Learning Objectives Functions of Human Resource Management Explain how globalization is influencing human resources management. Role of Human Resource Manager. Increasing Significance of Human Resource Management Models of Human Resource Management

Types of Organizational Assets Physical Financial Intangible Human

Why Study Human Resource Management Staffing the organization, designing jobs and teams, developing skillful employees, identifying approaches for improving their performance, and rewarding employee successes—all typically labeled HRM issues—are as relevant to line managers as they are to managers in the HR department.

Competitive Advantage through People Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Sustained competitive advantage through people is achieved if these human resources: Have value. Are rare and unavailable to competitors. Are difficult to imitate. Are organized for synergy.

Human Resources Management (HRM) Human resource management is planning, organizing, staffing, directing and controlling of procurement, development, integration, maintenance and separation of employees to the end that individual, organizational and societal objectives are accomplished.

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, screening, training, rewarding, and appraising.

Human Resource Management at Work Acquisition Training Appraisal Compensating Labor Relations Health and Safety Rewarding Human Resource Management (HRM)

Overall Framework for Human Resource Management

Personnel Aspects of a Manager’s Job Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries Providing incentives and benefits Appraising performance Communicating Training and developing managers Building employee commitment

Personnel Management is basically an operational function, concerned primarily with carrying out the day-to day people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage.

HRM is more proactive than Personnel Management HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the forecasting of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change.

HR Cooperation with Operating Managers Advise HR of job openings Decide whether to do own final interviewing Receive interview training from HR unit Do final interviewing and hiring where appropriate Review reference information Provide feedback to HR unit on hiring/rejection decisions HR Unit Develops legal, effective interviewing techniques Trains managers in conducting selection interviews Conducts interviews and testing Sends top three applicants to managers for final review Checks references Does final interviewing and hiring for certain job classifications

Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility. Involves formulating and executing HR systems—HR policies and activities—that produce the employee competencies and behaviors that the company needs to achieve its strategic aims.

Linking Company-Wide and HR Strategies

Creating the Strategic Human Resource Management System Human Resource Professionals Employee Behaviors and Competencies Components of a Strategic HRM System Human Resource Policies and Practices

Human Resource Cycle Rewards Selection Appraisal Performance Development Adapted from Fombrum et al, 1982

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.

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

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

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

Competitive Challenges and Human Resources Management The most pressing competitive issues facing firms: Going global Embracing new technology Managing change Managing talent, or human capital Responding to the market Containing costs

A Changing HR Environment Globalization Technological Advances Outsourcing The Nature of Work Workforce Demographics

Changing Roles of HR Management