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Hrm chp 2

Muhammad Haris

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Hrm chp 2

  1. 1. Human Resource Management Chapter 2 Fundamentals of HRM
  2. 2. Management Essentials  Management involves setting 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. 3. Management Essentials  Primary Functions of 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. 4. Why is HRM Important 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. 5. Why is HRM Important to an Organization?  The Strategic Nature – HRM must be  a strategic business partner and represent employees.  forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage.  concerned with the total cost of its function and for determining value added to the organization.
  6. 6. Why is HRM Important to an Organization?  HRM is the part of the organization concerned with the “people” dimension.  HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.
  7. 7. Why is HRM Important to an Organization?  HRM Certification  Colleges and universities offer HR programs.  The Society for Human Resource Management and Human Resource Certification Institute offer professional certification.
  8. 8. Why is HRM Important to an Organization? Four basic functions:  Staffing  Training and Development  Motivation  Maintenance
  9. 9. How External Influences Affect HRM  Strategic Environment  Governmental Legislation  Labor Unions  Management Thought
  10. 10. How External Influences Affect 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
  11. 11. How External Influences Affect HRM  Governmental Legislation  Laws supporting employer and employee actions  Labor Unions  Act on behalf of their members by negotiating contracts with management  Exist to assist workers  Constrain managers  Affect non unionized workforce
  12. 12. How External Influences Affect HRM  Management Thought  Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM.  More recently, continuous improvement programs have had a significant influence on HRM activities.
  13. 13. 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
  14. 14. 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
  15. 15. Goals of the Training and Development Function  Activities in HRM concerned with assisting employees to develop up-todate 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
  16. 16. 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
  17. 17. The Motivation Function  Managing motivation includes:  Job design  Setting performance standards  Establishing effective compensation and benefits programs  Understanding motivational theories
  18. 18. The Motivation Function  Classic Motivation Theories  Hierarchy of Needs –Maslow  Theory X – Theory Y –McGregor  Motivation – Hygiene – Herzberg  Achievement, Affiliation, and Power Motives – McClelland  Equity Theory – Adams  Expectancy Theory - Vroom
  19. 19. How Important is the Maintenance Function  Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization.     Health Safety Communications Employee assistance programs  Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
  20. 20. Translating HRM Functions into Practice  Four Functions:  Employment  Training and development  Compensation/benefits  Employee relations
  21. 21. Translating HRM Functions into Practice  Employment - Employment specialists:  coordinate the staffing function  advertising vacancies  perform initial screening  interview  make job offers  do paperwork related to hiring  Training and Development –  help employees to maximize their potential  serve as internal change agents to the organization  provide counseling and career development
  22. 22. Translating HRM Functions into Practice  Compensation and Benefits –  establish objective and equitable pay systems  design cost-effective benefits packages that help attract and retain high-quality enployees.  help employees to effectively utilize their benefits, such as by providing information on retirement planning.
  23. 23. Translating HRM Functions into Practice  Employee Relations – involves:  communications  fair application of policies and procedures  data documentation  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.
  24. 24. Translating HRM Functions into Practice  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. 25. Translating HRM Functions into Practice  Effective Communication programs involve:  Top Management Commitment  Effective Upward Communication  Determining What to Communicate  Allowing for Feedback  Information Sources
  26. 26. Does HRM Really Matter?  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. 27. HRM in an Entrepreneurial Enterprise  General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.  Benefits include  freedom from many government regulations  an absence of bureaucracy  an opportunity to share in the success of the business
  28. 28. HRM in a Global Village  HRM functions are more complex when employees are located around the world.  Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.  HRM also involves considering the needs of employees’ families when they are sent overseas.
  29. 29. HR and Corporate Ethics  HRM must:  Make sure employees know about corporate ethics policies  Train employees and supervisors on how to act ethically
  30. 30. HR and Corporate Ethics  The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status.  Establishes penalties for noncompliance.  Provides protection for employees who report executive wrongdoing.  Requires that companies have mechanisms in place where complaints can be received and investigated.