chap1.ppt

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© 2003 Prentice Hall, Inc.1-1

Human Resource Management

Chapter 1: Introduction to Human Resource Management

Ass. Prof. Ipek Kalemci TUZUN

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Personnel Management Approach Human Resource

Management Approach

Manpower centered

Pragmatic

Job oriented

Resource centered

Strategic

Staff oriented

•Employee-organization relations by HRM approach

•HRM is a term for what historically was referred as personnel administration or personnel management. In today’s arena, HR managers are sometimes called “people managers” and employees are refereed as “our associates”.

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The Management Process

Planning Organizing Staffing Leading Controlling

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The evolution of HRM

Decade Major Business Ideas Common

HR titles

Pre-1900’s Small business and worker’s guilds

No “HR” people

1900’s Large-scale enterprise growth

Labor relations, personnel

1920’s Depression, first labor legislation

Industrial relations, personnel

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HR titles

1940’s WW II, growth of large diversified enterprises

Personnel administration

1960’s Civil rights and compliance Personnel

1980’s Growing impact of globalization and technology; human capital; emergency of the knowledge/service economy

Personnel, Human Resources

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HR titles

2000’s Modern organizations, organization effectiveness, strategic HR planning


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Management Process

Planning Goals and standards Rules and procedures Plans and forecasting.

Organizing Tasks Departments Delegating Authority and communication Coordinating

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Management Process

Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

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Management Process

Leading Getting the job done Morale Motivation

Controlling Setting standards Comparing actual performance to standards Corrective action

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Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.

Human Resource Management can be defined as the implementation of the strategies, plans and programs required to attract, motivate, develop, reward and retain the best people to meet the organizational goals and operational objectives of the organization.

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HRM Functions Include:

Conducting job analyses (determining the nature of each employee’s job)

Planning labor needs and recruiting job candidates

Selecting job candidates Orienting and training new

employees Managing wages and salaries

(compensating employees) Providing incentives and

benefits Appraising performance

Communicating (interviewing, counseling, disciplining)

Training and developing managers

Building employee commitment Building loyalty

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HHRM is Important to all Managers.

The wrong person, High turnover(**)

**(turnover rate; number of replacement * 100

average number of employee

Low effectiveness and efficiencies

Useless interviews Poor training Unfair labor practices

** In order to decrease turnover rate; Better advancement

opportunities More training Flexible schedules İmproved benefits Greater employee

involvement in operations Recognition programs Good communication of

rules and regulations Resolving employee

complaints

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So,

Human Resources are the people in the organization

Human Resource Management is a series of activities and decisions carried out by all line managers that help employees get the job done and achieve their objectives

Human Resource Department consist of specially trained professionals who help managers carry out human resource management responsinsibilities

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Line and Staff Aspects of HRM

Authority is the right to make decisions, to direct the work of others, and to give orders

Line Managers are authorized to direct the work of subordinates. They are always someone’s boss. In general they are in charge of accomplishing of the group’s goals

Staff Managers are authorized to assist and advise line managers

in their goals. They aid line managers in areas like recruiting, hiring and compensation

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Line Manager’s HRM Jobs

1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs that are new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth working relationships

6. Interpreting the company’s policies and procedures

7. Controlling labor costs 8. Developing the abilities of

each person 9. Creating and maintaining

department morale 10. Protecting employees’ health

and physical condition

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FIGURE 1–3 Employment and Recruiting—Who Handles It? (Percentage of All Employers)

Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center.

Note: Length of bars represents prevalence of activity among all surveyed employers.

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As a company grows, line managers need the assistance as

well as the specialized knowledge and advice of a

separate HR staff

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HRM DEPARTMENT

Line authority The authority exerted by a personnel manager by directing the activities of the people in his or her own department and in service areas (like the plant cafeteria).

Implied authorityThe authority exerted by a personnel manager by virtue of others’ knowledge that he or

she has access to top management (in areas like testing and affirmative action).

Functional controlThe authority exerted by an HR manager as coordinator of personnel activities.

Employee advocacyHR must take responsibility for clearly defining how management should be treating employees, make sure

employees have the mechanisms required to contest unfair practices, and represent the interests of

employees within the framework of its primary obligation to senior management.

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Human Resource Managers’ Duties

Functions ofHR Managers

Line FunctionLine Authority

Implied Authority

Staff FunctionsStaff Authority

InnovatorEmployee Advocacy

Coordinative Function

Functional Authority

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Human Resource Specialties

Recruiters

EEO Coordinators

Labor Relations Specialists

Training Specialists

Job Analysts

Compensation Managers

Human Resource

Specialties

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Typical HR Positions

Recruiters; maintain contact with community and search for qualified job applicants.

Job analysts; Collect and examine information about jobs to prepare job descriptions and job specifications

Compensation managers; Develop compensation plans and handle the employee benefits program.

Training specialists; Plan, organize, and direct training activities.

Labor relations specialists. Advise management on all aspects of union–management relations.

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FIGURE 1–1 HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

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FIGURE 1–2 HR Organizational Chart (Small Company)

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The changing role of HR

Effective HRM selection, training, pay and employee fairness practices are crucial to capitalizing on technology and remaining competitive

HR departments must move away from a housekeeping focus to strategic maneuvering – HRM must evolve to remain dynamic

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The new HR manager

Provides efficient operational services including outsourcing service when necessary

Supports top management’s strategic planning efforts

Acts as the company’s “internal consultant” for identifying and institutionalizing changes that enhance employees skills allowing them to contribute to the company’s success

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The Changing Environment of Human Resource Management

Globalization Trends

Technological Trends

Trends in the Nature of Work,

Human Capital

Workforce Demographic Trends

Changes and Trends in Human Resource

Management

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The Changing Environment of Human Resource Management Globalization; tendency of firms to extend their sales and

manufacturing to new markets abroad Technological advances; technology has been forcing and

enabling firms to become more competitive (skilled employee, empowerment)

The nature of work; Human capital(knowledge, education, training, skills and expertise of a firm’s worker) provides competitive advantage

The workforce diversity; increased diversity provide challenges for HR management: Older, more multi-ethnic workforce,Nontraditional workers,

“Generation Y”,Retirees

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The Changing Role of Human Resource Management

New Responsibilities for HR Managers

Measuring the HRM Team’s Performance

Managing with the HR Scorecard

Process

Creating High- Performance Work

Systems

Strategic Human Resource

Management

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Important HRM issues

Strategic human resource management

HR’s use of technology

Managing ethics

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What is strategic HRM?

A strategy is a company’s plan for matching internal strengths and weakness with external opportunities and threats

Strategic HRM is the formulation and execution of HR policies and practices that produce competent employees with the behaviors needed to achieve the company’s strategic goals

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FIGURE 1–8 Strategy and the Basic Human Resource Management Process

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HR and technology

Self-service

Call centers

Productivity improvement

Outsourcing

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Some Ways HR Managers Use Technology

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Issues related to HR ethics

Workplace safety

Security of employee records

Employee theft

Affirmative action

Comparable work

Employee privacy rights

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High-Performance Work System Practices Employment security Selective hiring Extensive training Self-managed teams/decentralized decision making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work

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Benefits of a High-Performance Work System (HPWS)

Generate more job applicants

Screen candidates more effectively

Provide more and better training

Link pay more explicitly to performance

Provide a safer work environment

Produce more qualified applicants per position

Hiring based on validated selection tests

Provide more hours of training for new employees

Conduct more performance appraisals

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FIGURE 1–5 Five Sample HR MetricsHR Metric* How to Calculate It

Absence rate # of days absent in month× 100

Average # of employees during month × # of workdays

Cost per hire Advertising + agency fees + employee referrals + travel cost ofapplicants and staff + relocation costs + recruiter pay and benefits

Number of hires

HR expense factor

HR expense

Total operating expense

Time to fill Total days elapsed to fill job requisitions

Number hired

Turnover rate Number of separations during month× 100

Average number of employees during month

Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management..

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Measuring HR’s Contribution

The HR Scorecard

Shows the quantitative standards, or “metrics” the firm uses to measure HR activities.

Measures the employee behaviors resulting from these activities.

Measures the strategically relevant organizational outcomes of those employee behaviors.

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The Human Resource Manager’s Proficiencies

New Proficiencies

HR proficiencies

Business proficiencies

Leadership proficiencies

Learning proficiencies

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