1. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R © 2008 Prentice Hall, Inc. All rights reserved. Introduction to Human Resource Management Chapter 1 Part 1 | Introduction

2. © 2008 Prentice Hall, Inc. All rights reserved.1–2 After studying this chapter, you should be able to: 1.Explain what human resource management is and how it relates to the management process. 2.Give at least eight examples of how all managers can use human resource management concepts and techniques. 3.Illustrate the human resources responsibilities of line and staff (HR) managers. 4.Provide a good example that illustrates HR’s role in formulating and executing company strategy. 5.Write a short essay that addresses the topic: Why metrics and measurement are crucial to today’s HR managers. 6.Outline the plan of this book.

3. © 2008 Prentice Hall, Inc. All rights reserved.1–3 The Management Process Planning Organizing Leading Staffing Controlling

4. © 2008 Prentice Hall, Inc. All rights reserved.1–4 Human Resource Management at Work What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?  The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

5. © 2008 Prentice Hall, Inc. All rights reserved.1–5 Human Resource Management at Work Acquisition Training Appraisal CompensatingLabor Relations Health and Safety Fairness Human Resource Management (HRM)

6. © 2008 Prentice Hall, Inc. All rights reserved.1–6 Personnel Aspects of a Manager’s Job Conducting job analysesConducting job analyses Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates Selecting job candidatesSelecting job candidates Orienting and training new employeesOrienting and training new employees Managing wages and salariesManaging wages and salaries Providing incentives and benefitsProviding incentives and benefits Appraising performanceAppraising performance CommunicatingCommunicating Training and developing managersTraining and developing managers Building employee commitmentBuilding employee commitment

7. © 2008 Prentice Hall, Inc. All rights reserved.1–7 Personnel Mistakes Hire the wrong person for the jobHire the wrong person for the job Experience high turnoverExperience high turnover Have your people not doing their bestHave your people not doing their best Waste time with useless interviewsWaste time with useless interviews Have your company in court because of discriminatory actionsHave your company in court because of discriminatory actions Have your company cited by OSHA for unsafe practicesHave your company cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organizationHave 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 effectivenessAllow a lack of training to undermine your department’s effectiveness Commit any unfair labor practicesCommit any unfair labor practices

8. © 2008 Prentice Hall, Inc. All rights reserved.1–8 Basic HR Concepts The bottom line of managing: Getting resultsThe bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.

9. © 2008 Prentice Hall, Inc. All rights reserved.1–9 Line and Staff Aspects of HRM Line managerLine manager  A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. Staff managerStaff manager  A manager who assists and advises line managers.

10. © 2008 Prentice Hall, Inc. All rights reserved.1–10 Line Managers’ HRM Responsibilities 1.Placing the right person on the right job 2.Starting new employees in the organization (orientation) 3.Training employees for jobs that are new to them 4.Improving the job performance of each person 5.Gaining creative cooperation and developing smooth working relationships 6.Interpreting the firm’s policies and procedures 7.Controlling labor costs 8.Developing the abilities of each person 9.Creating and maintaining department morale 10.Protecting employees’ health and physical condition

11. © 2008 Prentice Hall, Inc. All rights reserved.1–11 Human Resource Managers’ Duties Functions of HR Managers Line Function Line Authority Implied Authority Staff Functions Staff Authority Innovator Employee Advocacy Coordinative Function Functional Authority

12. © 2008 Prentice Hall, Inc. All rights reserved.1–12 Human Resource Specialties Recruiters EEO Coordinators Labor Relations Specialists Training Specialists Job Analysts Compensation Managers Human Resource Specialties

13. © 2008 Prentice Hall, Inc. All rights reserved.1–13 FIGURE 1–1 HR Organization Chart for a Large Organization Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

14. © 2008 Prentice Hall, Inc. All rights reserved.1–14 FIGURE 1–2HR Organizational Chart (Small Company)

15. © 2008 Prentice Hall, Inc. All rights reserved.1–15 FIGURE 1–3Employment and Recruiting—Who Handles It? (Percentage of All Employers) Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center. Note: Length of bars represents prevalence of activity among all surveyed employers.

16. © 2008 Prentice Hall, Inc. All rights reserved.1–16 The Changing Environment of Human Resource Management Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends Changes and Trends in Human Resource Management

17. © 2008 Prentice Hall, Inc. All rights reserved.1–17 FIGURE 1–4Employment Exodus: Projected Loss of Jobs and Wages Source: Michael Schroeder, “States Fight Exodus of Jobs,” Wall Street Journal, June 3, 2003, p. 84. Reproduced with permission of Dow Jones & Co. Inc. via Copyright Clearance Center.

18. © 2008 Prentice Hall, Inc. All rights reserved.1–18 The Changing Role of Human Resource Management New Responsibilities for HR Managers Measuring the HRM Team’s Performance Managing with the HR Scorecard Process Creating High- Performance Work Systems Strategic Human Resource Management

19. © 2008 Prentice Hall, Inc. All rights reserved.1–19 TABLE 1–1Technological Applications for HR Application Service Providers (ASPs) and technology outsourcing Web portals PCs and high-speed access Streaming desktop video The mobile Web and wireless net access E-procurement Internet- and network-monitoring software Bluetooth Electronic signatures Electronic bill presentment and payment Data warehouses and computerized analytical programs

20. © 2008 Prentice Hall, Inc. All rights reserved.1–20 High-Performance Work System Practices Employment securityEmployment security Selective hiringSelective hiring Extensive trainingExtensive training Self-managed teams/decentralized decision makingSelf-managed teams/decentralized decision making Reduced status distinctionsReduced status distinctions Information sharingInformation sharing Contingent (pay-for-performance) rewardsContingent (pay-for-performance) rewards Transformational leadershipTransformational leadership Measurement of management practicesMeasurement of management practices Emphasis on high-quality workEmphasis on high-quality work

21. © 2008 Prentice Hall, Inc. All rights reserved.1–21 Benefits of a High-Performance Work System (HPWS) Generate more job applicantsGenerate more job applicants Screen candidates more effectivelyScreen candidates more effectively Provide more and better trainingProvide more and better training Link pay more explicitly to performanceLink pay more explicitly to performance Provide a safer work environmentProvide a safer work environment Produce more qualified applicants per positionProduce more qualified applicants per position Hiring based on validated selection testsHiring based on validated selection tests Provide more hours of training for new employeesProvide more hours of training for new employees Conduct more performance appraisalsConduct more performance appraisals

22. © 2008 Prentice Hall, Inc. All rights reserved.1–22 FIGURE 1–5Five Sample HR Metrics HR Metric*How to Calculate It Absence rate# of days absent in month × 100 Average # of employees during month × # of workdays Cost per hireAdvertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits Number of hires HR expense factor HR expense Total operating expense Time to fillTotal days elapsed to fill job requisitions Number hired Turnover rateNumber of separations during month × 100 Average number of employees during month Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management..

23. © 2008 Prentice Hall, Inc. All rights reserved.1–23 Measuring HR’s Contribution The HR ScorecardThe HR Scorecard  Shows the quantitative standards, or “metrics” the firm uses to measure HR activities.  Measures the employee behaviors resulting from these activities.  Measures the strategically relevant organizational outcomes of those employee behaviors.

24. © 2008 Prentice Hall, Inc. All rights reserved.1–24 The Human Resource Manager’s Proficiencies New ProficienciesNew Proficiencies  HR proficiencies  Business proficiencies  Leadership proficiencies  Learning proficiencies

25. © 2008 Prentice Hall, Inc. All rights reserved.1–25 FIGURE 1–6Effects CFOs Believe Human Capital Has on Business Outcomes Source: Steven H. Bates, “Business Partners,” HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.

26. © 2008 Prentice Hall, Inc. All rights reserved.1–26 HR Certification HR is becoming more professionalized.HR is becoming more professionalized. Society for Human Resource Management (SHRM)Society for Human Resource Management (SHRM)  SHRM’s Human Resource Certification Institute (HRCI)  SPHR (senior professional in HR) certificate  PHR (professional in HR) certificate

27. © 2008 Prentice Hall, Inc. All rights reserved.1–27 FIGURE 1–7 2004 SHRM ® Learning System Module Descriptions

28. © 2008 Prentice Hall, Inc. All rights reserved.1–28 The Human Resource Manager’s Proficiencies (cont’d) Managing within the LawManaging within the Law  Equal employment laws  Occupational safety and health laws  Labor laws Managing EthicsManaging Ethics  Ethical lapses  Sarbanes-Oxley in 2003

29. © 2008 Prentice Hall, Inc. All rights reserved.1–29 The Plan of This Book: Basic Themes HRM is the responsibility of every manager.HRM is the responsibility of every manager. HR managers must defend their plans and contributions in measurable terms.HR managers must defend their plans and contributions in measurable terms. All personnel actions and decisions have strategic implications.All personnel actions and decisions have strategic implications. All managers rely on information technology.All managers rely on information technology. Virtually every personnel decision has legal implications.Virtually every personnel decision has legal implications.

30. © 2008 Prentice Hall, Inc. All rights reserved.1–30 FIGURE 1–8Strategy and the Basic Human Resource Management Process

31. © 2008 Prentice Hall, Inc. All rights reserved.1–31 K E Y T E R M S management process human resource management (HRM) authority line manager staff manager line authority staff authority implied authority functional control employee advocacy globalization human capital strategy strategic plan metrics HR Scorecard outsourcingethics strategic human resource management high-performance work system