1. Human Resource Management
4/27/2017
Human Resource Management
Chapter One
Introduction to HRM
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The Definition
Human resource management (HRM)
HRM is about managing people in organizations as effectively as possible for the good of the employees, the company and society
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Key Terms
HR practices—tools a company uses to manage employees
Line manager—individuals responsible for supervising and directing a group of employees to perform tasks
HR department—support function that designs and implements company policies for managing employees
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4. Why is HRM Important and Essential?
The Changing Environment of HRM
Globalization
Extremely high level of competition
A vast number of nations with low wages and highly skilled workers
Dynamic legal, political and social realities
Consumers demanding high quality at low prices
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5. Why is HRM Important and Essential?
The Changing Environment of HRM
The nature of work
Rapid tecnological advances
Workforce demographics
Changing values and educational qualifications
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Sayings of CEO’s
“I am the ultimate believer in people first, strategies second. To me, strategy starts with the personyou hire. If a business lacks a good strategy, then put in charge of the business someone who will develop one” (Jack Welch, CEO, General Electric)
We must have people who use facts and knowledge to add something.... To add valueto our customers’ business. In an age where everyone has basically the same information at the same time, the advantage goes to people who can take information and quickly put it to effective and profitable use. It means having people with what can be called the “mind of the strategist”...people who can create a competitive advantage... Out of common knowledge” (Robarto Gouzueta, Coca-Cola Company)
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7. PERSONNEL MANAGEMENT VS HR MANAGEMENT
Element
Personnel Management
HR Manegement
Employee Relations
Adversarial
Developmental and Collaborative
Orientation
Reactive and piecemeal
Proaktive and business focused
Organization
Separate functions
Integrated functions
Client
Management
Management and employees
Values
Order, equity consistency
Client and problem focused, tailored solutions
Role of Specialist
Regulatory and record keeping
Problem sensing, tailored solutions
Role of line management
Passive ownership
Active ownership
Overall output
Compartmentalized thinking and acting
Linking various hr levers to business needs
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The Goals of HRM
Overall Goals
Productivity
Quality of Working Life
Legal Compliance
Competitive Advantage
Workforce adaptibility
Bottom Line
Survival
Competitiveness
Growth
Profitability
Flexibility
Specific Goals
Attract
Retain
Motivate
Retrain
Human Resources Management Activities
Understanding the environment
Human Resources Planning
Recruitment and Placement
Training
Performance Management
Compensation Management
Career Management
Union Relations
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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
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Plan for this Book
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11. 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
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12. 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
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13. Managing Employee Attitudes and Behaviors
Motivating workers to improve their performance
Communicating performance criteria aligned with organizational goals
Providing employees with feedback
Disciplining poor performers
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14. 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????
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15. 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.
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Personnel Mistakes
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company in court because of discriminatory actions
Have your company cited by OSHA for unsafe practices
Have some employees think their salaries are unfair and inequitable relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labor practices
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17. Line Managers’ HRM Responsibilities
Placing the right person on the right job
Starting new employees in the organization (orientation)
Training employees for jobs new to them
Improving the job performance of each person
Gaining creative cooperation and developing smooth working relationships
Interpreting the firm’s policies and procedures
Controlling labor costs
Developing the abilities of each person
Creating and maintaining department morale
Protecting employees’ health and physical condition
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18. Functions of the HR Manager
A line function
The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria).
A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional control.
Staff (assist and advise) functions
Assisting and advising line managers is the heart of the HR manager’s job.
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19. Employee Advocacy HR must take responsibility for:
Clearly defining how management should be treating employees.
Making sure employees have the mechanisms required to contest unfair practices.
Represent the interests of employees within the framework of its primary obligation to senior management.
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Organization of HR
Evolution of HR Department
Evolution
Time
Introduction
Growth
Deployment
Maturity
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The New HR Manager
New Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
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HR as Profession
HR Generalist
HR Specialist
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HR Organizations
WFPMA?
EAPM?
PERYÖN?
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