© 2008 by Prentice Hall1-1 Human Resource Management Week 1 STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW

© 2008 by Prentice Hall1-2 Human Resource Management Utilization of individuals to achieve organizational objectives All managers at every level must concern themselves with human resource management Five functions

© 2008 by Prentice Hall1-3 1 Human Resource Management Human Resource Development Compensation Staffing Employee and Labor Relations Safety and Health Human Resource Management Functions

© 2008 by Prentice Hall1-4 Staffing Job Analysis Human Resource Planning Recruitment Selection

© 2008 by Prentice Hall1-5 Staffing (Cont.) Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

© 2008 by Prentice Hall1-6 Staffing (Cont.) Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time. Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

© 2008 by Prentice Hall1-7 Staffing (Cont.) Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

© 2008 by Prentice Hall1-8 Human Resource Development Training Development Career Planning Career Development Organizational Development Performance Management Performance Appraisal

© 2008 by Prentice Hall1-9 Human Resource Development (Cont.) Training - Designed to provide learners with knowledge and skills needed for their present jobs Development - Involves learning that goes beyond today's job; it has more long-term focus Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

© 2008 by Prentice Hall1-10 Human Resource Development (Cont.) Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

© 2008 by Prentice Hall1-11 Human Resource Development (Cont.) Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization Performance appraisal - Formal system of review and evaluation of individual or team task performance

© 2008 by Prentice Hall1-12 Compensation Compensation - All rewards that individuals receive as a result of their employment

© 2008 by Prentice Hall1-13 Compensation Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions. Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

© 2008 by Prentice Hall1-14 Safety and Health Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

© 2008 by Prentice Hall1-15 Safety and Health Safety - Involves protecting employees from injuries caused by work-related accidents Health - Refers to employees' freedom from illness and their general physical and mental well being

© 2008 by Prentice Hall1-16 Employee and Labor Relations Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them Human resource activity is often referred to as industrial relations Most firms today would rather have a union-free environment

© 2008 by Prentice Hall1-17 Interrelationships of HRM Functions All HRM functions are interrelated Each function affects other areas

© 2008 by Prentice Hall1-18 HR’s Changing Role: Questions That Are Being Asked Can some HR tasks be performed more efficiently by line managers or outside vendors? Can some HR tasks be centralized or eliminated altogether? Can technology perform tasks that were previously done by HR personnel? Many HR departments continue to get smaller

© 2008 by Prentice Hall1-19 HR Outsourcing Transfers responsibility to an external provider Market for HR outsourcing is growing dramatically

© 2008 by Prentice Hall1-20 Ways HR Outsourcing is Done Discrete services Multi-process services Total HR outsourcing

© 2008 by Prentice Hall1-21 Multi-process Services Complete outsourcing of one or more human resource processes Example: Procter & Gamble outsourced entire training operations

© 2008 by Prentice Hall1-22 Total HR Outsourcing Transfer majority of HR services to third party Example: Whirlpool Corporation signed 10-year deal to outsource HR business processes for 68,000 employees to Convergys Corporation

© 2008 by Prentice Hall1-23 Organization of Human Resource Management 10th Edition PART I. INTRODUCTION Chapter 1: Strategic Human Resource Management: An Overview PART II. HR ETHICAL, LEGAL, AND SOCIAL CONSIDERATIONS Chapter 2: Business Ethics and Corporate Social Responsibility Chapter 3: Workforce Diversity, Equal Employment Opportunity, and Affirmative Action

© 2008 by Prentice Hall1-24 Organization of Human Resource Management 10th Edition (Cont.) PART III. STAFFING Chapter 4: Job Analysis, Strategic Planning, and Human Resource Planning Chapter 5: Recruitment Chapter 6: Selection

© 2008 by Prentice Hall1-25 Organization of Human Resource Management 10th Edition (Cont.) PART IV. HUMAN RESOURCE DEVELOPMENT Chapter 7: Training and Development Appendix Chapter 7: Career Planning and Development Chapter 8: Performance Management and Appraisal

© 2008 by Prentice Hall1-26 Organization of Human Resource Management 10th Edition (Cont.) PART V. COMPENSATION AND BENEFITS Chapter 9: Compensation Chapter 10: Benefits, Nonfinancial Rewards, and Other Compensation I ssues PART VI. SAFETY AND HEALTH Chapter 11: A Safe and Healthy Work Environment

© 2008 by Prentice Hall1-27 Organization of Human Resource Management 10th Edition (Cont.) PART VII. EMPLOYEE AND LABOR RELATIONS Chapter 12: Labor Union and Collective Bargaining Appendix Chapter 12: History of Unions in the United States Chapter 13: Internal Employee Relations PART VIII. OPERATING IN A GLOBAL ENVIRONMENT Chapter 14: Global Human Resource Management