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1 introduction to hrm
- 1. 1-1 Chapter 1 Introduction to Human Resource Management and the Environment
- 2. 1-2 Introduction HRMis charged with programs concerned with people Effective use of people Achieving individual & organizational goals Getting every manager involved
- 3. 1-3 HRM Activities EEO compliance HR planning Job analysis Labor relations Training, development Performance evaluation, compensation Safety, health, wellness Recruitment, selection, motivation, orientation
- 4. 1-4 HRM Orientation Action People Future Global
- 5. 1-5 A BriefHistory of HRM Personnel departments were created to deal with: Drastic changes in technology Organizational growth The rise of unions Government intervention Employee-management conflict
- 6. 1-6 Strategic Importanceof HRM Today, HRM plays a major role in: Clarifying the firm’s human resource problems Developing solutions for them Strategic HRM differs from traditional HRM Traditional arrangements… responsibility for managing human resources lies with specialists Strategic approach… people management rests with anyone who is in direct contact with workers or line managers
- 7. 1-7 Strategic Importanceof HRM Traditional HRM Strategic HRM Responsibility for human resources Specialists Line managers Objective Better performance Improved understanding and use of human assets Role of HRM Respond to needs Lead, inspire, understand Time focus Short-term results Short, intermediate, long term Control Rules, policies, position power Flexible, based on human resources Culture Bureaucratic, top-down, centralization Open, participative, empowerment Major emphasis Following the rules Developing people Accountability Cost centers Investment in human assets
- 8. 1-8 Strategic Importanceof HRM For years, HRM was not linked to corporate profit Organizations focused on current performance HR managers did not have a strategic perspective Executives categorized HRM in a traditional manner It was hard to develop metrics for HRM activities Recognizing the importance of people made HRM a major player in developing strategic plans HRM strategies must reflect the organization’s strategy regarding people, profit, and effectiveness
- 9. 1-9 Strategic Importanceof HRM Key Concepts to Apply Analyze/solve problems from a profit-oriented point of view Assess/interpret costs and benefits of HRM issues Use realistic, challenging, specific, and meaningful goals in planning models Prepare reports on HRM solutions to problems Train HR staff to emphasize importance of profits
- 10. 1-10 Strategic Importanceof HRM HRM accountability resulted from: Concerns about productivity Organizational downsizing and redesign Increasingly diverse workforce Competitive need to use all organizational resources
- 11. 1-11 HRM andOrganizational Effectiveness Reaching goals Reaching goals Using employees efficiently Using employees efficiently Influx/ retention of good employees Influx/ retention of good employees MMeeaassuurree ooff EEffffeeccttiivveenneessss Mission and strategy Mission and strategy Company structure HRM HRM Company structure
- 12. 1-12 HRM andOrganizational Effectiveness Coping With Change Growing global competition Rapidly expanding technologies Demand for individual, team, organizational competencies Faster cycle times Increasing legal and compliance scrutiny Higher customer expectations Mechanized, routine work now knowledge-based
- 13. 1-13 Objectives ofthe HRM Function HRM Contributions to Effectiveness Help the organization reach goals Provide trained, motivated employees Employ workforce skills/abilities efficiently Increase satisfaction, self-actualization, quality of work life Communicate HRM policies to all employees Maintain ethical policies, socially responsible behavior Manage change to the mutual advantage of individuals, groups, the enterprise, and the public
- 14. 1-14 Providing Trained,Motivated Workers Reward good results Don’t reward non-performance Make goals clear Measure results clearly, fairly Provide the right people at the right time
- 15. 1-15 Increasing JobSatisfaction This job is matches my skills perfectly The company treats me equitably I find this job very fulfilling Dissatisfied workers can produce as much as satisfied workers, but they quit and are absent more often, and produce lower-quality work
- 16. 1-16 Objectives ofthe HRM Function Meaningful tasks Meaningful tasks Work working Work working hours hours Management style JJoobb s saafefetyty Freedom and autonomy Freedom and autonomy Good physical surrounds Good physical surrounds Management style Quality of Work Life
- 17. 1-17 Objectives ofthe HRM Function Communicating HRM policies to all employees: HRM policies, programs, and procedures must be communicated fully and effectively They must be represented to outsiders Top-level managers must understand what HRM can offer
- 18. 1-18 Ethical &Socially Responsible Behavior AAppppllyy ttoo aallll HHRRMM aaccttiivviittiieess Show by example that HRM activities are fair, truthful, Show by example that HRM activities are fair, truthful, honorable honorable DDoo nnoott ddisisccrrimimininaattee Protect the basic rights of Protect the basic rights of employees employees
- 19. 1-19 Trends andChanges Telecommuting Outsourcing HRM Family medical leave Child care Spouse relocation assistance Pay for skills Benefit cost-sharing Union-management negotiation New lifestyles, aging population
- 20. 1-20 Objectives ofthe HRM Function Shorter cycle times mean less time to: Train, educate, and assign managers Solve sexual harassment complaints Recruit and select talented people Improve the firm’s image Learning provides a framework for decreasing cycle time
- 21. 1-21 Learning Framework Key Learning Areas Leadership behaviors Culture that rewards learning Emphasis on working efficiently, quickly Quicker, more flexible decision making Empowerment
- 22. 1-22 Outsourcing Rapidgrowth or decline of business Downsizing Restructuring Globalization Increased competition Contributors to HRM outsourcing
- 23. 1-23 Outsourcing Someexecutives assume that outsourcing can: Reduce costs Improve flexibility Permit the hiring of specialized expertise There is little empirical support for these assumptions
- 24. 1-24 Developing aCompetitive Advantage These must become so important and effective that every unit in the firm knows they are needed for success: The compensation system Training opportunities Diversity management programs
- 25. 1-25 HRM’s Placein Management To educate others about the HR implications of decisions, HR executives must understand Production Marketing Investments Advertising IT R&D
- 26. 1-26 Clarifying MeaningfulHRM Objectives Strategy: The plan that integrates major objectives More specific Objectives: Goals that are specific and measurable More specific Policies: Decision making guides More specific Procedures/rules: Specific directions for decision making
- 27. 1-27 HRM Policy A policy is a general guide that expresses limits within which action should occur Arises from past or potential problems Frees managers from making certain decisions Ensures some consistency in behavior Allows managers to concentrate on decisions where they have the most experience and knowledge
- 28. 1-28 HRM Procedures Procedures (rules) are specific directions In standard operating procedure (SOP) manuals Helps ensure consistent decision making Should be well-developed, but not excessive Develop for only the most vital areas
- 29. 1-29 Organization ofan HR Department Chief HR Executive Typically reports to the top manager Small/Medium HRM and another function may be in a single department HRM and another function may be in a single department Firms HRM HRM is is typically typically a a unit unit in in the NNoonnpprrooffititss the business office HR specialists are usually located at the headquarters of an organization Chief HR Executive Typically reports to the top manager Small/Medium Firms business office