HUMAN RESOURCE MANAGEMENT

12th Edition

Chapter 1
Introduction to
Human Resource
Management

Part 1 Introduction

GARY DESSLER

Human Resource Management at Work

What Is Human Resource Management (HRM)?
The effective use of people to achieve both organizational

and individual goals

The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.

Why care about HRM?

Impact on you as employees
Impact on you as managers

Potential future roles as HR professionals

Impact of HRM on organizations

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Human Resource Management at Work

Organization
People with formally assigned roles who work together to

achieve the organizations goals.

Manager
The person responsible for accomplishing the organizations

goals, and who does so by managing the efforts of the

organizations people.

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The Management Process

Planning

Controlling

Leading

Organizing

Staffing

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Human Resource Management Processes

Recruitment

Training

Fairness
Human
Resource
Management
(HRM)

Health and
Safety

Labor
Relations

Appraisal

Compensation
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Personnel Aspects of a Managers 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
Communicating
Training and developing managers
Building employee commitment
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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 firm in court because of discriminatory actions.
Have your firm cited by Occupational Safety Laws for
unsafe practices and accidents.
Have some employees think their salaries are unfair and
inequitable relative to others in the organization.
Allow a lack of training to undermine your departments
effectiveness.
Commit any unfair labor practices.
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Basic HR Concepts
The bottom line of managing:

Getting results
HR creates value by engaging in
activities that produce the employee
behaviors that the organization needs
to achieve its strategic goals.
Looking ahead: Using evidence-based
HRM to measure the value of HR
activities in achieving those goals.

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Line and Staff Aspects of HRM

Authority
The right to make decisions, direct others work, and give

orders.

Line authority
The authority exerted by an HR manager by directing the

activities of the people in his or her own department and in

service areas.

Staff Authority
Staff Authority gives the manager right (authority) to advise

other managers or employees.

Functional Authority
The authority exerted by and HR Manager as coordinator of

personnel activities.

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Line and Staff Aspects of HRM

Line Manager
Is authorized (has line authority) to direct the work of

subordinates and is responsible for accomplishing the

organizations tasks.

Staff Manager
Assists and advises line managers.
Has functional authority to

coordinate personnel activities

and enforce organization policies.

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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 firms 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
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Human Resource Managers Duties

Functions of
HR Managers

Line Function
Line Authority

Coordinative
Function
Functional Authority

Staff Functions
Staff Authority
Assist & Advise

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FIGURE 11 Human Resources Organization Chart for a Large Organization

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FIGURE 12 - Human Resources Organization Chart for a Small Company

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Human Resource Specialties

Recruiter

Labor relations
specialist

Training
specialist

Human
Resource
Specialties

EEO
coordinator

Job analyst

Compensation
manager
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New Approaches to Organizing HR

New HR Services Groups

Transactional HR
group

Corporate
HR group

Embedded
HR unit

Centers of
Expertise

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New Approaches to Organizing HR

Transactional HR
Departmental activities such as payroll, benefits
administration and records keeping are easily outsourced or
digitized (or should be) with significant cost savings.

Corporate HR
HR may be at plant level or may be restricted/ responsible
at particular location only. Corporate HR is the person who
is working at corporate level & handling centralized HR
activity and assist top management in developing long-term
strategic plans.

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New Approaches to Organizing HR

Embedded HR
To assign HR generalist directly to departments like sales

and production, to provide the localized human resource

management assistance and department needs.

The Centers of Expertise

The Centers of Expertise are like specialized HR consulting

firms within the company, providing specialized

assistance.

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Trends Shaping Human Resource

Management
Globalization
and Competition
Trends
Indebtedness
(Leverage) and
Deregulation

Technological
Trends

Trends in HR
Management
Workforce and
Demographic
Trends

Trends in the Nature

of Work

Economic
Challenges and
Trends
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FIGURE 14

Trends Shaping Human Resource Management

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FIGURE 15

Employment Exodus: Percent of employers who said they

planned as of 2008 to offshore a number of these jobs

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Trends in the Nature of Work

Changes in How We Work

High-Tech
Jobs

Service
Jobs

Knowledge Work
and Human
Capital

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Workforce and Demographic Trends

Demographic Trends
Generation Y
Trends Affecting
Human Resources
Retirees
Nontraditional Workers

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FIGURE 16

Gross National Product (GNP)

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FIGURE 17

Case-Shiller Home Price Indexes

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Important Trends in HRM

The New HR
Managers

Strategic
HRM

Evidence-Based
HRM

Human Resource
Management
Trends

High-Performance
Work Systems

Managing
Ethics

HR
Certification
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Meeting Todays HRM Challenges

The New Human Resource
Managers

Focus more on big

picture
(strategic issues)

Find new ways to

provide
transactional
services

Acquire broader
business
knowledge and
new HRM
proficiencies

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FIGURE 18 Effects CFOs Believe Human Capital Has on Business Outcomes

132

High-Performance Work Systems

Increase productivity and performance by:
Recruiting, screening and hiring more effectively
Providing more and better training
Paying higher wages
Providing a safer work environment
Linking pay to performance

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Evidence-Based HRM
Providing Evidence for
HRM Decision Making

Actual
measurements

Existing
data

Research
studies

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Managing Ethics
Ethics
Standards that someone uses to decide

what his or her conduct should be

HRM-related Ethical Issues

Workplace safety
Security of employee records
Employee theft
Affirmative action
Comparable work

Employee privacy rights

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HR Certification
HR is becoming more professionalized.
Society for Human Resource Management (SHRM)
SHRMs Human Resource Certification Institute (HRCI)

SPHR (Senior Professional in HR) certificate

GPHR (Global Professional in HR) certificate

PHR (Professional in HR) certificate

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The Plan of This Book: Basic Themes

HRM is the responsibility of every manager.
The workforce is becoming increasingly diverse.

Current economic challenges require that HR

managers develop new and better skills to
effectively and efficiently deliver and manage HR
services.
The intensely competitive nature of business today
means human resource managers must defend
their plans and contributions in measurable terms.

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KEY TERMS
organization
manager
management process
human resource management (HRM)
authority
line authority
staff authority
line manager
staff manager
functional authority
globalization
human capital

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otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

Copyright 2011 Pearson Education

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