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Learning Objectives
After studying this chapter, you should be able to:
1. Describe contemporary human resource perspectives
2. Trace the evolution of the human resource function
in organizations
3. Identify and discuss the goals of human resource
management
4. Discuss the setting for human resource management
5. Describe the job of human resource managers from
the perspectives of professionalism and careers
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–2
Human Resources (HR)
The people an organization
employs to carry out various
jobs, tasks, and functions in
exchange for wages, salaries,
and other rewards.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–3
What Is Human Resource
Management (HRM) ?
The comprehensive set of managerial
activities and tasks concerned with
developing and maintaining a qualified
workforce—human resources—in ways
that contribute to organizational
effectiveness.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–4
• Contemporary HRM Perspectives
Recognizing the importance of people as
a source of competitive advantage
Hiring, rewarding, and managing people
effectively within the limits of the law
Balancing legal and ethical concerns
with the needs of the organization
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
1–5
Evolution of the Human Resource Function
Scientific Management,
Was concerned with how to
structure jobs to maximize
efficiency and productivity.
The Human Relations Era
Emphasized keeping workers
happy, since “happy workers
were productive workers.”
HR Specialists
The 1964 Civil Rights Act and
other legal regulations made
hiring and promoting
employees more complex.
Personnel Management.
Organizations grew and
created personnel
departments to work with
employees.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–6
HRM in the
Electronic Age
• Electronic technology has not drastically
affected how human resources are
managed, but certainly is now affecting
how HRM systems are delivered.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–7
• Emerging HR Challenges
Financial crises
Stress in employees’ lives
Managing knowledge workers
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
1–8
Beyond the Book:
HR Managers Advocate “No Lay-Off”
 Reasons for a “No Lay-Off” Policy
 Severance and re-hiring costs.
 Accrued vacation and sick day payouts.
 Pension and benefit payoffs.
 Potential lawsuits.
 Loss of institutional memory.
 Lack of staffers when economy rebounds.
 Survivors often suffer from stress.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–9
Goals of Human Resource Management
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–10
Promoting Individual Growth
and Development
Education
Skills training
Career development
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
1–11
Psychological Contract
The overall set of expectations held by
the employee with regard to what he or
she will contribute to the organization
and that are held by the organization
with regard to what it will provide to the
individual in return.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–12
HR Management as a
Staff Versus Line Function
• Line managers
 Are directly responsible for creating
goods and services.
• Staff managers
 Are responsible for supporting line
management’s efforts to achieve
organizational roles and objectives.
• Organizations have blurred this distinction.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–13
HRM in
Smaller Organizations
• Small organizations use operating
managers to handle basic HR functions.
• Small independent businesses generally
operate in the same way as small
organizations.
• Very small organizations are exempt
from many legal regulations.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–14
HRM in
Larger Organizations
• As an organization grows, a separate
HR unit becomes a necessity.
 At 200 to 250 employees, it establishes
a self-contained HR department.
 As growth continues, the HR department
develops into specialized departments.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–15
The Human Resource Management
Function at Shell Oil
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–16
Human Resource
Management System
An integrated and interrelated approach
to managing human resources that fully
recognizes the interdependence among
the various tasks and functions that
must be performed.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–17
A Systems-Based Perspective
• The HRM subsystem both affects and
is affected by other organizational
subsystems.
• Utility Analysis
 Attempts to measure, in objective terms,
the impact and effectiveness of HRM
practices in terms of metrics such as a
firm’s financial performance.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–18
A Systems View of Human Resource Management
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–19
Beyond the Book:
Managing Change in Organizations
 Key elements in successfully engineering change:
 Link the change through the business strategy
 Create quantifiable benefits
 Engage key employees and suppliers early
 Integrate required behavior changes
 Lead clearly and consistently
 Invest to implement a sustained change
 Communicate continually
 Sell commitment to the change
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–20
Human Resource Management
as a Center for Expertise
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–21
• Careers in HRM are expected
to continue to grow.
• How to enter the HR field:
Earn a degree—a master of
science or MBA in HR.
Seek an entry level job, and
become a line manager.
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated,
in whole or in part, except for use as permitted in a license distributed with a certain
product or service or otherwise on a password-protected website for classroom use.
1–22
© 2014 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1–23