CHAPTER 1THE STRATEGIC ROLE OF HUMAN RESOURCE MANAGEMENT (HRM)

OBJECTIVES: To Develop an Understanding of . The Historical Development of HRMThe Difference between Personnel and HRMThe Role of HRMThe Functions (Areas) of HRMThe Future Challenges of HRMEnvironmental Organizational FrameworkMacro-Environmental Analysis (MEA)MEA and the Strategic Linkage to HRMBusiness and HR Strategies

Evolution of (Strategic) HRMAdministrative Era (Prior to 1935)Labor Relations Era (1935 1963)Federal Involvement (Social Legislation) ERA (1964 mid 1980s)Resource Scarcity Era (mid 1980s Present)Global Dimension Assuming Greater Recognition in the 1990s

Primary Role of HRMHelp the organization manage its human resources efficiently and effectively. Planning, developing and implementing human resource objectives, policies, and procedures that enhance employee contributions to the organization through increases in productivity, quality of work life and legal compliance

Primary Role of HRMSatisfactorily meet societal and employee needs, demands and expectationsReconcile conflict between organizational objectives and employee objectives

Primary Goals of HRMHRM programs and policies are implemented to: attract select retain develop motivate employees to achieve organizational goals.

HR FunctionsEmployment LawJob Design and Job AnalysisRecruitmentSelectionTraining & DevelopmentPerformance AppraisalCompensation - Salary and Benefits

HR FunctionsSafety & HealthEmployee Rights Discipline/TerminationLabor Relations

Key HR Challenges for Todays ManagersEnvironmentRapid ChangeWorkforce DiversityGlobalizationLegislationEvolving Work and Family RolesSkill Shortages and the Riseof the Service SectorOrganizationCompetitive Position: Cost,Quality, Distinctive CapabilitiesDecentralizationDownsizingOrganizational RestructuringSelf-Managed Work TeamsSmall BusinessesOrganizational CultureTechnologyOutsourcingIndividualMatching People and OrganizationEthical Dilemmas and Social ResponsibilityProductivityEmpowermentBrain DrainJob InsecurityFig. 1-1 1998 by Prentice Hall

WHO is Responsible for the Management of Human Resources?All managers/supervisorsThe HRM department

Impact of the following on HRM PracticesAging of the labor forceShift from a manufacturing to a service economyIncreasing number of dual-career familiesIncreasing number of women and minority workers in the labor forceIncreasing number of college graduates and HS dropout entering labor forceOrganizational re-engineering and restructuring

Where the Jobs Are: The Rise of the Service Sector(projected)Non-farm Employment, 1975-2005Fig. 1-2a 1998 by Prentice Hall