HRM Session 1 Introduction to HR and Internal and External Environments PDF

SESSION 1: INTRODUCTION TO HRM AND INTERNAL & EXTERNAL ENVIRONMENTS CHAPTER 1 BMGT 2302: Human Resource Management Learning Objectives 1.1 Explain what human resource management is and how it relates to the management process. 1.2 Briefly discuss and illustrate the important trends influe...

SESSION 1: INTRODUCTION TO HRM AND INTERNAL & EXTERNAL ENVIRONMENTS CHAPTER 1 BMGT 2302: Human Resource Management Learning Objectives 1.1 Explain what human resource management is and how it relates to the management process. 1.2 Briefly discuss and illustrate the important trends influencing human resource management. 1.3 Briefly discuss the internal and external factors affecting human resource management. 1.4 List the human resource manager competencies. 3 What is Human Resource Management? What Is Human Resource Management?  The Management Process  Planning  Organizing  Staffing  Leading  Controlling Why Is Human Resource Management Important to All Managers?  To avoid personnel mistakes  To improve profits and performance  You may spend some time as an HR manager  You may end up as your own human resource manager Line and Staff Aspects of Human Resource Management  Authority is the right to make decisions, to direct the work of others, and to give orders. Managers usually distinguish between line authority and staff authority.  Line authority gives you the right to issue orders  Staff authority gives you the right to advise others in the organization Line Manager’s HR Management Responsibilities (1 of 2)  Placing the right person in the right job  Starting new employees in the organization (orientation)  Training employees for jobs that are new to them  Improving the job performance of each person Line Manager’s HR Management Responsibilities (2 of 2)  Gaining creative cooperation and developing smooth working relationships  Interpreting the company policies and procedures  Controlling labor cost  Developing the abilities of each person  Creating and maintaining departmental morale  Protecting employees’ health and physical conditions  Examples of Job Titles in 9 HRM  Human Resource  Diversity Manager Specialist Organization’s Environment and HRM  Environment: The conditions, circumstances, and influences that affect the organization’s ability to achieve its objectives  External environment: The environment that exists outside an organization.  Internal environment (organizational climate): The environment that exists within an organization  Environmental forces:  Physical  Techno-logical  Social  Political  Economic External Environment and HRM I  Physical Element: includes the geography, cli­mate, and other physical characteristics of the area in which the organization is located.  Impact:  a firm’s ability to attract and retain employees. Housing, commuting, and living costs can vary from one loca­tion to another and can have a significant impact on the compensation em­ployees will expect.  12 External Environment and HRM II  Technological Element: Only through technological innova­tion can firms develop new products and services and improve existing ones in order to stay competitive. Technology also provides a basis for an organization to attain the productivity and quality it needs to gain a competitive advantage.  Impact:  Technology affects the number of employees as well as the skills they need on the job. External Environment and HRM III  Social Element  Impact:  employers are expected to demonstrate a greater sense of responsi­bility toward employees and toward society as a whole. Health care, retirement, and safety issues, for example, represent just a few of the important areas where orga­nizations must balance economic and social concerns.  Work-life balance  Corporate Social Responsibility External Environment and HRM IIV  Political Element: Governments, laws and regulations.  Impact:  Managers must follow all laws and government regula­tions relating to HRM such as recruitment, equal employment opportunity, labor relations, and worker safety and health. Government regulation of employment is found in every country of the world.  Today’s manager must understand the regulatory system in order to function effectively External Environment and HRM V  Economic Element  Impact:  Economic conditions often dictate whether a firm will need to hire or lay off employees. When the economy is healthy, companies hire more workers to fill demand and unemployment rates fall.  They also affect an employer’s ability to increase employees’ pay and/or benefits.  Competition and cooperation with foreign companies has become an increasingly important focal point for business. Internal Environment and HRM I  Physical Element of the internal environment includes such factors as air quality, temperature, noise, dust, radiation, and other conditions affecting em­ployee health and safety.  Impact:  Health and safety of employees  17 Internal Environment and HRM II  Technological Element consists of the layout of the workplace; the process by which the work is performed; and the tools, equipment, and machinery used to perform the work.  Impact:  The way work is organized and requirements of the jobs.  Affects interpersonal relations and in­teraction among employees within a work area. It influences the formation of in­formal work groups and the degree of cooperation or conflict among employees. Internal Environment and HRM III  Social Element: reflects the attitudes and behaviors of managers and em­ployees, individually and in groups.  Impact:  Top managers play an extremely important role in determining the social element.  The rules and regulations they devise, the concern they have for employees, the rewards and support they provide, and the tolerance they have for varying opinions are major factors in determining the organizational climate. Internal Environment and HRM IV  Political Element  Organizational Politics include attacking or blaming others, using (or withholding or distorting) infor­mation, building images, building support for ideas, praising others, creating power coalitions, associating with the influential, and performing services or fa­vors to create obligations.  Power is the capacity to influence the behavior of others. The degree of power that managers possess is determined in part by where they fit into the for­mal organization structure, the number of subordinates they supervise, and the authority delegated to them. Power may also be derived from personal expertise and from informal leadership skills.  HR departments must play a more active role in influencing change in their firms. This means having both the political power and leadership capabilities to overcome resis­tance to change. Internal Environment and HRM V  Economic Element: The economic element of a firm's internal environment reflects the organiza­tion's financial condition.  Impact:  The more favorable the condition, the more financial resources the organization will have to support its human resources, including employee compensation and benefits.  When financial health of a firm is strong, there is a tendency to expand HRM activities such as training and development, employee assistance programs, and recreational activities. If the organization is growing, there is the possibility of expansion leading to em­ployee recruitment, selection, and orientation.  Conversely, when financial re­sources are low, an organization tends to reduce its HR budget and to cut back the HR services it offers to its employees. Trends in Human Resource Management  Workforce Demographics and Diversity Trends  Trends in Jobs People Do  Globalization Trends  Economic Trends  Technology Trends A Quick Summary Figure 1-4 What Trends Mean for Human Resource Management  Challenges and Opportunities for HRM 1- 23  The workplace contains a wide mix of cultures, races, ethnic groups, genders and ages  Employees have to learn to cope with rapid change due to global competition  Corporate loyalty has decreased due to corporate downsizing and use of temp workers  Responding to Globalization 1- 24  Increased foreign assignments  Differing needs and aspirations in workforce  Working with people from different cultures  Domestic motivational techniques and managerial styles may not work  Overseeing movement of jobs to countries with low- cost labor  Managing Workforce 1- Diversity 25 Workforce diversity: organizations are becoming a more heterogeneous mix of people in terms of gender, age, race, and ethnicity  Diversity Implications 1- 26 “Managers have to shift their philosophy from treating everyone alike to recognizing differences and responding to those differences in ways that ensure employee retention and greater productivity while, at the same time, not discriminating.” The Skills of the New HR Manager  HR managers can’t just be good at traditional personnel tasks like hiring and training, but must “speak the CFO’s language” by defending human resource plans in measurable terms. The New Human Resource Manager The Society of Human Resource Management (S HRM) has a new “competency model” called the S HRM Body of Competency and Knowledge that itemizes what a new HR Manager needs.  What should they be able to exhibit?  Of what basic functional areas of H R should they have command? SHRM Competency Model  Leadership & Navigation – the ability to direct and contribute to initiatives and processes within the organization.  Ethical Practice – the ability to integrate core values, integrity, and accountability throughout all organizational and business practices.  Business Acumen – the ability to understand and apply information with which to contribute to the organization’s strategic plan.  Relationship Management – the ability to manage interactions to provide service and to support the organization. SHRM Competency Model  Consultation – the ability to provide guidance to organizational stakeholders.  Critical Evaluation – the ability to interpret information with which to make business decisions and recommendations.  Global & Cultural Effectiveness – the ability to value and consider the perspectives and backgrounds of all parties.  Communication – the ability to effectively exchange information with stakeholders.