1. Copyright © 2016 Pearson Education, Inc.

2. Managing Human Resources Today
Chapter 1
Managing Human Resources Today
In Chapter 1, we will cover….
The meaning of Human Resource Management
The trends shaping human resource management
Consequences for today’s human resource managers
The plan of this book
Copyright © 2016 Pearson Education, Inc.

3. Learning Objectives
Answer the questions, “What is human resource management?” and “Why is knowing HR management concepts and techniques important to any supervisor or manager?”
Describe with examples what trends are influencing human resource management.
At the conclusion of this chapter, you will be able to:
Understand the meaning of human resources management.
Understand why knowing HR management concepts and techniques are important to any supervisor or manager.
Describe with examples what trends are influencing human resources management.
Copyright © 2016 Pearson Education, Inc.

4. Learning Objectives (cont.)
Discuss at least five consequences today’s trends have for human resource management.
4. Outline the plan of this book.
Additionally, you should be able to…
Discuss at least five consequences today’s trends have for human resource management.
Understand the outline plan of this book.
Copyright © 2016 Pearson Education, Inc.

5. Managing: Five Basic Functions
Management Process
Planning
Organizing
Staffing
To understand human resources management, we should first review what managers do.
Managers: People who are responsible for accomplishing the organization’s goals through directing the efforts of people within an organization.
Organization: An entity that consists of people with formally assigned roles who work together to achieve organizational goals.
Managers help organizations achieve its goals through performing the five basic functions of management:
Planning: Establishing goals and standards; developing rules and procedures; developing plans and forecasts.
Organizing: Giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates.
Staffing: Determining what types of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees.
Leading: Getting others to get the job done; maintaining morale; motivating subordinates.
Controlling: Setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed.
Leading
Controlling
Copyright © 2016 Pearson Education, Inc.

6. What is Human Resource Management?
LO1: Answer this question, “What is human resources management?”
Human Resources Management: The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
Copyright © 2016 Pearson Education, Inc.

7. The Personnel Aspects of Management
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries
The topics we’ll discuss should provide you with the concepts and techniques you’ll need to perform the “people” or personnel aspects of management. These include…
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries
Copyright © 2016 Pearson Education, Inc.

8. The Personnel Aspects of Management (cont.)
Providing incentives and benefits
Appraising performance
Communicating
Training employees and developing managers
Building employee relations and engagement
Additional personnel aspects of management include…
Providing incentives and benefits
Appraising performance
Communicating
Training employees, and developing managers
Building employee relations and engagement
Copyright © 2016 Pearson Education, Inc.

9. Why is knowing HR management concepts and techniques important to supervisors/managers?
LO1 cont.: “Why is knowing HR concepts and techniques important to any supervisor or managers?” First, let’s take a look at “what not to do” (personnel mistakes) to understand what’s important.
Copyright © 2016 Pearson Education, Inc.

10. Personnel Mistakes To Avoid
Employees not doing their best
Hiring the wrong person for the job
High turnover
Legal ramifications from discriminatory actions
Unsafe company practices
Lack of training undermining performance
Unfair labor practices
An HR manager’s job is to ensure managers in the workplace avoid these costly mistakes:
To have your employees not doing their best
To hire the wrong person for the job
To experience high turnover
To have your company in court due to your discriminatory actions
To have your company cited for unsafe practices
To let a lack of training undermine your department’s effectiveness
To commit any unfair labor practices
So, together, both managers and HR managers can partner to ensure that the best organizational practices are achieved and thus, avoid the mistakes that all companies want to avoid.
Copyright © 2016 Pearson Education, Inc.

11. Why Study HRM? You May Become a HR Manager
One third of U.S. businesses surveyed appointed non-HR managers One half of people working in the U.S., work for small firms
About 1/3 of large U.S. businesses surveyed, appointed non-HR managers to be their top human resources executives.
Why? Some think these people may be better equipped to integrate the firm’s human resources activities with the company’s strategic needs.
With about one half of people working in the U.S. for small firms, it is likely most of those people will work in some human resource management capacity.
Copyright © 2016 Pearson Education, Inc.

12. Line and Staff Aspects of HRM
Recruiting
Interviewing
Selecting
Training
All managers are in a sense, human resources managers because they all get involved in activities such as:
Recruiting
Interviewing
Selecting
Training
How do duties of the HR manager and his/her staff relate to line managers’ human resources duties? Let’s answer this by starting with a short definition of line versus staff authority.
Copyright © 2016 Pearson Education, Inc.

13. Line vs. Staff Authority
Line authority: Gives managers the right to issue orders to other managers or employees.
Staff authority: Gives managers the right to advise other managers or employees.
Authority: The right to make decisions, to direct the work of others, and to give orders.
Line authority: Gives managers the right to issue orders to other managers or employees.
In practice, HR and line managers share responsibility for most human resource activities. For example, human resource and line managers in about two-thirds of the firms in one survey shared responsibility for skills training.
Staff authority: Gives managers the right to advise other managers or employees.
Copyright © 2016 Pearson Education, Inc.

14. Line Managers’ HRM Responsibilities:
Placing the right person in the right job
Employee orientation
Training employees for new jobs
The direct handling of people always has been an integral part of every line manager’s responsibility, from president down to the first-line supervisor.
Thus, a line supervisor’s responsibilities for effective human resource management includes:
Placing the right person in the right job
Employee orientation
Training employees for new jobs
Improving job performance for each employee
Gaining cooperation and developing smooth relationships
Improving job performance for each employee
Gaining cooperation & developing smooth relationships
Copyright © 2016 Pearson Education, Inc.

15. Line Managers’ HRM Responsibilities (cont.):
Interpreting the company’s policies & procedures
Controlling labor costs
Developing the abilities of each person
Additionally, these are more of a line managers’ HRM responsibilities:
Interpreting the company’s policies & procedures
Controlling labor costs
Developing the abilities of each person
Creating and maintaining departmental morale
Protecting employees’ health and physical conditions
In small organizations, line managers may carry out all of these personnel duties.
Creating and maintaining departmental morale
Protecting employees’ health and physical conditions
Copyright © 2016 Pearson Education, Inc.

16. The Human Resources Department
Job analysts
Compensation Managers
Recruiters
Training Specialists
The human resource department provides many specialized assistance to organizations. Typical positions include:
Job Analysts: Collect and examine detailed information about job duties to prepare job descriptions.
Recruiters: Maintain contacts within the community and perhaps travel extensively to search for qualified job applicants.
Equal Employment Opportunity (EEO) Representatives/Affirmative Action Coordinators: Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports.
Compensation Managers: Develop compensation plans and handle the employee benefits program.
Training Specialists: Plan, organize, and direct training activities.
Labor Relations Specialists: Advise management on all aspects of union-management relations.
EEO Representatives
Labor Relations Specialists
Copyright © 2016 Pearson Education, Inc.

17. HRM Organization Structures
Corporate HR teams
Embedded HR teams
Centers of expertise
One survey found that 44% of a large surveyed company’s planned to change their human resource management organization structures, and planned to use technology to institute more shared services.
These shared services in a centralized HR unit will offer their services through Intranets and centralized call centers, aiming to provide managers and employees with specialized support with the day-to-day HR activities.
Corporate HR teams: Assist top management in top-level issues such as developing the personnel aspects of the company’s long-term strategic plan.
Embedded HR teams: Have HR generalists assigned to functional departments like sales and production. They provide selection and other assistance the department needs.
Centers of expertise: Are basically specialized HR consulting firms within the company. For example, they may provide advice about organizational change.
Copyright © 2016 Pearson Education, Inc.

18. Trends Influencing HRM
LO2 Describe with examples what trends are influencing human resources management.
Changes are occurring in the environment of human resources management that are requiring it to play a more central role in organizations. These trends include:
Workforce diversity
Technological and Workforce Trends
Globalization and Competition
Economic Challenges
Economic and Workforce projections
All of these trends impact the role that HR managers play within organizations. For example, these changes within the environment and trends result in the following consequences for HRM:
HR and Performance
HR and Performance and Sustainability
HR and Employee Engagement
HR and the Manager’s HR Philosophy
HR and Human Resource Competencies
HR and the Manager’s skills
The HR Manager’s Competencies
HR and Ethics
HRCI Certification
Copyright © 2016 Pearson Education, Inc.

19. Workforce Diversity Trends
The composition of the workforce will continue to change over the next few years; specifically, it will continue to become more diverse with more women, minority group members, and older workers in the workforce.
The projections from 1990 to 2020 are displayed above.
Demographic trends are also making finding and hiring of employees more challenging. In the U.S., labor force growth is not expected to keep pace with job growth, with an estimated shortfall of about 14 million college-educated workers by Talent management will be a challenge. Thus, the hiring of foreign workers for U.S. jobs will continue.
Copyright © 2016 Pearson Education, Inc.

20. Technology & Workforce Trends
Service Jobs
Human Capital
Technology change will continue to shift employment growth from some occupations to others, while continuing to contribute to a rise in productivity.
Service Jobs: Today, two-thirds of the U.S. workforce is employed in producing and delivering services, not products. By 2020, service-providing industries are expected to account for 131 million of our 150 million (87%) wage and salary jobs overall.
Human Capital: Because of the demographic and technological trends facing companies, “human capital” (workers’ knowledge, education, training, skills, and expertise) is growing in emphasis. Tomorrow’s employees will additionally need to have innovative characteristics for jobs, such as those found at Google.
Copyright © 2016 Pearson Education, Inc.

21. Globalization & Competition Trade
Today
$4.7 Trillion
1980
$562 Billion
Globalization: Refers to the tendency of organizations to extend their sales, ownership, and manufacturing to new markets abroad. Globalization of the world economy and other trends have triggered changes in how companies organize, manage, and utilize their HR units.
Globalization has boomed for the past 50 years. For example, the total sum of U.S. imports and exports rose from $47 billion in 1960 to $562 billion in 1980, to about $4.7 trillion today.
Managing the “people” aspects of globalization is a big task for any company that expands abroad and for its HR managers.
1960
$47 Billion
Copyright © 2016 Pearson Education, Inc.

22. Economic Challenges
Although globalization and technology supported a growing global economy, the past few years were difficult economically. As you can see, Gross National Product (GNP)—a measure of the U.S.’s total output—boomed between 2001 and 2007.
However, around 2007, the years of accumulating debt of banks continued until the 2008 economic recession. Banks and other financial institutions owned trillions of dollars of worthless loans. The government stepped in to prevent their collapse, but lending to businesses halted. Moreover, businesses and consumers stopped buying and the economy plummeted.
From a human resources perspective, companies were not hiring and were laying off employees out of necessity. Thus, major economic shifts will impact employees, organizations, and the communities in which they are supported.
Copyright © 2016 Pearson Education, Inc.

23. Economic Challenges (cont.)
Additionally, during the time of economic expansion of GNP from 2001 to 2007, home prices grew as much as 20% per year. Unemployment at the time remained docile at about 4.7%, until the 2008 economic collapse in the banking sector.
Copyright © 2016 Pearson Education, Inc.

24. Economic & Workforce Projections
Unemployment rate
Slow-growing labor force
Aging population
Unbalanced labor force
Today, economic trends are pointing upward.
Unemployment Rate: For example, the unemployment rate had fallen from a high of more than 10% a few years ago to around 6% in 2014, and economic activity was also picking up.
Still, after the 2008 economic recession, companies were hesitant to spend money and expand factories and equipment.
Labor Force: Complicating all of this is the fact that the labor force in America is growing more slowly than expected, which means employers cannot get enough workers to expand.
The Bureau of Labor Statistics projects the labor force to grow at .5% per year through 2012 to 2022, compared with an annual growth rate of .7% during the decade.
Aging population: The slower labor force growth is mainly because the baby boomer generation is aging and the population that wants to work, is declining.
Unbalanced labor force: Fewer people are looking for jobs. Demand for workers is unbalanced. Almost half of employed U.S. college graduates are in jobs that generally require less than a four-year college education.
Many jobs that are increasing over the next 10 years do not require postsecondary education for entry.
Copyright © 2016 Pearson Education, Inc.

25. Consequences for Today’s HRM
HR & Performance
Sustainability & Strategic HRM
HR & Employee Engagement
HR & HR Competencies
HR & Performance Sustainability
HR & Manager’s Skills
HR & Strategy
The HRM Competencies
LO 3 Discuss at least five consequences today’s trends have for human resources management.
For much of the 20th century, “personnel” managers focused mostly on day-to-day activities of payroll, benefits, hiring, and firing.
Today’s employers, however, face new challenges. With the environmental shifts and trends, employers expect HR managers to be experts in various areas and to deal with the challenges and trends.
Human Resource Managers are responding:
HR & Performance: HR is involved with staffing, cost-effective employment, and strategic initiatives.
HR & Employee Engagement: Current research links engaged employees to performance.
HR & Performance Sustainability: The environment and social performance are also important.
HR & Strategy: HR is more involved today with an organization’s strategic initiatives.
HR & Manager’s HR Philosophy: A company’s philosophy permeates at every level of the organization.
Sustainability & Strategic HRM: HR policies should support an organization’s sustainable initiatives.
HR & HR Competencies: HR manager today must possess a multitude of competencies.
HR & Manager’s Skills: Skills such as recruiting, selecting, training, appraising, providing safe environments, and incentivizing employees are just some of the skills needed.
The HRM Competencies: We’ll discuss the HRM Competencies in the next slide.
HR & Ethics: Ethical standards come from the top down, and HR managers help ensure ethical behavior is within the organization’s culture.
HRCI Certification: This text will cover many areas in preparation of the HRCI certification.
HR & Manager’s HR Philosophy
HR & Ethics
HRCI Certification
Copyright © 2016 Pearson Education, Inc.

26. HRM Competencies
The competencies that an HR manager must have include:
Strategic positioner: Have the breadth of business knowledge necessary to be able to help top management develop its strategic plan.
Credible activists: Need the knowledge, expertise, and leadership abilities that make them credible (respected) and active (takes a position).
Capability builders: Able to create a fulfilling work environment for employees and align the employees’ efforts with the company’s goals.
Change champions: Able to initiate a broad company-wide change, and then put in place, the HR policies necessary to sustain that change.
HR Innovators and Integrators: Able to identify new people-related solutions for improving the company and to optimize human capital through workforce planning and analytics.
Technology proponents: Able to put in place new technology that helps the company recruit applicants via social media.
Copyright © 2016 Pearson Education, Inc.

27. Plan of this Book Introduction
Staffing: Workforce Planning & Employment
Training & HR Development
Compensation & Total Rewards
Employee & Labor Relations
Special Issues in HRM
This book has two main aims: 1) to provide all future managers, not just HR managers, with practical human resource skills needed to produce an engaged and high-performing workforce; and 2) to cover the HRCI’s “A Body of Knowledge” in a relatively compact and economical 14-chapter soft cover format.
The parts of the book include:
Introduction
1.Managing Human Resources Today
2.Managing Equal Opportunity and Diversity
3.Human Resource Strategy and Analysis
Staffing: Workforce Planning & Employment
4. Job Analysis and Talent Management
5. Personnel Planning and Recruiting
6. Selecting Employees
Training & HR Development
7. Training and Developing Employees
8. Performance Management and Appraisal
9. Managing Careers
Compensation & Total Rewards
10. Developing Compensation Plans
11. Pay for Performance and Employee Benefits
V Employee & Labor Relations
12. Maintaining Positive Employee Relations
13. Labor Relations and Collective Bargaining
14. Improving Occupational Safety, Health, and Risk Management
Special Issues in HRM
Module A: Managing HR Globally
Module B: Managing Human Resources in Small and Entrepreneurial
Firms
Copyright © 2016 Pearson Education, Inc.

28. Copyright © 2016 Pearson Education, Inc.