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Introduction to Human Resource Management 1-1Copyright © 2013 Pearson Education 1.

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1 Introduction to Human Resource Management 1-1Copyright © 2013 Pearson Education 1

2 The purpose of this chapter is to explain what human resource management is, and why it’s important to all managers. We’ll see that human resource management activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. And we’ll see that human resource management is also a separate function, usually with its own human resource or “HR” manager. The main topics we’ll cover include the meaning of human resource management; why human resource management is important to all managers, global and competitive trends, human resource management trends, and the plan of this book. The frame work above (which introduces each chapter) makes this point: That to formulate and apply HR practices like testing and training you should understand the strategic and legal context in which you’re managing.

3 Learning Objectives 1.Explain what human resource management is and how it relates to the management process. 2.Show with examples why human resource management is important to all managers. 3.Illustrate the human resources responsibilities of line and staff (HR) managers. Copyright © 2013 Pearson Education 1-3

4 Learning Objectives After studying this chapter, you will be able to: Explain what human resource management is and how it relates to the management process. Show with examples why human resource management is important to all managers. Illustrate the human resources responsibilities of line and staff managers.

5 Learning Objectives 4.Briefly discuss and illustrate each of the important trends influencing human resource management. 5.List and briefly describe important traits of today’s human resource managers. 6.Define and give an example of evidence-based human resource management. 7.Outline the plan of this book. Copyright © 2013 Pearson Education 1-5

6 After studying this chapter, you will be able to: Briefly discuss and illustrate each of the important trends influencing human resource management. List and briefly describe important traits of today’s human resource managers. Define and give an example of evidence-based human resource management. Outline the plan of this book.

7 Explaining what human resource (HR) management is and how it relates to the management process. Copyright © 2013 Pearson Education 1-7

8 Working for any organization means that you and those around you share common goals among which include an interest in the growth and continuing development of the organization. Some of those common goals include how work is accomplished within the organization. We now begin our study of the elements of the management process and how they relate to human resource management.

9 What is human resource (HR) management and why is it important? Copyright © 2013 Pearson Education 1-9

10 Organizations have been described in various ways. We will focus our early efforts on understanding an organization as groups of individuals with formally assigned roles. Note that such individuals generally work together to achieve the common goals of an organization.

11 11 The Management Process Planning Organizing Leading Staffing Controlling

12 The Management Process No matter what your job, planning involves establishing goals, rules and procedures and attempting to forecast the future. Planning will enhance your ability to manage people and functions. For our purposes, we will focus our efforts on basic staffing functions. These include: Acquiring talented employees Training new hires and existing managers and employees Creating and administering effective performance appraisals Properly compensating employees, and, Attending to concerns about labor relations, health, safety, and fairness Copyright © 2013 Pearson Education 1-12

13 13 Human Resource Management at Work What is Human Resource Management (HRM)? The policies and practices involved in carrying out the ‘people’ or human resource aspects of a management position, including: Recruiting, managing, screening, developing, orienting, training, rewarding, and appraising employees at work.

14 14 Human Resource Management at Work Acquisition Training Appraisal CompensatingLabor Relations Health and Safety Fairness Human Resource Management (HRM)

15 Why Is HR Management Important to All Managers ? Managers don’t want to make personnel mistakes, such as hiring the wrong person, having their company taken to court because of discriminatory actions, or committing unfair labor practices. HRM can improve profits and performance by hiring the right people and motivating them appropriately. It is also possible you may spend some time as an HR Manager, so being familiar with this material is important.

16 Human Resource (HR) Responsibilities of Line and Staff Managers Copyright © 2013 Pearson Education 1-16

17 Line and staff managers focus their energies in different yet related and complementary ways. Let’s talk about the two types of managers and what each does for the firm.

18 Line and Staff Managers Line authority gives you the right to issue orders Staff authority gives you the right to advise others in the organization Copyright © 2013 Pearson Education 1-18

19 If you are a line manager, you will hold responsibilities to issue orders, provide directions and establish rules and procedures. For example, as a sales manager, you will be responsible for requiring adherence to your rules relative to sales quotas and goals. On the other hand, an HR manager is a staff manager and, like all staff managers, is responsible for influencing and advising others. Within the HR department you may be responsible for establishing goals and giving orders to those in your department thus serving as a line manager within HR. Your principal duty to the organization as a whole, however, is that of a staff function, much the same as a purchasing department. Staff departments may include finance, accounting, and logistics. Sales, production, and operations departments generally are considered line functions.

20 20 Line and Staff Aspects of HRM Line manager – A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks Staff manager – A manager who assists and advises line managers

21 Human Resource Duties Job placement Orientation & Training Performance Cooperation Labor costs Development Copyright © 2013 Pearson Education 1-21 Line Managers

22 If you are a line manager, your duties and responsibilities concern how well you can successfully orient and integrate new hires into your unit, maintain their health and safety, supervise and motivate them, and effectively manage department costs.

23 Human Resource Duties Staff Managers Copyright © 2013 Pearson Education 1-23 Line function inside of HR department Coordination Assist and advise Sample HR organizational chart for a small company

24 Line managers require support to perform their jobs properly. If you are a line manager, you will have the help of the people in your HR department. HR professionals ensure adherence to company policies, provide training, advice on motivating your employees, and other support as needed.

25 25 Human Resource Managers’ Duties Functions of HR Managers Line Function Line Authority Implied Authority Staff Functions Staff Authority Innovator Coordinative Function Functional Authority

26 26 Human Resource Specialties Recruiters Labor Relations Specialists Training Specialists Job Analysts Compensation Managers Human Resource Specialties

27 Important Trends in Human Resource Management Copyright © 2013 Pearson Education 1-27

28 In the continuing development of human resource management, there exist various trends that will help shape its practice and evolution in the coming years. Human Resource responsibilities have become broader and more strategic over time in response to a number of trends. The role of HR has evolved from primarily being responsible for hiring, firing, payroll, and benefits administration to one that is more strategic.

29 29 Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends Changes and Trends in Human Resource Management The Changing Environment of Human Resource Management

30 Trends in Human Resource Management Globalization Competition Deregulation Increased indebtedness Technological innovation More high-tech & service jobs Copyright © 2013 Pearson Education 1-30

31 Trends in Human Resource Management More knowledge work Aging workforce Economic downturn De-leveraging Deregulation slowdown Slower economic growth Copyright © 2013 Pearson Education 1-31

32 Globalization Firms extend sales, ownership and manufacturing to other countries Sales expansion Lower labor costs Forming partnerships Offshoring Copyright © 2013 Pearson Education 1-32

33 Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. Dell, for example, is planning to supply PCs to China. China is expected to become the largest market for computers in the world. Companies such as Toyota, BMW, and Honda build and sell some of their vehicles here in the U.S. and even ship them to other countries from the U.S. The reasons for going global are many including: reaching new markets, selling more products or services, lower labor costs, forming partnerships, and becoming more competitive.

34 Indebtedness and Deregulation Stock brokering by banks Lending practices No money down Spending > Income Balance of payments Treasury bonds Copyright © 2013 Pearson Education 1-34

35 Due to the softening of U.S. banking regulations, many banks were able to offer stocks and other financial instruments in addition to traditional banking services. Such actions contributed to increased risks for the average banking customer. Questionable lending practices led to easy credit for developers and homebuyers

36 Technological Trends Smart phones Tablet computers Facebook Job seeking Copyright © 2013 Pearson Education 1-36

37 The impact and growth in the use of smart phones and tablet computers, such as the iPad, have opened doors to people and the workplace in a way that previously has never occurred. The speed of information exchange has contributed to the growth of social networking sites such as Facebook and LinkedIn. Facebook, for example, offers Facebookrecruiting which provides a rapid conduit between employers and job-seekers.

38 Trends in the Nature of Work High-tech jobs Service jobs Knowledge work and human capital Copyright © 2013 Pearson Education 1-38

39 As you enter the workforce or continue in your jobs, you are more likely to enter commands into a computer than perform dangerous physical labor. The “brawn to brains” changes have been fueled by moving manufacturing jobs to low-wage countries. Just-in-time (JIT) manufacturing processes have connected the customer with the manufacturer and the distributor in real time resulting in more precise scheduling, production and delivery. Another trend, human capital, refers to the knowledge, education, training, skills, and expertise of a firm’s workers. Today’s (and tomorrow’s) best jobs will go to the individuals with the best reading, math, and communication skills. In other words, the best knowledge workers will be hired first.

40 Evidence-basedHuman Resource Management Copyright © 2013 Pearson Education 1-40 Evidence-based human resource management involves the use of the best available evidence with respect to human resource practices. For example, tracking median HR expense as a percentage of a company’s total operating costs may average less than 1%. The use of this and similar metrics will help control expenses and contribute to profits.

41 41 The Changing Role of Human Resource Management New Responsibilities for HR Managers Measuring the HRM Team’s Performance Managing with the HR Scorecard Process Creating High- Performance Work Systems Strategic Human Resource Management

42 Copyright © 2013 Pearson Education 1-42 The New Human Resource Managers Transactional Services Talent Management Competencies Big picture Ethics Employee Engagement Performance, results, evidence- based practice

43 If you had been working as an HR professional after World War II, your duties would have been significantly different than they are today. Early in the HR profession, most work was transactional in nature and involved such things as payroll and benefits administration and hiring and firing. Today, however, the scope of responsibilities is vastly different. New responsibilities include finding new ways to get the job done. Getting the job done may include outsourcing routine functions including payroll and benefits or installing the company’s own internal social networking sites. In addition, the new HR managers take an integrated “talent management” approach to managing HR. Managing talent now includes managing ethics, employee engagement, adding value, having more and varied core competencies, and measuring HR performance and results. You may wish to consider what ethics are. Are ethical considerations different for different people? In what ways should HR be involved in managing ethics


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