McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Human Resource Management chapter 1

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Human Resource Management The function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals.

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Human Resource Management (HRM) Activities: (1 of 2) Equal employment opportunity (EEO) compliance Job analysis Human resource planning Employee recruitment, selection, motivation, and orientation

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Human Resource Management (HRM) Activities: (2 of 2) Performance evaluation and compensation Training and development Labor relations Safety, health, and wellness

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Four descriptions of the HRM function: 1. It is action-oriented 2. It is people-oriented 3. It is globally-oriented 4. It is future-oriented

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Scientific Management Welfare Work Industrial Psychology Human Relations Historical Foundations of HRM

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Strategic Importance of HRM The increased strategic importance of HRM means that: Human resource specialists must show that they contribute to the goals and mission of the firm The actions, language, and performance of the HRM function must be: Measured Precisely communicated Evaluated

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved The new strategic positioning of HRM means that accountability must be taken seriously

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Key Strategic HRM Concepts That Must Be Applied: (1 of 2) Analyzing and solving problems from a profit- oriented point of view Assessing and interpreting costs or benefits of HRM issues Using planning models that include realistic, challenging, specific, and meaningful goals

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Key Strategic HRM Concepts That Must Be Applied: (2 of 2) Preparing reports on HRM solutions to problems encountered by the firm Training the human resources staff Emphasizing the strategic importance of HRM Emphasizing the importance of contributing to the firm’s profits

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved If the HRM function is to be successful, managers in other functions must be knowledgeable and involved

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved HRM and Organizational Effectiveness Performance Legal compliance Employee satisfaction Absenteeism Turnover Training effectiveness Training return on investment Grievance rates Accident rates

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Objectives of the HRM Function (1 of 3) Helping the organization reach its goals Employing the skills and abilities of the workforce efficiently Providing the organization with well-trained and well-motivated employees Increasing to the fullest the employee’s job satisfaction and self-actualization

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Objectives of the HRM Function (2 of 3) Developing and maintaining a quality of work life that makes employment in the organization desirable Communicating HRM policies to all employees Helping to maintain ethical policies and socially responsible behavior

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Objectives of the HRM Function (3 of 3) Managing change to the mutual advantage of the organization’s stakeholders Managing increased urgency and faster cycle time

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Who Performs HRM Activities In most organizations two groups perform HRM activities: 1) HR manager-specialists (staff) 2) Operating managers (line)

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Competencies Needed by HR Professionals: Communication skills Problem solving Leadership Recruiting/staffing Employment law Training and development Technology Forecasting Compensation design Benefits design and administration Accounting and finance Record keeping

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved The HR department has a responsibility to be a proactive, integral component of management and the strategic planning process

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved HRM’s Place in Management HRM must: ascertain specific organizational needs for the use of its competence evaluate the use and satisfaction among other departments educate management and employees about the availability and use of HRM services

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved HRM Strategy The HRM strategy will help aggregate and allocate a firm’s resources into a unique entity on the basis of: Its internal strengths and weaknesses Changes in the environment The anticipated actions of competitors

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Relationship Between Strategy, Objectives, Policies, and Rules: More specific Strategy – The plan that integrates major objectives Objectives – Goals that are specific and measurable Policies – Guides to decision making Procedures/Rules – Specific directions for decision making

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary (1 of 2) HRM is action-oriented, individual-oriented, globally-oriented, and future oriented It focuses on satisfying the needs of individuals at work HRM is a necessary function Effectively performed, it can make the crucial difference between successful and unsuccessful organizations

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Summary (2 of 2) One of the challenges faced in HRM is that many decisions require input from both operating managers and HR specialists This dual role can lead to conflict, or it can result in more effective HRM decisions