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© 2003 Prentice Hall, Inc.
Course Outline
Managing Human
Resources
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© 2003 Prentice Hall, Inc.
Course Outline
References

Dessler, Gary. Human Resource
Management, 10th ed. Pearson
Prentice Hall: 2005
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© 2003 Prentice Hall, Inc.
Outline of Introduction
I. Introduction
II. What is Management?
III. What is Human Capital and Human
Resource Management?
IV. How does HRM relate to the
functions of management?
V. What is the HRM process?
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I.
© 2003 Prentice Hall, Inc.
The Manager’s Human Resource
Management Jobs
Why is HR Management Important to All
Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An
Example
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Outline of Chapter 1
II.
Strategic Planning and Strategic
Trends
III. HR’s Strategic Role
HR’s Evolving Role
Strategic Human Resource Management
HR’s Role as a Strategic Partner
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Management
 Management
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the process of coordinating work activities so
that they are completed efficiently and
effectively with and through other people
elements of definition
Process - represents ongoing functions or primary
activities engaged in by managers
 Coordinating - distinguishes a managerial position
from a non-managerial one

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Organization and Manager
 An organization consists of people with
formally assigned roles who work
together to achieve the organization’s
goals.
 Manager is a person responsible for
accomplishing the organization’s goals
and who does so by managing the efforts
of the organization’s people.
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Management
Efficiency (Means)
Effectiveness (Ends)
Resource
Usage
Goal
Attainment
Low Waste
High Attainment
Management Strives For:
Low resource waste (high efficiency)
High goal attainment (high effectiveness)
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The Management Process
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Planning
Organizing
Staffing
Leading
Controlling
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Management Process
 Planning
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Establishing Goals and standards
Developing Rules and procedures
Developing Plans and forecasting.
 Organizing
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Giving each subordinate a specific Tasks
Establishing Departments
Delegating authority to subordinates
Establishing channels of Authority and
communication
Coordinating the work of subordinates
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Management Process
 Staffing
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Determining what type of people should be
Hiring
Recruiting employees
Selecting employees
Setting Performance standards
Compensating employees
Evaluating performance
Counseling employees
Training and developing employees
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Management Process
 Leading
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Getting the job done
Maintaining Morale
Motivating subordinates
 Controlling
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Setting standards such as quotas,quality standards
Comparing actual performance to standards
Taking Corrective action
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Management Functions
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Planning - defining goals, establishing strategies for
achieving those goals, and developing plans to integrate and
coordinate activities
Organizing - determining what tasks are to be done, who is
to do them, how the tasks are to be grouped, who reports to
whom, and where decisions are made
Staffing - HRM
Leading - directing and motivating all involved parties and
dealing with employee behavior issues
Controlling - monitoring activities to ensure that they are
going as planned
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Human Resource
Management
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Planning - defining goals, establishing strategies for
achieving those goals, and developing plans to integrate and
coordinate activities
Organizing - determining what tasks are to be done, who is
to do them, how the tasks are to be grouped, who reports to
whom, , where decisions are made and who is decision
taker
Staffing - HRM
Leading - directing and motivating all involved parties and
dealing with employee behavior issues
Controlling - monitoring activities to ensure that they are
going as planned
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HRM Function
Human Resource Management is the process
of acquiring, training, appraising, and
compensating employees and attending to
their labor relations, health and safety, and
fairness concerns.
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HRM People Functions
Include:
 Conducting Job
analyses
 Planning Labor needs
 Recruiting candidates
 Select candidates
 Orient and training
new employees
 Wages and salaries
 Incentives and benefits
 Appraising Performance
 Communicating
 Train and develop
managers
 Employee commitment
 Equal opportunity
 Health and safety
 Grievances/labor
relations
 Knowing employment
law
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HRM is Important to all Managers.
Don’t Let These Happen to You!
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The wrong person
High turnover
Poor results
Useless interviews
Company taken to Court for discriminatory
actions
Safety citations
Salaries appear unfair
Poor training
Unfair labor practices
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HRM – It’s All About Results
“For many years it has been said that capital is
the bottleneck for a developing industry. I don’t
think this any longer holds true. I think it’s the
work force and a company’s inability to recruit
and maintain a good work force that does
constitute the bottleneck….” F. K. Foulkes
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Human Resource
Management Process
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Line and Staff Aspects of
HRM
 Authority
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Right to Make decisions
Directing work
Giving orders
 Line Managers
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Accomplishing goals by issuing orders
 Staff Managers
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Assisting and advising line managers
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Line Manager’s HRM Jobs
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The right person
Orientation
Training
Performance
Creativity
Working
relationships
 Policies and
procedures
 Labor costs
 Development
 Morale
 Protecting
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HR Department
Organizational
Chart
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Line & Staff HR
Example
Exactly which HR management activities are carried
out by line managers & by staff managers?
 There is no single division of responsibility applied to
all organizations
 Example in the recruiting & hiring of employees:
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Usually the line manager specifies the qualifications needed to
fill specific positions.
Then the HR manager develops sources of qualified
candidates, conduct initial screening (tests) and send those
filtered to line manager
Line manager conducts the final technical screening tests and
selects the one to hire or requests new applicants
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Changing Environment of
HR Management
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Globalization
Technological Advances
Exporting Jobs
The Nature of Work
Workforce Diversity
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Globalization
80
70
60
50
% fortune 500 with a
global presence
40
30
20
10
0
1920
1950
1970
2000
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Globalization
 Globalization is the tendency of firms to extend their
sales,ownership and manufacturing to new markets
abroad.
 Eg : Toyota manufactures camry in kentucky and Dell
produces PC s in china
 Companies expand abroad for several reasons – sales
expansion,seek new foreign products and services to
sell.
 Infosys,tcs,tata steel,mittal steel,ge,american exp,dell
,google ,indian firms affected by recession.
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Companies Expansion Sales Expansion
 Google expanded its china presence by
initiating its Google china instant
messaging service.
 Walmart is opening stores in south
America.
 Dell is aggressively building plants in
china and selling there knowing the
future market
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New foreign products and
services
 Apparel manufacturers design and cut
fabrics in Miami and then have actual
products assembled in Central America
where the labour cost is low.
 Prospects of finding new partners abroad
– IBM sold its PC division to Chinese firm
Lenovo
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Globalization
 More globalization means more competition
and more competition means more pressure to
be world class - to lower costs to make
employees more productive and to do things
better and less expensively.
 The bottom line is that the growing integration
of the world class economy into a single huge
market place is increasing the intensity of
competition in a wide range of manufacturing
and service industries.
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Advantages and
Disadvantages of
Globalization
 For consumers it is having more variety of
products at a cheaper prices
 For business owners it is having many new
customers and more competitors.
 For employees it poses a threat of job
offshoring.
 US Imports and exports :
 47 billion $ 1960 * 562billion $ -1980
 4.3 trillion $ 2008
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Technological Advances and the
Nature of Work
 Technology mandates and enables
companies to be more competitive Carrier
 High Tech Jobs - Knowledge
intensive jobs in industries such as
aerospace, computers,
telecommunications, and
biotechnology are replacing factory
jobs in steel, auto, rubber and
textiles
 Eg : zaara ,lockheed,indian railways
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Service Jobs
 Two thirds of US force is employed in
producing and delivering services not
products.
 Reason for service oriented industry –
more manufacturing jobs are shifting to
low wage countries.
 Service jobs have also shifted to
countries like India and Philippines where
skilled labour are available at low cost.
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Exporting Jobs
 Competitive pressures and the search
for greater efficiencies are prompting
more employers to export jobs abroad.
 Technology has facilitated the move of
jobs offshore.
 Call centers in India allow for: 24 hours,
cheaper labor, standardized, efficient
service
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Knowledge Work and
Human Capital
 Human Capital refers to knowledge education,
training,skills and expertise of a firm’s workers.
 “ the center of gravity in employment is moving fast
from manual and clerical workers to knowledge
workers”
 HR managers listed “critical thinking/problem solving”
and “info tech application” as the two applied skills in
importance over next few years.
 HRM skills – recruiting,screening,training and paying
employees – more important to employers
 Bank example
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Demographic Trends
 In spite of the recession and job losses
workforce demographic trends are
making finding and hiring good
employees more of a challenge around
the world.
 Skill shortage is identified as a main
hurdle in achieving demographic dividend
from its young growing population.
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The Workforce Itself is
Diverse
Asian
Black
Hispanic
Men
Women
US Department of Labor website
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The Workforce Itself is
Diverse
 More women, minorities, and older employees
are joining the workforce
 Workforce diversification offers increasing
opportunities including: a wide range of skills
and talents (languages), different points of
view, different life experiences
 Old perspective was melting pot approach.
Now, there is a celebration of differences
 The challenge lies in the widening range of
employee needs (benefits range is much
wider so may be flexi-time would be adopted)
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Generation Y
 Young workers are more family oriented or dual
balanced.
 Old workers are work centric.
 Todays “millennial” or “generation Y” employees will
bring challenges and strength.
 The most high maintenance workforce in the history of
world .
 Refer to them as “most praised generation”.
 As the first generation to cope up with IT.
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Economic challenges and
Trends
 In 2001 – 2007 – Gross National Product
boomed .Home prices leaped upto 20%
and unemployment remained docile
(4.7%)
 2007-2008 – all these measures
seemingly fell off the cliff.Home prices
dropped to 20% and unemployment rose
to 8%
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Consequences of these basic
trends
Global expansion
Technology
Strengths and
Weaknesses
Improved competition
Uncertainty,
Turbulence,
Rapid
Change,
Changing
power
bases
Companies
must be
Fast,
Responsive,
and
Costeffective
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© 2003 Prentice Hall, Inc.
Important Trends In human
Resource Management
 The New Human Resource Managers
 Strategic Human Resource Management
 Evidence Based Human Resource
Management
 Managing ethics.
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New Human Resource
Managers
 They are more involved in big picture
issue.
 Example : Wiscosin based Signicast
corp’s president Terry Lutz and his board
decided to build a new computerized
plant.New automation of plant demanded
new employees.HRM dept evolved to
select train and organize tech friendly
employees
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New HRM
 New ways to provide transactional
services
 They outsource more of their services to
outside vendors.
 They use latest technologies (internet
based websites) to enable employees to
self administer benefit plans.
 Employees of Dell set up call centers to
solve HR related enquiries
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New HRM
 They have new proficiencies.
 They require broader business
knowledge
 HR managers need to be familiar with
strategic planning,marketing,finance and
production.
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HR’s evolving role
Protector
and
Screener
Change Agent
Strategic Partner
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HR’s evolving role as strategic
partner
Corporate
Corporatestrategy
strategy
HR
HRoperations
operations
Corporate
Corporatestrategy
strategy
HR
HRprograms
programs
Corporate strategy
FedEx
HR programs
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The New HR Manager
 New Proficiencies
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HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
 The need to know the employment laws
 HR and technology
 Technology improves HR functioning in 4 main
ways: self-service, call centers, productivity
improvement, and outsourcing.
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Strategic Management
 The set of managerial decisions
and actions that determines
the long-run performance
of an organization.
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Strategic Human Resource
Management
 HR strategies refers to the specific human resource
management courses of action the company pursues
to achieve its aims.
Strategic Human Resource Management means
formulating and executing HR systems (HR policies &
activities) that produce the employee competencies
and behaviors the company needs to achieve its
strategic aims
Instructor presentation questions: docwin@tampabay.rr.com
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HR’s Strategic Roles
 Today’s HR managers fulfill two basic strategic
planning roles: strategy execution and strategy
formulation
Strategy execution (traditional role): top management
formulates the company’s corporate strategies and HR
develops systems that support or align with the
corporate strategy.
Strategy formulation (today’s role): a partner in the
setting of the corporate strategy and its execution.
Instructor presentation questions: docwin@tampabay.rr.com
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HR Scorecard Approach
HR Scorecard: Measures the HR
function’s effectiveness and efficiency in
producing employee behaviors needed
to achieve the company’s strategic goals.
Instructor presentation questions: docwin@tampabay.rr.com
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Steps in the HR Scorecard
Approach
Step 1: Define the
Business Strategy
Step 2: Outline the
company’s value chain
Step 3: Identify the
Strategically Required
Organizational Outcome
Step 4: Identify the Required Workforce
Competencies & Behaviors
Step 5: Identify Relevant HR System
Policies & Activities
Step 6: Design the HR Scorecard
Measurement System
Step 7: Periodically Evaluate the
Measurement System
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The Value Chain Approach
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HR Scorecard Approach
Example (Paris Hotel)
1. The Strategy: “The Hotel will use superior guest
services to differentiate its properties, and to thereby
increase the length of stays and the return rate of guests,
and thus boost revenues and profitability”
2. The Value Chain: Service industry, where the product is
a satisfied customer. Value chain activities: inbound
logistics, operational activities, outbound activities,
service activities, support activities.
Instructor presentation questions: docwin@tampabay.rr.com
© 2003 Prentice Hall, Inc.
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HR Scorecard Approach
Example (Paris Hotel)
3. Strategically Required Organizational Outcomes:
Each step in the chain presents opportunities for
improving guest services. Produce fewer complaints,
more written complaints, more guest returns, longer
stays, higher expenditure per visit.
4. Relevant Workforce Competencies: motivated, high
moral employees
5. Strategic HR System Policies and Activities: Fair and
strict HR practices will produce higher moral and thus
better service
Instructor presentation questions: docwin@tampabay.rr.com
© 2003 Prentice Hall, Inc.
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HR Scorecard Approach
Example (Paris Hotel)
6. The HR Scorecard (cause and effect relation):
•
Improved disciplinary procedures – how many
grievances per month - means
•
Improved moral – seminar attitude surveys - leads to
•
High quality service – customer complaints per month
Instructor presentation questions: docwin@tampabay.rr.com
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Thank You