Mondy hrm13 inppt01.ppt

Human Resource Management

13th Edition

Chapter 1 STRATEGIC HUMAN RESOURCE

MANAGEMENT: AN OVERVIEW

Copyright © [2014] Pearson Education 4-1

Learning Objectives• Describe employer branding and define human

resource management.

• Identify the human resource management functions.

• Identify the external environmental factors that affect human resource management and describe the trend for increased mobility of tasks performed by HR professionals.

• Explain why corporate culture is a major internal environmental factor.

• Explain who performs human resource management tasks.

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Learning Objectives (Cont.)• Describe how human resource management activities

may be different for small businesses.

• Describe the various human resource classifications including executives, generalists, and specialists.

• Describe the evolution of human resource management and explain the evolving HR organization.

• Describe the professionalization of human resource management.

• Explain the possible hurdles of managing human resources across different cultures.


Corporate Culture

• Corporate culture: System of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms

• Throughout the text, the importance of various topics related to corporate culture will be described beginning with Employer Branding


HRM in Action: Corporate Culture and Employer Branding

• Employer branding: Firm’s corporate image or culture created to attract and retain the type of employees the firm is seeking

• Companies want a brand that will entice individuals to join and remain with the firm


Human Resource Management (HRM)

• Utilization of individuals to achieve organizational objectives

• Concern of all managers at every level

• Face a multitude of challenges

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HRM Functions

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1

Human Resource

Management

Human Resource

Development

Com

pens

atio

n

Staffing

Em

ployee and

Labor Relations

Safety and Health

Copyright © [2014] Pearson Education

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Staffing

Process of ensuring the organization always has:•Required number of employees

•Employees with appropriate skills

•Employees in the right jobs at the right time

•Constant job analysis, human resource planning, recruitment, and selection


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Job Analysis

• Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization

• Impacts virtually every aspect of HRM


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Human Resource Planning

• Matching internal and external supply of people with anticipated job openings over a specified period of time

• Sets the stage for recruitment and other HR actions


Recruitment and Selection

Recruitment: Attracting individuals to apply for jobs

•Must be timely

•Applicants need appropriate qualifications

•Need sufficient number of applicants

Selection: Choosing individual best suited for a particular position and the organization


Human Resource Development

Major HRM functions include:– Training

– Development – Career planning – Career development– Organization development– Performance management– Performance appraisal


Training and Development

Training: Providing learners with knowledge and skills needed for their present jobs

Development: Offering learning that goes beyond present job•Long-term focus


Career Planning and Development

Career planning: Ongoing process. • Individual sets career goals

• Identifies means to achieve them

Career development: Formal approach used by the organization. • Ensures a pipeline of people with proper

qualifications and experiences


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Organization Development

Planned and systematic attempt to:

–Make the organization more effective

–Create positive behavioral environment


Performance Management

Goal-oriented process to ensure organizational processes are in place to maximize productivity•Applies to employees, teams, and ultimately, the organization


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Performance Appraisal

Formal system of review and evaluation– Individual

– Team


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Compensation

All rewards that individuals receive as a result of their employment


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Financial Compensation

Direct: Pay employee receives in form of wages, salaries, bonuses, or commissions

Indirect: Benefits employee receives•Paid vacations, sick leave, holidays, medical insurance


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Nonfinancial Compensation

Satisfaction that employees receive from:

–Job itself

–Psychological and/or physical environment


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Safety and Health

Safety: Protecting employees from injuries caused by work-related accidents

Health: Employees' freedom from illness and their general physical and mental well-being


Labor Unions and Collective Bargaining

• Businesses are required by law to recognize a union and bargain with it in good faith if firm’s employees want a union to represent them

• Human resource activity with a union is often referred to as industrial relations


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Internal Employee Relations

HRM activities associated with the movement of employees within the organization. Examples:

– Promotions

– Demotions

– Terminations

– Resignations


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Interrelationships of HRM Functions

• All HRM functions are interrelated so that each function affects the others


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Environment of Human Resource Management


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Legal Considerations

• Federal, state, and local legislation

• Court decisions

• Presidential executive orders


Labor Market

• Potential employees located within certain geographic area

• Always changing


Society

Firm must accomplish its purpose while complying with societal norms

Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation

Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves


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Unions

• Group of employees who have joined together to collectively bargain with their employer

• Become a third party when dealing with the company


Shareholders

• Owners of a corporation

• Have invested money in the firm

• May at times challenge programs considered by management to be beneficial to organization


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Competition

• In product or service and labor markets

• Firms must maintain a supply of competent employees

• Bidding war often results


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Customers

• People who actually use firm’s goods and services

• Employment practices should not antagonize members of the market that the firm serves

• Workforce should be capable of providing top-quality goods and services


Trends & Innovations: Mobile HR - Is the Cloud the Limit?

• Trend: Increased mobility of tasks performed by HR professionals

• Mobile applications are available for many HR functions

• Cloud computing: Means of providing software and data via the Internet


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HR Technology

Rapid technological changes provide:

•Increased sophistication

•Ability to design more useful human resource information systems (HRIS)


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HRIS

• An organized approach for obtaining information on which to base HR decisions

• An umbrella for merging the various subsystems

• Mainstay HR responsibilities need an HRIS


Economy

• When economy is booming, it is often more difficult to recruit qualified workers

• In economic downturn, more applicants are typically available


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Unanticipated Events

• Unforeseen occurrences in external environment

• Require a tremendous amount of adjustment with regard to HRM


Corporate culture as a Major Internal Environment Factor

• Gives people a sense of how to behave and what they ought to be doing

• Topics related to corporate culture are presented throughout this text


HR’s Changing Role: Questions

• Can some HR tasks be performed more efficiently by line managers or outside vendors?

• Can some HR tasks be centralized or eliminated?

• Can technology perform tasks that were previously done by HR personnel?


Who Performs Human Resource Management Tasks?

• Human resource managers

• HR outsourcing

• HR shared service centers

• Professional employer organization (employee leasing)

• Line managers


Human Resource Manager

• Historically, the HR manager was responsible for each of the five HR functions

• Acts in advisory or staff capacity• Works with other managers to help them

deal with human resource matters• Today, HR departments continue to get

smaller


HR Outsourcing

• Transfers responsibility to an external provider– Discrete services

– Business process outsourcing (BPO)


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Discrete Services

• Single set of high-volume repetitive functions is outsourced to a third party

• Typically transactional HR activities

• Example: 401(k) administration


Business Process Outsourcing (BPO)

• Majority of HR services are transferred to third party

• Largest HR outsourcer is IBM

• Kraft Foods Inc. and IBM signed a multi-year BPO agreement


Recruitment Process Outsourcing (RPO)

• As recession slowed and firms began to hire, some companies realized that they had lost their recruiting skills

• Many had not kept up with the rapidly changing technology

• RPO companies are stepping in to fill the void in recruitment skills


HR Shared Service Centers (SSCs)

• Takes routine, transaction-based activities that are dispersed and consolidates them in one location

• Provide an alternative to HR outsourcing


Professional Employer Organization (Employee Leasing)

Company that leases employees to other businesses

Advantages:– Economies of scale– Greater job mobility for workers– Job security through leasing company – PEO can handle compliance requirements

of programs


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Line Managers Performing HR Tasks

• Line managers: Individuals directly overseeing the accomplishment of the organization’s primary goals

• Involved with human resources by nature of their jobs

• Now performing some duties typically done by HR


Human Resource Management in Small Businesses

• Many college graduates obtain jobs in small businesses

• Same HR functions must be accomplished

• Manner in which they are accomplished may be altered


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Human Resource Executives, Generalists, and Specialists


Evolution Of Human Resource Management


Traditional Human Resource Function in Large Firm

• Included separate sections

• Sections were placed under an HR manager

• Each HR function had a supervisor and staff

• HR manager worked closely with top management in formulating policy


The Evolving HR Organization

• HR outsourcing

• HR shared service centers

• Professional employer organization

• Line manager

• HR becoming more strategic


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A Possible Evolving HR Organization Example

President and CEO

Vice President, Operations

Vice President, Strategic Human

Resources

Vice President, Finance

Director of Safety

and Health

Training & Development (Outsourced)

Compensation (Shared Service

Centers)

Staffing (Line Managers, use of Applicant Tracking Systems)

Vice President, Marketing


Professionalization of Human Resource Management

Profession: A vocation characterized by a:

– Common body of knowledge

– Procedure for certifying members of profession


Society for Human Resource Management (SHRM)

• Largest national professional organization for HR management individuals

• Basic goals of the society:– Defining, maintaining, and improving

standards of excellence in the practice of human resource management

– Publishes HRMagazine


Human Resource Certification Institute (HRCI)

• Recognizes HR professionals through certification program

• Offers three certifications for HR professionals:– PHR (Professional in Human Resources)

– SPHR (Senior Professional in Human Resources)

– GPHR (Global Professional in Human Resources)


American Society for Training and Development (ASTD)

• World’s largest association dedicated to workplace learning and performance professionals

• ASTD Certification Institute has the Certified Professional in Learning and Performance (CPLP) credential


WorldatWork

• Focused on compensation, benefits, work–life effectiveness, and integrated total rewards

• Certification of professionals

• Strategies to attract, motivate, and retain an engaged and productive workforce


A Global Perspective: Country Culture as a Possible Barrier to Global

Business • Country’s culture: Set of values,

symbols, beliefs, languages, and norms that guide human behavior within the country

• Cultural differences between countries are a major factor influencing global business

• Cultural misunderstandings are common


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