Human Resource
Management
Eleventh Edition
SECTION 1
Nature of
Human
Resource
Management
Robert L. Mathis  John H. Jackson
Chapter 1
Changing Nature of
Human Resource
Management
PowerPoint Presentation
by Dr. Zahi Yaseen
Changing Nature of Human Resource
Management
After you have read this chapter, you should
be able to:
– Define HR management and explain why
managers and HR staff must work together.
– List and define the seven categories of HR
activities.
– Identify three challenges facing HR today.
– Describe the four roles of HR management.
– Discuss why ethical issues affect HR
management.
HR
Management
Activities
HRM Activities
Human resource activities support organizational efforts
focusing on Productivity, Service, and quality
That requires changes in corporate culture,
leadership styles, and HR policies.
1- HR planning and analyses
2- Equal employment opportunity
3- Staffing
4- HR development
5- Compensation and Benefits
6- Health, safety, and security
7- Employee and Labor relations
• Human Resource Management
– Is the direction of organizational systems to ensure
effective and efficient use of human talent to
accomplish organizational goals.
• HR in Organization
– Every manager in an organization is an HR manager,
however, it’s unrealistic to expect all operation
managers like sales managers, nursing supervisor to
know about employment regulations, union
contracts….etc.
• Corporation of HR with operating managers:
– HR specialists design processes and systems that
operating managers help implement.
• Management of Human Capital in Org;
Organization must manage four types of assets:
1- Physical : building, land, furniture, vehicles…
2- Financial: cash, stocks, securities…..
3- Intangible: brand name, researches…..
4- Human: talents employees, experience,
professionals, capabilities…..
All these assets are crucial in varying degrees.
However, the human assets are the ‘glue” that
holds all other assets together and guides their
use to achieve organizational goals.
• Management of Human Capital in Org;
Human Capital: Is the collective value of the
capabilities, knowledge, skills, life-experiences,
and motivation of the workforce. Human capital
is not the people in the company- It’s what those
people bring and contribute in the success of that
company.
HR as a Core competency: HR should be part of
organizational strength. Because those strengths are the
foundation for creating a competitive advantage, core
competency is a unique capability that creates high value
and differentiates an organization from its competitors.
HR Management Challenges
•Globalization of Business
•Economic and technological changes
•Workforce demographics and diversity
•Organizational cost pressures &
restructuring
HR Management Challenges
• Globalization of Business
- Global companies across nations. Pepsi, Microsoft, Hp, GE,
Sony, Toyota, Nokia, McDonalds…..
- Shift from investment to operate, and produce products and
services across the boards and the effect of security.
• Economic and Technological Changes
– Shift in jobs for manufacturing and agriculture to service
industries and telecommunications.
– Workforce availability and quality concerns: Lack of skilled
employees.
– Growth in contingent workforce: contractors, part time…
– Growth of information technology (Internet).
HR Management Challenges
• Workforce demographics and diversity
– More diversity of race, gender, and ethnicity. People
from different background, women in the workplace,
and growing of minorities.
• Organizational cost pressures & restructuring
“Right-sizing", eliminating of layers of management,
closing facilities, merging, and outplacing workers.
• Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
• Costs are survivor mentality, loss of employee loyalty, and
turnover of valuable employees
HR Management Roles
• Administrative Role
The administrative support operations (e.g., payroll and benefits
work) shifted to technology ( internet) and outsourcing. The
reasons are to save money, time, and to focus on strategic plans.
• Operational and Employee Advocate Role
– Traditionally HR is the “Champion” for employee concerns, and
respond to employees complaints and crises. (figure 1)
• Strategic Role
- Long-term implications, ethics bookkeeping, and
provide competitive advantage.
HRM shifts from operational to strategic
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Traditional HR Function
Reactive
Collecting HR data
Responding to goals and
objectives set by executives
Complying with laws, policies,
and procedures
Administering employees
benefits programs
Designing training programs
Staffing
• Applying compensation plans
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•
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•
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•
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Emerging HR practice
Proactive
Measuring HR with metrics
Setting strategic HR goals and
objectives
Developing and revising
policies and procedures
Evaluating benefits
strategically
Identifying training needs
HR planning and linking with
external staffing needs
Developing compensation
plans
Strategic Role for HR
• HR becomes a strategic business partner by:
- Evaluating mergers and acquisitions for staffing needs
- Conducting workforce planning : from employees
retirements to workforce expansion
- Leading site selection efforts for new facilities, and for
international outsourcing.
- Applying new HR systems to reduce time and staff
- Working with executives to develop compensating plans
• Collaborative HR: when group of companies from different
industries establish HR hop to share information and benefit for
their experiences.
HR Technology
Firms have developed and implemented information
systems to simplify use of the vast amounts of HR data
• Human resource management system( HRMS)
Is an integrated system providing information used
by HR management in decision making.
• Purpose of HRMS:
1- administrative and operational efficiency
2- strategic and HR planning
( see attached example)
Ethics and HR
Organizations with high ethical standards are more likely to
meet long –term strategic objectives and profit goals.
• Ethics and global differences: Different laws, politics,
cultural values usually raises ethical issues for global
employers.( what is prohibited here is allowed there)
• HR’s role in organizational ethics
HR management plays a key role as the “ keeper
and voice” of organizational ethics.
Ethical issues like: misrepresenting hours and time
worked, employee lying to managers, hiring and
promoting the favoritism.
Ethics and HR
Responding to Ethical Situations
– Guided by values and personal behavior “codes” that
include:
• Does response meet all applicable laws, regulations, and
government codes?
• Does response comply with all organizational standards of
ethical behavior?
• Does response pass the test of professional standards for
ethical behavior?
Job satisfaction leads to
Productivity and quality
How can we increase
Productivity?
Job satisfaction
The Employee
How can we
Key Retention
manage our
Job performance
costs?
Competition advantage
through Human capital
Individual abilities/skills
Management
support/technology
Culture/ motivation
HR Strategic
What can we do to
Survive in the
Market place?
Increasing competition
•Vision/Mission,\/Goals
•Plan for people
•Revising Rules
•Comply with Labor Law
•Design
Policies/procedures
•Design jobs
•Recruiting /Selecting
•Employee retention
We should value
Our customers and
Our employees
Demands for
Productivity/ quality/
service
HR Traditional View
•-Responding to goals and
objectives set by executives
•Complying with laws,
•policies, and procedures
•Administering employees
benefits programs
•Staffing
HR
Tree
HR
Tree
Survey
-Satisfaction
Job
Performance
HR
Planning
HR
Strategic
Exit
Interviews