1. Human Resource Management Eleventh Edition
SECTION 1 Nature of Human Resource Management
Robert L. Mathis  John H. Jackson
Chapter 1
Changing Nature of Human Resource Management
PowerPoint Presentation by Dr. Zahi Yaseen

2. Changing Nature of Human Resource Management
After you have read this chapter, you should be able to:
Define HR management and explain why managers and HR staff must work together.
List and define the seven categories of HR activities.
Identify three challenges facing HR today.
Describe the four roles of HR management.
Discuss why ethical issues affect HR management.

3. HR
Management
Activities

4. HRM Activities
Human resource activities support organizational efforts focusing on Productivity, Service, and quality
That requires changes in corporate culture, leadership styles, and HR policies.
1- HR planning and analyses
2- Equal employment opportunity
3- Staffing
4- HR development
5- Compensation and Benefits
6- Health, safety, and security
7- Employee and Labor relations

5. Human Resource Management
Is the direction of organizational systems to ensure effective and efficient use of human talent to accomplish organizational goals.
HR in Organization
Every manager in an organization is an HR manager, however, it’s unrealistic to expect all operation managers like sales managers, nursing supervisor to know about employment regulations, union contracts….etc.
Corporation of HR with operating managers:
HR specialists design processes and systems that operating managers help implement.

6. Organization must manage four types of assets:
Management of Human Capital in Org;
Organization must manage four types of assets:
1- Physical : building, land, furniture, vehicles…
2- Financial: cash, stocks, securities…..
3- Intangible: brand name, researches…..
4- Human: talents employees, experience,
professionals, capabilities…..
All these assets are crucial in varying degrees. However, the human assets are the ‘glue” that holds all other assets together and guides their use to achieve organizational goals.

7. Management of Human Capital in Org;
Human Capital: Is the collective value of the capabilities, knowledge, skills, life-experiences, and motivation of the workforce. Human capital is not the people in the company- It’s what those people bring and contribute in the success of that company.
HR as a Core competency: HR should be part of organizational strength. Because those strengths are the foundation for creating a competitive advantage, core competency is a unique capability that creates high value and differentiates an organization from its competitors.

8. HR Management Challenges
Globalization of Business
Economic and technological changes
Workforce demographics and diversity
Organizational cost pressures & restructuring

9. HR Management Challenges
Globalization of Business
- Global companies across nations. Pepsi, Microsoft, Hp, GE, Sony, Toyota, Nokia, McDonalds…..
- Shift from investment to operate, and produce products and services across the boards and the effect of security.
Economic and Technological Changes
Shift in jobs for manufacturing and agriculture to service industries and telecommunications.
Workforce availability and quality concerns: Lack of skilled employees.
Growth in contingent workforce: contractors, part time…
Growth of information technology (Internet).

10. HR Management Challenges
Workforce demographics and diversity
More diversity of race, gender, and ethnicity. People from different background, women in the workplace, and growing of minorities.
Organizational cost pressures & restructuring
“Right-sizing", eliminating of layers of management, closing facilities, merging, and outplacing workers.
Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees

11. HR Management Roles Administrative Role
The administrative support operations (e.g., payroll and benefits work) shifted to technology ( internet) and outsourcing. The reasons are to save money, time, and to focus on strategic plans.
Operational and Employee Advocate Role
Traditionally HR is the “Champion” for employee concerns, and respond to employees complaints and crises. (figure 1)
Strategic Role
- Long-term implications, ethics bookkeeping, and provide competitive advantage.

12. HRM shifts from operational to strategic
Traditional HR Function
Reactive
Collecting HR data
Responding to goals and objectives set by executives
Complying with laws, policies, and procedures
Administering employees benefits programs
Designing training programs
Staffing
Applying compensation plans
Emerging HR practice
Proactive
Measuring HR with metrics
Setting strategic HR goals and objectives
Developing and revising policies and procedures
Evaluating benefits strategically
Identifying training needs
HR planning and linking with external staffing needs
Developing compensation plans

13. Strategic Role for HR HR becomes a strategic business partner by:
Evaluating mergers and acquisitions for staffing needs
Conducting workforce planning : from employees retirements to workforce expansion
Leading site selection efforts for new facilities, and for international outsourcing.
Applying new HR systems to reduce time and staff
Working with executives to develop compensating plans
Collaborative HR: when group of companies from different industries establish HR hop to share information and benefit for their experiences.

14. HR Technology Human resource management system( HRMS) Purpose of HRMS:
Firms have developed and implemented information systems to simplify use of the vast amounts of HR data
Human resource management system( HRMS)
Is an integrated system providing information used by HR management in decision making.
Purpose of HRMS:
1- administrative and operational efficiency
2- strategic and HR planning
( see attached example)

15. Ethics and HR
Organizations with high ethical standards are more likely to meet long –term strategic objectives and profit goals.
Ethics and global differences: Different laws, politics, cultural values usually raises ethical issues for global employers.( what is prohibited here is allowed there)
HR’s role in organizational ethics
HR management plays a key role as the “ keeper and voice” of organizational ethics.
Ethical issues like: misrepresenting hours and time worked, employee lying to managers, hiring and promoting the favoritism.

16. Ethics and HR Responding to Ethical Situations
Guided by values and personal behavior “codes” that include:
Does response meet all applicable laws, regulations, and government codes?
Does response comply with all organizational standards of ethical behavior?
Does response pass the test of professional standards for ethical behavior?

17. Job satisfaction leads to Productivity and quality How can we increase
Competition advantage through Human capital
Job satisfaction
Individual abilities/skills
The
Key
Employee Retention
How can we manage our
costs?
Management support/technology
Culture/ motivation
Job performance
HR Strategic
Vision/Mission,\/Goals
Plan for people
Revising Rules
Comply with Labor Law
Design Policies/procedures
Design jobs
Recruiting /Selecting
Employee retention
We should value
Our customers and
Our employees
What can we do to
Survive in the
Market place?
Demands for
Productivity/ quality/ service
Increasing competition
HR Traditional View
-Responding to goals and objectives set by executives
Complying with laws,
policies, and procedures
Administering employees benefits programs
Staffing
Applying compensation plans HR
Tree

18. Survey Job Performance HR Planning HR Strategic HR Tree
Staffing
Job analysis
Recruiting
Selecting
Talent Manage
Orientation
Training
Career planning
HR Development
Performance
Labor Relation
Labor Law
Workers –Rights
Unions HR
Tree
Equal Employment
Fairness
Diversity
Leadership
Supervisory
Total Rewards
Compensation
Incentives
Benefits
Risk Manage
Safety
Health
Security
Employee Retention
Global
HRM
Employment law
Survey
-Satisfaction
Exit Interviews
Job Performance
HR Planning
HR Strategic