BSAD 310 Spring 2017 - CH 1

Chapter 1: The New Human

Resource Management

Process

2Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.

Exhibit 1-1: Features of This Book’s Three-Pronged Approach

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Why Study HRM?• Competitive advantage• Employee engagement

– Job satisfaction– Willingness to perform at high level– Willingness to perform long-term

• Organizational success– Employee engagement– Effective management– Productivity– Profit


Consider This

Company A – Recruits better– Trains and develops

better– Retains talent– Avoids lawsuits

Company B– Fails to recruit top talent– Does not nurture talent– Has high turnover– Spends time defending

its practices in court

Imagine the future of two comparable companies with similar revenues and identical market share:


21st Century HRM• Communicate the Company’s values

and directives • Maintain best practices• Stay within established budget• Hire senior HR manager (CHRO)• Create and improve effectiveness and

efficiency within organizations


HRM Then and Now

Past PresentHR managers were paper pushers who simply organized personnel files.

HR managers improve organizational revenues and profits by creating the right working environment.

HR functioned more as a cost or revenue center.

HR functions more as a productivity and profit center through building effectiveness and efficiency


HRM Challenges• Challenges

– Retaining and rewarding best employees– Developing next generation of corporate leaders– Creating culture that attracts best employees

• Critical Competencies and Subcompetencies– Business acumen– Organizational leadership and navigation– Relationship management– Communication


Critical Dependent Variables

• HR managers have no direct control over these employee factors:– Productivity– Job satisfaction– Turnover– Absenteeism


Technology and Knowledge• The Information Age: An era that

began around 1980, in which information became one of the main products used in organizations; it is characterized by exponential increases in available information in all industries

• The pace of technological change: Technology is currently outstripping our ability to use it.


Technology and Knowledge• HR managers experiencing shift from

labor-intensive talents to technology-intensive and knowledge skills – Working less with hands and more with minds

• Technology enhances effectiveness, efficiency, and productivity while “doing more with less”– Creating “knowledge” workers– Knowledge workers are in short supply


Labor Demographics• Demographic changes foreseeable

over the next 20 years• Greater diversity than ever• Older workers remain in the workforce

longer• Need for cultural awareness regarding

different work ethics, cultural norms, and language differences.


Disciplines Within HRM• Legal: EEO and Diversity Management • Staffing• Training and Development• Employee Relations• Labor and Industrial Relations• Compensation and Benefits• Safety and Security• Ethics and Sustainability


HR Responsibilities of Staff and Line Management

• Legal: EEO and Diversity Management• Staffing• Training and Development • Employee Relations• Labor and Industrial Relations• Compensation and Benefits• Safety and Security• Ethics and Sustainability


Line Versus Staff Management

• Line Managers – Control what the organization does by creating

processes and assisting employees who produce what the business sells

– Usually depicted in an organization chart with a straight line of responsibility

– • Staff/HR Managers

– Advise line management on issues within their fields of specialized knowledge

– Usually depicted on an organization chart using a dotted line


Skills for Successful HRM• Technical Skills: Know methods and techniques to

perform a task • Human Relations Skills: Possess ability to work

well with individuals and groups• Conceptual and Design Skills: Possess ability to

evaluate a situation, identify and select reasonable alternatives, and make decisions that implement solutions

• Business Skills: Possess analytical and quantitative skills that help the manager understand and contribute to the profitability of the organization


HRM Careers• Professional Associations and

Certification Programs– The Society for Human Resource

Management (SHRM): the largest and most recognized of the HRM advocacy organizations in the United States

– American Society for Training and Development (ASTD)

– WorldatWork– Human Resource Certificate Institute (HRCI)


Professional Liability• The organization and managers can be sued

by employees who feel their rights under employment laws have been violated.

• For this reason, it’s important to understand HRM concepts as thoroughly as possible.

• Be aware of personal and professional liability.

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Practitioner’s Model for HRM

• Section I: 21st Century HRM, Strategic Planning, and HR Laws– Strategy, the legal environment, and

diversity management are critical to the organization’s stability and success.

• Section II: Staffing– Pair employees with fitting jobs to allow

the organization to achieve success over longer periods of time.

Lussier and Hendon, Fundamentals of Human Resource Management. © 2017, SAGE Publications.

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Practitioner’s Model for HRM

• Section III: Developing and Managing– Maintain employee satisfaction and productivity

through training, evaluation, development, counseling, and employee and labor relations.

• Section IV: Compensating – Reward employees through compensation and

benefits packages.• Section V: Protecting and Expanding

– Protect and expand the reach of the organization.



Exhibit 1-3: Practitioner’s Model for HRM



Trends and Issues in HRM• Creating an Engaged Workforce

– Employees: Integral part of workforce– Hire and train managers for employee engagement– Create and adhere to company values– Remove disengaged employees

• Reverse Discrimination Rulings – What are they?– Ricci v. DeStefano– Discrimination of all types important