Understanding Human Resource Management

• After studying this chapter, it will be possible to explain human resource management and its connection to the management process
• Examples of how managers use human resource management concepts and techniques can be given
• It will be possible to illustrate the responsibilities of line and staff (HR) managers
• Illustrate HR's role in strategy development and execution
• It will become possible to understand metrics and measurement in HR management

What is Human Resource Management (HRM)?

• HRM involves policies and practices related to the 'people' or human resource aspects of management
• HRM includes screening, recruiting, managing, developing, orienting, training, rewarding, and appraising employees
• Managing aims to achieve results
• HR creates value by influencing employee behaviors to meet the company's needs and strategic goals

Human Resource Management at Work

• Staffing is the process of ensuring the right number of employees with the right skills are in the right jobs at the right time
• Staffing includes includes job analysis, human resource planning, recruitment and selection
• Human Resource Development is a key HRM function involving training, career planning, and organizational development activities
• Performance Management ensures organizational processes maximize productivity
• Compensation Management involves all rewards employees receive, including financial, indirect, and nonfinancial compensation

Safety and Health

• Safety is protecting employees from work-related injuries
• Health is ensuring employees' freedom from illness and promoting their well-being

Employee and Labor Relations

• Employee and Labor Relations are about human resource activities involving unions
• Businesses must recognize and bargain with unions in good faith if employees desire union representation

Interrelationships of HRM Functions

• HRM functions are interrelated, and decisions in one area affect others
• Recruiting top candidates while neglecting compensation wastes time and money
• Paying below-market wages leads to high turnover as the best employees leave for better pay

Workplace Aspects of a Manager's Job

• Managers handle conducting job analyses
• Managers handle planning labor needs and recruiting job candidates
• Managers handle selecting job candidates
• Managers handle orientation and training of employees
• Managers handle training and developing managers
• Managers handle appraising performance
• Managers handle managing wages and salaries
• Managers handle providing incentives and benefits
• Managers handle communicating
• Managers handle building employee commitment

Why HRM is Important for All Managers

• HRM is Important for All Managers to avoid wasting time with useless interviews
• HRM is Important for All Managers to avoid hiring the wrong person for the job
• HRM is Important for All Managers to avoid bad company behaviour

Line and Staff Aspects of HRM

• Line Authority gives managers the power to issue orders to other managers or employees
• Staff Authority gives managers the power to advise other managers or employees
• Line Managers are authorized to direct subordinates and are responsible for accomplishing the organization's tasks
• Staff Managers assist and advise line managers

Duties of Line Managers

• Line Managers place the right person in the right job
• Line Managers start new employees (orientation)
• Line Managers train employees
• Line Managers improve job performance
• Line Managers foster creative cooperation and relationships
• Line Managers interpret company policies and procedures
• Line Managers control labor costs
• Line Managers develop employee abilities
• Line Managers create and maintain morale
• Line Managers protect employee health

Duties of Staff Managers

• HR plays a role in assisting and advising line managers which is central
• HR assists in strategy design and helps the CEO with the personal aspect
• HR assists in hiring, training, evaluating, rewarding, counseling, and firing
• HR administers various programs and provides up to date information
• HR plays an employee advocacy role

Functions of HR Managers

• HR Managers have managing HR department duties
• HR Managers work with other different departments/line managers
• HR Managers provide assistance to Top Management

HR Manager Functions

• A line function involves directing activities within the HR department
• Implied authority is gained through knowledge and access to top management
• A coordinative function involves coordinating personnel activities and acting as the CEO's right hand
• Staff authority involves assisting in strategy design and innovation

Human Resource Specialties

• Recruiters
• Labor Relations Specialists
• Training Specialists
• Human Resource Specialties
• Job Analysts
• Compensation Managers

Human Resource Tasks

• Line managers are involved in everything from recruitment to employee development, which can be automated to assist them
• HR Outsourcing involves determining which functions to outsource and which to keep in-house, focusing on routine tasks to allow HR to focus on strategic areas
• Shared Service Centers consolidate routine activities in one place, providing a cost-saving alternative to outsourcing
• Professional Employer Organizations lease employees to businesses, handling HR responsibilities while the client company maintains operational control

Organization Size Effects

• The size of the organization determines the HR department size
• In large organizations, there is one HR employee per 100 employees
• In small organizations, line managers handle HR duties, or the HR department includes 5-6 employees

The Changing Environment of Human Resource Management

• Four trends are Globalization, Technological, The nature of work and workforce demographics

Globalization Trends

• Globalization extends firms' sales, ownership, and manufacturing to new markets
• Globalization has changed how companies organize and manage their HR departments
• Globalization has strategic implications for firms, increasing competition and pressure to lower costs and increase productivity
• For consumers it means lower prices and higher quality
• For workers it means working harder, less secure jobs

Technological Trends

• Technology is changing how we communicate and do our jobs
• Smartphones and iPads facilitate communication with the office
• HR uses technology for various management applications, including job searches
• HR uses the challenge of to improve its operations

Nature of Work Trends

• Jobs are changing due to new technological demands
• Machines are becoming automated and computerized
• Productivity increases as manufacturers produce more with fewer employees

Workforce Demographic Trends

• Unemployment remains high for young graduates
• Workers emigrate in search of jobs
• The workforce includes a large presence of women
• Employers are filling job positions by encouraging employees to remain or rehire

The Changing Role of Human Resource Management

• The new roles of HR Management are Strategic Human Resource Management, Managing with the HR Scorecard, Measuring the HRM Team's Performance and Creating High-Performance Work Systems

Strategic HRM

• Strategic Planning involves matching strengths and weaknesses with external opportunities to maintain a competitive advantage
• Strategic HRM formulates HR policies and practices to achieve strategic goals
• HR provides evidence that it contributes to achieving the firm's strategic aims

High Performance Work System (HPWS)

• HRM policies and practices create superior employee performance
• HPWS have Selective hiring
• HPWS have extensive Training
• HPWS are Self-managed teams/decentralized decision making
• HPWS have Information sharing
• HPWS use Pay-for-performance rewards
• HPWS use Transformational leadership
• HPWS have an Emphasis on high-quality work

Benefits of High Performance Work System (HPWS)

• HPWS promote more fairness
• HPWS generates more job applicants
• HPWS provides more or better training and lower employee turnover
• HPWS links pay and performance
• HPWS provide a safer work environment
• HPWS promote more qualified applicants and increase profits while lowering costs