Introduction to Human Resource

1. 1-1
Chapter 1
Introduction to Human
Resource Management
and the Environment

2. 1-2 Introduction
HRM is 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 Brief History 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 Importance of 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 Importance of 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 Importance of 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 Importance of 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 Importance of 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 and Organizational 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 and Organizational 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 of the 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 Job Satisfaction
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 of the 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 of the 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 and Changes
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 of the 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
Rapid growth or decline
of business
Downsizing
Restructuring
Globalization
Increased competition
Contributors to
HRM outsourcing

23. 1-23
Outsourcing
Some executives 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 a Competitive 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 Place in 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 Meaningful HRM 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 of an 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