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© 2003 Prentice Hall, Inc.
Chapter 1
The Strategic Role of Human
Resource Management
Instructor presentation questions: docwin@tampabay.rr.com

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© 2003 Prentice Hall, Inc.
Outline of Chapter 1
I.
The Manager’s Human Resource
Management Jobs
Why is HR Management Important to All
Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An
Example

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© 2003 Prentice Hall, Inc.
Outline of Chapter 1
II.
Strategic Planning and Strategic
Trends
The Basics of Strategic Planning
The Strategic Planning Process
Basic Strategic Trends
Managerial Consequences of the Basic
Trends

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© 2003 Prentice Hall, Inc.
Outline of Chapter 1
III.
HR’s Strategic Role
HR’s Evolving Role
Strategic Human Resource Management
HR’s Role as a Strategic Partner
HR and Technology
HR and Employee Performance and
Commitment
Is there a “One Best HR Way?”
Research Insight

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© 2003 Prentice Hall, Inc.
After Studying This Chapter,
You Should Be Able To:
 Explain what human resource management
(HR)is and how it relates to the management process.
 Give at least eight examples of how HR management concepts and techniques can be of use to all managers.
 Illustrate the HR management responsibilities of line managers and staff (HR) managers.

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© 2003 Prentice Hall, Inc.
The Management Process
 Planning
 Organizing
 Staffing
 Leading
 Controlling

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© 2003 Prentice Hall, Inc.
Management Process
 Planning
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Goals and standards
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Rules and procedures
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Plans and forecasting.
 Organizing
Tasks
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Departments
Delegating
Authority and communication
Coordinating

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© 2003 Prentice Hall, Inc.
Management Process
 Staffing
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Hiring
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Recruiting
Selecting
Performance standards
Compensation
Evaluating performance
Counseling
Training and developing

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© 2003 Prentice Hall, Inc.
Management Process
 Leading

Getting the job done
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Morale

Motivation
 Controlling
Setting standards
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Comparing actual performance to standards
Corrective action

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HRM Function
© 2003 Prentice Hall, Inc.
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.

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© 2003 Prentice Hall, Inc.
HRM People Functions
Include:
 Job analyses
 Labor needs
 Recruit
 Select candidates
 Orient and train
 Wages and salaries
 Incentives and benefits
 Performance
 Communicate
 Train and develop
 Employee commitment
 Equal opportunity
 Health and safety
 Grievances/labor relations

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© 2003 Prentice Hall, Inc.
H RM is Important to all Managers.
Don’t Let These Happen to You!
 The wrong person
 High turnover
 Poor results
 Useless interviews
 Court actions
 Safety citations
 Salaries appear unfair
 Poor training
 Unfair labor practices

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© 2003 Prentice Hall, Inc.
HRM – It’s All About Results
“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes

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© 2003 Prentice Hall, Inc.
Line and Staff Aspects of
HRM
 Authority

Making decisions
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Directing work
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Giving orders
 Line Managers

Accomplishing goals
 Staff Managers

Assisting and advising line managers

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© 2003 Prentice Hall, Inc.
Line Manager’s HRM Jobs
 The right person
 Orientation
 Training
 Performance
 Creativity
 Working relationships
 Policies and procedures
 Labor costs
 Development
 Morale
 Protecting

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© 2003 Prentice Hall, Inc.
Staff Manager’s HRM Jobs
 Line authority
 Implied authority
 Functional control
 Employee advocacy

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HR Department
Organizational
Chart
© 2003 Prentice Hall, Inc.

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© 2003 Prentice Hall, Inc.
Strategic Planning and
Trends
 Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

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© 2003 Prentice Hall, Inc.
Strategic Planning 101
There are three levels of strategic planning as shown below
Corporate
Strategy
Business
Strategy
Business
Strategy
Business
Strategy
Functional
Strategies
Business
Strategy

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© 2003 Prentice Hall, Inc.
The Strategic Planning
Process
 SWOT analysis - Strengths, Weaknesses,
Opportunities, and Threats
 Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces
 Basic strategic trends
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Globalization
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Technological advances
The nature of work
The workforce

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Globalization
© 2003 Prentice Hall, Inc.
50
40
30
20
80
70
60
10
0
1920 1950 1970 2000
% fortune 500 with a global presence

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© 2003 Prentice Hall, Inc.
Technological Advances and the
Nature of Work
 Technology mandates and enables companies to be more competitive
 Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Carrier

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© 2003 Prentice Hall, Inc.
The Workforce Itself is
Diverse
Asian
Black
Hispanic
Men
Women
US Department of Labor website

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© 2003 Prentice Hall, Inc.
Consequences of these basic trends
Global expansion
Technology
Strengths and
Weaknesses
Improved competition
Uncertainty,
Turbulence,
Rapid
Change,
Changing power bases
Companies must be
Fast,
Responsive, and
Costeffective

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© 2003 Prentice Hall, Inc.
HR’s evolving role
Protector and
Screener
Change Agent
Strategic Partner

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© 2003 Prentice Hall, Inc.
Strategic HRM
 Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.
Clarify the business strategy
Realign the HR functions and key people practices
Create needed competencies and behaviors
Realization of business strategies and results
Evaluate and refine

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© 2003 Prentice Hall, Inc.
HR’s evolving role as strategic partner
Fed Ex
Corporate strategy
HR programs

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© 2003 Prentice Hall, Inc.
How HR helps strategy execution
 Functional strategies should support competitive strategies
 Value chain analysis
 Outsourcing
 Strategy Formulation

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© 2003 Prentice Hall, Inc.
How HR helps form strategy
 Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses
 Environmental scanning

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© 2003 Prentice Hall, Inc.
The Value Chain Approach

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Technology can be the Human
Resources engine of change

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© 2003 Prentice Hall, Inc.
HR and technology
 Basic HR systems demand paperwork
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70% of HR’s employees time = paperwork
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Off the shelf forms from Office Depot/Officemax
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Online forms
 Human Resource Information Systems (HRIS)
 HR on the Internet

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HR portals
Employees can answer their own questions
HR moves from re active to pro active
© 2003 Prentice Hall, Inc.

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© 2003 Prentice Hall, Inc.
HR means performance
 Can HR have a measurable impact on a company’s bottom line?
 Better HRM translates into improved employee attitudes and motivation
(e.g., working at home)
 Well run HR programs drive employee commitment
TOYOTA

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© 2003 Prentice Hall, Inc.
A Case Study
OPERATIONS
Deals with staff
- benefits
- compensation
- call center
Dell’s dual HR roles
MANAGEMENT
Deals with management
- education
- recruitment
- planning
- training
- personnel needs

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© 2003 Prentice Hall, Inc.
Is There a “One Best HR Way”?
 Follow a company’s operating and strategic initiatives
 All companies can benefit from
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Profit sharing programs
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Results oriented appraisals
Employment security
Foster informal relationships- promote worldwide communications
Develop global executives

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© 2003 Prentice Hall, Inc.
Things to Remember as We Move into Chapter 2
 HR management: the responsibility of every manager
 HR practices today must address several basic issues including

Improving competitiveness
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Globalizing
Technology and internet-based advances
Contributing to strategic success

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© 2003 Prentice Hall, Inc.
Plan for the Rest of the Book
 Chapter 2: Equal Opportunity and the
Law.
 Part II: Recruitment and Placement
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

Chapter 3: Job Analysis
Chapter 4: Personnel Planning and
Recruiting
Chapter 5: Employee Testing and Selection
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Chapter 6: Interviewing Job Candidates

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© 2003 Prentice Hall, Inc.
Plan for the Rest of the Book
 Part III: Training and Development
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Chapter 7: Training and Development
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Chapter 8: Managing Organizational
Renewal
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Chapter 9: Appraising Performance
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Chapter 10: Managing Careers and Fair
Treatment

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© 2003 Prentice Hall, Inc.
Plan for the Rest of the Book
 Part IV: Compensation
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Chapter 11: Establishing Pay Plans
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Chapter 12: Pay-for-Performance and
Financial Incentives
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Chapter 13: Benefits and Services

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© 2003 Prentice Hall, Inc.
Plan for the Rest of the Book
 Part V: Employee Security and Safety
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Chapter 14: Labor Relations and Collective
Bargaining
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Chapter 15: Employee Safety and Health
 Part VI: International HRM
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Chapter 16: Managing Human Resources in an International Business.