Gary Dessler

tenth edition

Chapter 1 Part 1 Introduction

The Strategic Role of

Human Resource Management
© 2005 Prentice Hall Inc. PowerPoint Presentation by Charlie Cook
 HR Branding
• Firm’s corporate image or culture
• Embodies values and standards that guide
peoples’ behavior
• People know what company stands for,
people it hires, fit between jobs and
people, and results it recognizes and
rewards
• Important in getting highest quality
applicants to join firm
The Manager’s Human Resource
Management Jobs
 Management process
– The five basic functions of planning, organizing,
staffing, leading, and controlling.

 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.
Human Resource Management
• Utilization of individuals to
achieve organizational objectives
• All managers at every level must
concern themselves with human
resource management
• Five functions
Human Resource Management Functions

Human
Resource
1
Management

Safety and
Health
Staffing

• Job Analysis
• Human Resource Planning
• Recruitment
• Selection
 Staffing (Cont.)
• Staffing - Process through which
organization ensures it always has proper
number of employees with appropriate
skills in right jobs at right time to achieve
organizational objectives
• Job analysis - Systematic process of
determining skills, duties, and knowledge
required for performing jobs in
organization.
 Staffing (Cont.)
• Human resource planning - Systematic process
of matching the internal and external supply of
people with job openings anticipated in the
organization over a specified period of time .
• Recruitment - Process of attracting individuals
on a timely basis, in sufficient numbers, and with
appropriate qualifications, to apply for jobs with
an organization
 Staffing (Cont.)
• Selection - Process of choosing from a
group of applicants the individual best
suited for a particular position and the
organization
Human Resource Development

• Training
• Development
• Career Planning
• Career Development
• Organizational Development
• Performance Management
• Performance Appraisal
 Human Resource Development
(Cont.)
• Training - Designed to provide learners
with knowledge and skills needed for their
present jobs
• Development - Involves learning that goes
beyond today's job; it has more long-term
focus
• Career planning - Ongoing process
whereby individual sets career goals and
identifies means to achieve them
 Human Resource Development
(Cont.)
• Career development - Formal approach
used by organization to ensure that people
with proper qualifications and experiences
are available when needed
• Organization development - Planned
process of improving organization by
developing its structures, systems, and
processes to improve effectiveness and
achieving desired goals
 Human Resource Development
(Cont.)
• Performance management - Goal-oriented
process directed toward ensuring
organizational processes are in place to
maximize productivity of employees, teams,
and ultimately, the organization
• Performance appraisal - Formal system of
review and evaluation of individual or team
task performance
 Compensation

Compensation -
All rewards that
individuals receive
as a result of their
employment
 Compensation
• Direct Financial Compensation - Pay that
person receives in form of wages, salaries,
bonuses, and commissions.
• Indirect Financial Compensation (Benefits) - All
financial rewards not included in direct
compensation such as paid vacations, sick
leave, holidays, and medical insurance.
• Nonfinancial Compensation - Satisfaction that
person receives from job itself or from
psychological and/or physical environment in
which person works.
Safety and Health

Employees who work

in safe environment
and enjoy good health
are more likely to be
productive and yield
long-term benefits to
organization.
 Safety and Health
• Safety - Involves protecting employees
from injuries caused by work-related
accidents
• Health - Refers to employees' freedom
from illness and their general physical and
mental well being
 Employee and Labor Relations
• Private-sector union membership has fallen from
39 percent in 1958 to 7.8 percent in 2005.
• Business is required by law to recognize a union
and bargain with it in good faith if the firm’s
employees want the union to represent them
• Human resource activity is often referred to as
industrial relations
• Most firms today would rather have a union-free
environment
 Personnel Aspects Of A Manager’s Job
 Conducting job analyses (determining the nature of each
employee’s job)
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment

© 2005 Prentice Hall Inc. All rights reserved. 1–19

 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 receive penalties 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

© 2005 Prentice Hall Inc. All rights reserved. 1–20

 Basic HR Concepts

Getting results
– The bottom line of managing

HR creates value by engaging

in activities that produce
the employee behaviors
the company needs to
achieve its strategic
goals.

© 2005 Prentice Hall Inc. All rights reserved. 1–21

 Line and Staff Aspects of HRM
 Line manager
– A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
 Staff manager
– A manager who assists and advises line managers.

© 2005 Prentice Hall Inc. All rights reserved. 1–22

 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 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

© 2005 Prentice Hall Inc. All rights reserved. 1–23

 Functions of the HR Manager
 A line function
– The HR manager directs the activities of the
people in his or her own department and in
related service areas (like the plant cafeteria).
 A coordinative function
– HR managers also coordinate personnel activities,
a duty often referred to as functional control.
 Staff (assist and advise) functions
– Assisting and advising line managers is the heart
of the HR manager’s job.

© 2005 Prentice Hall Inc. All rights reserved. 1–24

 HR and Authority
 Authority
– The right to make decisions, direct others’ work,
and give orders.
 Implied authority
– The authority exerted by an HR manager by virtue
of others’ knowledge that he or she has access to
top management.

© 2005 Prentice Hall Inc. All rights reserved. 1–25

 Employee Advocacy
 HR must take responsibility for:
– Clearly defining how management should be
treating employees.
– Making sure employees have the mechanisms
required to contest unfair practices.
– Represent the interests of employees within the
framework of its primary obligation to senior
management.

© 2005 Prentice Hall Inc. All rights reserved. 1–26

 Examples of HR Job Duties
 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.

© 2005 Prentice Hall Inc. All rights reserved. 1–27

 Examples of HR Job Duties (cont’d)
 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.

© 2005 Prentice Hall Inc. All rights reserved. 1–28

Human Resource Research

• Human resource
research is not
separate function.
• It pervades all HR
functional areas.
Interrelationships of HRM
Functions

• All HRM functions

are interrelated
• Each function affects
other areas