Human Resource Management
Sixteenth Edition, Global Edition
Chapter 1
Introduction to Human
Resource Management
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Where Are We Now…. We begin with Chapter 1
Introduction to Human Resource Management
• The purpose of this chapter explains what Human Resource
Management is and why it’s important to all managers.
• We’ll see that human resource management activities such
as hiring, training, appraising, compensating, and
developing employees are part of every manager’s job.
• The main topics we’ll cover will include what human
resource management as a separate function is,:
– the trends shaping human resource management,
– human resource management today,
– the new human resource manager,
– and the plan of the book.
• The human resource management concepts and
techniques you’ll learn in this book can help
ensure that you get results—through people.
• Remember that you can do everything else right as
a manager but still fail, by hiring the wrong people or
by not motivating subordinates.
• On the other hand, many managers—presidents,
generals, governors, supervisors—have been
successful even with inadequate plans, organization,
or controls. They were successful because they had
the knack of hiring the right people for the right jobs
and motivating, appraising, and developing them.
• Remember, as a manager, you will have to get the
results through people.
Learning Objectives (1 of 2)
1.1 Explain what human resource management is and how
it relates to the management process.
1.2 Briefly discuss and illustrate the important trends
influencing human resource management.
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Learning Objectives (2 of 2)
1.3 Briefly describe six important components or pillars of
human management today.
1.4 List at least four important human resource manager
competencies.
1.5 Outline the plan of this book.
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Learning Objective 1.1: Explain What
Human Resource Management Is and How
It Relates to the Management Process
Working for any organization means that you and
those around you work together to achieve the
common goals of an organization, which include:
•
an interest in the growth and continuing development
of the organization.
• And how work is accomplished within the organization.
We now begin our study of the elements of the
management process and how they relate to human
resource management.
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What Is Human Resource Management?
To understand what human resource
management is, it’s useful to start with what
managers do. Most writers agree that
managing involves performing five basic
functions:
• planning, organizing, staffing, leading, and
controlling.
These functions in total
management process.
represent
the
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• Planning – involves establishing goals and standards; developing rules
and procedures; developing plans and forecasts.
• Organizing – involves giving each subordinate a specific task;
establishing departments; delegating authority to subordinates;
establishing channels of authority and communication; coordinating the
work of subordinates.
• Staffing – involves determining what type of people should be hired;
recruiting prospective employees; selecting employees; setting
performance standards; compensating employees; evaluating
performance; counseling employees; training and developing employees.
• Leading – involves getting others to get the job done; maintaining
morale, motivating subordinates.
• Controlling – involves setting standards such as sales quotas, quality
standards, or production levels; checking to see how actual performance
compares with these standards; taking corrective action as needed.
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These concepts and techniques include the
following:
1. Conducting job analyses (determining the nature of each
employee’s job).
2. Planning labor needs and recruiting job candidates.
3. Selecting job candidates.
4. Orienting and training new employees.
5. Managing wages and salaries (compensating employees).
6. Providing incentives and benefits.
7. Appraising performance.
8. Communicating (interviewing, counseling, disciplining).
9. Training employees, and developing managers.
10. Building employee relations and engagement.
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In addition, what a manager should know about:
1. Equal opportunity and affirmative action.
2. Employee health and safety.
3. Handling grievances and labor relations
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Why Is Human Resource Management
Important to All Managers?
• To avoid personnel mistakes such as:
– not having employees doing their best,
– hiring the wrong person for the job,
– experiencing high turnover,
– having to be in court due to discriminatory actions,
– being cited for unsafe practices,
– letting a lack of training undermined department
effectiveness,
– or committing any unfair labor practices.
• To improve profits and performance - through people.
• You may spend some time as an HR manager
• You may end up as your own human resource manager
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Line and Staff Aspects of Human
Resource Management
• Authority is the right to make decisions, to direct the work of
others, and to give orders. Managers usually distinguish
between line authority and staff authority.
– Line authority gives you the right to issue orders
– Staff authority gives you the right to advise others in the
organization
• People tend to associate line managers with managing
departments (like sales or production) that are crucial for the
company’s survival. Staff managers generally run departments
that are advisory or supportive, like purchasing and human
resource management.
• Human resource managers are usually staff managers. They
assist and advise line managers in areas like recruiting, hiring,
and compensation.
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Line Manager’s HR Management
Responsibilities (1 of 2)
–Placing the right person in the right
job
–Starting new employees in the
organization (orientation)
–Training employees for jobs that
are new to them
–Improving the job performance of
each person
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Line Manager’s HR Management
Responsibilities (2 of 2)
• Gaining creative cooperation and
developing smooth working relationships
• Interpreting the company policies and
procedures
• Controlling labor cost
• Developing the abilities of each person
• Creating and maintaining departmental
morale
• Protecting employees’ health and physical
conditions
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The Human Resource Department
Figure 1-1 Human Resource Department Organization Chart Showing
Typical HR Job Titles
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In small organizations, line managers may carry out all these
personnel duties unassisted. But as the organization grows, line
managers usually need the assistance, specialized knowledge,
and advice of a separate human resource staff.
Examples of typical jobs include:
● Recruiters. Search for qualified job applicants.
● Equal employment opportunity (EEO) coordinators.
Investigate and resolve EEO grievances,
(examine organizational practices for potential violations,
and compile and submit EEO reports.)
● Job analysts. Collect and examine information about jobs to
prepare job descriptions.
● Compensation managers. Develop compensation plans and
handle the employee benefits program.
● Training specialists. Plan, organize, and direct training
activities.
● Labor relations specialists. Advise management on all
aspects of union-management relations.
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New Approaches To Organizing HR
• Reorganizing the HR function of how it is organized and
delivers HR services
– Shared Services (Transactional) HR teams
These establish centralized HR units whose employees are shared
by all the companies’ departments to obtain advice on matters
such as discipline problems.
– Corporate HR teams
within a company. These assist top management in top-level
issues such as developing the personnel aspects of the company’s
long-term strategic plan.
– Embedded HR teams
is another approach that has HR generalists (also known as
“relationship managers” or “HR business partners”) assigned to
functional departments like sales and production. They provide the
selection and other assistance the departments need.
– Centers of expertise are basically specialized HR consulting
firms within the company.
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Learning Objective 1.2: Briefly Discuss and
Illustrate the Important Trends Influencing
Human Resource Management
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Trends in Human Resource Management
• Workforce Demographics and Diversity Trends
• Trends in Jobs People Do
• Globalization Trends
• Economic Trends
• Technology Trends
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•Workforce Demographics and
Diversity Trends.
The composition of the workforce will
continue to change over the next few
years; specifically, become more diverse
with more women, minority group
members, and older workers in the
workforce.
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Trends in Jobs People Do.
• First, work has shifted from manufacturing jobs to
service jobs. Today over two-thirds of the U.S.
workforce is employed in producing and delivering
services, not products.
• Second, in companies like Uber and Upwork, most
workers are freelancers and independent contractorworkers.
• Finally, more jobs are becoming “high tech.” For
managers, the challenge is that they have to manage
such workers differently.
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Globalization Trends.
• These refer to companies extending their sales,
ownership, and/or manufacturing to new markets
abroad.
• For example, Toyota builds Camrys in Kentucky,
while Apple assembles iPhones in China.
• Free-trade areas—agreements that reduce tariffs
and barriers among trading partners—further
encourage international trade. NAFTA (the North
American Free Trade Agreement) and the EU
(European Union) are examples.
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Economic Trends.
• Although globalization supported a growing global economy, the
past 10 years were difficult economically.
• a measure of the United States of America’s total output—boomed
between 2001 and 2007. During this period, home prices leaped
as much as 20% per year.
• Unemployment remained at about 4.7%.
• Then, around 2007–2008, all these measures fell off a cliff. GNP
fell. Home prices dropped by 10% or more (depending on the city).
• Unemployment nationwide soon rose to more than 10%.
• the labor force in America is growing more slowly.
• Talent management ranks as a top concern for most global
companies’ senior HR officers. Furthermore, demand for workers is
unbalanced.
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• Technology Trends.
• It may be technology that most
characterizes the trends shaping human
resource management today.
• Let’s take a look at the five main types of
digital technologies that are driving this
transfer
of
functionality
from
HR
professionals to automation.
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More on HR Technology Trends
• There are six main types of digital technologies driving HR
professionals to automation:
– Social Media
tools such as Twitter, Facebook, and LinkedIn (rather than,
say, as many employment agencies) —to recruit new
employees.
– Mobile Applications
for instance, to monitor employee location and to provide
digital photos at the facility clock-in location to identify
workers.
– Cloud Computing
which enable employers to monitor and report on things like
a team’s goal attainment and to provide real-time evaluative
feedback.
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Data Analytics
which use statistical techniques, algorithms, and
problem-solving to identify relationships among data
for the purpose of solving particular problems (such
as what the ideal candidate’s traits are, or how can I
tell in advance which of my best employees is likely
to quit?)
Artificial Intelligence
basically means using computers to do tasks in
human-like ways.
Augmented Reality
transforms huge amounts of data and superimposes
digital summaries and images on the physical world.
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Learning Objective 1.3: Briefly Describe
Six Important Components or Pillars of
Human Resource Management Today
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Today’s New Human Resource Management
• A Brief History of Personnel/Human Resource
Management
• Distributed HR and the New Human Resource
Management
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• A Brief History of Personnel/Human Resource
Management
• “Personnel management” is not new – it dates back to the
1800’s.
• By 1900, employers set up the first “hiring offices,” training
programs, and factory schools.
• Personnel management had begun. In these early firms,
personnel managers took over hiring and firing from
supervisors, ran the payroll departments, and administered
benefits plans.
• New union laws were added in the 1930s, equal employment
laws came along in the 1960s that made employers more
reliant on personnel management to avoid discrimination
claims.
• Now today, a new human resource management is emerging
– one built on six main components or pillars. We’ll look at this
next.
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• Distributed HR and the New Human Resource
Management
• More and more human resource management
tasks are now being redistributed from a central
HR department to the company’s employees and
line managers, thanks to digital technologies like
mobile phones and social media.
• Some experts say that if current trends continue,
many aspects of HR and talent management will
become “fully embedded in how work gets done
throughout an organization [distributed], thereby
becoming an everyday part of doing business.”
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A Quick Summary
Figure 1-4 What Trends Mean for Human Resource
Management
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Strategic Human Resource Management
• Strategic human resource management – means
formulating and executing human resource policies and
practices that produce the employee competencies and
behaviors that the company needs to achieve its strategic
aims.
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Improving Performance: The Strategic
Context
Building L.L.Bean
Let’s take a look at the heart of their strategy.
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HR and Performance Measurement
The Human Resource Manager is
expected to spearhead employee
performance.
Three levers can be applied to do so:
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever
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HR and Evidence-Based Management
• Evidence-based human resource
management –
is the use of data, facts, analytics, scientific
rigor, critical evaluation, and critically
evaluated research/case studies to support
human resource management proposals,
decisions, practices, and conclusions.
– Actual measurements
– Existing data
– Research studies
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HR and Adding Value
• Adding value –
means helping the firm and its
employees improve in a measurable
way as a result of the human
resources manager’s actions.
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Sustainability and HRM
• It is about measuring
companies in terms of
maximizing profits but also on
their environmental and social
performance as well.
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Employee Engagement and HRM
• Employee engagement refers to:
being psychologically involved
in, connected to, and committed
to getting one’s job done.
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Ethics and HRM
•Ethics means the standards
someone uses to decide
what his or her conduct
should be.
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Learning Objective 1.4: List at Least
Four Important Human Resource
Manager Competencies
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The Skills of the New HR Manager
• HR managers can’t just be good at
traditional personnel tasks like
hiring and training, but must “speak
the CFO’s language” by defending
human resource plans in
measurable terms.
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The New Human Resource Manager
The Society of Human Resource
Management (SHRM) has a new
“competency model” called the SHRM
Body of Competency and Knowledge
that itemizes what a new HR Manager
needs
• What should they be able to exhibit?
• Of what basic functional areas of HR
should they have command?
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Human Resource Manager Certification
• HRCI Certifications
–PHR – Professional in Human
Resources
–SPHR – Senior Professional in
Human Resources
• SHRM now has its own
competency and knowledge based
testing
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HR and the Manager’s HR Philosophy
An initial philosophy based on
experiences, education,
values, assumptions, and
background.
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Learning Objective 1.5: Outline the
Plan of This Book
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The Basic Themes and Features
Themes and features are used
to highlight particularly important
issues and provide continuity
from chapter to chapter.
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Practical Tools for Every Manager (1 of 2)
• Human resource management is
the responsibility of every
manager—not just those in human
resources.
• Managers use HRM techniques to
improve performance, productivity,
and profitability
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Practical Tools for Every Manager (2 of 2)
• An emphasis is placed on how digital
and high-tech trends are shaping HR
M.
• Understand how the employer’s HRM
policies and practices produce the
employee skills and performance the
company needs to achieve its
strategic aims.
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Chapter Contents Overview
There are 5 parts to this book
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Part 1: Introduction
• Chapter 1 – Introduction to Human Resource
Management
• Chapter 2 – Equal Opportunity and the Law
• Chapter 3 – Human Resource Strategy and Analysis
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Part 2: Recruitment, Placement, and
Talent Management
• Chapter 4 – Job Analysis and the Talent Management
Process
• Chapter 5 – Personnel Planning and Recruiting
• Chapter 6 – Employee Testing and Selection
• Chapter 7 – Interviewing Candidates
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Part 3: Training and Development
• Chapter 8 – Training and Developing Employees
• Chapter 9 – Performance Management and Appraisal
• Chapter 10 – Managing Careers and Retention
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Part 4: Compensation
• Chapter 11 – Establishing Strategic Pay Plans
• Chapter 12 – Pay for Performance and Financial
Incentives
• Chapter 13 – Benefits and Services
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Part 5: Enrichment Topics in Human
Resource Management
• Chapter 14 – Building Positive Employee Relations
• Chapter 15 – Labor Relations and Collective
Bargaining
• Chapter 16 – Safety, Health, and Risk Management
• Chapter 17 – Managing Global Human Resources
• Chapter 18 – Managing Human Resources in Small
and Entrepreneurial Firms
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The Topics are Interrelated
• Human Resource Management 16th edition chapter
topics are interrelated. The themes and features
highlighted throughout the book also provides a continuity
from chapter to chapter.
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Chapter 1 Review
What you should now know….
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