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Human Resource Management

Week 1

STRATEGIC HUMAN RESOURCE

MANAGEMENT:

AN OVERVIEW

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Human Resource Management

• Utilization of individuals to achieve organizational objectives

• All managers at every level must concern themselves with human resource management

• Five functions

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1

Human Resource

Management

Human Resource

Development

Com

pens

atio

n

Staffing

Em

ployee and

Labor Relations

Safety and Health

Human Resource Management Functions

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Staffing

• Job Analysis

• Human Resource Planning

• Recruitment

• Selection

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Staffing (Cont.)

• Staffing - Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives

• Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in organization

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Staffing (Cont.)

• Human resource planning - Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time .

• Recruitment - Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization

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Staffing (Cont.)

• Selection - Process of choosing from a group of applicants the individual best suited for a particular position and the organization

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Human Resource Development

• Training• Development

• Career Planning• Career Development

• Organizational Development• Performance Management

• Performance Appraisal

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Human Resource Development (Cont.)

• Training - Designed to provide learners with knowledge and skills needed for their present jobs

• Development - Involves learning that goes beyond today's job; it has more long-term focus

• Career planning - Ongoing process whereby individual sets career goals and identifies means to achieve them

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Human Resource Development (Cont.)

• Career development - Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed

• Organization development - Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals

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Human Resource Development (Cont.)

• Performance management - Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization

• Performance appraisal - Formal system of review and evaluation of individual or team task performance

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Compensation

Compensation - All rewards that individuals receive as a result of their employment

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Compensation

• Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions.

• Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

• Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

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Safety and Health

Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.

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Safety and Health

• Safety - Involves protecting employees from injuries caused by work-related accidents

• Health - Refers to employees' freedom from illness and their general physical and mental well being

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Employee and Labor Relations

• Private-sector union membership has fallen from 39 percent in 1958 to 7.8 percent in 2005.

• Business is 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

• Human resource activity is often referred to as industrial relations

• Most firms today would rather have a union-free environment

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Interrelationships of HRM Functions

• All HRM functions are interrelated

• Each function affects other areas

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HR’s Changing Role: Questions That Are Being Asked

• Can some HR tasks be performed more efficiently by line managers or outside vendors?

• Can some HR tasks be centralized or eliminated altogether?

• Can technology perform tasks that were previously done by HR personnel?

• Many HR departments continue to get smaller

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HR Outsourcing

• Transfers responsibility to an external provider

• Market for HR outsourcing is growing dramatically

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Ways HR Outsourcing is Done

• Discrete services

• Multi-process services

• Total HR outsourcing

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Multi-process Services

• Complete outsourcing of one or more human resource processes

• Example: Procter & Gamble outsourced entire training operations

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Total HR Outsourcing

• Transfer majority of HR services to third party

• Example: Whirlpool Corporation signed 10-year deal to outsource HR business processes for 68,000 employees to Convergys Corporation

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Organization ofHuman Resource Management

10th Edition

PART I. INTRODUCTION• Chapter 1: Strategic Human Resource

Management: An OverviewPART II. HR ETHICAL, LEGAL, AND SOCIAL

CONSIDERATIONS• Chapter 2: Business Ethics and Corporate

Social Responsibility • Chapter 3: Workforce Diversity, Equal

Employment Opportunity, and Affirmative Action

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Organization ofHuman Resource Management

10th Edition (Cont.)

PART III. STAFFING

• Chapter 4: Job Analysis, Strategic Planning, and Human Resource Planning

• Chapter 5: Recruitment

• Chapter 6: Selection

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Organization ofHuman Resource Management

10th Edition (Cont.)

PART IV. HUMAN RESOURCE DEVELOPMENT

• Chapter 7: Training and Development

• Appendix Chapter 7: Career Planning and Development

• Chapter 8: Performance Management and Appraisal

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Organization ofHuman Resource Management

10th Edition (Cont.)

PART V. COMPENSATION AND BENEFITS• Chapter 9: Compensation • Chapter 10: Benefits, Nonfinancial

Rewards, and Other Compensation Issues

PART VI. SAFETY AND HEALTH• Chapter 11: A Safe and Healthy Work

Environment

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Organization ofHuman Resource Management

10th Edition (Cont.)

PART VII. EMPLOYEE AND LABOR RELATIONS• Chapter 12: Labor Union and Collective

Bargaining• Appendix Chapter 12: History of Unions in the

United States• Chapter 13: Internal Employee RelationsPART VIII. OPERATING IN A GLOBAL

ENVIRONMENT• Chapter 14: Global Human Resource

Management