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Human
Resource
Management
HUMAN RESOURCE MANAGEMENT – UB – 2015
Goals:
You should be able to
1. Describe the importance of managing human
resources.
2. Explain how to gain and sustain a competitive
advantage through human resources.
3. Use a framework for managing human resources.
4. Describe the HR Triad.
5. Describe five special themes in managing human
resources.
6. Discuss two current issues in managing human
resources.
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The Strategic Importance of
Managing Human Resources
“It’s all about people. Everybody can buy
coffee beans and open stores.
So, when it comes to being successful,
it’s all about you manage your people.”
Howard Schultz
Chair & Chief Global
Strategist Starbucks
Satisfying Multiple Stakeholders
“I think corporate social
responsibility has taken a
much more important role
than it used to.”
Daniel Vasella
Chief Executive Officer
Novartis
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Stakeholders
Examples of their Concerns
Satisfying Multiple Stakeholders
(cont’d)
Organizations must satisfy multiple stakeholders
Stakeholders
Effective HRM contributes to stakeholder satisfaction.
Individuals or groups that have interests, rights or
ownership in an organization and its activities
Primary Stakeholders
Those whose concerns the organization must address in
order to ensure its own survival.
Success is defined by how effectively these groups are
served.
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Owners & Investors
“It is truly a new economy & the rules aren’t
written. We have to learn as we go and lend
based on intellectual & intangible assets.”
Susan M. Smith
Chief Executive Officer
Royal Bank Growth Company
Owners & Investors (cont’d)
Tangible Assets
Investors focus on measuring tangible assets in order to
determine a firm’s value.
Inventory, equipment, real estate, financial assets
New Economy
Investors recognize that intangible assets can be just as
valuable as tangible assets.
Reputation as an employer-of-choice, depth of
employee talent and loyalty, and the firm’s ability to
innovate and change.
Effective HR practices can positively affect the bottom line.
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Stakeholder Groups
Customers
Engaged employees can have a direct impact on
customer satisfaction.
Understanding the customer’s perspective
“We see our customers as invited guests to a party,
and we are the hosts. It’s our job every day to make
every important aspect of the customer experience
a little bit better.”
Jeff Bezos
President, CEO,
Chair Amazon.com
Stakeholder Groups (cont’d)
Society
Legal compliance: legitimacy & community support
Community relations: public opinion & expectations
Social responsiveness in HRM
Type of employees the company chooses to hire.
Criteria used to evaluate their performance.
The scheduling & coordinating of activities within work
units.
Compensation practices in paying employees for time
spent in the community (voluntary labor).
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Stakeholder Groups (cont’d)
Other Organizations
Suppliers
Physical & human resources.
Unions
Adversarial to collaborative, problem-solving
relationship with management.
Alliance Partners
Achieve common goals.
Establish joint ventures.
Stakeholder Groups (cont’d)
Organizational Members (The Employees)
Pay & Benefits
Quality of Work Life
Employability
“We’re not giving those benefits to our
employees because we’re a successful
company. We’re a successful because
we’re giving to our people”
Dave Pace
Executive Vice President
Starbucks
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Stakeholders & HRM
Win-Win
Situations
HRM
can create synergies from the
diverse concerns of various stakeholders.
Properly managing human resources
can provide solutions to how best to
satisfy the objectives of multiple
stakeholders, even when the
objectives seem to conflict.
Gaining & Sustaining
a Competitive Advantage
Core Employees
Who are a
Source of
Added Value
Employees
who are Rare
Using HRM to Gain
Sustainable
Competitive
Advantage
A Culture that
Can’t
Be Copied
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A Framework for Managing
Human Resources Effectively
The External Environment
Globalization of business.
Labor market conditions & trends.
Economic & political trends.
Laws & regulations.
Cultural differences.
Unions.
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The Organizational Environment
Top Management’s
Leadership
Approach
Business
Strategy
Organizational
Characteristics
that Shape
HRM Practices
Company
Culture
Technology
Human Resource Management
Activities
Human Resource Management (HRM)
Activities
The firm’s formal HRM policies as well as the actual
ways these policies are implemented in the daily
practices of supervisors and managers.
Formal Policies
Statements of expectations and aspirations
Are modified and influenced by daily
practices.
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Human Resource Policies & Practices
HR planning for alignment and change.
Job analysis & competency modeling.
Recruiting & retaining qualified employees.
Selecting employees to fit the job & the organization.
Training & developing a competitive workforce.
Conducting performance management.
Developing an approach to total compensation.
Using performance-based pay to enhance motivation.
Providing benefits & services.
Promoting workplace safety & health.
Unionization & collective bargaining.
The HR Triad
“Human Resources are too important to be left to the HR department.”
HR Professionals Provide
Special Expertise
HR Professionals
Line Managers
All Other
Employees
Line Managers Have Always
Been Responsible
Employees
Share Responsibility.
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Key Roles for the HR Department and
the HR Leader
Business
Partner
Consultant
Innovator
HR Department
and HR Leader
Employee
Champion
Change
Master
What Managers Expect from HR Professionals Key Roles
Business
Partner
Consultant
What is Expected on the Job
Assesses the external and organizational environments to identify the strengths,
weaknesses, opportunities, and threats of the company
Assists with strategy formulation and implementation
Assists with mergers, acquisitions, and international joint ventures
Shows how human resource management activities can affect the bottom line
Views line managers and other employees as customers and works as partner
to meet their needs
Develops HR practices and policies with input from the HR Triad
Innovator
Initiates—does not wait for others to call attention to the need for action
Uses e-learning, the Internet, and technologies to improve HR services
Continually revises and updates HR policies and practices
Employee
Champion
Ensures employment laws are known and observed
Evaluates the effectiveness of the organization’s HR policies and practices
Coaches and encourages line managers to practice the HR policies as intended
Works with line managers and employees in the HR Triad to revise policies as
needed
Change
Manager
Is guided by a long-term vision of where the business is headed
Understands what talent is needed for executing future strategies
Anticipates the concerns of employees and creates solutions to address them
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Key Competencies for HR Professionals
Strategeic
Management
12%
Employee
Labor
Relations
22%
Workforce
Planning and
Employment
26%
Risk
Management
7%
Total Reward
16%
HR
Development
17%
Note: percentages indicate weighted impact on business performance
Ethical Behavior
HR Profession’s Code of Ethics
HR professionals must regard the obligation to implement
public objectives and protect the public interest as more
important than blind loyalty to an employer’s preferences.
Expectations
Understand problems and maintain professionalism
Maintain high standards of honesty and integrity
Respect the dignity of all employees
Assure that the organization respects the public and its
employees
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THE HR TRIAD:
Roles and Responsibilities for Managing Human Resources
Excerpts from the SHRM Code of Ethical & Professional
Standards for Human Resource Professionals
PROFESSIONAL RESPONSIBILITY
Core Principle: As HR professionals, we are responsible for adding
value to the organizations we serve and contributing to the ethical
success of those organizations. We accept professional responsibility
for our individual decisions and actions. We are also advocates for
the profession by engaging in activities that enhance its credibility
and value.
Guidelines
1. Adhere to the highest standards of ethical and professional behavior.
2. Measure the effectiveness of HR in contributing to or achieving
organizational goals.
3. Comply with the law.
4. Work consistent with the values of the profession.
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Excerpts from the SHRM Code of Ethical & Professional
Standards for Human Resource Professionals
PROFESSIONAL DEVELOPMENT
Core Principle: As professionals we must strive to meet the highest
standards of competence and commit to strengthen our competencies
on a continuous basis.
Guidelines
1. Pursue formal academic opportunities.
2. Commit to continuous learning, skills development and application of
new knowledge related to both human resource management and the
organizations we serve.
3. Contribute to the body of knowledge, the evolution of the profession
and the growth of individuals through teaching, research and
dissemination of knowledge.
4. Pursue certification such as CCP, CEBS, PHR, SPHR, etc. where
available, or comparable measures of competencies and knowledge.
EXHIBIT 1.4 Excerpts from the SHRM Code of Ethical and Professional
Excerpts
from the
SHRM Code of Ethical & Professional
Standards for Human Resource Professionals (cont’d)
Standards for Human Resource Professionals
ETHICAL LEADERSHIP
Core Principle: HR professionals are expected to exhibit individual
leadership as a role model for maintaining the highest standards of
ethical conduct.
Guidelines
1. Be ethical; act ethically in every professional interaction.
2. Question pending individual and group actions when necessary to
ensure that decisions are ethical and are implemented in an ethical
manner.
3. Seek expert guidance if ever in doubt about the ethical propriety of a
situation.
4. Through teaching and mentoring, champion the development of
others as ethical leaders in the profession and in organizations.
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EXHIBIT 1.4
Excerpts
from the SHRM
Ethical and
Excerpts
from
the SHRM
CodeCode
of of
Ethical
& Professional
Professional
Standards for Human Resource Professionals (cont’d)
Standards for Human Resource Professionals
FAIRNESS & JUSTICE
Core Principle: As HR professionals, we are ethically responsible for
promoting and fostering fairness and justice for all employees and
their organizations.
Guidelines
1. Respect the uniqueness and intrinsic worth of every individual.
2. Treat people with dignity, respect and compassion to foster a
trusting work environment free of harassment, intimidation, and
unlawful discrimination.
3. Ensure that everyone has the opportunity to develop their skills
and new competencies.
4. Assure an environment of inclusiveness and a commitment to
diversity in the organizations we serve.
Looking Ahead: 5 Special Themes
Teams
Multicultura
l Workforce
Ethics
HR
Challenges
Globalization
Metrics
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Why Organizations Use Work Teams
The Most Common Reasons for Having Employees
Work in Teams
To Satisfy Customers
To Satisfy Employees
Improve on-time delivery of
results
Facilitate management
development and career growth
Improve customer relations
Reinforce or expand informal
networks in the organization
Facilitate innovation in products
and services
Improve employees’
understanding of the business
Improve quality
Increase employee ownership,
Reduce costs and improve
commitment, and motivation
efficiency
Provide multicultural learning
Ensure fast response
opportunities
Managing the Multicultural Workforce
Multicultural management
practices must be sensitive to
issues of:
Religion, sexual orientation, marital &
family status, age, and various other
“unifying life experiences,” as well as
gender & ethnicity.
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Managing Globalization
Aspects of Globalization
Exporting
Overseas manufacturing
Transnational firms.
Challenge
Developing an approach to
managing human resources that
works at home as well as abroad.
Managing Ethics
HR Responsibilities:
To exhibit professional & ethical
behavior in relationships with others.
To assist in developing & enforcing
codes of ethics.
To provide ethics training for
employees.
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Managing with Metrics
HR Responsibilities:
To measure the contribution of HR activities to the
success of the organization:
Employee satisfaction
Employee performance
Accident & injury rates
Current Issues
Social Media
Refers to a set of technologies and communication
channels targeted at framing and enabling a potentially
massive community of participants to productively
collaborate.
Managing Complexity
HR professionals can assist in making the process of
managing human resources efficient and effective by:
Bringing managers together to share and learn from
their experiences.
Making sure that complexity is always a topic for
discussion.
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Corporate social responsibility (CSR).
Globalization.
HR profession’s code of ethics.
HR triad.
Human resource (HR) activities.
Human Resource Certification Institute (HRCI).
Human resource management (HRM) system.
Human resource (HR) professionals.
TERMS TO
REMEMBER
Human resources.
Intangible human assets.
Multinational corporations (MNCs).
Society for Human Resource Management (SHRM).
Stakeholders.
Sustainable competitive advantage.
Tangible assets.
World Federation of Personnel Management (WFPMA).
What are Human Resources?
The talents and energies of people who are
available to an organization as potential
contributors to the creation and realization of
the organization’s mission, vision, and goals.
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Strategic Human Resources
Management
Strategy
The formulation of an organization’s missions, goals,
and objective as well as the action plans to execute
the strategy. (e.g. Corporate Strategy,
Business Strategy)
Strategic HRM
A set of interrelated practices,
policies, & philosophies whose
goal is to enable the achievement
of the corporate or business strategy.
SOURCES:
BELCOURT, M.; BOHLANDER, G.; & SNELL, S. (2011)
Managing Human Resources. Thomson. 8th Edition
WERNER, S., SHULLER, R., & JACKSON, S.; (2012)
Human Resource Management. Thomson. 11h Edition
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