1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-1 Human Resource Management Chapter One Introduction to HRM

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-2 Human Resource Management Human resource management (HRM) is about managing people in organizations as effectively as possible for the good of : the employees, the company and the society

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-3 Historical Change Personnel Management?? HR Management?? People seen as a Cost vs. as a Resource

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-4 PERSONNEL MANAGEMENT VS HR MANAGEMENT ElementPersonnel ManagementHR Manegement Employee RelationsAdversarialDevelopmental and Collaborative OrientationReactive and piecemealProaktive and business focused OrganizationSeparate functionsIntegrated functions ClientManagementManagement and employees ValuesOrder, equity, consistencyClient and problem focused, tailored solutions Role of SpecialistRegulatory and record keeping Problem sensing, tailored solutions Role of line managementPassive ownershipActive ownership Overall outputCompartmentalized thinking and acting Linking various HR levers to business needs

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-5 The Goals of HRM Overall Goals Productivity Quality of Working Life Legal Compliance Competitive Advantage Workforce adaptibility Bottom Line Survival Competitiveness Growth Profitability Flexibility Human Resources Management Activities Specific Goals Attract Retain Motivate Retrain Understanding the environment Human Resources Planning Recruitment and Placement Training Performance Management Compensation Management Career Management Union Relations

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-6 Competitive Advantage A company’s ability to create more economic value than its competitors Accomplished through: —managing employees effectively —training employees in skills they need —making employees feel valued —motivating employees to be productive

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-7 Primary HR Activities Work design and workforce planning Job Design and Job Analysis Personnel Planning Managing employee competencies Recruitment&Selection Training and Development Career Management Managing employee attitudes and behaviors Performance Management Compensation Management

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-8 Work Design and Workforce Planning What employees do, ensuring the right people are in the right place at the right time How jobs are interconnected and aligned with the company’s objectives How employees are allocated When outsourcing, reorganization or use of contingent labor is needed

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-9 Managing Employee Competencies Assessing knowledge, skills, abilities and other talents employees possess Recruiting potential employees with desired competencies Selecting the best candidates based on experience and/or personality Training employees in skills they need for current and future positions

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-10 Motivating workers to improve their performance Communicating performance criteria aligned with organizational goals Providing employees with feedback Disciplining poor performers Managing Employee Attitudes and Behaviors

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-11 HR Challenges Organizational demands—strategy, culture, employee concerns Environmental influences—labor force trends, globalization, technology, ethics and social responsibility Regulatory issues—legislation protecting rights of individuals and the company with regard to employment processes

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-12 Strategic Challenges Company’s strategy influences types of jobs needed Low-cost leader, example: Wal-Mart Differentiation, example: Nordstrom Four-star restaurant vs. fast food

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-13 Company Characteristics Size Resources available Degree of autonomy and discretion Differences in job tasks Employee attitudes and behaviors

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-14 Organizational Culture Set of underlying values and beliefs employees share Represents beliefs of company’s founders and key leaders Influences how employees do their jobs Influence attracting and retaining employees

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-15 Employee Concerns Single parents; caring for aging parents Balancing demands of work and personal lives Attracted by flexible scheduling, family- friendly benefits and telecommuting

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-16 Environmental Influences

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-17 Labor Force Trends Influences how companies recruit/select Diverse in race, gender and age Number of women expected to grow Overall unemployment rate %11.2 %21.3 unemployment rate among young people in Turkey Size of group 55-and-older increasing due to the new retirement policy in Turkey

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-18 Technology Requires many employees to possess basic computer proficiency Challenges privacy issues and potential misuse by employees Broadens access to recruit employees from larger market Enables virtual workforce

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-19 Globalization Blurs country boundaries in business activities Enables international joint ventures and partnerships Challenges companies with differences in values and beliefs Encourages offshoring—sending work once performed domestically to other countries for lower costs

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-20 Who is Responsible for Managing HR There is a saying at Merck that goes like this, “Human Resources are too important not to be left to the HR Department” Then Who is Responsible????

21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-21 Line Managers’ HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firm’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees’ health and physical condition Line managers are more accountable than ever for HR. Collaboration with HR professionals is needed

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-22 Meeting 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

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-23 The New HR Manager New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-24 Evidence-Based HRM Actual measurements Existing data Providing Evidence for HRM Decision Making Research studies

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-25 HR as Profession HR Generalist HR Specialist

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall1-26 Summary HRM is the responsibility of every manager. HRM is the responsibility of every manager. The workforce is becoming increasingly diverse. The workforce is becoming increasingly diverse. Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services. Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services. The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms. The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.