chap1 introduction of human resource

Chapter 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Chapter 1 in Mondy (2014)

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Learning Objectives

• Define human resource management.• Identify the human resource management functions.• Identify the external environmental factors that affect

human resource management.• Explain who performs human resource management

tasks.

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Human Resource Management

• Utilization of individuals to achieve organizational objectives.

• Concern of all managers at every level.

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HRM Functions

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1

Staffing

Human Resource

Management

Human Resource

Development

Com

pens

atio

nEm

ployee and

Labor Relations

Safety and Health

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Staffing

Process of ensuring the organization always has:

• Required number of employees

• Employees with appropriate skills

• Employees in the right jobs at the right time

• Constant job analysis, human resource planning, recruitment, and selection.


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Job Analysis

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

• Impacts virtually every aspect of HRM


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Human Resource Planning

• Matching internal and external supply of people with anticipated job openings over a specified period of time.

• Sets the stage for recruitment and other HR actions


Recruitment and Selection

Recruitment: Attracting individuals to apply for jobs•Must be timely•Applicants need appropriate qualifications•Need sufficient number of applicants

Selection: Choosing individual best suited for a particular position and the organization


Human Resource Development

Human resource development include:– Training– Development – Career planning – Career development– Organization development– Performance appraisal


Training and Development

Training: Providing learners with knowledge and skills needed for their present jobs.

Development: Offering learning that goes beyond present job.


Career Planning and Development

Career planning: Ongoing process. • Individual sets career goals • Identifies means to achieve them

Career development: Formal approach used by the organization. • Ensures a pipeline of people with proper

qualifications and experiences


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Organization Development

• Is a planned and systematic attempt to make the organization more effective, typically by creating a more positive behavioral environment.


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Performance Appraisal

• A formal system of review and evaluation of individual/team performance.

• It affords employees the opportunity to receive feedback on their strengths and areas for development.


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Compensation • All rewards that individuals receive as a result of their employment.• Consists of direct financial compensation, indirect financial compensation, and nonfinancial compensation.


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Safety and Health

Safety: Protecting employees from injuries caused by work-related accidents.

Health: Employees' freedom from illness and their general physical and mental well-being.


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Employee Relations• Businesses are required by law to recognize a

union and bargain with it in good faith if firm’s employees want a union to represent them

• Human resource activity with a union is often referred to as industrial relations, which handles the job of collective bargaining.


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Interrelationships of HRM Functions

• All HRM functions are interrelated so that each function affects the others.

• For instance, a firm that emphasizes recruiting top-quality candidates but neglects to provide satisfactory compensation is wasting time and money.


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Environment of Human Resource Management


External environment

• Legal consideration: federal, state and local legislation, court decision etc.

• Labor market: talk about labor supply and demand • Society: involve ethics and corporate social responsibility• Political parties: the influence of political parties on HRM

activity.

• Unions: group of employees who have joined together to collectively bargain with their employer.

• Shareholders: the owner of the companies may at times challenge programs considered by management to be beneficial to organization

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• Competition: in product or service and labor markets. – To fight the firms must maintain a supply of competent employees.

• Customer: People who actually use firm’s goods and services.

– Workforce should be capable of providing top-quality goods and services.

• HR technology: Rapid technological changes provide

– Ability to design more useful human resource information systems (HRIS).

– A HRIS is any organized approach for obtaining relevant and timely information on which to base human resource decisions.

– HRIS are used to obtain and track relevant information for human resource decisions.

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• Economy:

– When economy is booming, it is often more difficult to recruit qualified workers.

– In economic downturn, more applicants are typically available.

• Unanticipated events:– Unforeseen occurrences in external environment.

– Require a tremendous amount of adjustment with regard to HRM .

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Internal Environment Factor

• Corporate culture as a major internal factor.• Gives people a sense of how to behave and what

they ought to be doing.• Each individual gradually forms such perceptions

over a period of time as the person performs assigned activities under the general guidance of a superior and a set of organizational policies.


Who Performs Human Resource Management Tasks?

• Human resource managers• HR outsourcing • HR shared service centers• Professional employer organization (employee

leasing) • Line managers


Human Resource Manager

• Historically, the HR manager was responsible for each of the five HR functions.

• Acts in advisory or staff capacity.• Works with other managers to help them deal

with human resource matters.


HR Outsourcing

• Transfers responsibility to an external provider– Discrete services : Single set of high-volume

repetitive functions is outsourced to a third party

– Business process outsourcing (BPO) : transfer of the majority of HR services to a third party.


HR Shared Service Centers (SSCs)

• Takes routine, transaction-based activities that are dispersed and consolidates them in one location.

• Provide an alternative to HR outsourcing


Professional Employer Organization (Employee Leasing)

Company that leases employees to other businesses

Advantages:

– Economies of scale

– Greater job mobility for workers

– Job security through leasing company

– PEO can handle compliance requirements of programs


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Line Managers Performing HR Tasks

• Line managers: Individuals directly overseeing the accomplishment of the organization’s primary goals.

• Involved with human resources by nature of their jobs

• Now performing some duties typically done by HR


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