Introduction to Human Resource Management

Introduction to Human Resource Management
Chapter 1

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.
The Management Process
          POSLC – Planning,  Organisation, Staffing, Leading, Controlling
Human Resource Management at Work

          What Is Human Resource Management (HRM)?
Ø  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.
Ø   HALF CAT – Health & Safety, Acquisition, Labour Relations, Fairness, Compensatiing, Appraisal, Training.
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
          Training and developing managers
          Building employee commitment

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 company in court because of discriminatory actions
          Have your company cited by OSHA 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

Basic HR Concepts
          The 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.
Line and Staff Aspects of HRM

          Line manager
Ø  A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.
          Staff manager
Ø  A manager who assists and advises line managers.
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
Human Resource Managers’ Duties

Human Resource Specialties

          FIGURE 1–1
HR Organization Chart
for a Large Organization
          FIGURE 1–2        HR Organizational Chart (Small Company)
          FIGURE 1–3        Employment and Recruiting—Who Handles It?
(Percentage of All Employers)
The Changing Environment of Human Resource Management

          FIGURE 1–4        Employment Exodus: Projected Loss of Jobs and Wages
The Changing Role of Human Resource Management

Ø  TABLE 1–1           Technological Applications for HR
High-Performance Work System Practices
          Employment security
          Selective hiring
          Extensive training
          Self-managed teams/decentralized decision making
          Reduced status distinctions
          Information sharing
          Contingent (pay-for-performance) rewards
          Transformational leadership
          Measurement of management practices
          Emphasis on high-quality work
Benefits of a High-Performance  Work System (HPWS)
          Generate more job applicants
          Screen candidates more effectively
          Provide more and better training
          Link pay more explicitly to performance
          Provide a safer work environment
          Produce more qualified applicants per position
          Hiring based on validated selection tests
          Provide more hours of training for new employees
          Conduct more performance appraisals
Ø  FIGURE 1–5        Five Sample HR Metrics
Measuring HR’s Contribution

          The HR Scorecard
Ø  Shows the quantitative standards, or “metrics” the firm uses to measure HR activities.
Ø  Measures the employee behaviors resulting from these activities.
Ø  Measures the strategically relevant organizational outcomes of those employee behaviors.
The Human Resource Manager’s Proficiencies

          New Proficiencies
Ø  HR proficiencies
Ø  Business proficiencies
Ø  Leadership proficiencies
Ø  Learning proficiencies
          FIGURE 1–6        Effects CFOs Believe Human Capital Has on Business Outcomes
HR Certification

          HR is becoming more professionalized.
          Society for Human Resource Management (SHRM)
Ø  SHRM’s Human Resource Certification Institute (HRCI)
v  SPHR (senior professional in HR)  certificate
v  PHR (professional in HR) certificate
          FIGURE 1–7
2004 SHRM® Learning System Module Descriptions
          Managing within the Law
Ø  Equal employment laws
Ø  Occupational safety and health laws
Ø  Labor laws
          Managing Ethics
Ø  Ethical lapses
Ø  Sarbanes-Oxley in 2003
          The Plan of This Book: Basic Themes
          HRM is the responsibility of every manager.
          HR managers must defend their plans and contributions in measurable terms.
          All personnel actions and decisions have strategic implications.
          All managers rely on information technology.
          Virtually every personnel decision has legal implications.
Ø  FIGURE 1–8        Strategy and the Basic Human Resource Management Process