Human Recourses Management Chapter - 1 The Strategic Role of Human Resource Management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.Introduction * Competitiveness — a company’s ability to maintain and gain market share *Human resource management — the policies, practices, and systems _ that influence employees’ behavior, attitudes, and performance includes recruiting, selecting, training , screening rewarding &apprisingResponsibilities of HR Departments + Employment and recruiting * Training and development * Compensation + Benefits + Employee services + Employee and community relations + Personnel records * Health and safety * Strategic planningWhat Roles Do HR Departments Perform?How is the HRM Function Changing? + Time spent on administrative tasks is decreasing and its roles as a strategic business partner, change agent, and employee advocate are increasing * This shift presents two important challenges: > Self-service — giving employees online access to information about HR issues > Outsourcing — the practice of having another company provide servicesThe Management Process Planning Goals& Standards Staffing Hired& selectingHuman Resource Management at Work « What Is Human Resource Management (HRM)? > The process of a management position, including recruiting, screening, training, rewarding, and appraising.Human Resource Management Process at Work Dr Leer) Duet eeu (HRM) Labor Relations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 Communicating Training and developing managers Building employee commitmentPersonnel Mistakes Hire the wrong person for the job Experience high turnover Waste time with useless interviews 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 A\ company needs to achieve its strategic goals.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.Line Managers’ HRM Responsibilities Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person or 2 PP Gaining creative cooperation and developing smooth working relationships Interpreting the firm’s policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department morale — 0. Protecting employees’ health and physical conditionHuman Resource Managers’ Duties Coordinative Function Functional Authority Functions of HR ManagersHuman Resource Specialties Labor Relations Specialists EEO Coordinators Advise management on Org. Practices UMR Human Violations Resource SpecialtiesFIGURE 1-2 HR Organizational Chart (Small Company)The Changing Environment of Human Resource Management Workforce Demographic TrendsThe Changing Environment of HR Management :Globalization Trends 1. Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. 2. Globalization of the world economy and other trends has triggered changes in how companies organize, manage and use their HR departments. 3. More globalization means more competition, and more competition means more pressure to lower costs, make employees more productive, and do things better and less expensivelyThe Changing Environment of HR Management :Technological Trends 1. Virtual online communities, virtual design environments and Internet-based distribution systems have enabled firms to become more competitive. 2. HR faces the challenge of quickly applying technology to the task of improving its own operations.The Changing Environment of HR Management :Trends in the Nature of Work - Jobs are changing due to new technological demands. -Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees - Nontraditional workers, such as those who hold multiple jobs, part-time workers, or people working in alternative work arrangements, enable employers to keep costs down. 1. High-Tech Jobs — More jobs have gone high tech, requiring workers to have more education and skills. 2. Service Jobs — Most newly created jobs are and will continue to be in the service sector. 3. Human Capital - refers to the knowledge, education, training, skills, and expertise of a firm’s workers The HR function must employ more sophisticated and creative means to identify, attract, select, train and motivate the required work forceThe Changing Environment of HR Management :Workforce Demographic Trends 1. The labor force is getting older and more multi- ethnic. 2. The aging labor force presents significant changes in terms of potential labor shortages, and many firms are instituting new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees. 3. high rates of immigration also present challenges and opportunities for HR managers.The Changing Role of Human Resource Management Managing with the a HR Scorecard Re ey Process for HR Managers 13The Changing Role of HR Management Strategic HRM ; 1. Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness of new or proposed HR programs. 2. Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firm’s strategic aims.‘such practices often results in surprising benefts. Creating High Performance Work Systems (HPWS) HR can impact organizational performance in 3 ways: 1. through the use of technology many HR tasks (payroll, reference checks, wellness programs, etc.) are being outsourced to specialist service providers. through effective HR practices Pre-employment personality testing and increased training are just two HR practices that can produce employees who perform better. High Performance Work Systems — Employment security, selective hiring, extensive training, self managed team and decentralized decision making, information sharing, contingent rewards, Implementation of such practices often results in surprising benefits.Measuring the HR Management Team’s Performance 1. HR managers need a set of quantitative performance measures (metrics) they can use to assess their operations. 2. These metrics allow managers to measure their HR units’ efficiency.Managing With the HR Scorecard : The HR Scorecard is a concise measurement system, showing quantitative standards or “metrics” 1. used to measure HR activities, employee behaviors resulting from these activities, 2. and to measure the strategically relevant organizational outcomes of those employee behaviors. 3. The scorecard highlights the causal link between HR activities, emergent employee behaviors, and the resulting firm-wide strategic outcomes and performanceFIGURE 1-5 HR Metric* Absence rate ‘Average # of employees during month x # of workdays Cost per hire Five Sample HR Metrics How to Calculate It # of days absent in month * 100 Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits HR expense factor Time to fill Turnover rate ‘SSepennin oe Beata haw wnyFevnar0i e120 oman Mey we Seater tise wna esate neque’ Sh a ing 25) pp 10s Ba ‘Sims 20 Cot Pare a Stair cs Sunt wm shm See sb. SHAM Reause2008 Sep Number of hires HR expense Total operating expense Total days elapsed to fill job requisitions Number hired Number of separations during month x 100 Average number of employees during month sgn, uy 2p 2-8 eV as le. a een apa lh mtr esc Comers Png howe carpe uy rapevem Sey Bapot Sey ona esoThe Human Resource Manager’s Proficiencies + New Proficiencies > HR proficiencies represent knowledge and skills in the area such as selection > Business proficiencies Hr Manager should be strategists thinking » Leadership proficiencies ability to work and lead management group > Learning proficiencies ability to apply new technology and practicesFIGURE 4-8 Strategy and the Basic Human Resource Management Process Train Recruit —— employees Appnise candidates _ > based on job _. | employees coinjoes requirements. Chapter 4 Chapter 5 Chapters 6,7 Chapter 8 Chapters 9,10 Chapters 11,12, 13KEY TERMS management process globalization human resource management human capital (HRM) strategy authority strategic plan line manager metrics staff manager HR Scorecard line authority outsourcing staff authority ethics implied authority strategic human resource functional control management employee advocacy high-performance work system