HRM practices and responsibilities

• "People's practices" are policies, practices, and systems that influence employees behaviors, attitudes, and performance

HRM Practices

• Analyzing and designing work
• Determining human resource needs (HR planning)
• Attracting potential employees (recruiting)
• Choosing employees (selection)
• Teaching employees how to perform their jobs and preparing them for the future (training and development)
• Rewarding employees (compensation)
• Evaluating their performance (performance management)
• Creating a positive work environment (employee relations)
• Effective HRM practices are strategic and enhance company performance

Responsibilities and Roles of HR

• Analysis and Design of Work include job analysis, work analysis, job descriptions
• Recruitment and selection include recruiting, posting job descriptions, interviewing, testing, coordinating use of temporary employees
• Training and Development include orientation, skills training, development programs, career development
• Performance management includes performance measures, preparation and administration of performance appraisals, feedback and coaching, discipline
• Compensation and Benefits include wage and salary administration, incentive pay, insurance, vacation, retirement plans, profit sharing, health and wellness, stock plans
• Employee relations/labor relations include attitude surveys, employee handbooks, labor law compliance, relocation and outplacement services
• Personnel policies include policy creation and policy communications
• Employee data and information systems include record keeping, HR information systems, workforce analytics, social media, intranet and Internet access
• Legal compliance include policies to ensure lawful behavior, safety inspections, accessibility accommodations, privacy policies, ethics
• Support for business strategy includes human resource planning and forecasting, talent management, change management, organization development

HR Department

• Responsible for outplacement, labor law compliance, record keeping, testing, unemployment compensation, and some aspects of benefits administration
• Collaborates on other company functions

Large Companies

• More likely to employ HR specialists (most prevalent- benefits specialists)
• Other specializations include recruitment, compensation, and training and development

HR Roles

• Depends on company size, workforce characteristics, industry, and value system of company management
• May take full responsibility of HR activities or share roles with different department managers like finance, operations, and IT
• Some advice top level management; some make decisions after top managers decided on relevant issues

Companies

• With more manager accountability for employees believe traditional HR departments are unnecessary
• Inhibit innovation due to unnecessary and inefficient policies and procedures
• Important payroll, benefits, and other HR processes are automated or outsourced
• Small owners take HR responsibilities
  • To reduce cost of having an HR manager
  • Unwilling or unable to delegate HR responsibilities or share information with others
• 45% of business owners spend one day each week or more on HR administration
• Less than 50% of small-business owners are very confident about the way their companies handle HR

Advantages of HR Professionals and HR Department

• Managers lack knowledge in understanding employment laws
• 70% of businesses with less than 50 employees give HR responsibilities to employees with little to no experience in workforce issues

Business partners

• Work with business-unit managers on strategic issues
• Creating new compensation plans or development programs

Self-Service

• Gives employees online access to information about HR issues like training, benefits, compensation, and contracts
• Enrolling online in programs and services
• Completing online attitude surveys
• HR to focus more on consulting managers on important employee issues and less on day-to-day transactional tasks
• PeopleSoft human capital management system gave managers more control over transactions

Outsourcing

• Having another company provide services which is a vendor, third party, or consultant
• Most commonly outsourced activities include benefits administration, relocation, payroll

Major Reasons

• Cost savings
• Increased ability to recruit and manage talent
• Improved HR service quality
• Protection of company from potential lawsuits by standardizing processes such as selection and recruitment

HRM department

• Considered an administrative expert and employee advocate
• Took care of employee problems, right pay, labor contracts
• Avoided legal problems
• Ensured that employee-related issues did not interfere with the manufacturing or sales

HR Issues

• Primarily reactive= HR issues were a concern if they directly affected the business
• HRM is important for business success
• Companies expanded role of HRM as change agent and strategic partner

HR Professionals

• Expected to lead efforts focused on talent management and performance management
• Able to use and analyze data to make a business case for ideas and solutions
• Report directly to CEO, president, or board of directors
• To answer how people strategies drive value for the company
• Use people management skills across business

Spin-offs

• New companies created from parent company with specialized focus on one aspect
• HR issues include retaining talent, ensuring motivation and enthusiasm of employees

Evaluating the relationship between HRM and business strategy

• “What is HRM doing to ensure that the right people with the right skills are doing the right things in the jobs that are important for the execution of the business strategy?”
• Structure and responsibilities of HR departments are changing to ensure they have a strategic role Improving employee and customer experience
• Happier employees are more likely to work hard to satisfy customers
• HRM may be the most important lever for companies to gain a competitive advantage over both domestic and foreign competitors
• HRM practices are directly related to companies' success in meeting competitive challenges.

Demonstrating the Strategic Value of HRM

• "Which practices are effective?"
• "Which practices are cost-effective?"
• Time and money invested in HR programs should be worthwhile
• Human resources are as important to the business as finance, marketing, and accounting

Positive Influence

• Demonstration that HR practices have a positive influence on the company's bottom line or key stakeholders, employees, customers, community, or shareholders
• Requires the use of HR or workforce analytics
  • Practice of using quantitative methods and scientific methods to analyze data(often big data) to execute business strategy and achieve goals
  • Merged from HR databases, corporate financial statements, employee surveys, and other data sources to make evidence-based HR decisions
  • Lack business acumen which means expertise in relating human resources to real-world business

HR Profession

• Position and jobs- New generation of HR professionals- requires a four-year college degree and completed a graduate HR degree
  • Human Resources expertise with social skills and legal knowledge relating to HR practices
  • Will likely continue to be in transition in the near future
  • Primary activities involve performing the HR generalist role providing a wide range of HR services

Key aspects

• Fewer HR professionals are involved in the HR function at the executive level of the company, training and development, HR consulting, and administrative activities
• Salaries for HR vary according to position, level of experience, training, location, and firm size
• Some positions involve work in specialized areas such as recruiting, training, or industrial relations and benefits administrations
• Important to have experience including recruiting, selection, and training "HR is literally the core to every organization

Competencies

• Integration of core values and expertise is expected in HR personal
• Well-rounded educational background will serve a person well in an HRM position
• Directs initiative and processes within the organization and gains buy in from stockholders
• Top-level HR professionals are generalists
  • Expert in benefits, compensation, and labor relations
• Focus on employee engagement and managing company culture
• HR leaders needs to implement innovation towards work culture/ethic

Competitive Challenges

• Influencing Human Resource Management as well as Sustainability, Global and Technology factors
• Economy has important implications for HRM which may include structure of the economy, aging population, occupation growth and required skills may vary

Adaption

• Adoption of advanced technology and digital tools
• Skills manufacturing executives need now and future: STEM, technology/computer skills, digital literacy

Workforce

• A new generation is emerging creating slow population growth and a lack of skilled employees
• Companies will need to give more attention to HR practices to retain employees

Intangible Assets (Human Capital)

• Skills needed to interpret, create, and strategically use digital information especially in the areas of numeracy and digital problem solving
• Companies are interested in using intangible assets and human capital to gain an advantage over competitors like
  • Tacit Knowledge
  • Customer Relations

Strategic Role of the HR Function

• Enables organizational performance when HR leaders are strategically aligned with business priorities
• HRM must understand financial performance measures and the relationship of HR processes to financial outcomes

Empowerment and Continuous Learning

• Companies promote continuous learning at employee, team, and company levels embracing a culture of life-long learning where employees share their evolving knowledge
• HR challenge is how to build a committed, productive workforce in economic conditions that offer opportunity for financial success even if it quickly turns sour
• HRM functions need to be built into the the strategy formulation processes and support them
• HR strategy is to align with the competitive strategy and ensure the right people are doing the right things with the right skills

Maximizing employee engagement and workforce abilities

• Companies provide clear strategy and direction to keep employees engaged toward long term company goals
• Provide flexibility to help employees meet work and life demands such as options for remote work settings
• Workforce analysis allows strategic planning
• Allows leaders to optimize their internal and external talent processes aligned with strategy

Nontraditional Workforce

• Allows employees to improve their mental through schedule diversity and co-working options
• A strategic statement that communicates the company values, how management interacts with employees and how an employee influences company success

HR in Strategic Management

• Provide the skills, culture, and rewards
• HR leaders are key to driving sustainable performance
• HR strategy and operations must be tightly woven throughout the business
• HR departments must be run as world class
• Success measured by how much value HR generates for other business units
• Provides the right number of talented people
• Develops employee knowledge
• Promotes high performance
• Aligns people to value chain
• Aligns people to value chain

Total Quality Management (TQM)

• Cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve quality and productivity
• World's largest developer and publisher of international standards
• Represents an international consensus on quality management practices

Key Aspects

• Objective: create a total business focus on serving the customer- deliver what the customers want
• Lead Teams that support the needs and concerns, specifically relating to customers
• HR is integral in establishing quality parameters and customer-centric mindset

Strategic Human Resource Management (SHRM)

• The pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals
• Entails assessing the employee skillsrequired to run systems and engaging in HRM practices- selection and training
• To identify business concerns early, the HRM process much be integrated as a first step in business planning

Balanced Scorecard

• Communication scorecard to employees gives them framework of the organization's goals, how those goals are measured and influence with critical business indicators
• Examines each unique business function from different points of view
• The vertical alignment- HR practices and process are aimed at addressing the strategic needs of the business
• HR is responsible in training the professional as well as incorporating employees in the creation of an HR centered company

Organization and Workflow

• Many aspects must be considered when determining if and how an organization will function or be restructured
  • What input are employees using and how can it be made more efficient?
  • What outputs are necessary for the role to succeed and how can quality be maintained?
• Every step and role must be well defined within the business flow
  • Allows business leaders to identify and prevent losses from inefficiencies like materials, time or labor
• The human element plays an important role-
  • Team-based job designs are important
  • Managers need to support team by understanding responsibilities and setting a path to success
  • HR needs to be aligned to strategy & business needs to identify talent goals
  • HR needs to understand what needs to fill in order to fill the value chain
  • This provides employees a sense of organization to better help retain them and the companies objectives
• HR & Workflow combined is used to analyze, develop and track team efficiency. HR has 3 responsibilities in these processes, task, people, reward systems