1. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-1

2. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-2 Human Resources and Company Performance Responsibilities of Human Resource Departments Skills of HRM Professionals HR Responsibilities of Supervisors Ethics in Human Resource Management Careers in Human Resource Management Managing Human Resources PA E TR HC 1

3. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-3 Ch. 1 Learning Objectives 1. Define human resource management and explain how HRM contributes to an organization’s performance. 2. Identify the responsibilities of human resource departments. 3. Summarize the types of skills needed for human resource management.

4. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-4 Ch. 1 Learning Objectives 4. Explain the role of supervisors in human resource management. 5. Discuss ethical issues in human resource management. 6. Describe typical careers in human resource management.

5. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-5 What is Human Resources?  How have you interacted with HR in your current or previous jobs?  What value does HR bring to an organization?

6. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-6 Nature of Human Resource Management  Human Resource Management  The policies practices, and systems that influence employees’ behavior, attitudes, and performance.  What are examples of HR systems?

7. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-7 HRM Practices  Important HRM practices include: Figure 1.1

8. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-8 HR and Company Performance  Human Capital  An organization’s employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight  Human capital is used to create a sustainable competitive advantage because they are  Valuable  Rare  Cannot be imitated  No good substitutes

9. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-9 Impact of Human Resource Management Figure 1.2

10. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-10 Responsibilities of HR Departments Table 1.1

11. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-11 Responsibilities of HR Departments  One employee dedicated to handle HR related matters is usually necessary in a company of ____ employees. a. 10 b. 25 c. 75 d. 200

12. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-12 HR Functions  Analyzing and Designing Jobs  Job analysis – what does the job entail and require?  Job design – how should work be organized and divided?  Recruiting and hiring employees  Recruitment – how can we find the best applicants?  Selection – how do we assess the abilities and motivation of applicants?

13. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-13 HR Functions  Which of the following qualities were in the top 5 as reported by employers? a. Technical skills b. Intelligence c. Interpersonal skills d. Computer skills

14. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-14 HR Functions  Training and Developing Employees  Training – how do we ensure employees are able to perform their current jobs most effectively?  Development – how do we prepare our employees for career advancement and to take on new challenges

15. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-15 HR Functions Figure 1.3

16. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-16 HR Functions  Managing Performance  Performance management – how do we measure and promote excellence in our employee’s job performance?  How & What  Planning and Administering Pay and Benefits  Pay – how do we ensure our compensation is fair both internally and externally?  Benefits – how do we maximize employee satisfaction while keeping costs manageable?

17. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-17 HR Functions  Maintaining Positive Employee Relations  How can we support our employees to help them be as productive and satisfied as possible?  Establishing and Administering Personnel Policies  How do we handle different employee situations? (theft, drug-use, dress code)  Ensuring Compliance with Labor Laws  How do we know and ensure that our HR practices are aligned with federal, state, and local laws and guidelines?

18. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-18 HR Functions  Supporting the Organization’s Strategy  How do we add value by directly contributing to the strategic objectives of the organization?  Human Resource Planning  Identifying the numbers and types of employees the organization will require in order to meet its objectives.

19. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-19 Skills of HRM Professionals Figure 1.4

20. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-20 Who is responsible for HR?  In an organization, who should be concerned with human resource management? a. Only HR departments b. Only Managers c. Managers and HR departments

21. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-21 HR Responsibilities of Supervisors Figure 1.5

22. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-22 Ethics in Human Resource Management  Ethics  The fundamental principles of right and wrong  What rights do employees have?

23. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-23 Standards for Identifying Ethical Practices

24. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-24 Ethical Standards Poll

25. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-25 HR Management as a Career Field  HR Generalist  A person with responsibility for performing a variety of HR activities.  HR Specialist  A person with in-depth knowledge and expertise in a limited area of HR.  Professional Organization  Society for Human Resource Management (SHRM)  http://shrm.org  Has student memberships available

26. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-26 HR Management Qualifications  Knowledge of HR domain and ability to execute it  Professional of Human Resources Certification is obtained by many HR professionals (HRCI.org)  Business knowledge of organization and its strategies  College degree and many have completed post- graduate work (Masters, PhD)

27. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-27 Test your knowledge  Which HR functions are primarily concerned with 1) ensuring employees are capable of doing their current job, 2) ensuring that employees are satisfied with their rewards. a. 1) Development; 2) employee relations b. 1) Training; 2) legal compliance c. 1) Selection; 2) pay & benefits d. 1) Training; 2) pay & benefits

28. McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 1-28 Video – Abbott Laboratories 1. How do you believe Abbott’s employee training contributes to its high ethical standards? 2. In your opinion, how does a company facing such diversity in its working environments and employees, benefit from providing extensive training to the myriad of workers? 3. Discuss how ethical business behavior creates a competitive advantage to organizations like Abbott.