to change in the company’s external and internal environments pays employees and administers their benefits package ensures open communication within the company by fostering top management commitment, upward and accurate communication, feedback, and effective information sources compensation/ benefits employee relations training and development employment
  • 15. Careers in HR HR positions include:  assistants who support other HR professionals  generalists who provide service in all four HR functions  specialists who work in one of the four HR functions  executives who report to top management and coordinate HR functions to organizational strategy Interpersonal communication skills and ambition are two factors that HR professionals say advance their careers.
  • 16. Careers in HR Organizations that spend money for quality HR programs perform better than those that don’t. Quality programs: reward productive work offer a flexible, work-friendly environment properly recruit and retain quality employees provide effective communications Make sure HR services match the overall organizational strategy.
  • 17. HR Trends and Opportunities  more than half of all companies outsource all or some parts of their HR functions  professional employer organizations help small- to medium-size companies attract stronger candidates and handle new laws in HR  shared services allow organizations with several divisions or locations to consolidate some HR functions into one central location while retaining certain functions in divisional locations
  • 18. Match the Fours Four major HR positions Four HR department areas Four quality programs Four HRM functions Four external influences on HRM staffing, training, motivation, maintenance environment, laws, labor unions, management thought employment, training, compensation, employee relations assistants, generalists, specialists, executives reward productive work offer a flexible, work-friendly environment properly recruit and retain quality employees provide effective communications
  • 19. I’d love to hear your thoughts on HR’s strategic role in the organization. What are the most important characteristics of a superstar HR manager in the 21st century? Leave a comment below with the following characteristics placed in order of priority: • A. Good with people B. Operationally efficient C. Has a strategic mindset D. Knows HR content E. Understands the business/industry F. Compliance Expert G. Compassionate Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins