human resource management eleventh edition
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Human ResourceManagement
Eleventh Edition
Changing Nature of Changing Nature of Human Resource Human Resource ManagementManagement
Changing Nature of Changing Nature of Human Resource Human Resource ManagementManagement
Chapter 1Chapter 1
Robert L. Mathis Robert L. Mathis John H. Jackson John H. Jackson
PowerPoint Presentation
by Dr. Zahi Yaseen
PowerPoint Presentation
by Dr. Zahi Yaseen
SECTION 1Nature of
Human Resource
Management
SECTION 1Nature of
Human Resource
Management
Changing Nature of Human Resource Changing Nature of Human Resource
ManagementManagement After you have read this chapter, you should be able to:
–Define HR management and explain why managers and HR staff must work together.
–List and define the seven categories of HR activities.
– Identify three challenges facing HR today.–Describe the four roles of HR management.–Discuss why ethical issues affect HR
management.
HRManagement
Activities
HRM Activities
Human resource activities support organizational efforts focusing on Productivity, Service, and quality
That requires changes in corporate culture, leadership styles, and HR policies.
1- HR planning and analyses2- Equal employment opportunity3- Staffing4- HR development5- Compensation and Benefits6- Health, safety, and security7- Employee and Labor relations
•Human Resource Management– Is the direction of organizational systems to ensure
effective and efficient use of human talent to accomplish organizational goals.
•HR in Organization– Every manager in an organization is an HR manager,
however, it’s unrealistic to expect all operation managers like sales managers, nursing supervisor to know about employment regulations, union contracts….etc.
•Corporation of HR with operating managers:– HR specialists design processes and systems that
operating managers help implement.
•Management of Human Capital in Org;
Organization must manage four types of assets:
1- Physical : building, land, furniture, vehicles…
2- Financial: cash, stocks, securities…..
3- Intangible: brand name, researches…..
4- Human: talents employees, experience,
professionals, capabilities…..All these assets are crucial in varying degrees. However, the human assets are the ‘glue” that holds all other assets together and guides their
use to achieve organizational goals.
•Management of Human Capital in Org;
Human CapitalHuman Capital: Is the collective value of the capabilities, knowledge, skills, life-experiences, and motivation of the workforce. Human capital is not the people in the company- It’s what those people bring and contribute in the success of that company.
HR as a Core competencyHR as a Core competency: HR should be part of organizational strength. Because those strengths are the foundation for creating a competitive advantage, core competency is a unique capability that creates high value and differentiates an organization from its competitors.
HR Management Challenges
•Globalization of Business•Economic and technological changes•Workforce demographics and diversity
•Organizational cost pressures & restructuring
HR Management Challenges
•Globalization of Business - Global companies across nations. Pepsi, Microsoft, Hp,
GE, Sony, Toyota, Nokia, McDonalds….. - Shift from investment to operate, and produce products
and services across the boards and the effect of security.
•Economic and Technological Changes– Shift in jobs for manufacturing and agriculture to service
industries and telecommunications.– Workforce availability and quality concerns: Lack of
skilled employees.– Growth in contingent workforce: contractors, part time…– Growth of information technology (Internet).
HR Management Challenges
• Workforce demographics and diversity– More diversity of race, gender, and ethnicity. People
from different background, women in the workplace, and growing of minorities.
• Organizational cost pressures & restructuring
“Right-sizing", eliminating of layers of management, closing facilities, merging, and outplacing workers.
• Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
• Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees
HR Management Roles
• Administrative RoleThe administrative support operations (e.g., payroll and benefits
work) shifted to technology ( internet) and outsourcing. The reasons are to save money, time, and to focus on strategic plans.
• Operational and Employee Advocate Role– Traditionally HR is the “Champion” for employee concerns, and
respond to employees complaints and crises. (figure 1)
• Strategic Role - Long-term implications, ethics bookkeeping, and
provide competitive advantage.
Traditional HR Function• Reactive• Collecting HR data• Responding to goals and
objectives set by executives• Complying with laws,
policies, and procedures• Administering employees
benefits programs• Designing training programs• Staffing
• Applying compensation plans
Emerging HR practice• Proactive• Measuring HR with metrics• Setting strategic HR goals
and objectives• Developing and revising
policies and procedures• Evaluating benefits
strategically• Identifying training needs• HR planning and linking with
external staffing needs• Developing compensation
plans
HRM shifts from operational to strategic
Strategic Role for HR
• HR becomes a strategic business partner by:
- Evaluating mergers and acquisitions for staffing needs
- Conducting workforce planning : from employees retirements to workforce expansion
- Leading site selection efforts for new facilities, and for international outsourcing.
- Applying new HR systems to reduce time and staff
- Working with executives to develop compensating plans
• Collaborative HR: when group of companies from different industries establish HR hop to share information and benefit for their experiences.
HR Technology Firms have developed and implemented information
systems to simplify use of the vast amounts of HR data
• Human resource management system( HRMS)
Is an integrated system providing information used by HR management in decision making.
• Purpose of HRMS: 1- administrative and operational efficiency
2- strategic and HR planning( see attached example)
Ethics and HR Organizations with high ethical standards are more likely to
meet long –term strategic objectives and profit goals.
• Ethics and global differences: Different laws, politics, cultural values usually raises ethical issues for global employers.( what is prohibited here is allowed there)
• HR’s role in organizational ethics HR management plays a key role as the “ keeper
and voice” of organizational ethics.
Ethical issues like: misrepresenting hours and time worked, employee lying to managers, hiring and promoting the favoritism.
Ethics and HR
Responding to Ethical Situations – Guided by values and personal behavior “codes” that
include:• Does response meet all applicable laws, regulations, and
government codes?
• Does response comply with all organizational standards of ethical behavior?
• Does response pass the test of professional standards for ethical behavior?
We should valueOur customers and
Our employees
What can we do toSurvive in the Market place?
Management support/technologyCulture/ motivation
How can we manage our
costs?
Increasing competition
Demands for Productivity/ quality/
service
HR Traditional View•-Responding to goals and objectives set by executives•Complying with laws, •policies, and procedures•Administering employees benefits programs•Staffing•Applying compensation plans
HR Strategic•Vision/Mission,\/Goals•Plan for people•Revising Rules •Comply with Labor Law•Design Policies/procedures•Design jobs•Recruiting /Selecting•Employee retention
How can we increase Productivity?
Job satisfaction leads toProductivity and quality
Employee Retention
Competition advantage through Human capital
Job performance
Job satisfaction Individual abilities/skillsThe Key
HRTree
Job Performance
HR Planning
HR Strategic
Survey-Satisfaction
Exit Interviews
HRTree
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