1. introduction of hrm

8/17/2019 1. Introduction of Hrm

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An Overview of Human

Resources Management

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Principles of Human ResourceManagement

16 e

Bohlander | Snell

DERMA?

2.6 B?


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Chapter ObjectivesChapter ObjectivesAfter studying this chapter, you should be able to

!plain ho" human resources managers can help their firms gain asustainable competiti#e ad#antage through the strategic utili$ationof people%

!plain ho" globali$ation affects human resources management%

!plain ho" good human resources practices can help a firm

achie#e its corporate social responsibility and sustainability goals%

&escribe ho" technology can impro#e ho" people perform and aremanaged%

&iscuss ho" cost pressures affect human resources managementpolicies%

&iscuss ho" firms can le#erage employee differences to theirstrategic ad#antage%

!plain ho" educational and cultural changes in the "or'force areaffecting human resources management%

Pro#ide e!amples of the roles and competencies of today(s HRmanagers%

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)AR*+* -./0-M 6

)AR*+* -./0-M 5

)AR*+* -./0-M


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Why Study Human Resources Management?Why Study Human Resources Management?

' (u#an Resources Manage#ent )(RM*(u#an Resources Manage#ent )(RM* +he process o" #anaging hu#an talent to achieve an

organiation-s obectives.

'//hy tudy (RMhy tudy (RM ta""ing the organiation, designing obs and tea#s,

developing s4ill"ul e#ployees, identi"ying approaches "ori#proving their per"or#ance, and rearding e#ployeesuccesses5all typically labeled (RM issues5are as relevantto line #anagers as they are to #anagers in the (Rdepart#ent.

6reat business plans, products and services can easily becopied by your co#petitors. 6reat personnel cannot.

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Human Capita and HRMHuman Capita and HRM

' ords to describe ho i#portant people are toords to describe ho i#portant people are to

organiations % (u#an Resources, (u#an Capital,organiations % (u#an Resources, (u#an Capital,

9ntellectual Assets, and +alent Manage#ent.9ntellectual Assets, and +alent Manage#ent.

'(u#an Capital $ +he 4noledge, s4ills, and capabilities o"(u#an Capital $ +he 4noledge, s4ills, and capabilities o"individuals that have econo#ic value to an organiationindividuals that have econo#ic value to an organiation

(u#an capital is intangible and cannot be #anaged the ay

organiations #anage obs, products, and technologies.

:aluable because capital;

' is based on co#pany$speci"ic s4ills.' is gained through long$ter# e!perience.' can be e!panded through develop#ent.

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“An organization’s ability to learn, and translate that learning into action rapidly,

is the ultimate competitive business advantage.” ( Jack Welch, eneral !lectric"


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7igure 1%1 pro#ides an o#erall frame"or' of HR acti#ities% 7rom this7igure 1%1 pro#ides an o#erall frame"or' of HR acti#ities% 7rom thisfigure, "e can see that managers ha#e to help blend many aspects offigure, "e can see that managers ha#e to help blend many aspects ofmanagement% +t is the basis for our discussion throughout this chapter%management% +t is the basis for our discussion throughout this chapter%

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Competitive Chaenges andCompetitive Chaenges andHuman Resources ManagementHuman Resources Management

' +op challenges include;+op challenges include; Responding trategically to Changes in the Mar4etplace

Co#peting, Recruiting, and ta""ing 6lobally

etting and Achieving Corporate ocial Responsibilityand ustainability 6oals

Advancing (RM ith +echnology

Containing Costs hile Retaining +op +alent andMa!i#iing =roductivity

Responding to the >e#ographic and >iversityChallenges o" the or4"orce

Adapting to ?ducational and Cultural hi"ts A""ectingthe or4"orce

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Chaenge !"Chaenge !" Responding Strategicay toResponding Strategicay toChanges in the Mar#etpaceChanges in the Mar#etpace

' (u#an Resources Managers and(u#an Resources Managers andusiness trategyusiness trategy Bro# ad#inistrative tas4s to strategic partners.

(u#an resources #anagers need an inti#ateunderstanding o" their "ir#s- co#petitive businessoperations and strategies. +hey need tounderstand..

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' /otal 8uality management' Reengineering' &o"nsi$ing' -utsourcing

' 0hange management' Reacti#e change' Proacti#e change' Si! Sigma

And more9%


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Chaenge !"Chaenge !" Responding Strategicay toResponding Strategicay toChanges in the Mar#etpaceChanges in the Mar#etpace )cont.*)cont.*

' +otal Euality Manage#ent )+EM*+otal Euality Manage#ent )+EM* A set o" principles and practices hose core ideas include

understanding custo#er needs, doing things right the "irstti#e, and striving "or continuous i#prove#ent.

' i! ig#ai! ig#a A process used to translate custo#er needs into a set o"

opti#al tas4s that are per"or#ed in concert ith oneanother.

– (R "acilitates organiational develop#ent o" i! ig#a.

– (R helps balance the opposing needs "or order and control

ith the needs "or groth and creativity.

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' Reengineering and (RMReengineering and (RM

Bunda#ental rethin4ing and radical redesigno" business processes to achieve dra#atici#prove#ents in cost, Guality, service, and speed.

– ReGuires that #anagers create anenviron#ent or change.

– >epends on e""ective leadership andco##unication processes.

– ReGuires that ad#inistrative syste#s berevieed and #odi"ied.

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' >onsiing>onsiing +he planned eli#ination o" obs )/head count*. Layo""s

' HutsourcingHutsourcing Contracting outside the organiation to have or4

done that "or#erly as done by internal e#ployees.

' H""shoring )6lobal ourcing*H""shoring )6lobal ourcing* +he business practice o" sending obs to other

countries.

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' hy Change ?""orts Bail;hy Change ?""orts Bail;

Iot establishing a sense o" urgency. Iot creating a poer"ul coalition to guide the e""ort.

Lac4ing leaders ho have a vision. Lac4ing leaders ho co##unicate the vision. Iot re#oving obstacles to the ne vision. Iot syste#atically planning "or and creating short$ter#

/ins. >eclaring victory too soon. Iot anchoring changes in the corporate culture.

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Chaenge $"Chaenge $" Competing% Recruiting% andCompeting% Recruiting% andStaffing &obayStaffing &obay

' 6lobaliation6lobaliation appro!i#ately @0 to D< percent o" the J.. econo#y

today is a""ected by international co#petition. About 10 percent o" hat A#ericans produce every year,

dollar$ise, is sold abroad.

' 9#pact o" 6lobaliation9#pact o" 6lobaliation /Anything, anyti#e, anyhere #ar4ets =artnerships ith "oreign "ir#s Loer trade and tari"" barriers

– IAB+A, ?J, A=?C trade agree#ents

– +H and 6A++

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Chaenge '"Chaenge '" Setting and Achieving CorporateSetting and Achieving CorporateSocia Responsibiity and Sustainabiity &oasSocia Responsibiity and Sustainabiity &oas

' Corporate ocial Responsibility )CR*Corporate ocial Responsibility )CR*

+he responsibility o" the "ir# to act in the best interestso" the people and co##unities a""ected by its

activities. ustainability is closely related to corporate social

responsibility. ustainability re"ers to a co#pany-sability to produce a good or service ithout da#aging

the environ#ent or depleting a resource.

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Chaenge (" Advancing HRM with )echnoogy

' Collaborative so"tare that allos or4ers anyhereCollaborative so"tare that allos or4ers anyhere

anyti#e to inter"ace and share in"or#ation ith oneanyti#e to inter"ace and share in"or#ation ith one

another electronically5i4is, docu#ent$sharinganother electronically5i4is, docu#ent$sharing

plat"or#s such as 6oogle >ocs, online chat and instantplat"or#s such as 6oogle >ocs, online chat and instant

#essaging, eb and video con"erencing, and electronic#essaging, eb and video con"erencing, and electroniccalendar syste#s5have changed ho and here peoplecalendar syste#s5have changed ho and here people

and co#panies do business.and co#panies do business.

' Bro# +ouch Labor to Knoledge or4ersBro# +ouch Labor to Knoledge or4ers Knoledge or4ers $ or4ers hose responsibilities e!tend

beyond the physical e!ecution o" or4 to include planning,decision #a4ing, and proble#$solving.

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Chaenge ("Chaenge (" Advancing HRM with )echnoogyAdvancing HRM with )echnoogy)cont.*)cont.*

' Human Resources +nformation System :HR+S;Human Resources +nformation System :HR+S;


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' ene"its;ene"its;

Auto#ation o" routine tas4s, loer ad#inistrativecosts, increased productivity and response ti#es.

el"$service access to in"or#ation and training "or#anagers and e#ployees Hnline recruiting, screening, and pretesting o"

applicants +raining, trac4ing, and selecting e#ployees based on

their record o" s4ills and abilities Hrganiation$ide align#ent o" /cascading goals

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Chaenge *"Chaenge *" Containing Costs Whie RetainingContaining Costs Whie Retaining)op )aent and Ma+imi,ing -roductivity)op )aent and Ma+imi,ing -roductivity

' Hrganiations ta4e #any approaches toHrganiations ta4e #any approaches toloering labor$related costs, including.loering labor$related costs, including.

Care"ully #anaging e#ployees- bene"its

>onsiing

Burloughing ?#ployees

Hutsourcing

H""shoring ?#ployee Leasing

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Chaenge *"Chaenge *" Containing Costs Whie RetainingContaining Costs Whie Retaining)op )aent and Ma+imi,ing -roductivity)op )aent and Ma+imi,ing -roductivity )cont.*)cont.*

' (idden Costs o" a Layo"" (idden Costs o" a Layo""

everance and rehiring costs Accrued vacation and sic4 day payouts

=ension and bene"it payo""s =otential lasuits "ro# aggrieved or4ers Loss o" institutional #e#ory and trust in #anage#ent Lac4 o" sta""ers hen the econo#y rebounds

urvivors ho are ris4$averse, paranoid,and political

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' ene"its o" a Io$Layo"" =olicyene"its o" a Io$Layo"" =olicy

A "iercely loyal, #ore productive or4"orce (igher custo#er satis"action Readiness to snap bac4 ith the econo#y A recruiting edge or4ers ho aren-t a"raid to innovate, 4noing

their obs are sa"e.

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' ?#ployee Leasing?#ployee Leasing +he process o" dis#issing e#ployees ho are

then hired by a leasing co#pany )hich handlesall (R$related activities* and contracting ith that

co#pany to lease bac4 the e#ployees.

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Chaenge ."Chaenge ." Responding to the /emographicResponding to the /emographicand /iversity Chaenges of the Wor#forceand /iversity Chaenges of the Wor#force

' 9n a recent survey, al#ost hal" o" the organiations reported9n a recent survey, al#ost hal" o" the organiations reportedthat the biggest invest#ent challenge "acing the# over thethat the biggest invest#ent challenge "acing the# over thene!t ten years is obtaining hu#an capital and opti#iing theirne!t ten years is obtaining hu#an capital and opti#iing theirhu#an capital invest#ents. hy is this so Changes in thehu#an capital invest#ents. hy is this so Changes in thede#ographic #a4eup o" e#ployees, such as their ages,de#ographic #a4eup o" e#ployees, such as their ages,education levels, and ethnicities, is part o" the reason hy.education levels, and ethnicities, is part o" the reason hy.

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Chaenge ."Chaenge ." Responding to the /emographicResponding to the /emographicand /iversity Chaenges of the Wor#forceand /iversity Chaenges of the Wor#force

>e#ographic Changes>e#ographic Changes More diverse or4"orce

– ?thnic and cultural

challenges

Aging or4"orce More educated or4"orce

– Iecessity o" basic s4ills

training

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Managing >iversityManaging >iversity eing aare o"

characteristics co##on

to e#ployees, hile also#anaging e#ployees asindividuals


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Chaenge ."Chaenge ." Responding to the /emographicResponding to the /emographicand /iversity Chaenges of the Wor#forceand /iversity Chaenges of the Wor#force )cont.*)cont.*

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Chaenge ."Chaenge ." Responding to the /emographicResponding to the /emographicand /iversity Chaenges of the Wor#forceand /iversity Chaenges of the Wor#force )cont.*)cont.*

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Chaenge 0"Chaenge 0" Adapting to 1ducationa andAdapting to 1ducationa andCutura Shifts Affecting the Wor#forceCutura Shifts Affecting the Wor#force

' Hver the years, the educational attain#ent o" the J..Hver the years, the educational attain#ent o" the J..labor "orce has risen dra#atically. Bigure 1.< shos thatlabor "orce has risen dra#atically. Bigure 1.< shos thatit clearly pays to get a college education. An educationit clearly pays to get a college education. An educationalso helps a person stay out o" the ran4s o" thealso helps a person stay out o" the ran4s o" the

une#ployed.une#ployed.

' Bor e!a#ple, in 2010, the une#ploy#ent rate o" peopleBor e!a#ple, in 2010, the une#ploy#ent rate o" peopleages tenty to tenty$"our hit 1@ percent. ut those inages tenty to tenty$"our hit 1@ percent. ut those inthe sa#e age range ith college degrees "ared better.the sa#e age range ith college degrees "ared better.

+he une#ploy#ent rate "or the# as a little over F+he une#ploy#ent rate "or the# as a little over Fpercent.percent.

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Chaenge 0"Chaenge 0" Adapting to 1ducationa andAdapting to 1ducationa andCutura Shifts Affecting the Wor#forceCutura Shifts Affecting the Wor#force )cont.*)cont.*

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' Hther Bactors;Hther Bactors;

Cultural and ocietal Changes A""ecting the or4"orce

?#ployee Rights

=rivacy Concerns o" ?#ployees

Changing Attitudes toard or4

alancing or4 and Ba#ily

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)he -artnership of 2ine Managers)he -artnership of 2ine Managersand HR /epartmentsand HR /epartments

' uccess"ul organiations co#bine the e!perience o" line #anagers ith theuccess"ul organiations co#bine the e!perience o" line #anagers ith thee!pertise o" (R #anagers to develop and utilie the talents o" e#ployees toe!pertise o" (R #anagers to develop and utilie the talents o" e#ployees totheir greatest potential. Line #anagers are non$(R #anagers ho aretheir greatest potential. Line #anagers are non$(R #anagers ho areresponsible "or overseeing the or4 o" other e#ployees.responsible "or overseeing the or4 o" other e#ployees.

' ust as there are di""erent types o" line #anagers ho specialie in di""erentust as there are di""erent types o" line #anagers ho specialie in di""erent

"unctions5operations, accounting, #ar4eting, and so "orth5there are"unctions5operations, accounting, #ar4eting, and so "orth5there aredi""erent types o" hu#an resources #anagers ho specialie in di""erent (Rdi""erent types o" hu#an resources #anagers ho specialie in di""erent (R"unctions."unctions.

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)he -artnership of 2ine Managers)he -artnership of 2ine Managersand HR /epartments 3cont45and HR /epartments 3cont45

' Responsibilities o" (u#an Resources ManagersResponsibilities o" (u#an Resources Managers

1. trategic advice and counsel

2. ervice

3. =olicy "or#ulation and i#ple#entation

8. ?#ployee advocacy

' Co#petencies (u#an Resources Managers ReGuireCo#petencies (u#an Resources Managers ReGuire

usiness #astery (R #astery =ersonal credibility

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)he -artnership of 2ine Managers)he -artnership of 2ine Managersand HR /epartmentsand HR /epartments )cont.*)cont.*

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6ey )erms6ey )erms

corporate social responsibility

donsiing

e#ployee leasing

globaliationhu#an capital

hu#an resources in"or#ationsyste# )(R9*

hu#an resources #anage#ent

)(RM*4noledge or4ers

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#anaging diversity

o""shoring

outsourcing

proactive change

reactive change

reengineering

i! ig#a

total Guality #anage#ent

)+EM*

1. introduction of hrm

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