1. Managing Human Resources1
Managing Human Resources
Managing Human Resources, 11e
Jackson – Schuler – Werner

2. Learning Goals After reading this chapter, you should be able to:
Describe the importance of managing human resources.
Explain how to gain and sustain a competitive advantage through human resources.
Use a framework for managing human resources.
Describe the HR Triad.
Describe five special themes in managing human resources.
Discuss two current issues in managing human resources.
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3. EXHIBIT 1.1 Stakeholders and Examples of Their Concerns
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4. Satisfying Multiple Stakeholders (cont’d)
Organizations must satisfy multiple stakeholders
Effective HRM contributes to stakeholder satisfaction.
Stakeholders
Individuals or groups that have interests, rights or ownership in an organization and its activities
Primary Stakeholders
Those whose concerns the organization must address in order to ensure its own survival.
Success is defined by how effectively these groups are served.
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5. Owners and Investors
Tangible Assets
Investors focus on measuring tangible assets in order to determine a firm’s value.
Inventory, equipment, real estate, financial assets
New Economy
Investors recognize that intangible assets can be just as valuable as tangible assets.
Reputation as an employer-of-choice, depth of employee talent and loyalty, and the firm’s ability to innovate and change.
Effective HR practices can positively affect the bottom line.
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6. Stakeholder Groups Customers Society Other Organizations
Engaged employees can have a direct impact on customer satisfaction.
Society
Legal compliance: legitimacy and community support
Community relations: public opinion and expectations
Social responsiveness in HRM
Other Organizations
Suppliers
Unions
Alliance Partners
Organizational Members (The Employees)
Pay and Benefits
Quality of Work Life
Employability
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7. Stakeholders and HRM
Win-Win Situations
HRM can create synergies from the diverse concerns of various stakeholders.
Properly managing human resources can provide solutions to how best to satisfy the objectives of multiple stakeholders, even when the objectives seem to conflict.
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8. Gaining and Sustaining a Competitive Advantage
A Culture That Can’t Be Copied
Using HRM to Gain Sustainable Competitive Advantage
Core Employees Who Are a Source of Added Value
Employees Who Are Rare
L E A R N I N G G O A L 2
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9. Exhibit 1.2 A Framework for Managing Human Resources Effectively
L E A R N I N G G O A L 3
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10. The Organizational Environment
Organizational Characteristics that Shape HRM Practices
Technology
Business Strategy
Company Culture
Top Management’s Leadership Approach
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11. Human Resource Management Activities
Human Resource Management (HRM) Activities
The firm’s formal HRM policies as well as the actual ways these policies are implemented in the daily practices of supervisors and managers.
Formal Policies
Statements of expectations and aspirations
Are modified and influenced by daily practices.
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12. Human Resource Policies and Practices
HR planning for alignment and change
Job analysis and competency modeling
Recruiting and retaining qualified employees
Selecting employees to fit the job and the organization
Training and developing a competitive workforce
Conducting performance management
Developing an approach to total compensation
Using performance-based pay to enhance motivation
Providing benefits and services
Promoting workplace safety and health
Unionization and collective bargaining
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13. The HR Triad
“Human Resources are too important to be left to the HR department.”
HR Professionals Provide Special Expertise
HR Professionals
Line Managers
All Other Employees
Line Managers Have Always Been Responsible
Employees
Share Responsibility.
L E A R N I N G G O A L 4
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14. Examples from EXHIBIT 1.3 What Managers Expect from HR Professionals
Key Roles
What Is Expected on the Job
Business Partner
Assesses the external and organizational environments to identify the strengths, weaknesses, opportunities, and threats of the company
Assists with strategy formulation and implementation
Assists with mergers, acquisitions, and international joint ventures
Shows how human resource management activities can affect the bottom line
Consultant
Views line managers and other employees as customers and works as partner to meet their needs
Develops HR practices and policies with input from the HR Triad
Innovator
Initiates—does not wait for others to call attention to the need for action
Uses e-learning, the Internet, and technologies to improve HR services
Continually revises and updates HR policies and practices
Employee
Champion
Ensures employment laws are known and observed
Evaluates the effectiveness of the organization’s HR policies and practices
Coaches and encourages line managers to practice the HR policies as intended
Works with line managers and employees in the HR Triad to revise policies as needed
Change Manager
Is guided by a long-term vision of where the business is headed
Understands what talent is needed for executing future strategies
Anticipates the concerns of employees and creates solutions to address them
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15. Ethical Behavior HR Profession’s Code of Ethics
HR professionals must regard the obligation to implement public objectives and protect the public interest as more important than blind loyalty to an employer’s preferences.
Expectations
Understand problems and maintain professionalism
Maintain high standards of honesty and integrity
Respect the dignity of all employees
Assure that the organization respects the public and its employees
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16. THE HR TRIAD: Roles and Responsibilities for Managing Human Resources
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17. Managing the Multicultural Workforce
Multicultural management practices must be sensitive to issues of:
Religion, sexual orientation, marital and family status, age, and various other “unifying life experiences,” as well as gender and ethnicity.
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18. Managing Globalization
Aspects of Globalization
Exporting
Overseas manufacturing
Transnational firms
Challenge
Developing an approach to managing human resources that works at home as well as abroad.
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19. Managing Ethics HR Responsibilities:
To exhibit professional and ethical behavior in relationships with others
To assist in developing and enforcing codes of ethics
To provide ethics training for employees
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20. Managing with Metrics Employee satisfaction Employee performance
HR Responsibilities:
To measure the contribution of HR activities to the success of the organization:
Employee satisfaction
Employee performance
Accident and injury rates
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21. TERMS TO REMEMBER Corporate social responsibility (CSR)
Globalization
HR profession’s code of ethics
HR triad
Human resource (HR) activities
Human Resource Certification Institute (HRCI)
Human resource management (HRM) system
Human resource (HR) professionals
Human resources
Intangible human assets
Multinational corporations (MNCs)
Society for Human Resource Management (SHRM)
Stakeholders
Sustainable competitive advantage
Tangible assets
World Federation of Personnel Management (WFPMA)
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