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Human Resource Management Chapter Two (2)
- 1. Chapter 2 Introduction toHR functions Fundamentals of Human Resource Management Eleventh Edition DeCenzo and Robbins
- 2. Introduction • Management involvessetting goals and allocating scarce resources to achieve them. • Management is the process of efficiently achieving the objectives of the organization with and through people.
- 3. Introduction • Primary Functionsof 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
- 4. Why is HRMImportant 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.
- 5. Why is HRMImportant to an Organization? • The Strategic Nature – HRM must be – a strategic business partner and represent employees. – align the people of the organization so they are best able to assist the organization in achieving its goal – assist the decision makers in evaluating where the organization currently stands, deciding where it wants to be in future, develop a plan to achieve those goals, implementing the plan and checking progress toward these goals.
- 6. Why is HRMImportant to an Organization? -forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. -strategic HRM creates a clear connection between the goals the organization and the activities of the people who work there.
- 7. The HRM functions Fourbasic functions: • Staffing • Training and Development • Motivation • Maintenance
- 8. 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
- 9. 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
- 10. Goals of theTraining 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
- 11. Training and DevelopmentFunction – Employee training is designed to assist employees in acquiring better skills for their current job. – Employee development is focused for a future position within the organization for which the employee requires additional competencies. – career development (employee is responsible not the org.) is the focus to provide the necessary information and assessment in helping employees realize their career goals. – Organizational development is to change the attitudes and values of employees according to new organizational strategic direction.
- 12. 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 between management & employees also necessary.
- 13. The Motivation Function •Managing motivation includes: – Job design (outlining the task, duties, responsibilities, qualifications, relationships required to perform a job.) – Setting performance standards for each employee – performance evaluation system is designed to provide feedback regarding past performance. – link should be established between employee compensation and performance.
- 14. The Motivation Function •Classic Motivation Theories – Hierarchy of Needs –Abraham Maslow – Theory X – Theory Y –Douglas McGregor – Motivation – Hygiene – Frederick Herzberg – Achievement, Affiliation, and Power Motives – David McClelland – Equity Theory – Stacey Adams – Expectancy Theory – Victor Vroom
- 15. How Important isthe Maintenance Function • Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. – Health – Safety – caring for employees well-being – Employee assistance programs • Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
- 16. How External InfluencesAffect HRM • The Dynamic Environment of HRM • Laws and Regulations • Labor Unions • Management Thought
- 17. The Dynamic environmentof 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
- 18. How External InfluencesAffect HRM • Laws & Regulation – Legal environment is constantly evolving. – Recent changes of legal environment of HR: Rights of disabled, veterans, minimum wage earners, health care, leave for family care etc. • Labor Unions – Act on behalf of their members to secure wages, hours and other terms and conditions. – Exist to assist workers – promote and foster a grievance procedure for resolving differences between workers & mgt.
- 19. How External InfluencesAffect HRM • Management Thought – Management principles, such as those from scientific management (Frederick Taylor) or based on the Hawthorne studies (Elton Mayo) influence the practice of HRM. – Taylor developed a set of principles to enhance worker productivity. – Mayo found that informal work groups has a significant effect on worker performance. – More recently, continuous improvement programs have had a significant influence on HRM activities.
- 20. Structure of theHR Department • Four areas: – Employment – Training and development – Compensation/benefits – Employee relations
- 21. Structure of theHR Department • Employment - Employment specialists: – coordinate the staffing function – advertising vacancies – perform initial screening – interview – make job offers – do paperwork related to hiring Note that the employment specialists role is not to make hiring decisions but to coordinate with line management. • Training and Development – – responsible to help employees to maximize their potential – serve as internal change agents to the organization – provide counseling and career development
- 22. Structure of theHR Department • Compensation and Benefits – – establish equitable pay systems – design cost-effective benefits packages that help attract and retain high-quality employees. – job ratings are compared to determine the job’s relative worth to the company – External factors (market conditions & supply of workers) also considered to assess job’s worth. – help employees to effectively utilize their benefits, such as by providing information on retirement planning.
- 23. Structure of theHR Department • Employee Relations – involves: – Foster environment of open communications – fair application of policies and procedures – 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. – Labor relations involves dealing with labor relations (grievances handled with the association of labor union)
- 24. Structure of theHR Department • 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.
- 25. Structure of theHR Department • Effective Communication programs involve following elements: – Top Management Commitment – Effective Upward Communication – Determining What to Communicate – Allowing for Feedback – Information Sources
- 26. Does HRM ReallyMatter? • 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
- 27. HRM Trends andOpportunities • Outsourcing - contracting with a company to handle one or more HR functions. • Professional Employer Organization (PEO) - A company that assumes all HR functions of a client company by hiring all of its employees and leasing them back to the company. • Shared Services – sharing HRM activities among geographically dispersed divisions.