1 HUMAN RESOURCE MANAGEMENT: AN OVERVIEW
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1
HUMAN RESOURCE
MANAGEMENT:
AN OVERVIEW
2
Chapter Objectives
Explain human capital management.
Define human resource management.
Identify the human resource management
functions.
Identify the external environmental factors
that affect human resource management.
Explain who performs the human resource
management tasks.
3
Chapter Objectives (Continued)
Explain the need for human resources to be a strategic partner.
Describe the various human resource classifications including executives, generalists, and specialists.
Describe the changes that occur in the human resource function as a firm grows larger and more complex and the evolving HR organization.
4
Human Resource Management
Utilization of individuals to achieve
organizational objectives
All managers at every level must
concern themselves with human
resource management.
Five functions
5
1
Human
Resource
Managemen
t
Safety and
Health
The Human Resource Management
Functions
6
Staffing
Job Analysis
Human Resource Planning
(HRP)
Recruitment
Selection
7
Staffing (Continued)
Staffing - Process through which an organization ensures that it always has proper number of employees with appropriate skills in right jobs at right time to achieve organization’s objectives
Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization
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Staffing (Continued)
Human resource planning - Process of
systematically reviewing human resource
requirements to ensure that required
numbers of employees, with required
skills, are available when needed.
Recruitment - Process of attracting
qualified individuals and encouraging
them to apply for work with organization
9
Staffing (Continued)
Selection - Process through which
organization chooses, from a group of
applicants, those individuals best suited
both for open positions and for the
company
10
Human Resource Development
Training
Development
Career Planning
Career Development
Organizational Development
11
Human Resource
Development (Continued)
Training - Designed to provide learners with the knowledge and skills needed for their present jobs.
Development - Involves learning that goes beyond today's job; it has a more long-term focus
12
Human Resource
Development (Continued)
Career planning - An ongoing process
whereby individual sets career goals and
identifies means to achieve them
Career development - Formal approach
used by organization to ensure that people
with proper qualifications and experiences
are available when needed
13
Human Resource
Development (Continued)
Organization development – Organization
wide application of behavioral science to
planned development and support of
strategies, structures and processes for
improving firm’s effectiveness
14
Compensation and Benefits
Compensation -
All rewards that
individuals receive
a a result of their
employment
15
Compensation & Benefits
Pay - Money that a person receives for performing a job
Benefits - Additional financial rewards, other than base pay such as sick leave, vacations, holidays and medical insurance
Nonfinancial Rewards
The Job
Pleasant working environment
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Safety and Health
Employees who
work in a safe
environment and
enjoy good health
are more likely to
be productive and
yield long-term
benefits to the
organization.
17
Safety and Health
Safety - Involves protecting employees
from injuries caused by work-related
accidents
Health - Refers to the employees' freedom
from illness and their general physical and
mental well being
18
Employee and Labor Relations
Private-sector union membership
has fallen from 39 percent in 1958
to 9 percent today.
19
Employee and Labor Relations
Business required by
law to recognize
union and bargain
with it in good faith if
firm’s employees
want union
representation.
20
Human Resource Research
Human resource
research is not a
separate function.
It pervades all HR
functional areas.
21
Interrelationships of HRM
Functions
All HRM functions
are interrelated.
Each function
affects other areas.
22
The Dynamic Human
Resource
Management
Environment
23
Environment of Human Resource Management
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
1
Human
Resource
Managemen
t
Other
Functiona
l Areas
OperationsMarketing
Finance
Leg
al C
on
sid
era
tio
ns
Th
e E
co
no
my
Tech
no
log
y
Society
Sh
are
ho
lders
Unions
Customers Competition Labor Force
Safety and
Health
24
Labor Force
Pool of individuals
external to firm
from which
organization
obtains its workers
25
Legal Considerations
Federal, state
and local
legislation
Court decisions
Presidential
executive orders
26
Society
Social responsibility – Implied, enforced
or felt obligation of managers to serve or
protect interests of groups other than
themselves
Ethics – Discipline dealing with what is
good and bad, or right and wrong, or with
moral duty and obligation
27
Ethics and HR
Management
Discipline dealing
with what is:
good & bad right & wrong
moral duty & obligation
28
Unions
Group of employees
who have joined
together for purpose
of dealing
collectively with their
employer
29
Shareholders
Owners of a corporation
Because they have invested money in a firm, they may at times challenge programs considered by management to be beneficial to the organization
30
Customers
Because sales critical
to firm’s survival,
management must
ensure employment
practices do not
antagonize the
customers they serve
31
Competition
In order to
succeed, grow and
prosper, a firm
must be able to
maintain a supply
of competent
employees.
32
Technology
As technology changes:
Certain skills no longer required
New skills needed
Necessitates some retraining of current
workforce
33
The Economy
In general, when
economy is booming,
it is often more difficult
to recruit qualified
workers.
34
HR’s Changing Role:
Who Performs Human
Resource Management Tasks?
Human Resource Managers
Shared Service Centers
Outsourcing Firms
Line Managers
35
Human Resource Manager
Acts in advisory or staff
capacity
Works with other managers to
help them deal with human
resource matters
36
Shared Service Centers
(SSCS)
Takes routine,
transaction-based
activities that are
dispersed and
consolidates them in
one location.
37
Shared Service Centers (SSCS)
Performing HR Tasks
Fewer HR Personnel
Needed
HR Managers Assume
a More Strategic RoleImproves Quality
38
Outsourcing Firms
Transfers
responsibility to
an external
provider
39
Outsourcing
Reduces:
• Cost• Transaction Time
Improves Quality
40
Line Managers Performing
HR Tasks
Involved with human
resources by nature of their
jobs
41
HR as a Strategic Partner
HR executives must
understand complex
organizational design.
Must be able to
determine capabilities
of company's
workforce, today and
in the future
42
Human Resource
Designations
43
Human Resource Executives,
Generalists, and Specialists
Vice President,
Human
Resources
Vice President,
Industrial
Relations
Manager,
Compensation
and Benefits
Manager,
Staffing
Manager,
Training and
Development
Benefits Analyst Executive:
Generalist:
Specialist:
44
Characteristics of an HR
Executive
Performs one or more HR functions
A top-level manager
Reports directly to the corporation's CEO or
head of major division
45
Characteristics of an HR
Generalist
Often an executive
Performs tasks in various HR related
areas
Involved in several, or all, of the five
HRM functions
46
Characteristics of an HR
Specialist
May be an HR executive, manager, or
non-manager
Typically concerned with only one of the
five functional areas
47
The Human Resource
Function In
Organizations Of
Various Sizes
48
HR in Small Businesses
Seldom have a formal HR unit
Focuses on hiring & retaining capable
employees
Some aspects of HR function may be
more significant in smaller firms than in
larger ones.
49
The Human Resource Function in a
Small Business
Manager/Owner
Sales Operations Finance
50
HR in a Medium-sized Firm
Little specialization
HR manager is essentially the
entire department.
51
The Human Resource Function in a
Medium-Sized Business
Sales
Manager
President
Operations
Manager
Finance
Manager
Human
Resource
Manager
52
Traditional Human Resource
Functions in a Large Firm
Separate sections are often created
Placed under an HR Manager
Each HR function may have a supervisor
& staff
HR Manager works closely with top
management in formulating policy
53
The Human Resource Function in a
Large Firm
President
and CEO
Vice President,
Marketing
Vice President,
Operations
Vice President,
Finance
Vice President,
Human
Resources
Manager,
Training and
Development
Manager,
Compensation
and Benefits
Manager,
Staffing
Manager,
Safety and
Health
Manager,
Labor
Relations
54
A New and Evolving HR Organization for
Large-Sized Firms
Outsource
Shared Service Centers
Evolve to make HR more strategic
55
An Evolving Human Resource
Organization Example
President
and CEO
Vice President,
Operations
Vice President,
Human
Resources
Vice President,
Other Major
Functions
Director of
Safety and
Health
Executive
Development
Manager,
Training
Manager,
Other HRM
Functions
Employee
Benefits
Shared
Service
Center
Outsourced
56
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