OS 352
1/10/08
I. Welcome and introductions
II. Course requirements; syllabus
III. Introduction to human resource management
Human Resource Management Definition
The policies, practices,
and systems that
influence employees’
behavior, attitudes, and
performance.
Terms for human resource management:
Personnel
People
Human capital
Human relations
Others?
Strategic Human Resource Management
People management that contributes to
organizational effectiveness.
Within Firms
and increasingly…
Across Firms
Who Is Responsible for
Managing Human Resources?
A partnership of:
 top management
 human resource professionals
 managers
 employees
 consultants
 HR specialty firms
Dimensions of HR Structures
(The Ways in Which Firms will Manage HR Differently)
 Internal v. External Responsibility for HRM
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(proportions and content)
HR v. Management Responsibility for HRM
(proportions and content)
Degree of Centralization
(i.e., highly centralized  headquarters controls HR
decisions; highly decentralized  business unit
head controls HR decisions
Degree of Formalization (i.e., rules and procedures)
Strategic Importance of HRM
Staffing of HR Department with HR Experts v.
Management rotations
Managing through …
Culture
 Shared understanding
of firm goals and values
drives performance
 Works where there are
no specified procedures
 Ensures performance
occurs without
supervision
Procedures
 Driven by legal
compliance, bureaucratic
needs and tendencies
 Ensure consistency in
processes and fair
treatment of ees
 Ensures basic standards
are met
Managing through …
Credibility
 Trust
Authority
 Hierarchical level
 Expertise
 Job title
 Dynamism
 Resources
Goals of HRM
 Attract, retain, and motivate ees
 Direct employee efforts toward goals of
organization
 Assist in the development of the strategic
direction of the organization
 Provide the organization a source of
competitive advantage
 Help ensure legal compliance
Stakeholders of
Human Resource Management
THE ORGANIZATION
• Productivity
• Profits
• Survival
• Adaptability
• Competitive advantage
EMPLOYEES
• Fair treatment
• Satisfaction/morale
• Empowerment
• Employability
• Safety and health
• Flexibility
CUSTOMERS
• Quality service
• Quality products
• Speed and responsiveness
• Low cost
• Innovation
Any others?
STRATEGIC PARTNERS
• Suppliers; joint venture
partners
• Unions
• Customers
SHAREHOLDERS/
INVESTORS
• Shareholder return
• Return on sales
• Return on assets
• Return on investments
SOCIETY
• Legal compliance
• Social responsibility
• Ethical management
practices
• Concern for the
environment
HRM’s History
 Welfare
 Administration
 Employee relations
 Functional expertise
 Business partner / player
Activities in
Human Resource Management
 HR strategy formulation
 Managing organizational and HR changes and
culture
 Recruitment and selection (staffing)
 Training and development
 Performance appraisal
 Compensation and benefits
 Employee relations
 Labor/management relations
HRM in Large v. Small Firms
Large
 Designated HR
professional or HR
department
 Formal HR policies; HR
manual; job
descriptions
Small
 HR duties combined
with other
administrative functions
(e.g., accounting) or
performed by line mgrs.
 Less formal HR
policies, less likely to
have HR manual, job
descriptions
Terms You Should Know
 Human resource management
 Attraction
 Retention
You Should be Able To …
 Understand some of the history behind the
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human resource management field.
Know the activities associated with HRM (e.g.,
compensation)
Identify the primary goals of HRM.
Recommend who should be involved in HRM.
Identify the stakeholders of HRM.
Understand how HRM in small firms differs from
HRM in large firms.
Next time:
 Please return!
 Read Jetblue materials.