Human Resource Management: An Overview PDF

Chapter 1 Human Resource Management: An Overview Copyright © 2016 Pearson Education, Inc. 1-1  Human Resource Management (HRM)
Utilization of individuals to achieve organizational objectives
Concern of all managers at every leve...

Chapter 1 Human Resource Management: An Overview Copyright © 2016 Pearson Education, Inc. 1-1  Human Resource Management (HRM)
Utilization of individuals to achieve organizational objectives
Concern of all managers at every level
Face a multitude of challenges Copyright © 2016 Pearson Education, Inc. 1-2 Human Resource Management Functions Copyright © 2016 Pearson Education, Inc. 1-3  Staffing Process of ensuring the organization always has: Required number of employees Employees with appropriate skills Employees in the right jobs at the right time Constant job analysis, human resource planning, recruitment and selection Copyright © 2016 Pearson Education, Inc. 1-4  Job Analysis Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization Impacts virtually every aspect of HRM Copyright © 2016 Pearson Education, Inc. 1-5  Human Resource Planning
Matching internal and external supply of people with anticipated job openings over a specified period of time
Sets the stage for recruitment and other HR actions Copyright © 2016 Pearson Education, Inc. 1-6  Recruitment and Selection Recruitment: Attracting individuals to apply for jobs
Must be timely
Applicants need appropriate qualifications
Need sufficient number of applicants Selection: Choosing individual best suited for a particular position and the organization Copyright © 2016 Pearson Education, Inc. 1-7  Performance Management
Goal-oriented process to ensure organizational processes are in place to maximize productivity
Applies to employees, teams, and ultimately, the organization Copyright © 2016 Pearson Education, Inc. 1-8  Performance Appraisal
Formal system of review and evaluation
Individual
Team Copyright © 2016 Pearson Education, Inc. 1-9 Human Resource Development
Major HRM functions include:
Training
Development
Career planning
Career development
Organization development Copyright © 2016 Pearson Education, Inc. 1-10  Training and Development
Training: Providing learners with knowledge and skills needed for their present jobs
Relatively short-term focus
Development: Offering learning that goes beyond present job
Relatively long-term focus Copyright © 2016 Pearson Education, Inc. 1-11  Career Planning and Development
Career planning: Ongoing process
Individual sets career goals
Identifies means to achieve them
Career development: Formal approach used by the organization
Ensures a pipeline of people with proper qualifications and experiences Copyright © 2016 Pearson Education, Inc. 1-12  Organization Development Planned and systematic attempt to:
Make the organization more effective
Create a positive behavioral environment Copyright © 2016 Pearson Education, Inc. 1-13 Human Resource Management Functions Copyright © 2016 Pearson Education, Inc. 1-14  Compensation All rewards that individuals receive as a result of their employment
Financial compensation
Nonfinancial compensation Copyright © 2016 Pearson Education, Inc. 1-15  Financial Compensation
Direct (Core Compensation): Pay employee receives in form of wages, salaries, bonuses, or commissions
Indirect (Employee Benefits): Benefits employee receives such as paid vacations, sick leave, holidays, medical insurance Copyright © 2016 Pearson Education, Inc. 1-16  Non-financial Compensation Satisfaction that employees receive from:
Job itself
Psychological and/or physical environment Copyright © 2016 Pearson Education, Inc. 1-17  Employee and Labor Relations
Businesses are required by law to recognize a union and bargain with it in good faith if the firm’s employees want union representation
Human resource activity with a union is often referred to as industrial (labor management) relations Copyright © 2016 Pearson Education, Inc. 1-18  Internal Employee Relations Internal Labor Relations: Movement of employees within the organization Examples:
Promotions
Demotions
Terminations
Resignations Copyright © 2016 Pearson Education, Inc. 1-19  Safety and Health
Safety: Protecting employees from injuries caused by work-related accidents
Health: Employees' freedom from illness and their general physical and mental well- being Copyright © 2016 Pearson Education, Inc. 1-20  Interrelationships of HRM Functions
All HRM functions are interrelated so that each function affects the others
For example, a pay-for-performance compensation plan depends upon reliable and valid performance appraisal practices Copyright © 2016 Pearson Education, Inc. 1-21  Who Performs Human Resource Management Tasks?
Human resource professionals
Line managers
HR outsourcing
HR shared service centers
Professional employer organization (employee leasing) Copyright © 2016 Pearson Education, Inc. 1-22  Human Resource Professional
Historically, the HR professional was responsible for each of the six HR functions
Acts in advisory or staff capacity
Works with other managers to help them deal with human resource matters
Today, HR departments continue to get smaller Copyright © 2016 Pearson Education, Inc. 1-23  Line Managers
Line managers directly oversee the accomplishment of the organization’s primary goals
Involved with human resources by nature of their jobs
Now performing some duties typically conducted by HR Copyright © 2016 Pearson Education, Inc. 1-24  HR Outsourcing
Transfers responsibility to an external provider
Discrete services (e.g., health benefits administration)
Business process outsourcing (BPO) (e.g., the administration of all HR functional areas) Copyright © 2016 Pearson Education, Inc. 1-25  HR Shared Service Centers (SSCs)
Take routine, transaction-based activities that are dispersed and consolidates them in one location
Provide an alternative to HR outsourcing Copyright © 2016 Pearson Education, Inc. 1-26  Professional Employer Organization (Employee Leasing)
Company that leases employees to other businesses
Advantages:
Economies of scale
Greater job mobility for workers
Job security through leasing company
PEO can handle compliance requirements of programs Copyright © 2016 Pearson Education, Inc. 1-27  HR as a Strategic Business Partner
HR professionals must understand the company’s business (e.g., sale of medical equipment)
HR professionals must use this knowledge to support competitive advantage
Recruit and select the most highly qualified individuals
Manage performance and compensate based on performance that supports competitive advantage
HR development such as training to ensure that employees are as knowledgeable as possible about their jobs Copyright © 2016 Pearson Education, Inc. 1-28  Addenda Copyright © 2016 Pearson Education, Inc. 1-29  Employees as Human Capital
Capital refers to the factors that enable companies, for example, to generate income, higher economic value, strong positive brand identity, and reputation. There is a variety of capital, including financial capital:
Cash
Capital equipment (for example, state-of-the-art robotics used in manufacturing)
Human capital, as defined by economists, refers to sets of collective skills, knowledge, and ability that employees can apply to create value for their employers Copyright © 2016 Pearson Education, Inc. 1-30 Dynamic Human Resource Management Environment Copyright © 2016 Pearson Education, Inc. 1-31  Legal Considerations
Federal, state, and local legislation
Court decisions
Presidential executive orders Copyright © 2016 Pearson Education, Inc. 1-32  Labor Market
Potential employees located within certain geographic area
Demographic shifts (more older workers) are associated with workforce preparedness
Always changing Copyright © 2016 Pearson Education, Inc. 1-33  Society Firm must accomplish its purpose while complying with societal norms
Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation
Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves Copyright © 2016 Pearson Education, Inc. 1-34  Political Parties
Related to society are political parties
The Democratic and Republican parties are the two major political parties in the United States
Differing opinions on how HRM should be accomplished (government intervention such as laws vs. market forces) Copyright © 2016 Pearson Education, Inc. 1-35  Unions
Group of employees who have joined together to collectively bargain with their employer
The union becomes a third party when dealing with the company Copyright © 2016 Pearson Education, Inc. 1-36  Shareholders
Owners of a corporation
Have invested money in the firm
May challenge programs put forth by management to be beneficial to the organization Copyright © 2016 Pearson Education, Inc. 1-37  Competition
In product or service and labor markets
Firms must maintain a supply of competent employees
Bidding war often results Copyright © 2016 Pearson Education, Inc. 1-38  Customers
People who actually use firm’s goods and services
Employment practices should not antagonize members of the market that the firm serves
Workforce should be capable of providing top-quality goods and services Copyright © 2016 Pearson Education, Inc. 1-39  HR Technology Rapid technological changes provide:
Increased sophistication
Ability to design more useful human resource information systems (HRIS) Copyright © 2016 Pearson Education, Inc. 1-40  Economy
When economy is booming, it is often more difficult to recruit qualified workers
In economic downturn, more applicants are typically available Copyright © 2016 Pearson Education, Inc. 1-41  Unanticipated Events
Unforeseen occurrences in external environment
Require a tremendous amount of adjustment with regard to HRM Copyright © 2016 Pearson Education, Inc. 1-42  Corporate Culture and HRM Corporate culture: System of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms Copyright © 2016 Pearson Education, Inc. 1-43  Employer Branding The firm’s corporate image or culture created to attract and retain the type of employees the firm is seeking. It is what the company stands for in the public eye. Copyright © 2016 Pearson Education, Inc. 1-44  Human Resource Management in Small Businesses
Many college graduates obtain jobs in small businesses
Same HR functions must be accomplished
Manner in which they are accomplished may differ Copyright © 2016 Pearson Education, Inc. 1-45 Country Culture and Global Business
A country’s culture is a set of values, symbols, beliefs, languages, and norms that guide human behavior within the country
Cultural differences between countries are a major factor influencing global business
Cultural misunderstandings are common Copyright © 2016 Pearson Education, Inc. 1-46  Describe the HR Profession Various designations are used to describe the HR professional:
Executive: A top-level manager who reports directly to the corporation’s CEO or to the head of a major division
Generalist: Employee who may be an executive, performs tasks in a variety of several or all of the six functional areas of HRM
Specialist: Employee who may be an HR executive, manager, or non-manager who is typically concerned with only one of the six functional areas of HRM Copyright © 2016 Pearson Education, Inc. 1-47 Competency Model for HR Professionals Copyright © 2016 Pearson Education, Inc. 1-48  Describe the HR Profession
Profession: A vocation characterized by the existence of a common body of knowledge and a procedure for certifying members
Performance standards are established by members of the profession rather than by outsiders; that is, the profession is self-regulated
Most professions have effective representative organizations that permit members to exchange ideas of mutual concern (e.g., Society for Human Resource Management) Copyright © 2016 Pearson Education, Inc. 1-49  Expected Growth of the HR Profession
Employment of HR professionals is projected to grow 13 percent from 2012 to 2022
Employment growth largely depends on the performance and growth of individual companies Copyright © 2016 Pearson Education, Inc. 1-50