Chapter-1-Introduction-to-human-Resource-Management.pdf

College of Arts and Sciences PSY 311: Human Resource Management with Labor Relations CHAPTER 1: Human Resource Management: an overview Presentation prepared by: Ms. Glenda L. Sanchez, LPT  1. Define and understand the Learning meaning of human resource manage...

College of Arts and Sciences PSY 311: Human Resource Management with Labor Relations CHAPTER 1: Human Resource Management: an overview Presentation prepared by: Ms. Glenda L. Sanchez, LPT  1. Define and understand the Learning meaning of human resource management. Objectives: 2. Identify the human resource management functions. 3. Identify the elements of the dynamic HRM environment. 4. Explain the difference between human resource management and personnel management. CONTENT: Dynamic Human Resource Management Environment Legal Considerations Labor Markets Defining Human Resource Management Society Unions Political Parties HRM Historical Breakthroughs Competition Customers Best Features Of Human Resource Management HR Technology Shareholders Human Resource Management Functions Economy Staffing Human Resource Development The Challenge Of Managing Human Resources Today Employee and Labor Relations Changing Employee Expectations Human Resource Research Rapidly Changing Technology Interrelationships of Human Resource Emphasis on Increased Productivity Management Functions New Modality of Employment-Outsourcing Performance Management Flatter Organization Compensation Fall of the Command-and-Manager Safety and Health The Difference Between Human Resource Management And Personnel Management Topic 1: Defining Human Resource Management  DEFINING HUMAN RESOURCE MANAGEMENT Human Resource Management (HRM) is the use of individuals to achieve organizational objectives, with managers at all levels dealing with HR matters. Challenges faced by HR professionals include changing workforces, government regulations, technological revolutions, and global competition. HRM is a critical business function, requiring attention from upper management. Human Resource Management (HRM) is the practice of managing people in an organization. It involves: Recruitment Training and Employee and Hiring Development Relations Helping Managing Finding and relationships hiring the employees between right improve their employees and employees for skills and grow addressing any the company. in their roles. issues or conflicts. Human Resource Management (HRM) is the practice of managing people in an organization. It involves: Compensation Performance Compliance and Benefits Management Setting salaries, Evaluating and Ensuring the wages, and managing organization providing benefits employee follows labor like health performance to insurance and ensure they meet laws and retirement plans. their job goals. regulations. Topic 2: Historical Breakthroughs  THE HISTORICAL BREAKTHROUGHS Human Resource Management (HRM) has evolved significantly over time. Here’s a brief overview of key historical breakthroughs:  HRM HISTORICAL BREAKTHROUGHS 1890-1910 Frederick Taylor introduced a management approach known as scientific management that focuses on the idea of scientific selection of employees based on their capabilities. This system provides that workers will be paid additional compensation when they exceed the standard level of output for a given job, with the aim of motivating them. 1910-1930 Most companies started to develop departmental units focused on maintaining the well-being of employees. The field of industrial psychology, together with the beginning of World War I, led to the development of employment tests and selection techniques.  HRM HISTORICAL BREAKTHROUGHS 1930-1945 During this period, the Hawthorne Studies started to have a tremendous effect on management studies and principles such that much attention was given to personal and social interactions in the workplace that affect and influence worker productivity and level of performance. 1945-1965 This period marked the birth of union membership that gave considerable importance to employee-employer relationships, it was also during this period that pay and benefits programs slid in a very notable value as organized unions bargained for paid work leaves, health and welfare coverage Hawthorne Studies, highlighted the importance of social factors and employee morale in productivity, this movement emphasized the need for better interpersonal relationships and employee satisfaction. The Hawthorne studies were a series of studies done between 1920s and 1930. This period sparked an increase in the importance of the social and psychological relationships in the workplace. Evaluations of the studies led researchers to believe that "human relations" greatly influence workers' level of satisfaction and productivity.  HRM HISTORICAL BREAKTHROUGHS 1965-1985 The Civil Rights Act of 1964 reached its highest point when it prohibited discriminatory practices based on an individual's age, sex, color, religious affiliation, race, and physical or mental disabilities. Employers were advised to adhere to equal employment opportunity provisions and take affirmative steps to avoid workplace discrimination 1985-present Diverse labor force, globalization, and strategic HRM functions were three pressing concerns during this period. Employers' primary aim is to effectively cope with the intense demands and effects of change, competition and job efficiency.  Technology and Globalization: The rise of technology, such as HR software and data analytics, transformed HR practices. Globalization also increased the complexity of managing diverse and distributed workforces. Topic 3: Best Features of Human Resource Management  Human Resource Management is a continuous method for managing BEST employees' work-related activities and developing their potential to become effective individuals. Stated below are some of its best features: FEATURES OF HUMAN It is prevalent in nature. HRM is continuously present and carried out in all RESOURCE operational and functional areas of management within an organization. MANAGEMENT It is dynamic. Human Resource Management isn’t stagnant. It does not rely on written rules and policies to address issues. HRM focuses on what can be done via reasoned, and well-informed decisions. HRM continually looks for methods to alter circumstances and occurrences for the improvement of the company and its people.  Human Resource Management is a continuous method for managing BEST employees' work-related activities and developing their potential to become effective individuals. Stated below are some of its best features: FEATURES OF HUMAN It is individually-oriented. RESOURCE With HRM, every employee of the company is treated as a human being that is worthy of respect and understanding. Human Resource Management works to bring out the MANAGEMENT maximum potential of each employee by making sure employees consistently receive the chance to acquire new abilities through development, training, and other productivity improvement programs. It is employee-oriented. In HRM, employees are seen as valuable assets of an organization. Therefore, recognizing employees for their contributions to the success of the organization is a powerful motivator to raise the level of work performance.  Human Resource Management is a continuous method for managing BEST employees' work-related activities and developing their potential to become effective individuals. Stated below are some of its best features: FEATURES OF It is forward looking. HUMAN The HRM function of an organization must be able to RESOURCE predict and evaluate the labor requirements for a specific time period in order to be successful. With this, the management will be reassured that only the capable, MANAGEMENT motivated candidates with the appropriate qualifications are joining the organization. It is growth oriented. Every organization has its organizational goals in order to succeed. In view of this, HRM should always work to improve the conceptual and analytical abilities of its employees. To ensure the success of the company, employee development must be carefully planned. One approach for employees to pick up new skills and experience is called ‘Job rotation’ in which employees are required to work between different tasks which may enhance their exposure and improve their skills. Topic 4: Human Resource Management Functions HUMAN RESOURCE MANAGEMENT FUNCTIONS People who are engaged in managing HR develop and work through an integrated HRM system. There are six functional areas associated with effective HRM: staffing, human resource development, performance management, compensation, safety and health, and employee and labor relations.  HRM Function: Staffing Staffing is the process through which an Job analysis is the Human resource planning is organization ensures that it always has the systematic process of the systematic process of proper number of employees with the matching the internal and determining the skills, appropriate skills in the right jobs, at the external supply of people with duties, and knowledge job openings anticipated in right time, to achieve organizational required for performing the organization over a objectives jobs in an organization. specified period. Selection is the process of Recruitment is the process of Staffing involves job attracting individuals on a choosing the individual best suited for a particular position and the analysis, human resource timely basis, in sufficient organization from a group of numbers, and with applicants. Successful planning, recruitment, accomplishment of the staffing appropriate qualifications to and selection. apply for jobs with an function is vital if the organization is to effectively accomplish its organization. mission. HRM Function: Performance Management Performance management is Performance Appraisal a goal-oriented process that is directed toward ensuring that It is a formal system of review and evaluation of organizational processes are individual or team task performance. It affords in place to maximize the employees the opportunity to capitalize on their productivity of employees, strengths and overcome identified deficiencies, thereby helping them to become more satisfied teams, and ultimately, the and productive employees. organization. HRM Function: 12 Human Resource Development Human resource development is a major HRM function consisting not only of training and development but also of career planning and development activities, organization development, and performance management and appraisal. Training and Training is designed to provide learners with the knowledge and skills Development needed for their present jobs. Development involves learning that goes beyond today’s job and has a more long-term focus. Organization development (OD) is a planned and systematic attempts to Organization change the organization (corporate culture), typically to a more behavioral development (OD) environment. OD applies to an entire system, such as a company or a plant. Career planning is an ongoing process whereby an individual sets career goals and Career Planning identifies the means to achieve them. Career development is a formal approach and Career used by the organization to ensure that people with the proper qualifications and Development experiences are available when needed. Organizations should assist employees in career planning so the needs of both can be satisfied. HRM Function: Compensation The issue of fair pay has been a longstanding concern for management, unions, and workers, with a well- designed compensation system ensuring employees receive adequate and equitable rewards. The term compensation includes the total of all rewards provided to employees in return for their services. The rewards may be one or a combination of the following: Direct Financial Indirect Financial Nonfinancial Compensation (employee Compensation: Compensation (Core benefits): All financial Satisfaction that a person Compensation): Pay rewards that are not included receives from the job itself that a person receives in direct compensation, such or from the psychological in the form of wages, as paid vacations, sick leave, or physical environment salaries, commissions, holidays, and medical in which the person and bonuses. insurance. works. HRM Function: Employee Relations 12 & Safety and Health Businesses are required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them. In the past, employers often Employee favored union-free environments, but today, most firms prefer a union-free environment. Labor relations, the human resource activity representing employees, handles collective Relations bargaining, and is often referred to as labor relations. Internal employee relations comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation. Safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees’ freedom from physical or Safety and emotional illness. These aspects of the job are important because employees Health who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization. HRM Function: Human Resource Research Human resource research is not a Interrelationships of Human Resource distinct function in HRM. It Management Functions encompasses all functional areas and the entire work environment. It can All HRM functions are interconnected, and help identify the type of worker most decisions in one area can impact others. For likely to succeed in a firm's culture, instance, a firm's focus on recruiting top talent identify causes of work-related but neglecting compensation can waste time, accidents, and identify causes of effort, and money. A safe and healthy work problems like excessive absenteeism environment is crucial, and below-market wages or grievances. This research is can lead to employees leaving for higher wages. essential for developing a productive and satisfied workforce. Topic 5: Dynamic Human Resource Management Environment DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Many interrelated factors affect HRM practice within and outside the organization. The environmental factors include legal considerations, labor market, society, political parties, unions, shareholders, competition, customers, technology, the economy, and unanticipated events. Each factor, either separately or in combination with others, can create constraints or opportunities for HRM. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Legal Considerations A significant external force affecting HRM relates to federal, state, and local legislation and the many court decisions interpreting this legislation. For example, the Age Discrimination in Employment Act is a federal law protecting older workers from illegal discrimination. Presidential executive orders significantly impact HRM, affecting the entire spectrum of HR policies. Legal considerations, court decisions, and executive orders will be described in the appropriate chapters. Labor Market Potential employees located within the geographic area from which employees are normally recruited comprise the labor market. The capabilities of a firm’s employees determine, to a large extent, how well the organization can perform its mission. The labor market is always changing, and these shifts inevitably cause changes in the workforce of an organization.  DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Society Society may also exert pressure on HRM. The public is no longer content to accept, without question, the actions of business. To remain acceptable to the general public, a firm must accomplish its purpose while complying with societal norms. Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Corporate social responsibility (CSR) is closely related to ethics. CSR is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves Political Parties Closely related to society, but not the same, are political parties. The Democratic and Republican parties are the two major political parties in the United States. These parties often have differing opinions on how HRM should be accomplished. For example, Democrats favor government regulation to ensure minimum wage and health insurance for all employees, while Republicans advocate for business flexibility, believing in the Fair Labor Standards Act and Patient Protection Affordability and Accountability Act. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Unions Wage levels, benefits, and working conditions for millions of employees reflect decisions made jointly by unions and management. A union consists of employees who have joined together for the purpose of negotiating terms of employment such as wages and work hours. The United Auto Workers is an example of a large labor union. Unions are treated as an environmental factor because, essentially, they become a third party when dealing with the company. Shareholders The owners of a corporation are called shareholders. Because shareholders, or stockholders, have invested money in the firm, they may at times challenge programs considered by management to be beneficial to the organization. Stockholders are wielding increasing influence, and management may be forced to justify the merits of a particular program in terms of how it will affect future projects, costs, revenues, profits, and even benefits to society as a whole. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Competitions Firms face intense global competition in their product or service and labor markets. To succeed, they must maintain a supply of competent employees and ensure they obtain and retain a sufficient number of employees in various career fields. A bidding war often results when competitors attempt to fill critical positions in their firms. Even in a depressed economy, firms find creative ways to recruit and retain employees to compete effectively. Customers The people who actually use a firm’s goods and services also are part of its external environment. Because sales are crucial to the firm’s survival, management has the task of ensuring that its employment practices provide excellent customer support service. Customers constantly demand high-quality products and after-purchase service. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT HR Technology Technological advancements have revolutionized HR roles, requiring them to stay updated with applications like human resource information systems, cloud computing, and social media, despite the increasing pressures. Human resource information system (HRIS), organized approach for obtaining relevant and timely information on which to base HR decisions. The HRIS brings under one encompassing technology system many human resource activities. Cloud computing, a means of providing software and data via the Internet. Cloud computing and mobile devices are revolutionizing HR work by eliminating expensive hardware and infrastructure costs and staff-intensive upgrades. This allows businesses to buy and use necessary resources when needed, allowing them to focus on core competencies rather than managing their own computer centers. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT There are three main applications of social media. Companies may engage in targeted recruiting and sourcing passive and active applicants. Companies may use social media to promote knowledge sharing, training and development. Reinforcing identification with the organization and promoting the brand. Economy The economy significantly impacts HRM, with a booming economy making it harder to recruit qualified workers, while a downturn leads to more applicants. The dynamic and ever-changing economic environment impacts every aspect of HRM, making it a major challenge for HR professionals to navigate. DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT Unanticipated events Unanticipated events are occurrences in the environment that cannot be foreseen. The Deepwater Horizon oil spill off the Gulf Coast in 2010 caused major modifications in the performance of many HR functions. Every disaster—whether human-made or natural—likely requires a tremendous amount of adjustment with regard to HRM. Topic 6: The Challenge of HRM today  THE CHALLENGE OF MANAGING HUMAN RESOURCES TODAY 1. Changing Employee Expectations One must recognize that today's workforce comprises several generations, each with a different set of values, aspirations, and each with a unique perspective and attitude towards work. Generations have been classified into four categories: Silent Generations Born before 1946 The generation that is the so-called veterans who entered the workforce around the 1950s and early 1960s. Since they are already old, they have since long retired and are unheard of. Know to be loyal to the organization. Baby Boomers Born between 1946 and 1959 or born after the second world war. They are also the people who never experienced hardships of the war days Known to be aggressive, ambitious and loyal to their careers. Generation X Born between 1960 and 1979 before the advent of the Information Age. They are usually concerned with their work/life issues. Generation Y Born between 1980 and 2008 Otherwise known as the Nexters, these are the generations who love the modern gadgets of the Information age like headphones, yoga mat, laptop, designer coffee, Blackberry, Digital camera and IPod. They are known for talking back to their bosses, are ambitious, demanding and questions everything. According to the article written by the Fortune magazine in May 28, 2008, nexters are self-absorbed, gregarious, multitasker, loud, optimistic, and pierced. The most high-maintenance workforce but also, according to Bruce Tulgan, nexters can be the most high- performing workforce in the history of the world. 2. Rapidly Changing Technology The advent of computers has fundamentally changed jobs. Automation has eliminated huge numbers of jobs in manufacturing, finance, sales and marketing, and administration and human resources. With this event, it dramatizes the impact of advanced technology and communication on the workflow and productivity of the organization especially on its human resources.  Rapidly Changing Technology Because of this, companies must invest millions of money in training and development to update their employees’ skills to keep pace with the technology. Organizations must hire more skilled workforce and redesign jobs. 3. Emphasis on Increased Productivity Because of this global competition, companies need to manage their labor costs more carefully. They do this by: "Increasing productivity": Getting more work done with the same or fewer resources. "Eliminating redundant jobs": Cutting jobs that are no longer needed. "Jobs which have no value": Removing positions that don't contribute to the company's success. 4. New Modality of Employment- Outsourcing Most business organizations today, wherever possible, prefer to adopt flexibility in the acquisition of human resources. Firstly, companies that depend on the cyclical demands of their products or services must also be flexible in their hiring practices. Secondly, it is not easy under our laws to terminate the services of employees when no longer needed. Employees, whether casual or temporary, can only be terminated for just cause or authorized causes. This prompted some employers to resort to outsourcing their temporary employers from labor service contractors. Outsourcing is the practice of hiring external organizations or individuals to perform tasks, services, or functions that would typically be handled by the company's own employees. Companies often outsource to reduce costs, access specialized expertise, or focus on their core business activities. Outsourced tasks can range from IT services and customer support to manufacturing and administrative functions.  New Modality of Employment- Outsourcing Outsourcing has changed the human resource dimension in many organizations. As a result, some employees are laid off, some are hired on a contractual basis while some others are on a fixed or definite period of employment 5. Flatter Organization Flattening of organizations improves productivity, efficiency, and communications. Flattening an organization reduces hierarchical levels, leading to improved communication, faster decision-making, and increased employee autonomy. This enhances productivity and efficiency by streamlining processes and empowering employees to act more quickly and effectively. In a flatter organization, people are expected to produce more using fewer resources. Multitasking is required as they are asked to perform a variety of ever-changing roles, taking new responsibilities, and significantly changing the job contents of the incumbents. Flatter Organization The restructuring of organizations impacts on human resource management in many ways: 1. HR must develop and implement policies to minimize the pain in downsizing. The policies need to set standards from communicating the termination to affected employees to severance packages. 2. Those being given the so-called “pink paper” (the euphemism for layoffs), must be let go with dignity. Organizations with moral conscience should include in their severance agreements or offers transitional training, outplacement assistance, or extended benefits. Flatter Organization 3. Extreme care must be addressed to remaining employees. Security of tenure is jarred. Assurances of no more layoffs sometimes are taken with disbelief among the survivors. Questions of who is next would be up- permost in their minds. Through effective human resource management, an organization should be able to keep its staff pacified, assuaged and productive through the difficult transition Topic 7: Differences between Personnel Management and HR Management  DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT Personnel Management (PM) and Human Resource Management (HRM) differ when it comes to the method of finishing the work or task necessary for attaining an organization's goals. PM pertains to managing employees through supervisory administration HRM pertains to a non-stop function that focuses more on the effective supervision and management directed at enhancing employees knowledge and abilities. DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT PM is reactive in nature. This means that the management responds to demands as soon as they arise. In contrast, HRM is proactive in nature. This means that the management is anticipating, planning, and advancing continuously. The HRM sees the organization as one that embodies a dynamic personality. In order to achieve work-life balance, the PM has complete control over people management, while HRM ensures that workers' personal and professional requirements are properly met.  DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT PM has a limited range because it solely focuses on managing people, whereas HRM's key priorities are motivational and team- building activities. When it comes to the management’s focus. PM is primarily on mundane tasks such as employee hiring, remunerating, training, and harmony, whereas, HRM focuses on treating manpower of the organization as assets to be valued, used, and preserved. Moreover, In HRM, a fulfilling job is considered as the antecedent and job satisfaction is the outcome. DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT When it comes to the management’s main motivators, PM has the monetary and non-monetary benefits, however in HRM, productivity, satisfaction, and employees' social well-being are strongly correlated. In PM, a high level of contentment means better performance. This management regards employees as tools for the organization to make more profit. Whereas, HRM considers people as valuable assets.  DIFFERENCES BETWEEN PERSONNEL MANAGEMENT AND HUMAN RESOURCE MANAGEMENT On the other hand, HR management sees workers as valuable contributors to the success of the company and so recognizes their contributions through opportunities for growth and promotion. The PM treats employees as commodities that can be bought in exchange for money Chapter 1: End of the Presentation Thank you for listening!