11

HUMAN RESOURCE

MANAGEMENT:

AN OVERVIEW

22

Chapter Objectives

Explain human capital management. Define human resource management. Identify the human resource management

functions. Identify the external environmental factors

that affect human resource management. Explain who performs the human resource

management tasks.

33

Chapter Objectives (Continued)

Explain the need for human resources to be a strategic partner.

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

Describe the changes that occur in the Describe the changes that occur in the human resource function as a firm grows human resource function as a firm grows larger and more complex and the evolving larger and more complex and the evolving HR organization. HR organization.

44

Human Resource Management

Utilization of individuals to achieve organizational objectives

All managers at every level must concern themselves with human resource management.

Five functions

55

1

Human Resource

Management

Human Resource

Development

Co

mp

ensa

tio

n

and

Ben

efit

s

Staffing

Em

plo

yee and

Lab

or R

elation

s

Safety and Health

The Human Resource Management Functions

66

Staffing

Job Analysis Human Resource Planning

(HRP)

Recruitment

Selection

77

Staffing (Continued)

Staffing - Process through which an organization ensures that it always has proper number of employees with appropriate skills in right jobs at right time to achieve organization’s objectives

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

88

Staffing (Continued)

Human resource planning - Process of systematically reviewing human resource requirements to ensure that required numbers of employees, with required skills, are available when needed.

Recruitment - Process of attracting qualified individuals and encouraging them to apply for work with organization

99

Staffing (Continued)

Selection - Process through which organization chooses, from a group of applicants, those individuals best suited both for open positions and for the company

1010

Human Resource Development

Training Development

Career Planning Career Development

Organizational Development

1111

Human Resource Development (Continued)

TrainingTraining - Designed to provide - Designed to provide learners with the knowledge and learners with the knowledge and skills needed for their present jobs.skills needed for their present jobs.

DevelopmentDevelopment - Involves learning - Involves learning that goes beyond today's job; it has that goes beyond today's job; it has a more long-term focusa more long-term focus

1212

Human Resource Development (Continued)

Career planningCareer planning - An ongoing process - An ongoing process whereby individual sets career goals and whereby individual sets career goals and identifies means to achieve themidentifies means to achieve them

Career developmentCareer development - Formal approach - Formal approach used by organization to ensure that people used by organization to ensure that people with proper qualifications and experiences with proper qualifications and experiences are available when neededare available when needed

1313

Human Resource Development (Continued)

Organization developmentOrganization development – Organization – Organization wide application of behavioral science to wide application of behavioral science to planned development and support of planned development and support of strategies, structures and processes for strategies, structures and processes for improving firm’s effectivenessimproving firm’s effectiveness

1414

Compensation and Benefits

CompensationCompensation - - All rewards that All rewards that individuals receive individuals receive as a result of their as a result of their employmentemployment

1515

Compensation & Benefits

Pay - Money that a person receives for performing a job

Benefits - Additional financial rewards, other than base pay such as sick leave, vacations, holidays and medical insurance

Nonfinancial Rewards The Job Pleasant working environment

1616

Safety and Health

Employees who Employees who work in a safe work in a safe environment and environment and enjoy good health enjoy good health are more likely to are more likely to be productive and be productive and yield long-term yield long-term benefits to the benefits to the organization.organization.

1717

Safety and Health

Safety - Involves protecting employees from injuries caused by work-related accidents

Health - Refers to the employees' freedom from illness and their general physical and mental well being

1818

Employee and Labor Relations

Business required by Business required by law to recognize law to recognize union and bargain union and bargain with it in good faith if with it in good faith if firm’s employees firm’s employees want union want union representation.representation.

1919

Human Resource Research

Human resource research is not a separate function.

It pervades all HR functional areas.

2020

Interrelationships of HRM Functions

All HRM functions are interrelated.

Each function affects other areas.

2121

The Dynamic Human Resource

Management Environment

2222

Environment of Human Resource ManagementEXTERNAL ENVIRONMENTEXTERNAL ENVIRONMENTINTERNAL ENVIRONMENTINTERNAL ENVIRONMENT

1

Human Resource

Management

Other Functiona

l Areas

OperationsMarketing

Finance

Leg

al C

on

sid

erat

ion

sT

he

Eco

no

my

Tech

no

log

y

Society

Sh

areho

lders

Unions

Customers Competition Labor Force

Human Resource

Development

Co

mp

ensa

tio

n

and

Ben

efit

s

Staffing

Em

plo

yee and

Lab

or R

elation

s

Safety and Health

2323

Labor Force

Pool of individuals Pool of individuals external to firm external to firm from which from which organization organization obtains its workersobtains its workers

2424

Legal Considerations

Federal, state Federal, state and local and local legislationlegislation

Court decisionsCourt decisions Presidential Presidential

executive ordersexecutive orders

2525

Society

Social responsibilitySocial responsibility – Implied, enforced – Implied, enforced or felt obligation of managers to serve or or felt obligation of managers to serve or protect interests of groups other than protect interests of groups other than themselvesthemselves

EthicsEthics – – Discipline dealing with what is Discipline dealing with what is good and bad, or right and wrong, or with good and bad, or right and wrong, or with moral duty and obligationmoral duty and obligation

2626

Ethics and HR Management

Discipline dealingDiscipline dealing

with what is:with what is:

good & bad right & wronggood & bad right & wrong

moral duty & obligationmoral duty & obligation

2727

Unions

Group of employees Group of employees who have joined who have joined together for purpose together for purpose of dealing of dealing collectively with their collectively with their employer employer

2828

Shareholders

Owners of a corporationOwners of a corporation Because they have Because they have

invested money in a firm, invested money in a firm, they may at times they may at times challenge programs challenge programs considered by considered by management to be management to be beneficial to the beneficial to the organizationorganization

2929

Customers

Because sales critical Because sales critical to firm’s survival, to firm’s survival, management must management must ensure employment ensure employment practices do not practices do not antagonize the antagonize the customers they servecustomers they serve

3030

Competition

In order to In order to succeed, grow and succeed, grow and prosper, a firm prosper, a firm must be able to must be able to maintain a supply maintain a supply of competent of competent employees.employees.

3131

Technology

As technology changes:As technology changes: Certain skills no longer requiredCertain skills no longer required New skills neededNew skills needed

Necessitates some retraining of current Necessitates some retraining of current workforceworkforce

3232

The Economy

In general, when In general, when economy is booming, economy is booming, it is often more difficult it is often more difficult to recruit qualified to recruit qualified workers.workers.

3333

HR’s Changing Role:Who Performs Human

Resource Management Tasks?

Human Resource Managers Shared Service Centers

Outsourcing Firms Line Managers

3434

Human Resource Manager

Acts in advisory or staff capacity

Works with other managers to help them deal with human

resource matters

3535

Shared Service Centers (SSCS)

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

3636

Shared Service Centers (SSCS) Performing HR Tasks

Fewer HR Personnel Needed

HR Managers Assume a More Strategic Role

Improves Quality

3737

Outsourcing Firms

Transfers responsibility to an external provider

3838

Outsourcing

Reduces: • Cost• Transaction Time

Improves Quality

3939

Line Managers Performing HR Tasks

Involved with human Involved with human resources by nature of their resources by nature of their jobsjobs

4040

HR as a Strategic Partner

HR executives must HR executives must understand complex understand complex organizational design.organizational design.

Must be able to Must be able to determine capabilities determine capabilities of company's of company's workforce, today and workforce, today and in the futurein the future

4141

Human Resource Designations

4242

Human Resource Executives, Generalists, and Specialists

Vice President, Human

Resources

Vice President, Industrial Relations

Manager, Compensation and Benefits

Manager, Staffing

Manager, Training and Development

Benefits Analyst

Executive: Generalist: Specialist:

4343

Characteristics of an HR Executive

Performs one or more HR functions

A top-level manager

Reports directly to the corporation's CEO or

head of major division

4444

Characteristics of an HR Generalist

Often an executive

Performs tasks in various HR related areas

Involved in several, or all, of the five HRM functions

4545

Characteristics of an HR Specialist

May be an HR executive, manager, or

non-manager

Typically concerned with only one of the

five functional areas

4646

The Human Resource Function In

Organizations Of Various Sizes

4747

HR in Small Businesses

Seldom have a formal HR unit

Focuses on hiring & retaining capable employees

Some aspects of HR function may be more significant in smaller firms than in

larger ones.

4848

The Human Resource Function in a Small Business

Manager/Owner

Sales Operations Finance

4949

HR in a Medium-sized Firm

Little specialization

HR manager is essentially the entire department.

5050

The Human Resource Function in a Medium-Sized Business

Sales Manager

President

Operations Manager

Finance Manager

Human Resource Manager

5151

Traditional Human Resource Functions in a Large Firm

Separate sections are often created Placed under an HR Manager

Each HR function may have a supervisor & staff

HR Manager works closely with top management in formulating policy

5252

The Human Resource Function in a Large Firm

President and CEO

Vice President, Marketing

Vice President, Operations

Vice President, Finance

Vice President, Human

Resources

Manager, Training and Development

Manager, Compensation and Benefits

Manager, Staffing

Manager, Safety and

Health

Manager, Labor

Relations

5353

A New and Evolving HR Organization for Large-Sized Firms

OutsourceOutsource Shared Service Shared Service

Centers Centers Evolve to make Evolve to make

HR more HR more strategicstrategic

5454

An Evolving Human Resource Organization Example

President and CEO

Vice President, Operations

Vice President, Human

Resources

Vice President, Other Major Functions

Director of Safety and

Health

Executive Development

Manager, Training

Manager, Other HRM Functions

Employee Benefits

Shared Service Center

Outsourced

5555