Fundamentals Of HRM - Chap 1 Slides PDF

Human Resource Management (Fundamentals) Wassim J. Aloulou [email protected] Table of contents PART I: The Human resource environment 1- Managing Human Resources 2- Trends in Human Resource Management 3-Providing Equal Employment Opportunity and Safe Workplace 4- Analyzing Work and Designing Jo...

Human Resource Management (Fundamentals) Wassim J. Aloulou [email protected] Table of contents PART I: The Human resource environment 1- Managing Human Resources 2- Trends in Human Resource Management 3-Providing Equal Employment Opportunity and Safe Workplace 4- Analyzing Work and Designing Jobs PART 2: Acquiring, Training, and Developing Human Resources 5678- Planning for and Recruiting Human Resources Selecting Employees and Placing Them in Jobs Training Employees Developing Employees for Future Success Chap 1’ LearningObjectives After this lesson you should be able to: - Define human resource management and explain how HRM contributes to an organization’s performance. - Identify the responsibilities of human resource departments. - Summarize the types of skills needed for human resource management. - Explain the role of supervisors in human resource management. - Discuss ethical issues in human resource management. - Describe typical careers in human resource management. Chapter 1: Managing Human Resources Introduction Human Resources and Company Performance Responsibilities of Human Resource Departments Careers in HRM What Do I Need to Know? After reading this chapter, you should be able to: LO 1-1 Define human resource management, and explain how HRM contributes to an organization’s performance. LO 1-2 Identify the responsibilities of human resource departments. LO 1-3 Summarize the types of skills needed for human resource management. LO 1-4 Explain the role of supervisors in human resource management. LO 1-5 Discuss ethical issues in human resource management. LO 1-6 Describe typical careers in human resource management. Introduction A company’s success requires skillful human resource management (HRM), HRM = The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Figure 1.1 emphasizes that there are several important HRM practices that should support the organization’s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), evaluating their performance (performance management), rewarding employees (compensation), and creating a positive work environment (employee relations). Introduction Introduction An organization performs best when all of these practices are managed well. At companies with effective HRM, employees and customers tend to be more satisfied, and the companies tend to be more innovative, have greater productivity, and develop a more favorable reputation in the community. Structure of the chapter This chapter… Introduces the scope of human resource management. Discusses why human resource management is an essential element of an organization’s success. Returns to the elements of managing human resources: the roles and skills needed for effective human resource management. Describes how all managers, not just human resource professionals, participate in the activities related to human resource management. Addresses some of the ethical issues that arise with regard to human resource management. Provides an overview of careers in human resource management. concludes by highlighting the HRM practices covered in the remainder of this book. Human Resources and Company Performance HRM was seen as necessary expense, rather than a source of value the organization Research has demonstrated that HRM practices can be valuable. Companies that attempt to increase their competitiveness by investing in new technology and promoting quality throughout the organization also invest in state-of-the-art staffing, training, and compensation practices. Human Resources and Company Performance The concept of “human resource management” implies that employees are resources of the employer. As a type of resource, human capital means the organization’s employees, described in terms of their training, experience, judgment, intelligence, relationships, and insight: the employee characteristics that can add economic value to the organization. Employees in today’s organizations are not interchangeable, easily replaced parts of a system but the source of the company’s success or failure Human Resources and Company Performance Figure 1.2 shows the relationship between HRM and the organizational performance Human Resources and Company Performance HRM and sustainable competitive advantage Human resource management is critical to the success of organizations because human capital has certain qualities that make it valuable. In terms of business strategy, an organization can succeed if it has a sustainable competitive advantage (is better than competitors at something and can hold that advantage over a sustained period of time). Therefore, we can conclude that organizations need the kind of resources that will give them such an advantage. Human Resources and Company Performance Human resources have these necessary qualities to help give organizations this advantage: Human resources are valuable. High-quality employees provide a needed service as they perform many critical functions. Human resources are rare in the sense that a person with high levels of the needed skills and knowledge is not common. An organization may spend months looking for a talented and experienced manager or technician. Human resources cannot be imitated. To imitate human resources at a highperforming competitor, you would have to figure out which employees are providing the advantage and how. Then you would have to recruit people who can do precisely the same thing and set up the systems that enable those people to imitate your competitor. Human resources have no good substitutes. When people are well trained and highly motivated, they learn, develop their abilities, and care about customers. It is difficult to imagine another resource that can match committed and talented employees. For example: If the company’s focus is on keeping employees loyal, motivated, trained, and compensated, there will be a low turnover rate ana a high rate of customer satisfaction Human Resources and Company Performance Effective management of human resources can form the foundation of a high-performance work system—an organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment. High-performance work systems also have been essential in making organizations strong enough Maintaining a high-performance work system may include development of training programs, recruitment of people with new skill sets, and establishment of rewards for such behaviors as teamwork, flexibility, and learning. Responsibilities of Human Resource Departments One way to define the responsibilities of HR departments is to think of HR as a business within the company with three product lines 1. Administrative services and transactions—Handling administrative tasks (for example, hiring employees and answering questions about benefits) efficiently and with a commitment to quality. This requires expertise in the particular tasks. 2. Business partner services—Developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs. For the systems to be effective, HR people must understand the business so it can understand what the business needs. 3. Strategic partner—Contributing to the company’s strategy through an understanding of its existing and needed human resources and ways HR practices can give the company a competitive advantage. For strategic ideas to be effective, HR people must understand the business, its industry, and its competitors. Responsibilities of Human Resource Departments Another way to think of HR responsibilities is in terms of specific activities. Table 1.1 details the responsibilities of human resource departments. These responsibilities include the practices introduced in Figure 1.1 plus two areas of responsibility that support those practices: (1) establishing and administering personnel policies and (2) ensuring compliance with labor laws. Responsibilities of Human Resource Departments Identify the responsibilities of human resource departments. HR functions: Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Analyzing and Designing Jobs Job analysis is the process of getting detailed information about jobs. Job design is the process of defining the way work will be performed and the tasks that a given job requires. In general, jobs can vary from having a narrow range of simple tasks to having a broad array of complex tasks requiring multiple skills. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Recruitment is the process through which the organization seeks applicants for potential employment. Selection refers to the process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals. The selection process may focus on specific skills or on general abilities. Table 2 lists the top five qualities that employers say they are looking for in job candidates. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Training is a planned effort to enable employees to learn job-related knowledge, skills, and behavior. Development involves acquiring knowledge, skills, and behaviors that improve employees' ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Performance Management: The process of ensuring that employees' activities and outputs match the organization's goals. The activities of performance management include specifying the tasks and outcomes of a job that contribute to the organization's success. The HR department may be responsible for developing or obtaining questionnaires and other devices for measuring performance. Observable behaviors Outcomes Or both. Short/long term Individual employee/group Who evaluates performance? Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments The pay and benefits that employees earn play an important role in motivating them. Planning pay and benefits How much to offer in salary and wages How much to offer in bonuses, commissions, and other performance-related pay. Which benefits to offer and how much of the cost will be shared by employees Administering pay and benefits Systems for keeping track of employee’ earnings and benefits are needed. Employees need information about their benefits plan Extensive record keeping and reporting is needed. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Preparing and distributing Employee handbooks and policies Company publications and newsletters Dealing with and responding to communications from employees: Questions about benefits and company policy Questions regarding possible discrimination, safety hazards, possible harassment Collective bargaining and contract administration Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Establishing and Administering Personnel Policies Organizations depend on their HR department to help establish and communicate politicies related to: Hiring Discipline Promotions Benefits All aspects of HRM require careful and discreet record keeping. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Managing and Using Human Resource Data Data about employees can show, for example, which of the company’s talent has the most promise for future leadership, what kinds of employees tend to perform best in particular positions, and in which departments the need for hiring will be most pressing. To use the data for answering questions such as these, many organizations have set up human resource information systems. They may engage in workforce analytics, which is the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments Ensuring Compliance with Labor Laws Government requirements include Filing reports and displaying posters Avoiding unlawful behavior Managers depend on HR professionals to help them keep track of their requirements Lawsuits that will continue to influence HRM practices concern job security. Identify the responsibilities of human resource departments. Analyzing and Designing Jobs Recruiting and Hiring Employees Training and Developing Employees Managing Performance Planning and Administering Pay and Benefits Maintaining Positive Employee Relations Establishing and Administering Personnel Policies Managing and Using Human Resource Data Ensuring Compliance with Labor Laws Supporting the Organization’s Strategy Identify the responsibilities of human resource departments An important element of this responsibility is human resource planning, Human resource planning provides important information for talent management-a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers. As part of its strategic role, one of the key contributions HR can make is to engage in evidence-based HR, the collection and use of data to demonstrate that human resource practices have a positive influence on the company's profits or key stakeholders (employees, customers, community, shareholders). Concerns: sustainability, meeting the needs of the organization’s stakeholders In an organization with a sustainable strategy, HR departments focus on employee development and empowerment rather than short-term costs, on long-term planning rather than smooth turnover and outsourcing, and on justice and fairness over short-term profits. Skills of HRM Professionals The Society for Human Resource Management (SHRM) has defined sets of knowledge and skills associated with success, grouping these into nine categories it calls HR success competencies: HR expertise, relationship management, consultation, leadership and navigation, communication, global and cultural effectiveness, ethical practice, critical evaluation, and business acumen. Skills of HRM Professionals HR Responsibilities of Supervisors Supervisors’ involvement in HRM Ethics in Human Resource Management Ethics refers to fundamental principles of right and wrong; Ethical behavior is behavior that is consistent with those principles. Business decisions, including HRM decisions, should be ethical. Many ethical issues in the workplace involve HRM. The treatment of women in the workplace Harassing employees (e.g., women…) on social media… HR professionals should consider that a reputation for being ethical may help companies attract employees. Ethics in Human Resource Management Employee Rights In the context of ethical HRM, HR managers must view employees as having basic rights. Certain basic rights: Right of free consent: employees should know the nature of the job they are being hired to do Right of privacy: keeping employees’ personal records confidential. Right of freedom of conscience: right to refuse to do what violates their moral beliefs, as long as these beliefs reflect commonly accepted norms Right of freedom of speech: right to criticize an organization’s ethics if they do so in good conscience and their criticism does not violate the rights of individuals in the organization. Right to due process: If people believe their rights are being violated, they have the right to a fair and impartial hearing Their rights can be affected… Ethics in Human Resource Management Standards for Ethical Behavior and for identifying ethical practices For human resource practices to be considered as ethical, they must satisfy the three basic standards summarized in Figure 1.5 HRM practices must result in the greatest good for the largest number of people Employment practices must respect basic human rights of privacy, due process, consent, and free speech. Managers must treat employees and customers equitably and fairly. Careers in Human Resource Management Background: business, social sciences, humanities and law programs HR professionals can increase their career opportunities by taking advantage of training and development programs. Some HRM professionals have a professional certification in HRM, but many more are members of professional associations. Summary HRM consists of an organization’s “people practices” The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. HRM influences who works for the organization and how those people work. HR departments have responsibility for a variety of functions related to acquiring and managing employees HRM requires substantial human relations skills, including skill in Communicating Negotiating Team development Summary HR professionals also need: Decision-making skills Leadership skills Technical skills Non-HR managers must be familiar with the basics of HRM and their own role with regard to managing HR. Supervisors typically have responsibilities related to all the HR functions HR professionals should make decisions consistent with sound ethical principles. Summary The decision of HR professionals should: Result in the greatest good for the largest number of people Respect basic rights of privacy, due process, consent, and free speech Treat employees and customers equitably and fairly Careers in HRM may involve specialized work in fields such as recruiting, training, or labor relations. Organization of This Book Various features Best practices box: How Abbott Laboratories Creates a Healthy Business “HR how to” box: Writing Effective HR Policies “HR Oops!” box: “Talent Management Sounds Great, but...” “Did you know?” box: CEO and CFO Relationships with HRM “HRM Social” box: SHRM’s Social-Media Presence “Think ethically” box: HOW SHOULD AN EMPLOYER WEIGH CONFLICTING VALUES? Case studies Taking responsibility: Why good things happen at Costco Managing talent: Old Navy's Talent Strategy Fills in Some Gaps HR in Small business: Network Is the Key to HRM at 1Collision