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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

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1. Explain what human resource management is and how it

relates to the management process.

2. Show with examples why human resource management is

important to all managers.

3. Illustrate the human resources responsibilities of line and staff(HR) managers.

4. Briefly discuss and illustrate each of the important trends

influencing human resource management.

5. List and briefly describe important trends in human resource

management.6. Define and give an example of evidence-based human

resource management.

7. Outline the plan of this book.

LEARNING OUTCOMES 

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Human Resource Managementat Work

What Is Human Resource Management (HRM)?

 – The process of acquiring, training, appraising, andcompensating employees, and of attending totheir labor relations, health and safety, andfairness concerns.

 – The process of managing human resources(human capital and intellectual assets) to achievean organization’s objectives. 

 – The design of formal systems in an organization toensure effective and efficient use of human talentto accomplish organizational goals.

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Organization

 – People with formally assigned roles who worktogether to achieve the organization’s goals. 

Manager – The person responsible for accomplishing the

organization’s goals, and who does so bymanaging the efforts of the organization’s people. 

 © 2009 Pearson Education South Asia. All rights reserved. 4 –4

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The Management Process

Planning

Organizing

Leading

Staffing

Controlling

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Human Resource ManagementProcesses

Acquisition

Training

Appraisal

Compensationabor Relations

Health and Safety

Fairness

Human

Resource

Management

(HRM)

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Personnel Aspects of aManager’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

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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

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Line and Staff Aspects of HRM

Line Manager

 – Is authorized (has line authority) todirect the work of subordinates and isresponsible for accomplishing theorganization’s tasks. 

Staff Manager

 – Assists and advises line managers.

 – Has functional authority to coordinatepersonnel activities and enforceorganization policies.

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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1 –10

Line Managers’ HRM Responsibilities 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 firm’s policies and procedures 

7. Controlling labor costs

8. Developing the abilities of each person9. Creating and maintaining department morale

10. Protecting employees’ health and physical condition 

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Human Resource Managers’ Duties 

Line Function

Line Authority

Implied Authority

Staff Functions

Staff Authority

Innovator/Advocacy

Functions of

HR Managers

Coordinative

Function

Functional Authority

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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 1 –12

Human Resources Organization Chart for a Large Organization

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  Human Resources Organization Chart

for a Small Company

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Human Resource Specialties

Recruiter

EEO coordinator

Labor relations

specialist

Training specialist

Job analyst

Compensation

manager

Human

Resource

Specialties

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Trends Shaping HumanResource Management

The role of HR has evolved from primarily being responsible for hiring, firing,

 payroll, and benefits administration to a more strategic role in employee

selection, training, and promotion, as well as playing an advisory role to the

organization in areas of labor relations and legal compliance.

Globalization

and Competition

Trends

Technological

Trends

Indebtedness

“Leverage”) and

Deregulation

Trends in the

Nature of Work

Workforce and

Demographic

Trends

Economic

Challenges and

Trends

Trends in HR

Management

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  Trends Shaping Human Resource Management

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Globalization and Competition Trends

 – Globalization = tendency of firms to extend

their sales, ownership, and/or manufacturing

to new markets abroad.

- has changes in how companies organize,manage, and use their HR departments wc

has several strategic implications for firms.

- more globalization = more competition =

more pressure to lower costs, make

employees more productive, and do things

better and less expensively.

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 Indebtedness and Deregulation

In many countries, government stipends stripped

away rules and regulations. In the United States and

Europe, for example, the rules that prevented

commercial banks from expanding into new

businesses, such as stock brokering, were relaxed.

Virtual online communities, virtual design

environments and Internet-based distribution systems

have enabled firms to become more competitive. HR

faces the challenge of quickly applying technology to

the task of improving its own operations.

Technological Trends

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Trends in the Nature of Work

More jobs have gone

high tech, requir ing

work ers to have mo re

educat ion and s ki l ls .

require more m ath,

reading, writ ing, and

compu ter sk i l ls

Knowledge, educat ion,

training , sk i l ls, and

expertise of a firm’s

workers . must employ more

soph ist icated and creat ive

means to identi fy , attract,

select, train, and motivatethe required wo rkforce.

High Tech

Jobs

Service

Jobs

Changes in How We Work

Knowledge Work

and Human Capital

Newly created jobs

are and will

continue to be in

the service sector. 

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•Demographic trends are making finding, hiring, and supervising employees

more challenging.

•The labor force is getting older and more multi-ethnic. Firms are instituting

new policies aimed at encouraging aging employees to stay, or at attracting

previously retired employees

Workforce and Demographic Trends

Demographic Trends

Generation “Y” 

Retirees

Nontraditional Workers

Trends Affecting

Human Resources

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Trends like these translate into changes in HRM practices, and in what

employers expect from their human resource managers.

Important Trends in HRM

The New HR

Managers

High Performance

Work Systems

Strategic

HRM

Evidence Based

HRM

Managing

Ethics

HR

Certification

HumanResource

Management

Trends

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The New Human Resource Managers

Companies competing in a very challenging new

environment : globalization, competition, technology,

workforce trends

HR managers exhibit competencies required to help the

company address these new challenges proactively

Management expects HR to provide measurable,

benchmark-based evidence for its current efficiency and

effectiveness, and for the expected efficiency andeffectiveness of new or proposed HR programs.

Management expects solid, quantified evidence that HR is

contributing in a meaningful and positive way to achieving

the firm’s strategic aims.

Strategic HRM

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High-Performance Work Systems(HPWS)

HR can impact organizational performance in

3 ways:

through the use of technology

through effective HR practices

instituting HPWS to maximize the

competencies and abilities of employees

throughout the organization.

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Managing Ethics

Ethics – Standards that someone uses to decide

what his or her conduct should be

 – HR has an important role in promoting

ethical behavior at work HRM-related Ethical Issues

 – Workplace safety

 – Security of employee records

 – Employee theft –  Affirmative action

 – Comparable work

 – Employee privacy rights

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1 –26

Evidence-Based HRM

Actual

measurements

Existing

data

Providing Evidence for

HRM Decision Making

Research

studies

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High-Performance Work Systems

 A high-performance work system is a set of

HRM policies and practices that together

 produce superior employee performance.

How to increase productivity & performance? – Recruiting, screening and hiring more effectively

 – Providing more and better training

 – Paying higher wages

 – Providing a safer work environment

 – Linking pay to performance

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HR Certification

HR is becoming more

 professionalized.

Society for Human Resource

Management (SHRM)

 – SHRM’s Human Resource CertificationInstitute (HRCI)

SPHR (Senior Professional in HR) certificate• GPHR (Global Professional in HR) certificate

• PHR (Professional in HR) certificate

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Summary

HRM is the responsibility of every manager.

The workforce is becoming increasingly diverse.

Current economic challenges require that HR

managers develop new and better skills to

effectively and efficiently deliver and manage HR

services.

The intensely competitive nature of businesstoday means human resource managers must

defend their plans and contributions in

measurable terms.