Fundamentals of Human

Resource Management
Eighth Edition

DeCenzo and Robbins

Chapter 2
Fundamentals of HRM

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Course Description

• Modern organizations that successfully attract, hire, retain, and

support the top employees gain a sustainable competitive
advantage through increased productivity and reduced turnover
costs.
• Decisions about when and whom to hire, how much to pay, what
training to offer, and how to evaluate employees thus have
important consequences for an organization’s ability to reach its
objectives.
• This course is intended to show students that HRM is not merely
just accepting job applications and recordkeeping; it is a central
and strategic organizational activity of increasing
importance.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Management Essentials
• Management involves setting goals and
allocating scarce resources to achieve
them.
• Management is the process of
efficiently achieving the objectives of
the organization with and through
people.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Management Essentials
• Primary Functions of Management
– Planning – establishing goals
– Organizing – determining what activities
need to be done
– Leading – assuring the right people are on
the job and motivated
– Controlling – monitoring activities to be
sure goals are met

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
• The role of human resource managers has
changed. HRM jobs today require a new level
of sophistication.
– Federal and state employment legislation has
placed new requirements on employers.
– Jobs have become more technical and skilled.
– Traditional job boundaries have become blurred
with the advent of such things as project teams
and telecommuting.
– Global competition has increased demands for
productivity.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
• The Strategic Nature – HRM must be
– a strategic business partner and represent
employees.
– forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
– concerned with the total cost of its function
and for determining value added to the
organization.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
• HRM is the part of the organization
concerned with the “people” dimension.
• HRM is both a staff, or support function
that assists line employees, and a
function of every manager’s job.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
• HRM Certification
– Colleges and universities offer HR
programs.
– The Society for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
Four basic
functions:
• Staffing
• Training and
Development
• Motivation
• Maintenance

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 How External Influences Affect
HRM

• Strategic Environment
• Governmental Legislation
• Labor Unions
• Management Thought
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 How External Influences Affect
HRM
• HRM Strategic Environment includes:
– Globalization
– Technology
– Work force diversity
– Changing skill requirements
– Continuous improvement
– Work process engineering
– Decentralized work sites
– Teams
– Employee involvement
– Ethics

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 How External Influences Affect
HRM
• Governmental Legislation
– Laws supporting employer and employee
actions
• Labor Unions
– Act on behalf of their members by
negotiating contracts with management
– Exist to assist workers
– Constrain managers
– Affect non unionized workforce

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 How External Influences Affect
HRM
• Management Thought
– Management principles, such as those
from scientific management or based on
the Hawthorne studies influence the
practice of HRM.

– More recently, continuous improvement

programs have had a significant influence
on HRM activities.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Staffing Function Activities
• Employment planning
– ensures that staffing will contribute to the
organization’s mission and strategy
• Job analysis
– determining the specific skills, knowledge
and abilities needed to be successful in a
particular job
– defining the essential functions of the job

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Staffing Function Activities
• Recruitment
– the process of attracting a pool of qualified
applicants that is representative of all
groups in the labor market
• Selection
– the process of assessing who will be
successful on the job, and
– the communication of information to assist
job candidates in their decision to accept
an offer
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 Goals of the Training and
Development Function
• Activities in HRM concerned with
assisting employees to develop up-to-
date skills, knowledge, and abilities
• Orientation and socialization help
employees to adapt
• Four phases of training and development
– Employee training
– Employee development
– Organization development
– Career development

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The Motivation Function
• Activities in HRM concerned with helping
employees exert at high energy levels.
• Implications are:
– Individual
– Managerial
– Organizational
• Function of two factors:
– Ability
– Willingness
• Respect

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The Motivation Function
• Managing motivation includes:
– Job design
– Setting performance standards
– Establishing effective compensation and
benefits programs
– Understanding motivational theories

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 The Motivation Function
• Classic Motivation Theories
– Hierarchy of Needs –Maslow
– Theory X – Theory Y –McGregor
– Motivation – Hygiene – Herzberg
– Achievement, Affiliation, and Power Motives
– McClelland
– Equity Theory – Adams
– Expectancy Theory - Vroom

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 How Important is the
Maintenance Function
• Activities in HRM concerned with maintaining
employees’ commitment and loyalty to the
organization.
– Health
– Safety
– Communications
– Employee assistance programs
• Effective communications programs provide
for 2-way communication to ensure that
employees are well informed and that their
voices are heard.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
• Four Functions:
– Employment
– Training and development
– Compensation/benefits
– Employee relations

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
• Employment - Employment specialists:
– coordinate the staffing function
– advertising vacancies
– perform initial screening
– interview
– make job offers
– do paperwork related to hiring
• Training and Development –
– help employees to maximize their potential
– serve as internal change agents to the organization
– provide counseling and career development

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
• Compensation and Benefits –
– establish objective and equitable pay
systems
– design cost-effective benefits packages
that help attract and retain high-quality
enployees.
– help employees to effectively utilize their
benefits, such as by providing information
on retirement planning.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
• Employee Relations – involves:
– communications
– fair application of policies and procedures
– data documentation
– coordination of activities and services that
enhance employee commitment and
loyalty
– Employee relations should not be confused
with labor relations, which refers to HRM in
a unionized environment.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 Translating HRM Functions
into Practice
• Purpose and Elements of HRM
Communications
– Keep employees informed of what is
happening and knowledgeable of policies
and procedures.
– Convey that the organization values
employees.
– Build trust and openness, and reinforce
company goals.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
• Effective Communication programs
involve:
– Top Management Commitment
– Effective Upward Communication
– Determining What to Communicate
– Allowing for Feedback
– Information Sources

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 Does HRM Really Matter?
• Research has shown that a fully functioning
HR department does make a difference.
• Organizations that spend money to have
quality HR programs perform better than
those who don’t.
• Practices that are part of superior HR
services include:
– rewarding productive work
– creating a flexible work-friendly environment
– properly recruiting and retaining quality workers
– effective communications

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 HRM in an Entrepreneurial
Enterprise
• General managers may perform HRM
functions, HRM activities may be
outsourced, or a single generalist may
handle all the HRM functions.
• Benefits include
– freedom from many government regulations
– an absence of bureaucracy
– an opportunity to share in the success of
the business

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 HRM in a Global Village
• HRM functions are more complex when
employees are located around the
world.
• Consideration must be given to such
things as foreign language training,
relocation and orientation processes,
etc.
• HRM also involves considering the
needs of employees’ families when they
are sent overseas.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins
 HR and Corporate Ethics
• HRM must:
– Make sure employees know about
corporate ethics policies
– Train employees and supervisors on how
to act ethically

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

 HR and Corporate Ethics
• The Sarbanes-Oxley Act passed in
2002, establishes procedures for public
companies regarding how they handle
and report their financial status.
– Establishes penalties for noncompliance.
– Provides protection for employees who
report executive wrongdoing.
– Requires that companies have
mechanisms in place where complaints
can be received and investigated.
Fundamentals of Human Resource Management 8e, DeCenzo and Robbins