Introduction to H.R.M - Chapter#01 - Presentation

GARY DESSLER

HUMAN RESOURCE MANAGEMENT Global Edition 12e

Chapter 1

Introduction to Human Resource Management

PowerPoint Presentation by Ms. Anum

Govt. Emerson College, Bosan Road, MultanCopyright © 2011 Pearson Education

Part 1 Introduction

Copyright © 2011 Pearson Education 1–2

Human Resource Management at WorkHuman Resource Management at Work• What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?

The process of acquiring, training, appraising, and The process of acquiring, training, appraising, and compensating employees, and of attending to their labor compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.relations, health and safety, and fairness concerns.

• OrganizationOrganization People with formally assigned roles who work together to People with formally assigned roles who work together to

achieve the organization’s goals.achieve the organization’s goals.

• ManagerManager The person responsible for accomplishing the organization’s The person responsible for accomplishing the organization’s

goals, and who does so by managing the efforts of the goals, and who does so by managing the efforts of the organization’s people.organization’s people.

Performance appraisalPerformance appraisalA performance appraisal is a systematic and periodic process that A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity.assesses an individual employee’s job performance and productivity.

CompensationCompensationCompensation is the total amount of the monetary and non-monetary Compensation is the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work pay provided to an employee by an employer in return for work performed as required.performed as required.


Management processManagement process1)Planning1)Planning

Establishing goals and standards.Establishing goals and standards.

2)Organizing2)Organizing

Assigning subordinates(juniors) their duties and Assigning subordinates(juniors) their duties and tasks.tasks.

3)Staffing3)Staffing

Determining what type of people you should be Determining what type of people you should be hired, recruiting, selecting employees; training and hired, recruiting, selecting employees; training and compensating them etc.compensating them etc.

4)Leading4)Leading

Getting others to get the job done and motivating Getting others to get the job done and motivating subordinates.subordinates.

5)Controlling5)Controlling

Setting standards and checking the performance by Setting standards and checking the performance by comparing with standard.comparing with standard.



Human Resource Management ProcessesHuman Resource Management Processes

Acquisition

Training

Appraisal

CompensationLabor Relations

Health and Safety

Fairness

Human Resource

Management (HRM)


Personnel Aspects of a Manager’s JobPersonnel Aspects of a Manager’s Job• Conducting job analyses Conducting job analyses

• Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates

• Selecting job candidatesSelecting job candidates

• Orienting and training new employeesOrienting and training new employees

• Managing wages and salariesManaging wages and salaries

• Providing incentives and benefitsProviding incentives and benefits

• Appraising performanceAppraising performance

• Communicating Communicating

• Training and developing managersTraining and developing managers

• Building employee commitmentBuilding employee commitment


Personnel MistakesPersonnel Mistakes• Hire the wrong person for the jobHire the wrong person for the job

• Experience high turnoverExperience high turnover

• Have your people not doing their bestHave your people not doing their best

• Waste time with useless interviewsWaste time with useless interviews

• Have your firm in court because of discriminatory actionsHave your firm in court because of discriminatory actions

• Have your firm cited by OSHA for unsafe practicesHave your firm cited by OSHA for unsafe practices

• Have some employees think their salaries are unfair and Have some employees think their salaries are unfair and inequitable relative to others in the organizationinequitable relative to others in the organization

• Allow a lack of training to undermine your department’s Allow a lack of training to undermine your department’s effectivenesseffectiveness

• Commit any unfair labor practicesCommit any unfair labor practices


Basic HR ConceptsBasic HR Concepts• The bottom line of managing:The bottom line of managing:

Getting resultsGetting results

• HR creates value by engaging in activities HR creates value by engaging in activities that produce the employee behaviors that that produce the employee behaviors that the organization needs to achieve its the organization needs to achieve its strategic goals.strategic goals.

• Looking ahead: Using evidence-based Looking ahead: Using evidence-based HRM to measure the value of HR activities HRM to measure the value of HR activities in achieving those goals.in achieving those goals.


Line and Staff Aspects of HRMLine and Staff Aspects of HRM• Line ManagerLine Manager

Is authorized (has line authority) to direct the work of Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the subordinates and is responsible for accomplishing the organization’s tasks.organization’s tasks.

• Staff ManagerStaff Manager Assists and advises line managers.Assists and advises line managers. Has functional authority to coordinate personnel activities Has functional authority to coordinate personnel activities

and enforce organization policies.and enforce organization policies.


Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities1.1. Placing the right person on the right jobPlacing the right person on the right job

2.2. Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)

3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them

4.4. Improving the job performance of each personImproving the job performance of each person

5.5. Gaining creative cooperation and developing smooth Gaining creative cooperation and developing smooth working relationshipsworking relationships

6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures

7.7. Controlling labor costsControlling labor costs

8.8. Developing the abilities of each personDeveloping the abilities of each person

9.9. Creating and maintaining department moraleCreating and maintaining department morale

10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition


Human Resource Managers’ DutiesHuman Resource Managers’ Duties

Line FunctionLine Authority

Implied Authority

Staff FunctionsStaff Authority

Innovator/Advocacy

Functions ofHR Managers

Coordinative Function

Functional Authority


Human Resource SpecialtiesHuman Resource Specialties

Recruiter

EEO coordinatorLabor relations

specialist

Training specialist Job analyst

Compensation manager

Human Resource

Specialties


New Approaches to Organizing HRNew Approaches to Organizing HR

Transactional HR group

Corporate HR group

EmbeddedHR unit

New HR Services Groups

Centers of Expertise


Trends Shaping Human Resource Trends Shaping Human Resource ManagementManagement

Globalization and Competition

Trends

Technological Trends

Indebtedness (“Leverage”) and

Deregulation

Trends in the Nature of Work

Workforce and Demographic

Trends

Economic Challenges and

Trends

Trends in HR Management


FIGURE 1–4 Trends Shaping Human Resource Management


Trends Shaping Human Resource ManagementGlobalization

The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad is globalization.Companies expand abroad for several reasons.Some companies wants to increase their sales and some wants to cut labor costs.because of globalization companies are facing more competetion.So to compete successfully,companies and employees need to work harder.


Indebtedness ( Leverage ) and Deregulation

As economies boomed, more businesses and consumers went deeply into debt(loan).Homebuyers bought homes, often with little money with the help of debt. Deregulation plays important role in economical progress. the rules that prevented commercial banks from expanding were relaxed.because of relaxation of rules economy make progress.


Trends in the Nature of WorkTrends in the Nature of Work

High-Tech Jobs

Service Jobs

Changes in How We Work

Knowledge Work and Human Capital


TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016


Workforce and Demographic TrendsWorkforce and Demographic Trends

Demographic Trends

Generation “Y”

Retirees

Nontraditional Workers

Trends Affecting Human Resources

Workforce and demographic trendsWorkforce and demographic trendsdemographics trends are those which are related to demographics trends are those which are related to age, gender and population of workforce. the U.S. age, gender and population of workforce. the U.S. workforce is becoming older and more workforce is becoming older and more multiethnic.34 Table 1-1 provides a bird s-eye view. multiethnic.34 Table 1-1 provides a bird s-eye view. For example, between 1998 and 2018, the percent of For example, between 1998 and 2018, the percent of the workforce that it classifies as white, non-the workforce that it classifies as white, non-Hispanic will drop from 83.8% to 79.4%. At the Hispanic will drop from 83.8% to 79.4%. At the same time, the percent of the workforce that is black same time, the percent of the workforce that is black will rise from 11.6% to 12.1%,those classified Asian will rise from 11.6% to 12.1%,those classified Asian will rise from 4.6% to 5.6%, an The percentages of will rise from 4.6% to 5.6%, an The percentages of younger workers will fall. At the same time, younger workers will fall. At the same time, demographic trends are making finding and hiring demographic trends are making finding and hiring employees more challenging. employees more challenging. Copyright © 2011 Pearson Education 1–21

Generation y(1977-2000)Generation y(1977-2000) Gen Y employees are different. According to one expert, Gen Y employees are different. According to one expert, they are show high-performance and they high-they are show high-performance and they high-maintenance workforce.they are more creative and maintenance workforce.they are more creative and challenging workforce.so employers should be challenging workforce.so employers should be competentent to deal with them.competentent to deal with them.

RetireesRetireesMany human resource professionals call the aging Many human resource professionals call the aging workforce the biggest demographic trend affecting workforce the biggest demographic trend affecting employers.The basic problem is that there are not enough employers.The basic problem is that there are not enough younger workers to replace the older-worker retirees younger workers to replace the older-worker retirees Employers are dealing with this challenge in various ways. Employers are dealing with this challenge in various ways. some are offering employment options designed to attract some are offering employment options designed to attract and retain semiretired workers.and retain semiretired workers.


Non traditional workersNon traditional workersPart time workersPart time workerstwo individuals sharing one jobtwo individuals sharing one job



FIGURE 1–6 Gross National Product (GNP)

Economic challenges and trendsEconomic challenges and trendsAs shown in Figure 1-5, gross national product (GNP) a As shown in Figure 1-5, gross national product (GNP) a measure of U.S. total output boomed between 2001 and 2008. measure of U.S. total output boomed between 2001 and 2008. During this period, home prices leaped as much as 20% per During this period, home prices leaped as much as 20% per year. (See Figure 1-6.) Unemployment remained at about year. (See Figure 1-6.) Unemployment remained at about 4.7%.45 Then, around 2007 2008, all these measures 4.7%.45 Then, around 2007 2008, all these measures seemingly fell down. GNP fell. Home prices dropped by 20% seemingly fell down. GNP fell. Home prices dropped by 20% or more (depending on city). Unemployment nationwide rose or more (depending on city). Unemployment nationwide rose to more than 9.1%. Why did all this happen? That is a to more than 9.1%. Why did all this happen? That is a complicated question, but for one thing, all this is because of complicated question, but for one thing, all this is because of

excessive debt(loan)excessive debt(loan).so because of these challenges, .so because of these challenges, employers will have to be more active and creative in employers will have to be more active and creative in managing their human resources than perhaps they managing their human resources than perhaps they have been in the past.have been in the past.



Important Trends in HRMImportant Trends in HRM

The New HR Managers

High-Performance Work Systems

Strategic HRM

Evidence-Based HRM

Managing Ethics

HR Certification

Human Resource

Management Trends


Meeting Today’s HRM ChallengesMeeting Today’s HRM Challenges

Focus more on “big picture”

(strategic) issues

Find new ways to provide

transactional services

The New Human Resource Managers

Acquire broader business

knowledge and new HRM

proficiencies


TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers (ASPs) and technology outsourcing

ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively

Internet- and network-monitoring software

Used to track employees’ Internet and e-mail activities or to monitor their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping

Electronic bill presentment and payment

Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers

Data warehouses and computerized analytical programs

Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees’ skills with the firm’s projected strategic needs


FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes


High-Performance Work SystemsHigh-Performance Work Systems

• Increase productivity and performance by:Increase productivity and performance by: Recruiting, screening and hiring more effectivelyRecruiting, screening and hiring more effectively Providing more and better trainingProviding more and better training Paying higher wagesPaying higher wages Providing a safer work environmentProviding a safer work environment Linking pay to performanceLinking pay to performance

Evidence based HRMEvidence based HRM

this is the use of data, facts, analytics, s critical this is the use of data, facts, analytics, s critical evaluation, and critically evaluated research/case evaluation, and critically evaluated research/case studies to support human resource management studies to support human resource management proposals, decisions, practices, and conclusions. proposals, decisions, practices, and conclusions. Measuring the performance of hrm activities for Measuring the performance of hrm activities for example to measure whether the new testing program example to measure whether the new testing program reduce employee turnover.whether training increases reduce employee turnover.whether training increases productivity or not.(measuring performance in terms of productivity or not.(measuring performance in terms of numbers(figures) and facts)numbers(figures) and facts)



Managing EthicsManaging Ethics• EthicsEthics

Standards that someone uses to decide Standards that someone uses to decide what his or her conduct should bewhat his or her conduct should be

• HRM-related Ethical IssuesHRM-related Ethical Issues Workplace safetyWorkplace safety Security of employee recordsSecurity of employee records Employee theftEmployee theft Affirmative actionAffirmative action Comparable workComparable work Employee privacy rightsEmployee privacy rights


HR CertificationHR Certification• HR is becoming more professionalized.HR is becoming more professionalized.

• SHRM is an professional (SHRM) Institute offers SHRM is an professional (SHRM) Institute offers exams.in which it tests the professional knowledge of exams.in which it tests the professional knowledge of all aspects of human resource management, including all aspects of human resource management, including ethics, management practices, staffing, development, ethics, management practices, staffing, development, compensation, labor relations, and health and safety. compensation, labor relations, and health and safety. Those who successfully complete all requirements Those who successfully complete all requirements earn the SPHR (Senior Professional in HR), GPHR earn the SPHR (Senior Professional in HR), GPHR (Global Professional in HR), or PHR (Professional in (Global Professional in HR), or PHR (Professional in HR) certificate.HR) certificate.

Leadership & Management

Introduction to H.R.M - Chapter#01 - Presentation