fundamentals of hrm

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Chapter 2Fundamentals of HRM

Fundamentals of Human Resource ManagementEighth Edition

DeCenzo and Robbins

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Management Essentials

• Management involves setting goals and allocating scarce resources to achieve them.

• Management is the process of efficiently achieving the objectives of the organization with and through people.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Management Essentials

• Primary Functions of Management– Planning – establishing goals– Organizing – determining what activities

need to be done– Leading – assuring the right people are on

the job and motivated– Controlling – monitoring activities to be

sure goals are met

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

• The role of human resource managers has changed. HRM jobs today require a new level of sophistication. – Federal and state employment legislation has

placed new requirements on employers. – Jobs have become more technical and skilled. – Traditional job boundaries have become blurred

with the advent of such things as project teams and telecommuting.

– Global competition has increased demands for productivity.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

• The Strategic Nature – HRM must be– a strategic business partner and represent

employees. – forward-thinking, support the business

strategy, and assist the organization in maintaining competitive advantage.

– concerned with the total cost of its function and for determining value added to the organization.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

• HRM is the part of the organization concerned with the “people” dimension.

• HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

• HRM Certification – Colleges and universities offer HR

programs. – The Society for Human Resource

Management and Human Resource Certification Institute offer professional certification.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Why is HRM Important to an Organization?

Four basic functions:

• Staffing

• Training and Development

• Motivation

• Maintenance

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

• Strategic Environment• Governmental Legislation• Labor Unions• Management Thought

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How External Influences Affect HRM

• HRM Strategic Environment includes:– Globalization– Technology– Work force diversity– Changing skill requirements– Continuous improvement– Work process engineering– Decentralized work sites– Teams– Employee involvement– Ethics

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Staffing Function Activities

• Employment planning– ensures that staffing will contribute to the

organization’s mission and strategy

• Job analysis– determining the specific skills, knowledge

and abilities needed to be successful in a particular job

– defining the essential functions of the job

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Staffing Function Activities

• Recruitment– the process of attracting a pool of qualified

applicants that is representative of all groups in the labor market

• Selection – the process of assessing who will be

successful on the job, and– the communication of information to assist

job candidates in their decision to accept an offer

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Goals of the Training and Development Function

• Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities

• Orientation and socialization help employees to adapt

• Four phases of training and development– Employee training– Employee development– Organization development– Career development

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

• Activities in HRM concerned with helping employees exert at high energy levels.

• Implications are:– Individual– Managerial– Organizational

• Function of two factors:– Ability– Willingness

• Respect

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

• Managing motivation includes:– Job design– Setting performance standards– Establishing effective compensation and

benefits programs– Understanding motivational theories

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Motivation Function

• Classic Motivation Theories– Hierarchy of Needs –Maslow– Theory X – Theory Y –McGregor– Motivation – Hygiene – Herzberg– Achievement, Affiliation, and Power Motives

– McClelland– Equity Theory – Adams– Expectancy Theory - Vroom

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

How Important is the Maintenance Function

• Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization.– Health– Safety– Communications– Employee assistance programs

• Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Four Functions:– Employment– Training and development– Compensation/benefits– Employee relations

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Employment - Employment specialists:– coordinate the staffing function– advertising vacancies– perform initial screening– interview– make job offers– do paperwork related to hiring

• Training and Development – – help employees to maximize their potential– serve as internal change agents to the

organization– provide counseling and career development

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Compensation and Benefits – – establish objective and equitable pay

systems– design cost-effective benefits packages

that help attract and retain high-quality employees.

– help employees to effectively utilize their benefits, such as by providing information on retirement planning.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Employee Relations – involves:– communications– fair application of policies and procedures– data documentation – coordination of activities and services that

enhance employee commitment and loyalty– Employee relations should not be confused

with labor relations, which refers to HRM in a unionized environment.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Purpose and Elements of HRM Communications– Keep employees informed of what is

happening and knowledgeable of policies and procedures.

– Convey that the organization values employees.

– Build trust and openness, and reinforce company goals.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Translating HRM Functions into Practice

• Effective Communication programs involve:– Top Management Commitment– Effective Upward Communication– Determining What to Communicate– Allowing for Feedback– Information Sources

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Does HRM Really Matter?

• Research has shown that a fully functioning HR department does make a difference.

• Organizations that spend money to have quality HR programs perform better than those who don’t.

• Practices that are part of superior HR services include:– rewarding productive work– creating a flexible work-friendly environment– properly recruiting and retaining quality workers– effective communications

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HRM in an Entrepreneurial Enterprise

• General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.

• Benefits include– freedom from many government regulations– an absence of bureaucracy– an opportunity to share in the success of

the business

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HRM in a Global Village

• HRM functions are more complex when employees are located around the world.

• Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.

• HRM also involves considering the needs of employees’ families when they are sent overseas.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

HR and Corporate Ethics

• HRM must:– Make sure employees know about

corporate ethics policies– Train employees and supervisors on how

to act ethically