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1

Human ResourceManagement

and the Environment

McGraw-Hill/IrwinHuman Resource Management, 10/e 2007 The McGraw-Hill Companies, Inc. All rights reserved.


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Introduction

Human resource management (HRM) is the effectivemanagement of people at work

The goal: make workers more satisfied and

productive

When an organization is concerned about people, its

total philosophy, culture, and orientation reflect it

Every manager must be concerned with people,

whether or not there is a human resources department


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Introduction

HRM consists of numerous activities:Equal employment opportunity (EEO) compliance

Job analysis

Human resource planningRecruitment, selection, motivation, and orientation

Performance evaluation and compensation

Training and development

Labor relations

Safety, health, and wellness


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Introduction

The HRM unit is oriented toward:Action

People

Global enterpriseThe future


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A Brief History of HRM

HRM can be traced to England, where craftspeopleorganized guilds

They used unity to improve working conditions

The Industrial Revolution in the 18th century laid

the basis for a new, complex industrial society

Changing work conditions, social patterns, and labor

created a gap between workers and owners

During the world wars era, scientific management,welfare work, and industrial psychology merged


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Frederick W. Taylor, the father of scientificmanagement, summarized scientific managementas:

Science

Harmony

Cooperation

Maximum output

Industrial psychology, initiated in 1913, focused on:

The worker

Individual differences

The maximum well being of the worker


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Personnel departments were created to deal with:Drastic changes in technology

Organizational growth

The rise of unionsGovernment intervention

concerning working people

Around the 1920s, more organizations

noticed and acted on employee-management conflict


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The Hawthorne studies (1924 to 1933):Were to determine the effects of

illumination on workers and their output

Rather, it pointed out the importance of

social interaction on output and satisfaction

Until the 1960s, the personnel function was

concerned only with blue-collar employees

File clerk, house-keeper, social worker, firefighter,and union trouble defuser


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Strategic Importance of HRM

Strategic HRM differs significantly from traditionalHRM

In traditional arrangements, responsibility for

managing human resources lies with specialists in a

division

In a strategic approach, people management rests

with any individual who is in direct contact with

workers or line managers


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Strategic Importance of HRM

Item Traditional HRM Strategic HRM

Responsibility for

human resources

Specialists Line managers

Objective Better performance Improved understanding

and use of human assets

Role of HRM area 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


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HRM and Organizational Effectiveness

For a firm to survive and prosper, reasonable goalsmust be achieved in:

Performance

Legal compliance

Employee satisfaction

Absenteeism

Turnover

Training effectiveness and ROI

Grievance rates

Accident rates


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It is important to remember that

the people who do the work and create the ideas

allow the organization to survive


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Changes experienced by organizations:Growing global competition

Rapidly expanding technologies

Increased demand for individual, team, andorganizational competencies

Faster cycle times

Increasing legal and compliance scrutiny

Higher customer expectations

The mechanized, routine-oriented workforce is

giving way to a knowledge-based workforce


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Objectives of the HRM Function

HRM contributions to organizational effectiveness:

Helping the organization reach its goals

Employing workforce skills and abilities efficiently

Increasing job satisfaction, self-actualization, and

quality of work life


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HRM contributions to organizational effectiveness(continued):

Communicating HRM policies to all employees

Maintaining ethical policies and socially responsible

behavior

Managing change to the mutual advantage of

individuals, groups, the enterprise, and the public


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Increasing employees job satisfaction and self-actualization

Employees must feel that the job is right for their

abilities and that they are being treated equitably

Satisfied employees are not automatically more

productive

However, unsatisfied employees tend to be absent and

quit more often and produce lower-quality work

Both satisfied and dissatisfied employees can perform

equally in quantitative terms


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Quality of work life (QWL) is a general concept thatrefers to several aspects of the job, including:

Management and supervisory style

Freedom and autonomy to make decisions on the job

Satisfactory physical surroundings

Job safety

Satisfactory working hours

Meaningful tasks

The job and work environment should be structured

to meet as many workers needs as possible


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Communicating HRM policies toall 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


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Maintaining ethical policies and socially responsiblebehavior:

HRM managers must show by example that HRM

activities are fair, truthful, and honorable

People must not be discriminated against

Their basic rights must be protected

These principles should apply to all activities in the

HRM area


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Who Performs HRM Activities

A large part of an operating managers day is spent:In scheduled and unscheduled meetings

In telephone conversations

Solving problems that have a direct impact on peopleIn smaller organizations, the operating manager has

such HRM responsibilities as:

Scheduling work

Recruitment and selection

Compensating people


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Who Performs HRM Activities

As the organization grows, the operating managers

HR work may be shifted to HRM specialists

HR specialists are found in organizations with

100 to 150 employees

A HR department is typically created when the

number of employees reaches 200 to 500


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Interaction of Operating & HR Managers

With both operating managers and HR specialistsmaking HRM decisions, there can be conflict

They have different orientations and objectives

Conflict is worse if joint decisions must be made on:Discipline

Physical working conditions

Termination

Transfer

Promotion

Employment planning


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Interaction of Operating & HR Managers

perating managers and HR specialists can alsodiffer on:

How much authority employees

have over job design

Labor relations

Organizational planning

Rewards, such as bonuses

and promotions


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Necessary HRM Competencies

Communication Technology

Problem solving Forecasting

LeadershipC

ompensation designRecruiting/staffing Benefit design

Employment law Accounting/finance

Training/development Record keeping


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HRMs Place in Management

The HR department must be a proactive, integralpart of management and strategic planning

Ascertain specific organizational needs for the

use of its competence

Evaluate the use and satisfaction among other

departments

Educate management and employees about the

availability and use of HRM services

HRM strategic plans must build on the firm's

strengths


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Clarifying Meaningful HRM Objectives

More specific

Strategy: The plan that

integrates major objectives

Objectives:Goals that arespecific and measurable

Policies: Guides to decision

making

Procedures/Rules:Specific

directions for decision making

More specific

More specific


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HRM Policy

Apolicy is a general guide that expresses limitswithin which action should occur

Policies arise from past or potential problems

They free managers from making certain decisions

They ensure some consistency in behavior

They allow managers to concentrate on decisions in

which they have the most experience and knowledge

For some organizations, the next step is to develop

procedures and rules


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HRM Procedures

Procedures (rules) are a specific direction to actionIn large organizations, procedures are collected and

put into manuals called standard operating

procedures (SOPs)

Organizations must ensure that consistent decision

making flows from a well-developed, but not

excessive, set of policies and procedures

Procedures should be developed for only the mostvital areas

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