Human Resource Management
Chapter 1
Introduction to Human Resource
Management
After studying this chapter, you should be able to:
1. Explain what human resource management is
and how it relates to the management process.
2. Give at least eight examples of how all
managers can use human resource
management concepts and techniques.
3. Illustrate the human resources responsibilities
of line and staff (HR) managers.
4. Provide a good example that illustrates HR’s
role in formulating and executing company strategy.
5. Write a short essay that addresses the topic:
Why metrics and measurement are crucial to
today’s HR managers.
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The Management Process
Planning
Controlling
Leading
Organizing
Staffing
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The Management Process
The Management Process are Planning, Organizing,
Staffing, Leading and Controlling
1. Management Process Planning Goals and standards
Rules and procedures Plans and forecasting.
2. Organizing Tasks Departments Delegating
Authority and communication Coordinating.
3. Management Process Staffing Hiring Recruiting Selecting
Performance standards Compensation Evaluating
performance Counseling Training and developing.
4. Management Process Leading Getting the job done
Morale Motivation
5. Controlling Setting standards Comparing actual
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performance to standards Corrective action
HRM Function
• 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.
• Human Resource Management can be defined:
• as the implementation of the strategies, plans and
programs required to attract, motivate, develop,
reward and retain the best people to meet the
organizational goals and operational objectives of the
organization.
Human Resource Management at Work
• What Is Human Resource Management
(HRM)?
– The policies and practices involved in
carrying out the “people” or human
resource aspects of a management
position, including recruiting, screening,
training, rewarding, and appraising.
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Human Resource Management at Work
Acquisition
Training
Fairness
Health and
Safety
Labor Relations
Human
Resource
Management
(HRM)
Appraisal
Compensating
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Personnel Aspects of a Manager’s Job
• Conducting job analysis
• 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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Basic HR Concepts
• HR creates value by engaging
in activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.
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Line and Staff Aspects of HRM
• Line manager
– A manager who is authorized to direct the
work of subordinates and is responsible for
accomplishing the organization’s tasks.
• Staff manager
– A manager who assists and advises line
managers.
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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 person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
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Human Resource Managers’ Duties
Line Function
Coordinative Function
Functional Authority
Line Authority
Implied Authority
Functions of
HR Managers
Staff Functions
Staff Authority Innovator
Employee Advocacy
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Human Resource Specialties
Recruiters
Labor Relations
Specialists
Training
Specialists
Human
Resource
Specialties
EEO
Coordinators
Job Analysts
Compensation
Managers
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The Changing Environment of Human
Resource Management
Globalization Trends
Changes and Trends
in Human Resource
Management
Technological Trends
Trends in the Nature of Work
Workforce Demographic Trends
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The Changing Environment of Human
Resource Management :
The Changing Environment of Human Resource Management
1.Globalization; tendency of firms to extend their sales
and manufacturing to new markets abroad
2.Technological advances; technology has been forcing
and enabling firms to become more competitive (skilled
employee, empowerment)
3.The nature of work; Human capital(knowledge,
education, training, skills and expertise of a firm’s
worker) provides competitive advantage
4.The workforce diversity; increased diversity provide
challenges for HR management
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The Changing Role of
Human Resource Management
Strategic Human
Resource
Management
Managing with the
HR Scorecard
Process
New
Responsibilities
for HR Managers
Creating HighPerformance Work
Systems
Measuring the HRM
Team’s Performance
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Technological Applications for HR
 Application Service Providers (ASPs) and technology
outsourcing
 Web portals
 PCs and high-speed access
 Streaming desktop video
 The mobile Web and wireless net access
 E-procurement
 Internet- and network-monitoring software
 Bluetooth
 Electronic signatures
 Electronic bill presentment and payment
 Data warehouses and computerized analytical programs
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Benefits of a High-Performance
Work System (HPWS)
1. Generate more job applicants
2. Screen candidates more effectively
3. Provide more and better training
4. Link pay more explicitly to performance
5. Provide a safer work environment
6. Produce more qualified applicants per position
7. Hiring based on validated selection tests
8. Provide more hours of training for new employees
9. Conduct more performance appraisals
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Measuring HR’s Contribution
• The HR Scorecard
1. Shows the quantitative standards,
or “metrics” the firm uses to
measure HR activities.
2. Measures the employee behaviors
resulting from these activities.
3. Measures the strategically relevant
organizational outcomes of those
employee behaviors.
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The Human Resource Manager’s
Proficiencies
• New Proficiencies
1. HR proficiencies
2. Business proficiencies
3. Leadership proficiencies
4. Learning proficiencies
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The Human Resource Manager’s
Proficiencies (cont’d)
• Managing within the Law
1. Equal employment laws
2. Occupational safety and health laws
3. Labor laws
• Managing Ethics
– Ethical lapses
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The End
End of Chapter 1
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