Fundamentals of Chapter 2 Fundamentals of Strategic HRM Human Resource Management IleThe HRM Functions HRM has four basic functions: training In other words, hiring people, preparing them, stimulating them, and keeping them.Careers in HR HR positions include: * support other + who provide * work in one of * report to top HR service in all the four HR. management professionals four HR functions and coordinate functions HR functions to organizational strategy Interpersonal communication skills and ambition are two factors that HR professionals say advance their careers. Fundamentals of Human Resource Management lleDynamic Environment Peer cots RaCIRSESN? Fundamentals of Human Reso ARTE MeImportance of HRM HRM has a dual nature: supports the organization’s strategy represents and advocates for the employees Strategic HRM provides a clear connection between the organization's goals and the activities of employees. Fundamentals of Human Resource Management LeThe HRM Functions = Strategic human resource planning * Match prospects’ skills to the company’s strategy needs = Recruiting * Use accurate job descriptions to obtain an appropriate pool of applicants " Selection * Thin out pool of applicants to find the best choice Fundamentals of Human Reso NTARTEOMTS MeEntrepreneurial, Global, Ethical HR = Ethics * Sarbanes-Oxley act (sox) enacted in response to ethical failures in several large companies * Seeks to hold top management responsible for ethical practices * HR is responsible for much employee ethics training * HR communicates employee legal rights Fundamentals of Human Reso OTT MeStructure of the HR Department + Promotes staffing activities, recruits new employees, but does not make hiring decision SS external and internal environments Helps workers adapt to change in the compan} [ Cee toacrts |_________ + Pays employees and administers their benefits package TS erence nn os + Ensures open communication within the company by fostering top management commitment, upward and accurate communication, feedback, and effective information sources Findamentals of Human Res CET MeExternal Influences on HRM laws and regulations Legislation has an enormous effect on HRM Laws protect employee rights to union representation, fair wages, family medical leave, and freedom from discrimination based on conditions unrelated to job performance The U.S. Equal Employment Opportunity Commission www.eeoc.gov enforces federal laws on civil rights at work. Fundamentals of Human Reso OTT MeExternal Influences on HRM dynamic environment management thought laws and HRM regulations External influences affect HRM functions. Fundamentals of Human Resource Management 1eMatch the Fours Four major HR positions staffing, training, motivation, maintenance Four HR department environment, laws, labor unions, management areas thought ‘employment, training, compensation, Four quality programs employee relations Four HRM functions ‘assistants, generalists, specialists, executives . reward productive work Four external influences offer a flexible, work-friendly environment on HRM properly recruit and retain quality employees provide effective communications Fundamentals of Human Resource ManageExhibit 2-6 What Does It Take To Get To The Top? ‘key factors HR professionals said were very important in moving into or advancing in their careers:4 ‘Source: Kathy Gurchiak, “Survay: Kay Skills Advance HR Caroar,” HR Magazine, (April 2008). Fundamentals of Human Resource Management IeHR Certification = Human Resource Certification Institute has established these certifications for HR Professionals: * PHR * SPHR * GPHR * PHR-CA/SPHR CA * To learn more about the requirements, go to HRCLorg Fundamentals of Human Reso OTT MeCareers in HR Organizations that spend money for quality HR programs perform better than those that don’t. (HCI study) " Quality programs: * reward productive work * offer a flexible, work-friendly environment properly recruit and retain quality employees provide effective communications Make sure HR services match the overall organizational strategy. Fundamentals of Human Reso OTT MeThe HRM Functions training and development, =~ Orientation + Teach the rules, regulations, goals, and culture of the company = Employee training The goal is to have + Help employees acquire better skills for the job lei CRC = Employee development + Prepare employee for future position(s) in the company = Organizational development + Help employees adapt to the company’s changing strategic directions = Career development + Provide necessary information and assessment in helping employees realize career goals adapted (elem Fundamentals of Human Resource MaHR Trends and Opportunities = Outsourcing * More than half of all companies outsource all or some parts of their HR functions " Professional Employer Organizations (PEO) * Help small- to medium-size companies attract stronger candidates and handle new laws in HR = Shared Services * Allow organizations with several divisions or locations to consolidate some HR functions into one central location while retaining certain functions in divisional locations . Fundamentals of Human Reso OTT MeThe HRM Functions Theories and job design: = Environment and well-constructed jobs factor heavily in employee performance = Performance appraisals: + Standards for each employee; must provide feedback = Rewards and compensation: + Must be link between compensation and performance = Employee benefits: + Should coordinate with a pay-for-performance plan Fundamentals of Human Reso NTARTEOMTS MeEntrepreneurial, Global, Ethical HR = Small business HR * Managers in small businesses perform the same functions of those in larger businesses, but on a smaller scale = Global HRM * Growing area of HR * Complex environment Fundamentals of Human Reso OTT MeExternal Influences on HRM labor unions Assist workers in dealing with company management Negotiate wages, hours, and other terms of employment Promote and foster a grievance procedure between workers and management When a union is present, employers can not fire workers for unjustified reasons. Fundamentals of Human Reso ARTE MeThe HRM Functions maintenance Safety and health: wt = Caring for employees’ well-being has | \ a big effect on their commitment = Communications and employee relations: B + Keep employees well-informed of company doings, and provide a means of venting frustrations Job loyalty has declined over the past decade. Fundamentals of Human Resource Management [TeHR and Organizational Strategy ‘Strategy Type What If Looks Like Implications for HR Cost diferentiaton: Provide ‘great value and low cost. Emphasize acquiring low cost ‘materials, streamlining processes, reducing waste, ‘maximizing efficiencies (e.g, Wal- Mart, Hyundai). Structure jobs, departments to maximize cross training, knowledge sharing. Design compensation programs to reward ‘efficiency, cost savings. Selact employees with versatile skill sets. Proctdiferertation: Deliver productservice that Is similar to competitors but incorporates a feature(s) that differentiates it Emphasize creativity and innovation. Consumers faced vith multiple choices; identity ‘those features that make the productiservice stand out (e.., Apple, Netflix, Aveda). Design compensation systems to reward creativity, innovation. Educate employees about productservice differentiating features. Create marketing campaign to promote special product features. Customer Intimacy Strong personal relationship between provider of product or service and customer. Emphasize relationship between ‘consumers, point person. ‘rom competitors (e.g, local ‘salon, Pandora, Nordstrom). Recruit and select job candidates with strong customer service and customer relations skills to help fortify the provider/consumer relationship. Focus reward strategies on customer attraction, satisfaction and retention, CCustomeriMarkot Focus Unique target market ‘characteristics, Emphasize the noods of a specific target market, like generational or Iitestyle (e.g. Abercrombie & Fitch. Harley-Davidson, Urban ‘Ourtiters). Use strong market research to drive recruitment and selection so employees: have a strong understanding of the target market. Emphasize versatility and adaptability as products and services are subject to rapid change. Fundamentals of Human Resoue ManagExternal Influences on HRM managem thought = Frederick Taylor developed principles to enhance worker productivity = Hugo Munsterberg devised improvements to worker testing, training, evaluations, and efficiency = Mary Parker Follet advocated people-oriented organizations = Elton Mayo’s Hawthorne Studies: dynamics of informal work groups have a bigger effect on worker performance than do wage incentives The Hawthorne Studies gave rise to the human relations movement: benefits, healthy work conditions, concern for employee well-being. Fundamentals of Homan Reso Me