Fundamentals of Human Resource Management

Eighth Edition

DeCenzo and Robbins

Chapter 2
Fundamentals of HRM

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Management Essentials
Management involves setting goals and allocating scarce resources to achieve them. Management is the process of efficiently achieving the objectives of the organization with and through people.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Management Essentials
Primary Functions of Management
Planning establishing goals Organizing determining what activities need to be done Leading assuring the right people are on the job and motivated Controlling monitoring activities to be sure goals are met

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

The role of human resource managers has changed. HRM jobs today require a new level of sophistication.
Federal and state employment legislation has placed new requirements on employers. Jobs have become more technical and skilled. Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. Global competition has increased demands for productivity.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

The Strategic Nature HRM must be
a strategic business partner and represent employees. forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. concerned with the total cost of its function and for determining value added to the organization.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

HRM is the part of the organization concerned with the people dimension. HRM is both a staff, or support function that assists line employees, and a function of every managers job.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

HRM Certification
Colleges and universities offer HR programs. The Society for Human Resource Management and Human Resource Certification Institute offer professional certification.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

Four basic functions: Staffing Training and Development Motivation Maintenance

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

Strategic Environment Governmental Legislation Labor Unions Management Thought

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

HRM Strategic Environment includes:
Globalization Technology Work force diversity Changing skill requirements Continuous improvement Work process engineering Decentralized work sites Teams Employee involvement Ethics

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

Governmental Legislation
Laws supporting employer and employee actions

Labor Unions
Act on behalf of their members by negotiating contracts with management Exist to assist workers Constrain managers Affect non unionized workforce
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

Management Thought
Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM.
More recently, continuous improvement programs have had a significant influence on HRM activities.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Staffing Function Activities

Employment planning
ensures that staffing will contribute to the organizations mission and strategy

Job analysis
determining the specific skills, knowledge and abilities needed to be successful in a particular job defining the essential functions of the job

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Staffing Function Activities

Recruitment
the process of attracting a pool of qualified applicants that is representative of all groups in the labor market

Selection
the process of assessing who will be successful on the job, and the communication of information to assist job candidates in their decision to accept an offer
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Goals of the Training and Development Function

Activities in HRM concerned with assisting employees to develop up-todate skills, knowledge, and abilities Orientation and socialization help employees to adapt Four phases of training and development
Employee training Employee development Organization development Career development

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

Activities in HRM concerned with helping employees exert at high energy levels. Implications are:
Individual Managerial Organizational

Function of two factors:

Ability Willingness

Respect
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

Managing motivation includes:
Job design Setting performance standards Establishing effective compensation and benefits programs Understanding motivational theories

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

Classic Motivation Theories
Hierarchy of Needs Maslow Theory X Theory Y McGregor Motivation Hygiene Herzberg Achievement, Affiliation, and Power Motives McClelland Equity Theory Adams Expectancy Theory - Vroom

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How Important is the Maintenance Function

Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.
Health Safety Communications Employee assistance programs

Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Four Functions:
Employment Training and development Compensation/benefits Employee relations

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Employment - Employment specialists:
coordinate the staffing function advertising vacancies perform initial screening interview make job offers do paperwork related to hiring

Training and Development

help employees to maximize their potential serve as internal change agents to the organization provide counseling and career development
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Compensation and Benefits
establish objective and equitable pay systems design cost-effective benefits packages that help attract and retain high-quality enployees. help employees to effectively utilize their benefits, such as by providing information on retirement planning.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Employee Relations involves:
communications fair application of policies and procedures data documentation coordination of activities and services that enhance employee commitment and loyalty Employee relations should not be confused with labor relations, which refers to HRM in a unionized environment.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Purpose and Elements of HRM Communications
Keep employees informed of what is happening and knowledgeable of policies and procedures. Convey that the organization values employees. Build trust and openness, and reinforce company goals.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

Effective Communication programs involve:
Top Management Commitment Effective Upward Communication Determining What to Communicate Allowing for Feedback Information Sources

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Does HRM Really Matter?

Research has shown that a fully functioning HR department does make a difference. Organizations that spend money to have quality HR programs perform better than those who dont. Practices that are part of superior HR services include:
rewarding productive work creating a flexible work-friendly environment properly recruiting and retaining quality workers effective communications

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HRM in an Entrepreneurial Enterprise

General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions. Benefits include
freedom from many government regulations an absence of bureaucracy an opportunity to share in the success of the business

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HRM in a Global Village

HRM functions are more complex when employees are located around the world. Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. HRM also involves considering the needs of employees families when they are sent overseas.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HR and Corporate Ethics

HRM must:
Make sure employees know about corporate ethics policies Train employees and supervisors on how to act ethically

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HR and Corporate Ethics

The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status.
Establishes penalties for noncompliance. Provides protection for employees who report executive wrongdoing. Requires that companies have mechanisms in place where complaints can be received and investigated.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins