Chapter 1: Concepts of Human Resources Management PDF

Chapter One Concepts of Human Resources Management DR Mohanad Mohammed Sufiyan Email [email protected] LEARNING OBJECTIVES 01 Explain what human resource management is and how it relates to the management process. 02 Show with examples why human resource management...

Chapter One Concepts of Human Resources Management DR Mohanad Mohammed Sufiyan Email [email protected] LEARNING OBJECTIVES 01 Explain what human resource management is and how it relates to the management process. 02 Show with examples why human resource management is important to all managers. 03 Illustrate the human resources responsibilities of line and staff (HR) managers. 04 Briefly discuss and illustrate each of the important trends influencing human resource management.. LEARNING OBJECTIVES 05 List and briefly describe important traits of todays human resource managers. 06 Define and give an example of evidence-based human resource management. 07 Outline the plan of this book. 04  Introduction ---- ▪ Organization can be defined as people with formally assigned roles who work together to achieve the organizations goals. ▪ People are important to organizations because they drive the performance of their organizations (along with other resources such as money, materials and information) ▪ So we use a lot of words to describe how important they are to organizations. The terms include human resources, human capital, intellectual assets and talent management.  What is Human Capital The notion that Human capital describes The Value of these organizations Employees’ knowledge, assets might not show up “compete through people” skills and capabilities that directly on highlights that achieving have economic value. a company’s balance sheet, success increasingly it nevertheless depends on an has tremendous organization’s ability to Impact on an organization’s manage talent, or performance. human capital.  What is Human Resource Management? “  A manager is the person responsible for achieving the organizations goals, who does so by managing the efforts of the organizations people.  There are five basic functions of management : planning, organizing, staffing, leading and controlling which represent the management process.  Staffing: is determining what type of people you should hire; recruiting prospective employees; selecting employees; training and developing employees; setting performance standards; evaluating performance; counseling employees; compensating employees. “ Human resource management is the process of acquiring, training, appraising, compensating employees and of attending to their labor relations, health and safety, and fairness concerns. Personnel Aspects Of A Manager’s Job ▪ Conducting job analyses (determining the nature of each employee’s job) ▪ Planning labor needs and recruiting job candidates ▪ Selecting job candidates ▪ Orienting and training new employees – Managing wages and salaries (compensating employees) ▪ Providing incentives and benefits ▪ Appraising performance ▪ Communicating (interviewing, counseling, disciplining) ▪ Training and developing managers ▪ Building employee commitment  Why Is Human Resource Management Important to All Managers?  AVOID PERSONNEL  IMPROVE PROFITS 01 MISTAKES (see the 02 AND PERFORMANCE next slide)  HR help organizations in getting results by having the right people in the organizations.  HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.  Personnel Mistakes Hire the wrong person for the job Have your company in court because of discriminatory actions. Experience high turnover Have some employees think their salaries are unfair and inequitable relative to others in the organization. Have your people not doing their best Allow a lack of training to undermine your department’s effectiveness. Waste time with useless interviews Commit any unfair labor practices.  Line manager and Staff manager  All managers are, in a sense, HR managers, because they all get involved in recruiting, interviewing, selecting, and training their employees.  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 traditionally gives managers the right to issue orders to other managers or employees. Line authority therefore creates a superior (order giver) subordinate (order receiver) relationship. Example: vice president of sales tells her sales director to get the sales presentation ready by Tuesday, she is exercising her line authority Staff authority gives a manager the right to advise other managers or employees. It creates an advisory relationship. Example : When the human resource manager suggests that the plant manager use a particular selection test, he or she is exercising staff authority.  Managers with line authority are line managers. Those with staff (advisory) authority are staff managers.  Line manager  A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.  Staff manager  A manager who assists and advises line managers  Staff managers generally run departments that are advisory or supportive, like purchasing and human resource management.  HR managers are usually staff managers assist and advise line managers in areas like recruiting, hiring and compensation.  Line Managers’ HRM Duties 1. Placing the right person on the right job. 2. Starting new employees in the organization (orientation). 3. Training employees for jobs new to them. 4. Improving the job performance of each person. 5. Gaining creative cooperation and developing smooth working relationships. 6. Interpreting the firm’s policies and procedures. 7. Controlling labor costs. 8. Developing the abilities of each person. 9. Creating and maintaining department morale. 10. Protecting employees’ health and physical condition.  Functions of the HR Manager The human resource manager carries out three distinct functions: A line function A coordinative function  The HR manager directs the  Coordinate personnel activities of the people in his or activities, a duty often her own department and in referred to as functional related service areas control. (like the plant cafeteria).  ensures that line managers. are implementing the firms Staff (assist and advise) functions human resource policies and  Assisting and advising line managers is the practices. heart of the HR manager’s job.  HR assists in hiring, training, evaluating, rewarding, counseling, promoting and firing employees.  helps line managers comply with equal employment and occupational safety laws, equal employment.  Innovator role and employee advocacy role  Under the Staff functions the HR Manager, plays tow important roles innovator role and employee advocacy role.  Innovator role by providing up-to-date information on current trends and new methods for better utilizing the company’s employees.  Employee advocacy role by representing the interests of employees within the framework of its primary obligation to senior management.  HR and Authority  Implied authority  Line authority The authority exerted by  The authority exerted B an HR manager by virtue by an HR manager by A of others’ knowledge that directing the activities he or she has access to top of the people in his or management. her own department Usually exerted outside and in service areas. their departments..  Examples of HR Job Duties  Recruiters ❑ Search for qualified job applicants.  Equal employment opportunity (EEO) coordinators ❑ Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports.  Job analysts ❑ Collect and examine information about jobs to prepare job descriptions. Examples of HR Job Duties (cont’d)  Compensation managers  Develop compensation plans and handle the employee benefits program.  Training specialists  Plan, organize, and direct training activities.  Labor relations specialists  Advise management on all aspects of union management relations.  Which HR duties are carried out by line managers and which by staff managers? Cooperative Line and Staff HR Management  The line staff relationship should be cooperative as follows: 1. The line manager’s responsibility is to specify the qualifications employees need to fill specific positions. 2. HR staff then develops sources of qualified applicants and conduct initial screening interviews 3. HR refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants. HR Organizational Chart (Small Company) HR Department Organizational Chart (Large Company) Employment and Recruiting—Who Handles It? (percentage of all employers) Note: length of bars represents prevalence of activity among all surveyed employers.  The New HR Manager  Today's human resource managers need the knowledge, skills, and competencies to be:  Talent Managers/Organization Designers, with a mastery of traditional human resource management tasks such as acquiring, training, and compensating employees.  Culture and Change Stewards, able to create human resource practices that support the firms cultural values.  Strategy Architects, with the skills to help establish the company s overall strategic plan, and to put in place the human resource practices required to support accomplishing that plan.  Operational Executors, able to anticipate, draft, and implement the human resource practices (for instance in testing and appraising) the company needs to implement its strategy.  Business Allies, competent to apply business knowledge (for instance in finance, sales, and production) that enable them to help functional and general managers to achieve their departmental goals.  Credible Activists, with the leadership and other competencies that make them both credible (respected, admired, listened to) and active (offers a point of view, takes a position, challenges assumptions.) The New HR Manager (cont’d)  The Need to “Know Your Employment Law”  Equal employment laws  Occupational safety and health laws  Labor laws  Evidence-based human resource management  HR managers should be able to apply evidence-based human resource management , which means the use of data, facts, analytics, scientific rigor, critical evaluation and critically evaluated research/case studies to support human resource management proposals, decisions, practices, and conclusions.  For example comparing the performance of employee before and after applying a training program.  Globalization and HRM  Globalization refers to the tendency of firms to extend  their sales, ownership, and/or manufacturing to new markets abroad.  Do that for several reasons such as Sales expansion, cut labor costs  Globalization means more competition, and more competition means more pressure to lower costs and to make employees more productive and quality conscious.  Offshoring, is shifting the location of a service or production of a part to a location abroad. Example GM a US company opens a factory in China, and shifts production of a car part to the factory in China  Outsourcing, it buys from a third party a part or service it used to produce itself products. For instance, General Motors, can outsource production of a certain car part to a Chinese company.  Technology and HRM  Technology is requiring more employees to be technologically well informed and pressuring employers to improve their human resource processes by applying new technological tools. appeal to your Presentations. https://www.youtube.com/watch?v=UKqpSngoK7E  Demographic changes  Baby Boomers, born just after the Second World War, roughly between 1944 to 1960  Generation X, those born roughly between 1965 to 1976  GENERATION Y Also called Millennials, Gen Y employees are roughly those born 1977 to 2002.  Generation Y the first generation raised on cellphones and e-mail, their capacity for using information technology will also make them the most high-performing.  Workforce and demographic changes mean that the workforce is becoming older(especially in the west) and more diverse.  The aging workforce the biggest demographic trend affecting employers  The basic problem is that there aren't enough younger workers to replace the projected number of baby boom era older-worker retirees  To deal with this issue they bringing retirees back into the workforce  Retain semiretired workers Thank you