Chapter 2 Fundamentals of HRM Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins

Management Essentials Management involves setting goals and allocating scarce resources to achieve them. Management is the process of efficiently achieving the objectives of the organization with and through people.

Management Essentials Primary Functions of Management Planning – establishing goals Organizing – determining what activities need to be done Leading – assuring the right people are on the job and motivated Controlling – monitoring activities to be sure goals are met

Why is HRM Important to an Organization? The role of human resource managers has changed. HRM jobs today require a new level of sophistication. Federal and state employment legislation has placed new requirements on employers. Jobs have become more technical and skilled. Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. Global competition has increased demands for productivity.

Why is HRM Important to an Organization? ( Cont..) The Strategic Nature – HRM must be a strategic business partner and represent employees. forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. concerned with the total cost of its function and for determining value added to the organization.

Why is HRM Important to an Organization? ( Cont..) HRM is the part of the organization concerned with the “people” dimension. HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.

Why is HRM Important to an Organization? ( Cont..) HRM Certification Colleges and universities offer HR programs. The Society for Human Resource Management and Human Resource Certification Institute offer professional certification.

Why is HRM Important to an Organization? ( Cont..) Four basic functions: Staffing5 Training and Development Motivation Maintenance

How External Influences Affect HRM Strategic Environment Governmental Legislation Labor Unions Management Thought

How External Influences Affect HRM ( Cont..) HRM Strategic Environment includes: Globalization Technology Work force diversity Changing skill requirements Continuous improvement Work process engineering Decentralized work sites Teams Employee involvement Ethics

How External Influences Affect HRM ( Cont..) Governmental Legislation Laws supporting employer and employee actions Labor Unions Act on behalf of their members by negotiating contracts with management Exist to assist workers Constrain managers Affect non unionized workforce

How External Influences Affect HRM ( Cont..) Management Thought Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM. More recently, continuous improvement programs have had a significant influence on HRM activities.

Staffing Function Activities Employment planning ensures that staffing will contribute to the organization’s mission and strategy Job analysis determining the specific skills, knowledge and abilities needed to be successful in a particular job defining the essential functions of the job

Staffing Function Activities ( Cont..) Recruitment the process of attracting a pool of qualified applicants that is representative of all groups in the labor market Selection the process of assessing who will be successful on the job, and the communication of information to assist job candidates in their decision to accept an offer

Goals of the Training and Development Function Activities in HRM concerned with assisting employees to develop up-to- date skills, knowledge, and abilities Orientation and socialization help employees to adapt Four phases of training and development Employee training Employee development Organization development Career development

The Motivation Function Activities in HRM concerned with helping employees exert at high energy levels. Implications are: Individual Managerial Organizational Function of two factors: Ability Willingness Respect

The Motivation Function Managing motivation includes: Job design Setting performance standards Establishing effective compensation and benefits programs Understanding motivational theories

The Motivation Function ( Cont..) Classic Motivation Theories Hierarchy of Needs –Maslow Theory X – Theory Y –McGregor Motivation – Hygiene – Herzberg Achievement, Affiliation, and Power Motives – McClelland Equity Theory – Adams Expectancy Theory - Vroom

How Important is the Maintenance Function Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. Health Safety Communications Employee assistance programs Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.

Translating HRM Functions into Practice Four Functions: Employment Training and development Compensation/benefits Employee relations

Translating HRM Functions into Practice ( Cont..) Employment - Employment specialists: coordinate the staffing function advertising vacancies perform initial screening interview make job offers do paperwork related to hiring Training and Development – help employees to maximize their potential serve as internal change agents to the organization provide counseling and career development

Translating HRM Functions into Practice ( Cont..) Compensation and Benefits – establish objective and equitable pay systems design cost-effective benefits packages that help attract and retain high-quality enployees. help employees to effectively utilize their benefits, such as by providing information on retirement planning.

Translating HRM Functions into Practice ( Cont..) Employee Relations – involves: communications fair application of policies and procedures data documentation coordination of activities and services that enhance employee commitment and loyalty Employee relations should not be confused with labor relations, which refers to HRM in a unionized environment.

Translating HRM Functions into Practice ( Cont..) Purpose and Elements of HRM Communications Keep employees informed of what is happening and knowledgeable of policies and procedures. Convey that the organization values employees. Build trust and openness, and reinforce company goals.

Translating HRM Functions into Practice ( Cont..) Effective Communication programs involve: Top Management Commitment Effective Upward Communication Determining What to Communicate Allowing for Feedback Information Sources

Does HRM Really Matter? Research has shown that a fully functioning HR department does make a difference. Organizations that spend money to have quality HR programs perform better than those who don’t. Practices that are part of superior HR services include: rewarding productive work creating a flexible work-friendly environment properly recruiting and retaining quality workers effective communications

HRM in an Entrepreneurial Enterprise General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions. Benefits include freedom from many government regulations an absence of bureaucracy an opportunity to share in the success of the business

HRM in a Global Village HRM functions are more complex when employees are located around the world. Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. HRM also involves considering the needs of employees’ families when they are sent overseas.

HR and Corporate Ethics HRM must: Make sure employees know about corporate ethics policies Train employees and supervisors on how to act ethically

HR and Corporate Ethics The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status. Establishes penalties for noncompliance. Provides protection for employees who report executive wrongdoing. Requires that companies have mechanisms in place where complaints can be received and investigated.