1 The Nature of Human Resource Management Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1 Describe contemporary human resource perspectives 2 Trace the evolution of the human resource functions 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 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 2 Contemporary Human Resource Management Perspectives • HRM practices and policies affect the ability to formulate and implement strategy in any area • Outsourcing: Process of hiring external firms to handle basic HRM functions Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 3 Evolution of the Human Resource Function • First study of management practice • Scientific management: Concerned with structuring individual jobs to maximize efficiency and productivity • Origins of the human resource function • Hawthrone studies: Instigated the human resources era - Human relations era: Supplanted scientific management as the dominant approach to management during the 1930s Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 4 Scientific Management (Taylorism) https://www.mindtools.com/pages/article/newTMM_Taylor.htm Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 5 Hawthorne Studies The Hawthorne studies, which were conducted by Elton Mayo and Fritz Roethlisberger in the 1920s with the workers at the Hawthorne plant of the Western Electric Company, were part of an emphasis on socio-psychological aspects of human behavior in organizations. https://en.wikipedia.org/wiki/Hawthorne_effect Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 6 Evolution of the Human Resource Function • Hierarchy of human needs: Developed during the human relations era • Theory X and Theory Y: Framework grew from the human relations movement Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 7 Abraham Maslow’s Hierarchy of Needs https://en.wikipedia.org/wiki/Abraham_Maslow http://www.simplypsychology.org/maslow.html Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 8 Douglas McGregor https://en.wikipedia.org/wiki/Douglas_McGregor Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 9 McGregor’s Theory X & Theory Y Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 10 Evolution of the Human Resource Function • Personnel management: New type of management function that grew from the recognition that human resources needed to be managed • Personnel departments: Specialized organizational units for hiring and administering human resources - Became popular during 1930s and 1940s Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 11 Evolution of the Human Resource Function • Human resource management in the electronic age • Knowledge workers: Employees whose jobs are concerned with the acquisition and application of knowledge - Contribute to an organization through what employees know and how they apply what they know Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 12 Goals of Human Resource Management • • • • Facilitating organizational competitiveness Enhancing productivity and quality Complying with legal and social obligations Promoting individual growth and development • Psychological contract: Overall set of expectations held by: - The employee with regard to what they have contributed to the organization - The organization with regard to what it will provide to the individual in return Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 13 The Setting for Human Resource Management • Line managers: Directly responsible for creating goods and services • Staff managers: Responsible for an indirect or support function that would have costs • Bottom-line contributions were less direct Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 14 The Setting for Human Resource Management • The human resource management in smaller versus larger organizations • Smaller organizations require line managers to handle their basic HR functions • When firms grow beyond a certain size, a separate HR unit becomes necessity - Issues involved become much more complicated Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 15 The Setting for Human Resource Management • Human resource management: Integrated and interrelated approach to managing human resources • Recognizes interdependence among the various tasks and functions that must be performed • Utility analysis: Attempt to measure the impact and effectiveness of HRM practices in terms of metrics such as firm’s financial performance Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 16 Human Resource Managers • Contemporary HR executives must possess general management abilities that reflect conceptual, diagnostic, and analytical skills • Recognizing human resource management as the firm’s most critical source of information is important for everyone in the organization Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 17 Figure 1.4 Human Resource Management as a Center for Expertise Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 18 Human Resource Managers • Human resource departments are viewed as cost centers • Goal - Providing clear and measuring financial benefits to the organization • Society for human resource management (SHRM) - Largest professional HR association • Publishes professional journals covering current developments in the field • Sponsors workshops and conferences Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 19 Human Resource Managers • Human resource certification institute (HRCI) • Professional in human resources (PHR) • Senior professional in human resources (SPHR) • Global professional in human resources (GPHR) • Careers in human resource management • Degree in human resource management will provide an entry-level employment opportunity as an HR manager • Line management can be used as a route to HRM Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 20 SUMMARY • Latest trend - To outsource HR firms to handle payroll, insurance, recruitment and other benefits • Human resource departments are viewed as cost centers • Certification is required to progress in HR career Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 21 KEY TERMS • Hawthorne studies • Hierarchy of human needs • Human relations era • Human resource management (HRM) • Human resource management system • Human resources • Knowledge workers • Line managers • Outsourcing • Personnel departments • Personnel management • Personnel manager • Productivity • Psychological contract Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 22 KEY TERMS • Quality • Scientific management • Staff managers • Theory X and Theory Y • Utility analysis Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 23 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM3 | CH3 24