Chapter 01_What is Human Resources Managment_Notes PDF

Chapter 1: Introduction to Human Resource Management Managing Human Resource (MGT 211) Chapter 1 Introduction to Human Resource Management Lecture Notes...

Chapter 1: Introduction to Human Resource Management Managing Human Resource (MGT 211) Chapter 1 Introduction to Human Resource Management Lecture Notes Dr. Dina Youssef Fall 2022 Source: Gary Dessler, Human Resource Management, Fifteenth Edition, Pearson Education Limited, England, 2017. 1  Chapter 1: Introduction to Human Resource Management Chapter 1 Introduction to 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 why is human resource management important to all managers. 1-3. Briefly describe line and staff aspects of human resource management. 1-4. List important human resource manager competencies. 1-5. Examples of typical jobs in Human Resources Department Introduction The purpose of this chapter explains what Human Resource Management is and why it’s important to all managers. We’ll see that human resource management activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. We’ll see that human resource management is also a separate function. The main topics we’ll cover will include what human resource management is, the trends shaping human resource management, human resource management today, the new human resource manager, and the plan of the book. More importantly, the human resource management concepts and techniques you’ll learn in this book can help ensure that you get results—through people. Remember that you can do everything else right as a manager—lay brilliant plans, draw clear organization charts, set up world-class assembly lines, and use sophisticated accounting controls—but still fail, by hiring the wrong people or by not motivating subordinates. On the other hand, many managers— presidents, generals, governors, supervisors—have been successful even with inadequate plans, organization, or controls. They were successful because they had the knack of hiring the right people for the right jobs and motivating, appraising, and developing them. Remember, as you read this book getting results is the bottom line of managing, and that, as a manager, you will have to get those results through people. 2  Chapter 1: Introduction to Human Resource Management I. Explain what human resource management is and how it relates to the management process. Working for any organization means that you and those around you share common goals, which include an interest in the growth and continuing development of the organization. Some of those common goals include how work is accomplished within the organization. We now begin our study of the elements of the management process and how they relate to human resource management. Note that such individuals generally work together to achieve the common goals of an organization. What Is Human Resource Management? – To understand what human resource management is, it’s useful to start with what managers do. Most writers agree that managing involves performing five basic functions: planning, organizing, staffing, leading, and controlling. These functions in total represent the management process. Planning – involves establishing goals and standards; developing rules and procedures; developing plans and forecasts. Organizing – involves giving each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates. Staffing – involves determining what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees. Leading – involves getting others to get the job done; maintaining morale, motivating subordinates. Controlling – involves setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed. What is Human Resource Management (HRM)? We will focus on one of these functions-the staffing, personnel management, or human resource management function. Human Resource Management (HRM) is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. 3 Chapter 1: Introduction to Human Resource Management The topics we’ll discuss should therefore provide you with the concepts and techniques every manager needs to perform the “people” or personnel aspects of management. These concepts and techniques include the following: 1. Conducting job analyses (determining the nature of each employee’s job). 2. Planning labor needs and recruiting job candidates. 3. Selecting job candidates. 4. Orienting and training new employees. 5. Managing wages and salaries (compensating employees). 6. Providing incentives and benefits. 7. Appraising performance. 8. Communicating (interviewing, counseling, disciplining). 9. Training employees, and developing managers. 10. Building employee relations and engagement. Why Is HR Management Important to All Managers? Because of the following: 1. To Avoid Personnel Mistakes – managers don’t want to make personnel mistakes, such as not having employees doing their best, hiring the wrong person for the job, experiencing high turnover, having to be in court due to discriminatory actions, being cited for unsafe practices, letting a lack of training undermined department effectiveness, or committing any unfair labor practices. 2. To Improving Profits and Performance – to help ensure that you get results—through people. 3. You May Spend Some Time as an HR Manager – about a third of large U.S. businesses surveyed has appointed non-HR managers to be their top human resource executives. 4. HR for Small Business – you may well end up as your own human resource manager. More than half of the people working in the United States work for small firms. Small businesses as a group also account for most of the 600,000 or so new businesses created every year. 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 and staff managers focus their energies in different yet related and complementary ways. Let’s talk about the two types of managers and what each does for the firm. 4  Chapter 1: Introduction to Human Resource Management Line authority gives you the right to issue orders. When the 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 you the right to advise other managers or employees in the organization. It creates an advisory relationship. When the human resource manager suggests that the plant manager use a particular selection test, he or she is exercising staff authority. In popular usage, people tend to associate line managers with managing departments (like sales or production) that are crucial for the company’s survival. Staff managers generally run departments that are advisory or supportive, like purchasing and human resource management. Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. Line Manager’s HR Management Responsibilities Line managers do have many human resource duties. This is because the direct handling of people has always been part of every line manager’s duties, from president down to first-line supervisors. Some line supervisors’ responsibilities for effective human resource management fall under these general headings: 1. Placing the right person in the right job. 2. Starting new employees in the organization (orientation). 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the company policies and procedures 7. Controlling labor cost 8. Developing the abilities of each person 9. Creating and maintaining departmental morale 10. Protecting employees’ health and physical conditions The Human Resources Department In small organizations, line managers may carry out all these personnel duties unassisted. But as the organization grows, line managers usually need the assistance, specialized knowledge, and advice of a separate human resource staff. In larger firms, the human resource department provides such specialized assistance. 5  Chapter 1: Introduction to Human Resource Management Examples of typical jobs include: Recruiters. Search for qualified job applicants. Job analysts. Collect and examine information about jobs to prepare job descriptions. 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. At the other extreme, the human resource team for a small manufacturer may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-1. There is generally about one human resource employee per 100 company employees. FIGURE 1-1 Human Resource Department Organization Chart Showing Typical HR Job Titles Source: “Human Resource Development Organization Chart Showing Typical HR Job Titles,” www.co.pinellas.fl.us/persnl/pdf/ orgchart.pdf. Courtesy of Pinellas County Human Resources. Reprinted with permission. II. Today’s New Human Resource Management As the challenges continue for today – so does important aspects of Human Resource Management. Let’s take a look at today’s Human Resource Management. 6  Chapter 1: Introduction to Human Resource Management A Brief History of Personnel/Human Resource Management A Brief History of Personnel/Human Resource Management – “Personnel management” is not new. Ancient armies and organized efforts always required attracting, selecting, training, and motivating workers. But tasks like these were mostly just part of every manager’s job, something that lasted in most countries until the late 1800s. By 1900, employers set up the first “hiring offices.” New union laws in the 1930s added “Helping the employer deal with unions” to personnel’s tasks. New equal employment laws in the 1960s made employers more reliant on personnel management to avoid discrimination claims. By the 1970s, globalization made gaining a competitive edge through engaged employees and therefore, personnel management important. Today, economic, demographic, and technological trends including mobile and social media are changing how employers recruit, select, train, appraise, and motivate employees. In a sense, a new human resource manager is emerging. HR Technology Trends: There are 5 main types of digital technologies driving HR professionals to automation: o Social Media o Mobile Applications o Gaming o Cloud Computing o Data Analytics (as known as Talent Analytics) Employers increasingly use social media—tools such as Twitter, Facebook, and LinkedIn (rather than, say, as many employment agencies) —to recruit new employees. Employers use new mobile applications, for instance, to monitor employee location and to provide digital photos at the facility clock-in location to identify workers. Employers use gaming, new training applications, and websites such as Knack, Gild, and True Office enable employers to inject gaming features into training, performance appraisal, and recruiting. Employers use cloud computing which enable employers to monitor and report on things like a team’s goal attainment and to provide real-time evaluative feedback. Employers also use data analytics, also called talent analytics, which use statistical techniques, algorithms, and problem-solving to identify relationships among data for the purpose of solving particular problems (such as what the ideal candidate’s traits are, or how can I tell in advance which of my best employees is likely to quit?) Strategic human resource management Today’s human resource managers are more involved in longer term, strategic “big picture” issues. Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. 7  Chapter 1: Introduction to Human Resource Management III. The New Human Resource Manager As the challenges continue for today – so does important aspects of Human Resource Management. Let’s take a look at the New Human Resource Manager What does it take to be a New Human Resource Manager today? The HR Manager should be able to exhibit: 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. 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. Practical Tools for Every Manager Human resource management is the responsibility of every manager—not just those in human resources. Managers use HR techniques to improve performance, productivity, and profitability. Human Resource Manager Certification Many human resource managers use certification to demonstrate their mastery of contemporary human resource management knowledge and competencies. Managers currently have, at this writing, at least two testing processes to achieve certification. The oldest is administered by the HR Certification Institute (HRCI), an independent certifying organization for human resource professionals (see www.hrci.org). 8  Chapter 1: Introduction to Human Resource Management Through testing, HRCI awards several credentials, including Professional in Human Resources (PHR), and Senior Professional in Human Resources (SPHR). Managers can review HRCI’s Knowledge Base and take an online HRCI practice quiz by going to www.hrci.org and clicking on Exam Preparation, and then on Sample Questions. Starting in 2015, SHRM began offering its own competency and knowledge based testing and certifications for SHRM Certified Professionals and SHRM Senior Certified Professionals, based on its own certification exams. The exam is built around the SHRM Body of Competency and Knowledge model which includes functional knowledge and skills as well as competencies. 9