Introduction to Human Resource Management

Introduction to Human Resource Management

Paul Christian Abad

Geneba Sanchez

Introduction

The economic development of any nation dependsmuch on the effectiveness and efficiency of itsorganization, whether they are business or otherwise.A very critical aspect is the performance of the humanresource component. It is already well-establishedthat employees will perform depending on how wellthey are managed.

What is Management?

– The process of working with and through people inthe achievement of organizational objectives.(Medina, 2006)

– The process of designing and maintaining anenvironment in which individuals working together ingroups, efficiently accomplish selected item.

– The process of getting things done, through & withpeople in organization.

What is Management?

– The organization and coordination of the activities ofa business in order to achieve defined objectives.

– The directors and managers who have the power andresponsibility to make decisions and oversee anenterprise.

– Management is often included as a factor of productionalong with machines, materials, and money. According tothe management guru Peter Drucker (1909-2005), thebasic task of management includes both marketing andinnovation. Practice of modern management originatesfrom the 16th century study of low-efficiency andfailures of certain enterprises, conducted by the Englishstatesman Sir Thomas More (1478-1535).

– Management consists of the interlocking functions ofcreating corporate policy and organizing, planning,controlling, and directing an organization's resources inorder to achieve the objectives of that policy.

– The size of management can range from one person in asmall organization to hundreds or thousands ofmanagers in multinational companies. In largeorganizations, the board of directors defines the policywhich is then carried out by the chief executive officer, orCEO. Some people agree that in order to evaluate acompany's current and future worth, the most importantfactors are the quality and experience of the managers.

What is an Organization?

– Consists of people with formally assigned roles whowork together to achieve the organization’s goals.(Dessler, 2013)

– A social unit of people that is structured and managed tomeet a need or to pursue collective goals. Allorganizations have a management structure thatdetermines relationships between the different activitiesand the members, and subdivides and assigns roles,responsibilities, and authority to carry out differenttasks. Organizations are open systems--they affect andare affected by their environment.

Who is a Manager?

– The person responsible for accomplishing theorganization’s goals, who does so by managing theefforts of the organization’s people. (Dessler, 2013)

Manager vs Leader

Leader Manager

Is visionary in identifying need change Assess the driving and restricting forces

Is a role model Identifies and implement strategies

Is sensitive to timing initiatives Seek subordinates output

Is creative in identifying solutions Supports and rewards

Individual efforts Understand future directions

The Management Process

Management

Planning

Organizing

StaffingLeading

Controlling

Planning

– Establishing goals and standards– Developing rules and procedures– Developing plans and forecasting

The management function involvedin setting goals and objectives ofthe organization. (Corporate Level)

The planning function is performedby determining in advance thehuman resource program that willcontribute to the goals establishedfor the company. (Human ResourceManagement Level)

Planning

Organizing

– Giving each subordinate a specifictasks

– Establishing departments– Delegating authority to

subordinates– Establishing channels of authority

and communication– Coordinating subordinates’ work

The mobilization of the humanand nonhuman resources of theorganization to put plans intoeffect.

Concerned with forming anorganization by designing thestructure of relationships amongjobs, personnel, and physicalfactors. (Human ResourceManagement Level)

Organizing

Staffing

– Determining what type of people you shouldhire

– Recruiting prospective employees– Selecting employees– Training and developing employees– Setting performance standards– Evaluating performance– Counselling employees– Compensating employees

Staffing

Leading

– Getting others to get the job done– Maintaining morale– Motivating subordinates

Concerned with “how managersdirect and influence subordinates,getting others to performessential tasks.”

Leading

Controlling

– Setting standards such as salesquotas, quality standards, orproduction levels

– Checking to see how actualperformance compares with thesestandards

– Taking corrective action, asneeded

Ensures that the goals are metan with it, the cycle ofmanagement functions becomecomplete.

Controlling

The Human Resource Management ProcessHuman

Resource Management

(HRM)

Acquisition

Training

Appraisal

CompensationLabor Relations

Health and Safety

Fairness

What is Human Resource Management (HRM)?

– The process of acquiring, training, appraising, andcompensating employees, and of attending to theirlabor relations, health and safety, and fairnessconcerns. (Dessler, 2013)

– The management function concerned with makingsure that the human component of the organizationis able to achieve the goals assigned to it. (Medina,2006)

Human Resource Management vs Marketing

– Marketing is concerned with thegeneration of sufficient volumes of salesto keep the company as a viableconcern.

Human Resource Management vs Finance

– Finance is concerned with obtaining thefunds needed for various activities of thefirm and the effective and efficient use ofsuch funds.

Human Resource Management vs Production

– Production is concerned with makingsure that there are enough stocks ofproducts or available services for thecompany’s market requirements.

The Central Functions of Human Resource Management

One way of learning HRM is to understand its centralfunctions. They are as follows:1. Staffing2. Training and Development3. Motivation, and4. Maintenance

Staffing

– Refers to that function which locatescompetent employees and getting them towork for the organization.

– The major activities of staffing consist of1. Strategic human resource planning;2. Recruitment; and3. Selection

Training and Development

– The acquisition of skills, knowledge, and attitudes which enable people to achieve their current and future individual and corporate objectives.

– Training is a process concerned with establishing what type of training is required and who should receive it.

– Development is concerned with improving intellectual or emotional abilities of an employee for the purpose of doing a better job.

Motivation

– The process of activating behavior, sustaining it, and directing it towards a particular goal.

– The major activities in this central function are:1. Motivation and job design;

2. Performance evaluation;

3. Rewards and compensation; and

4. Employee benefits

The External Environment of HRM

1. Economic Forces;2. Government Legislation;3. Advances in Technology;4. Labor Unions; and5. Management Thought

Personnel Management vs Human Resource Management

1. Personnel Management Activities2. A view that regards

a. People as the major organizational asset, and

b. Workers as instinctively willing and able to be developed.

3. Integration of the personnel management functioninto the strategic management of the organization.

Personnel Management vs Human Resource Management

1. Recruitment and staff turnover2. Promotion and career development3. Rewards and benefits4. Education, training and development5. Management culture

Personnel Aspects of a Manager’s Job– Conducting job analyses

– Planning labor needs and recruiting job candidates

– Selecting job candidates

– Orienting and training new employees

– Managing wages and salaries

– Providing incentives and benefits

– Appraising performance

– Communicating

– Training and developing managers

– Building employee commitment

Why is Human Resource Management Important to

All Managers?

Avoid Personnel Mistakes

Personnel Mistakes

– Hire the wrong person for the job– Experience high turnover– Have your people not doing their best– Waste time with useless interviews– Have your firm in court because of discriminatory actions– Have your firm cited by OSHA for unsafe practices– Have some employees think their salaries are unfair and inequitable relative

to others in the organization– Allow a lack of training to undermine your department’s effectiveness– Commit any unfair labor practices

Improve Profits and Performance

You Too May Spend Some Time as an HR Manager

HR for Entrepreneurs

Basic HR Concepts

– The bottom line of managing: Getting results– HR creates value by engaging in activities that

produce the employee behaviors that theorganization needs to achieve its strategic goals.

– Looking ahead: Using evidence-based HRM tomeasure the value of HR activities in achievingthose goals.

Line and Staff Aspects of HRM

– Line Manager– Is authorized (has line authority) to direct the work of

subordinates and is responsible for accomplishing theorganization’s tasks.

– Staff Manager– Assists and advises line managers.

– Has functional authority to coordinate personnel activitiesand enforce organization policies.

Line Managers’ HRM Responsibilities1. Placing the right person on the right job2. Starting new employees in the organization (orientation)3. Training employees for jobs that are new to them4. Improving the job performance of each person5. Gaining creative cooperation and developing smooth working relationships6. Interpreting the firm’s policies and procedures7. Controlling labor costs8. Developing the abilities of each person9. Creating and maintaining department morale10. Protecting employees’ health and physical condition

Human Resource Managers’ Duties

Function of HR Managers

Line Function

Line Authority

Implied Authority

Coordinate Function

Functional Authority

Staff Functions

Staff Authority

Innovator / Advocacy

The HRM Function in a Small Organization

Owner / Manager

Worker Worker Worker

Performing the HRM function in addition to other functions

The HRM Function in a Growing Organization

Manager

Supervisor Supervisor Supervisor

HRM Assistant

A Full-Blown HRM Department in a Large Organization

Vice PresidentHuman Resource

Manager and Training Development

*Training Specialist

Manager of employee and Labor Relations *Personnel

Assistant

Manager of Human Resources Planning and Staffing *Employment

Representatives *Receptionist

Editor of Employee Communications

*Publications Correspondent

*Publications Technician

Manager of Compensation and Benefits *Benefits Supervisor *Insurance Clerk *Compensation

Analyst

Manager of Loss Prevention *Security

Officers *Insurance Analyst *Secretary

Human Resource Assistant

FIGURE 1–1 Human Resources Organization Chart for a Large Organization

FIGURE 1–2 Human Resources Organization Chart for a Small Company

Human Resources Manager

Human Resources

CoordinatorOffice Generalist

Human Resource SpecialtiesHuman

Resource Specialists

Recruiter

EEO Coordinator

Job Analyst

Compensation Manager

Training Specialist

Labor Relations Specialist

New Approaches to Organizing HR

New HR Services Groups

Transactional HR Group

Corporate HR Group

Embedded HR Unit

Centers of Expertise

FIGURE 1–3 New Approaches to Organizing HR

Trends Shaping Human Resource ManagementTrends in HR

Management

Globalization and

Competition Trends

Technological Trends

Workforce and

Demographic Trends

Economic Challenges and Trends

Trends in the Nature of

Work

Indebtedness (“Leverage”)

and Deregulation

Trends Shaping Human Resource Management

FIGURE 1–4 Trends Shaping Human Resource Management

Trends in the Nature of Work

Changes in How We Work

High-Tech Jobs Service JobsKnowledge Work and

Human Capital

Workforce and Demographic Trends

Tren

ds A

ffect

ing

Hum

an

Reso

urce

s

Demographic Trends

Generation “Y”

Retirees

Nontraditional Workers

Workers Abroad

The New Human Resource Manager

Human Resource Management Yesterday and Today

Yesterday HR Managers focuses on day-to-day transactional activities

Testing began to appear

Helping the Employer deal with unions

New Equal Employment Legislation 1960s-1970s

Today Trends like Globalization and Technology Confront Employers

Meeting Today’s HRM Challenges

The New Human resource Managers

Focus more on “big picture” (strategic)

issues

Find new ways to provide transactional

services

Acquire broader business knowledge

and new HRM proficiencies

The New Human Resource Managers

Characteristics of Today’s HR Professionals

Focus More on Strategic, Big Picture Issues

Use New Ways to Provide Transactional Services

Take an Integrated, “Talent Management” Approach

Managing Ethics

Manage Employee Engagement

Measure HR Performance and Results

Use Evidence-Based HR Management

Add Value

Have New Competencies

HR Certification

Focus More on Strategic, Big Picture Issues

– What is Strategic Human Resource Management?– It is formulating and executing HR policies and

practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Use New Ways to Provide Transactional Services

– HR Managers must be skilled at offering transactional human resource services in innovative ways– By the use of Technology– Internal Social Networking Sites

Technology How Used by HR Application service providers (ASPs) and technology outsourcing

ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively

Internet- and network-monitoring software

Used to track employees’ Internet and e-mail activities or to monitor their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping

Electronic bill presentment and payment

Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers

Data warehouses and computerized analytical programs

Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees’ skills with the firm’s projected strategic needs

TABLE 1–1 Some Technological Applications to Support HR

Take an Integrated, “Talent Management” Approach

– What is Talent Management?– It is the goal-oriented and integrated process of

planning, recruiting, developing, managing and compensating employees

– It involves instituting a coordinated process for identifying, recruiting, hiring and developing high-potential employees.

Managing Ethics

– Ethics– Standards that someone uses to decide what his or her conduct should be

– HRM-related Ethical Issues– Workplace safety

– Security of employee records

– Employee theft

– Affirmative action

– Comparable work

– Employee privacy rights

Manage Employee Engagement

– Engaged Employees– Those who are mentally and emotionally invested in

their work and in contributing to an employer’s success.

Measure HR Performance and Results– Employers expect their HR Managers to take action

based on measurable performance-based criteria

Use Evidence-Based HR Management– Evidence-based HR Management is the deliberate use of

the best-available evidence in making decision about the HR Management practices.

Providing Evidence for HRM Decision Making

Actual measurements Existing data Research studies

Add Value

– Adding Value– Means helping the firm and its employees gain in a measurable

way from the human resource manager’s actions

– This focus on performance, measurement, and evidence reflects another characteristic of today’s HR Managers.

– High-Performance Work System

High-Performance Work Systems

– Increase productivity and performance by:– Recruiting, screening and hiring more effectively– Providing more and better training– Paying higher wages– Providing a safer work environment– Linking pay to performance

New Competencies

Credible Activist

Business Ally

Operational

Executor

Strategy Architect

Culture &

Change Steward

Talent Mgr / Org

Designer

HRPROFESSIONALISM

Organization Capabilities

Systems &Processes

Relationships

New Competencies

HR Certification

– Exams test the professional’s knowledge of all aspects of human resource management, including ethics, management practices, staffing, development, compensation, labor relations, and health and safety

HR Certification

– HR is becoming more professionalized.

– Society for Human Resource Management (SHRM)– SHRM’s Human Resource Certification Institute (HRCI)

– SPHR (Senior Professional in HR) certificate

– GPHR (Global Professional in HR) certificate

– PHR (Professional in HR) certificate

Summary

– HRM is the responsibility of every manager.– HR as a Profit Center by Adding Value.– Strategic HR Management Context for achieving long term

goals.– The workforce is becoming increasingly diverse.– Current economic challenges require that HR managers

develop new and better skills to effectively and efficientlydeliver and manage HR services.

– The intensely competitive nature of business today meanshuman resource managers must defend their plans andcontributions in measurable terms.

Thank you

Paul Christian AbadGeneba Sanchez