Part I: Introduction to Human Resource Management

Part I: Introduction to Human Resource Management

1.The Nature & Context of HRM 2.HRM in a Changing Environment

3.Strategic HRM

The context of human resource management

Source: Bratton & Gold (4th Edition)

Human Resource Management

What is HRM? Managing people, individually and collectively, at work Role of HRM: The real sources of competitive leverage are the culture and capabilities of your organization that derive from how you manage your people.

The Nature of Human Resource Management

The Management Perspective

The Nature of Human Resource Management Employee Perspective

Describes dynamic interlocking relations that exist between individuals and their work organizations.

Considers economic, legal, social and psychological relations.

Personnel Aspects Of A Managers Job

Conducting Job Analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Compensating employees (salaries & benefits)

Appraising performance
Communicating (interviewing, counseling, disciplining) Creating successful organization Culture

17

HR Organizational Chart (Small Company)

Figure 12
18

HR Department Organizational Chart (Large Company)

Source: Adapted from BNA Bulletin to Management, June 29, 2000.

Figure 11
19

Employment and RecruitingWho Handles It? (percentage of all employers)

Note: length of bars represents prevalence of activity among all surveyed employers.
Source: HR Department Benchmarks and Analysis, BNA/Society for Human Resource Management, 2002.

Figure 13
110

Strategic Role of HRM

Strategic Human Resource Management Key questions

What determines how HR strategy is formulated? Does HR strategy really matter?

How do corporate decisions impact on HRM? How does HRM impact on the bottom line?

Measuring HRs Contribution

Strategy
The companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
HR managers today are more involved in partnering with their top managers in both designing and implementing their companies strategies.

A strategic approach to HRM

An organizations [human resource management] policies

and practices must fit with its strategy in its competitive environment and with the immediate business conditions that it faces.

Top management wants to see, precisely, how the HR managers plans will make the company more valuable.

113

Strategic Human Resource Management

Strategy and the Basic HR Process

Source: Human Resource Management by Gary Dessler

Figure 18
115

Strategic Human Resource Management

Organizational Strategies

Strategic Human Resource Management

HR Strategy models
HR Strategies

The patterns of decisions regarding HR policies and practices used by management to design, work and select, train and develop, appraise, motivate and control workers.

Effects CFOs Believe Human Capital Has on Business Outcomes

Source: Steven H. Bates, Business Partners, HR Magazine, September 2003, p. 49

Figure 16
119

HRM Functions and Strategy

Importance of HRM

HRM has a dual nature:

.

supports the organizations strategy

represents and advocates for the employees

Strategic HRM provides a clear connection between the organizations goals and the activities of employees.

Structure of the HR Department

There are four areas in a typical nonunion HR department: promotes staffing activities, recruits new employees, but does not make hiring decision

employment

training and development

helps workers adapt to change in the companys external and internal environments

compensation/ benefits

pays employees and administers their benefits package

employee relations

ensures open communication within the company by fostering top management commitment, upward and accurate communication, feedback, and effective information sources

The New Role & function of HR

The NEW Role & function of HR

Workforce Diversity
Todays workers want a healthy work/life balance. They can work any time, from almost anywhere work more than 40 hours per week are part of a dual-income household
#1 reason for leaving a company: lack of work schedule flexibility

Internal Role of HR
HRM is a subset of management. It has five main goals:

attract
employees

retain
employees

Goals of HRM

hire
employees

motivate
employees

train
employees

Strong employees = competitive advantage.

External role & Impact of HR

focus on customer concern for continuous improvement

empowerment of employees

continuous improvement components

accurate measurement

concern for total quality

Continuous Improvement Programs HR managers help workers adapt to continuous improvement changes through retraining, providing answers, and monitoring expectations.

Employee Involvement
Its all about employee empowerment through involvement, which increases worker productivity and loyalty.

Employee Involvement Concepts delegation participative management work teams goal setting employer training

See http://workhelp.org/joomla/content/view/284/ for managerial tips on empowering employees.

The Nature of Human Resource Management

Models of Human Resource Management

The Nature of Human Resource Management

Theoretical perspectives on HRM
HRM models fulfill at least 4 important intellectual functions for those studying HRM:
1.Provide an analytical framework for studying HRM. 2.Legitimate certain HRM practices.

3.Establish variables and relationships to be researched.

4.Explain the nature and significance of key HR practices.

The Nature of Human Resource Management

The Nature of Human Resource Management

The Nature of Human Resource Management

The Nature of Human Resource Management

The Nature of Human Resource Management 1 of 2

The Nature of Human Resource Management 2 of 2

Benefits of HRIS: HPWS

High Performance Work System (HPWS)
More job applicants Effective Screening of candidates More & better training opportunities Pay linked to performance, more explicitly 1Safer work environment More qualified applicants per position Validated selection tests More hours of training for new employees Regular performance appraisals.

136

The HRM Context & Challenges

Other HRM Challenges

Challenges for HRM: The recession has brought layoffs and low morale. Increased offshoring means jobs can move overseas, even HR.

Todays spate of mergers and acquisitions increase HRs role.

Examples of HR Job Duties (contd)

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.

139

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.

140