HUMAN RESOURCE MANAGEMENT

Global Edition 12e

Chapter 1
Introduction to
Human Resource
Management

Part 1 Introduction

GARY DESSLER
WHERE WE ARE NOW…

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LEARNING OUTCOMES
1. Explain what human resource management is and how
it relates to the management process.
2. Show with examples why human resource management
is important to all managers.
3. Illustrate the human resources responsibilities of line
and staff (HR) managers.
4. Briefly discuss and illustrate each of the important
trends influencing human resource management.
5. List and briefly describe important trends in human
resource management.
6. Define and give an example of evidence-based human
resource management.
7. Outline the plan of this book.
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Human Resource Management at Work
• What Is Human Resource Management (HRM)?
 The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.
• Organization
 People with formally assigned roles who work together to
achieve the organization’s goals.
• Manager
 The person responsible for accomplishing the organization’s
goals, and who does so by managing the efforts of the
organization’s people.

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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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
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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 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

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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 is the right to make decisions, to direct the
work of others, and to give orders.
• line authority traditionally gives managers the right
to issue orders to other managers or employees.
Line authority therefore creates a superior (order
giver) subordinate (order receiver) relationship.
• When the vice president of sales tells her sales
director to get the sales presentation ready by
Tuesday, she is exercising her line authority
• On the organization chart, managers with line
authority are line managers.

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Line and Staff Aspects of HRM
• Staff authority gives a manager the right to advise
other managers or employees. It creates an advisory
relationship.
• When the human resource manager suggests that
the plant manager use a particular selection test, he
or she is exercising staff authority
• Those with staff (advisory) authority are staff
managers

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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 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

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 Human Resource Managers’ Duties

Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

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Functions of the HR Manager
A line function
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–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 . Here he or she ensures that line managers are implementing the firms human resource policies and practices

Staff (assist and advise) functions

FIGURE 1–1 Human Resources Organization Chart for a Large Organization

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FIGURE 1–2 Human Resources Organization Chart for a Small Company

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 Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist Job analyst

Compensation
manager

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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.

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Examples of HR Job Duties

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.

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New Approaches to Organizing HR

New HR Services Groups

Transactional HR Corporate Embedded Centers of

group HR group HR unit Expertise

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New Approaches to Organizing HR
• Transactional HR
Uses centralized call centers and outsourcing activities to deal with day to day transactional activities (such as changing benefits plans and employee assistance and counseling)
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• Corporate HR
Focus on top management in top level big picture issues i.e. long term strategic plan
 Trends Shaping Human Resource
Management

Globalization
and Competition
Trends

Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends

Economic
Challenges and
Trends

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FIGURE 1–4 Trends Shaping Human Resource Management

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Globalization and Competition Trends
• Globalization refers to the tendency of firms to extend
their sales, ownership, and/or manufacturing to new
markets abroad.
• Reduce tariffs and barriers among trading partners
• Companies expand abroad for several reasons.
 Sales expansion
 new foreign products and services to sell, and to cut labor costs.
 Forming partnerships
 For businesspeople, globalization means more competition, and
more competition means more pressure to be world-class to
lower costs, to make employees more productive, and to do
things better and less expensively.

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Technological Trends
• Social media sites and apps
• LinkedIn , twitter , facebook

Copyright © 2011 Pearson Education 1–24

Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs 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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Meeting Today’s HRM Challenges

The New Human Resource

Managers

Acquire broader
Focus more on Find new ways
business
“big picture” to provide
knowledge and
(strategic) transactional
new HRM
issues services
proficiencies

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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 Existing Research

measurements data 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)
 SHRM’s 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 course: 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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FIGURE 1–10 Strategy and the Basic Human Resource Management Process

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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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