Human Resources Management 12e Gary Dessler

Human Resources Management 12e Gary Dessler
This is our revision session on HRM Human Resources Management 12e Gary Dessler Thanks for your participation over the last 3 weeks George R.Bell BscEcon.,BAOPEN Hons.,Msc., MCMI,MIBC,FRSA,FHEA. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–1 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Introduction to HRM What is human resource management and why it’s important to all managers. HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. But we need to understand that HRM is also a separate function, usually with its own human resource or “HR” manager. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–3 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Todays Tutorial Your tutorial to day is a revision session so make sure you have got copies of the revision notes 1&2 I put on uwcentre.ac.cn/hhu Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

HR Functions: What We Looked At Planning Training and Development Employee and Labor Relations Legal Compliance Staffing Reward Systems Page 5 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

You should be able to : Explain what human resource management is and how it relates to the management process. Show with examples why human resource management is important to all managers. Illustrate the human resources responsibilities of line and staff (HR) managers. Define and give examples of evidence-based human resource management. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–6 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–6

Human Resource Management at Work -defining our terms What Is Human Resource Management (HRM)? The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Organization People with formally assigned roles who work together to achieve the organization’s goals. Manager The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people. Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–7 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–7

What does HRM involve ? Most experts agree that in general management involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–8 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

What about HRM Processes ? Line managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–9 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

The Management Process Planning Organizing Leading Staffing Controlling Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–10 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–10

Human Resource Management Processes Acquisition Training Appraisal Compensation Labor Relations Health and Safety Fairness Human Resource Management (HRM) HRM involves several processes. The topics we’ll discuss will provide you with concepts and techniques needed to perform the “people” or personnel aspects of your job as a manager. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–11 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–11

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 Managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–12 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–12

HR Mistakes Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–13 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Personnel Mistakes Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your firm in court because of discriminatory actions Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing. Carefully studying this book will help you avoid mistakes like these. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–14 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–14

Mistakes Have your firm cited by regulatory bodies [by OSHA /HASA in UK] for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your department’s effectiveness Commit any unfair labor practices i.e breach relevant regulatory requirements . Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Getting it Right Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success Sustainable Competitive Advantage SCA is more likely to come through good people management Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–16 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Basic HR Concepts The bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals. Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals. Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–17 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–17

Line and Staff Aspects of HRM Line Manager Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff Manager Assists and advises line managers. Has functional authority to coordinate personnel activities and enforce organization policies. Line managers manage operational functions that are crucial for the company’s survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control. Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–18 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–18

HR MANAGERS An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–19 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–19

Human Resource Managers’ Duties Line Function Line Authority Implied Authority Staff Functions Staff Authority Innovator/Advocacy Functions of HR Managers Coordinative Function Functional Authority An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–20 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–20

Human Resources Organization The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart like the one in Figure 1-1 that follows would be typical, containing a full complement of specialists for each HR function. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–21 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 1–1 Human Resources Organization Chart for a Large Organization The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart like the one in Figure 1-1 would be typical, containing a full complement of specialists for each HR function. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–22 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–22

Small organisations The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure which follows. There is generally about one human resource employee per 100 company employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–23 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

FIGURE 1–2 Human Resources Organization Chart for a Small Company The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. There is generally about one human resource employee per 100 company employees. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–24 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–24

There are also HRM Specialists Recruiters search for qualified job applicants. In the USA Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports. Job analysts collect and examine information about jobs to prepare job descriptions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–25 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

HRM Compensation managers develop compensation plans and handle the employee benefits program. Training specialists plan, organize, and direct training activities. Labor relations specialists advise management on all aspects of union–management relations. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resource Specialties Recruiter EEO coordinator Labor relations specialist Training specialist Job analyst Compensation manager Human Resource Specialties • Recruiters search for qualified job applicants. • Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports. • Job analysts collect and examine information about jobs to prepare job descriptions. • Compensation managers develop compensation plans and handle the employee benefits program. • Training specialists plan, organize, and direct training activities. • Labor relations specialists advise management on all aspects of union–management relations. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–27 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–27

Current trends shaping HR Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–28 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Trends Trends shaping HRM are summarized in Figure 1-4.which follows.
Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital). Demographic trends are making finding, hiring, and supervising employees more challenging. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Trends Shaping Human Resource Management Globalization and Competition Trends Technological Trends Indebtedness (“Leverage”) and Deregulation Trends in the Nature of Work Workforce and Demographic Trends Economic Challenges and Trends Trends in HR Management Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–30 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–30

Workforce and Demographic Trends Demographic Trends Generation “Y” Retirees Nontraditional Workers Trends Affecting Human Resources Demographic trends are making finding, hiring, and supervising employees more challenging. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–31 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–31

Important Trends in HRM The New HR Managers High-Performance Work Systems Strategic HRM Evidence-Based HRM Managing Ethics HR Certification Human Resource Management Trends Trends like these translate into changes in HRM practices, and in what employers expect from their human resource managers. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–32 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–32

HR Mangers strategic planning role HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–33 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

HPWS A high-performance work system is a set of HRM policies and practices that together produce superior employee performance Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–34 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

High-Performance Work Systems Increase productivity and performance by: Recruiting, screening and hiring more effectively Providing more and better training Paying higher wages Providing a safer work environment Linking pay to performance A high-performance work system is a set of HRM policies and practices that together produce superior employee performance. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–35 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–35

Ethical Implications Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee- related decisions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–36 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Managing Ethics Ethics Standards that someone uses to decide what his or her conduct should be HRM-related Ethical Issues Workplace safety Security of employee records Employee theft Affirmative action Comparable work Employee privacy rights Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee-related decisions. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–37 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–37

Basic Themes of HRM HRM is the responsibility of every manager. The workforce is becoming increasingly diverse. Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services. The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms. In this book, we’ll use several themes and features to emphasize particularly important issues, and to provide continuity from chapter to chapter. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–38 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1–38

Lets reflect on HRM Two questions: Does it matter? Why does it matter? What is HRM? Organization’s methods and procedures for managing people to enhance skills and motivation Activities to enhance the organization’s ability to attract, select, retain and motivate people Page 39 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Outsourcing HR Would it just make more sense to outsource HR functions? Many organizations are doing just this Recordkeeping and administrative, perhaps Basic functions….. Sources: Caudron (2003); Stewart & Woods (1996); Zimmerman (April 2001) Page 40 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources and Competitive Advantage The basic idea: establishing and maintaining competitive advantage through people. Competitive advantage: Valuable, rare, inimitable, nonsubstitutable- VIRN Achieved not through strategy, but strategy implementation Source: Pfeffer (1994, 1998) Page 41 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Traditional Sources [non HR] of Competitive Advantage…and Where They’ve Gone Product and process technology Technological innovations make innovation easier and faster Development and manufacturing technology freely available Protected and regulated markets Move to global economy Deregulation Access to financial resources Global capital market Venture capital Economies of scale Fragmented markets Less important with advances in technology So, what’s left…people Source: Pfeffer (1994, 1998) Page 42 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Competitive Advantage Through People Viewing the work force as an asset, not an expense The result: Harder work, from increased involvement and commitment Smarter work, through enhanced skills and competence Lower overhead, by pushing responsibility downward High performance work systems Source: Pfeffer (1994, 1998) Page 43 Fall 2008 Management 412 / Intro to HRM Think Long-Term Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Aligning Strategy and HR Determine the firm’s strategy Determine the competencies needed to carry out the strategy Examine current management practices Determine congruence Do the current practices work to enhance needed competencies? Are the current practices internally consistent? Source: Pfeffer (1998) Page 44 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

HR Functions:Think of the juggler ! Planning Training and Development Employee and Labor Relations Legal Compliance Staffing Reward Systems Page 45 Fall 2008 Management 412 / Intro to HRM Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Human Resources Management 12e Gary Dessler

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