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PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter 1 Introduction to Human Resource Management Part One | Introduction Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 12 WHERE WE ARE NOW Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 13 1. Explain what human resource management is and how it relates to the management process. 2. Give at least 8 examples of how all managers can use human resource management concepts and techniques. 3. Illustrate the human resources responsibilities of line and staff (HR) managers. 4. Provide a good example that illustrates HRs role in formulating and executing company strategy. 5. List and briefly describe important trends in human resource management. 6. Outline the plan of this book. LEARNING OUTCOMES 2008 Prentice Hall, Inc. All rights reserved. 14 Human Resource Management at Work What Is Human Resource Management (HRM)? The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 15 Human Resource Management at Work What Is Human Resource Management (HRM)? The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Organization People with formally assigned roles who work together to achieve the organizations goals. Manager The person responsible for accomplishing the organizations goals, and who does so by managing the efforts of the organizations people. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 16 The Management Process Planning Organizing Leading Staffing Controlling Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 17 Human Resource Management Processes Acquisition Training Appraisal CompensationLabor Relations Health and Safety Fairness Human Resource Management (HRM) Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 18 Personnel Aspects of a Managers Job Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries Providing incentives and benefits Appraising performance Communicating Training and developing managers Building employee commitment Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 19 Why is HRM Important to All Managers? Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your firm in court because of discriminatory actions Have your firm cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your departments effectiveness Commit any unfair labor practices Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 110 Basic HR Concepts The bottom line of managing: Getting results HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals. Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 111 Line and Staff Aspects of HRM Line Manager Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organizations tasks. Staff Manager Assists and advises line managers. Has functional authority to coordinate personnel activities and enforce organization policies. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 112 Line Managers HRM Responsibilities 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the firms policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees health and physical condition Human Resource Managers Duties Line Function directs the activities of people within his or her department and related service areas. While generally they have no authority outside the department, the are likely to exert implied authority has top managements “ear” Coordinative function HR managers coordinate personnel activities, referred to as functional authority He or she acts as the “right arm of the top executive” to ensure line managers are implementing the firms HR policies and practices Staff(assist & advise)Function Employee Advocacy Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 113 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 114 Human Resource Specialties Recruiter EEO coordinatorLabor relations specialist Training specialist Job analyst Compensation manager Human Resource Specialties Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 115 Trends Shaping Human Resource Management Globalization and Competition Trends Technological Trends Indebtedness (“Leverage”) and Deregulation Trends in the Nature of Work Workforce and Demographic Trends Economic Challenges and Trends Trends in HR Management Changing Environment of HR Management Globalization Trends Globalization companies go global to extend sales (expansion), seek new foreign products and services to sell, cut costs, or form new partnerships to name a few. Globalizations Implications More Globalization leads means more competition Competitive pressure drives firms to become “world class”= to lower costs, make employees more productive, and to do things better and less expensively Benefits & Threats Benefits: Lower prices and higher quality Threats: Working Harder and possibly less job sercurity Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 116 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 117 Trends in the Nature of Work High-Tech Jobs Service Jobs Changes in How We Work Knowledge Work and Human Capital Technological Trends Virtual online communities, virtual design environments and Internet-based distribution systems have enabled firms to become more competitive. HR faces the challenge of quickly applying technology to the task of improving its own operations. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 118 Trends in the Nature of Work High-Tech Jobs More jobs have gone high tech, requiring workers to have more education and skills. Even traditional blue collar jobs require more math, reading, writing and computer skills than ever before Service Jobs Most newly created jobs are and will continue to be in the service sector. Knowledge Work & Human Capital - refers to the knowledge, education, training, skills, and expertise of a firms workers The HR function must employ more sophisticated and creative means to identify, attract, select, train and motivate the required work force. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 119 Trends in the Nature of Work Implications for HR Because it is the HR functions that traditionally recruits, selects, trains, and compensate employees, changes like these make employers highly reliant on effective HRM Example: The two banks installing similar systems with widely different results. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 120 Workforce Demographic Trends In the U.S The labor force is getting older and more multi-ethnic. The aging labor force presents significant changes in terms of potential labor shortages, and many firms are instituting new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees. Growing numbers of workers with eldercare responsibilities, and high rates of immigration also present challenges and opportunities for HR managers. In China the population is also aging and there are less people being born. Some fear a labor shortage. Also, demands by migrant workers and others for changes in the Hukou system may add pressure to urban workforces Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 121 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 122 TABLE 11 Demographic Groups as a Percent of the Workforce, 19862016 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 123 FIGURE 14 Trends Shaping Human Resource Management Information not in book Changing Role of HRM Strategic Human Resource Management- HRs central task is always to provide a set of services that make sense in terms of company strategy. Trends of globalization, technology, nature of work and workforce demographics have implications for how companies now organize, manage, and rely on their HR operations. HR managers must partner with top managers to design and implement company strategies. The focus on operational improvements means that all managers must be more adept at expressing their departmental plans and accomplishments in measurable terms. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 124 Changing Role of HRM Strategic Planning: a strategic plan is the companys plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive edge. The essence of strategic planning is to ask “Where are we now as a business, where do we want to be, and how should we get there?” Strategic HRM means formulating and executing human resource polices and practices that will produce employee competencies and behaviors the company needs to achieve its strategic aims. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 125 Creating High Performance Work Systems (HPWS) HR can impact organizational performance in 3 ways: through the use of technology, through effective HR practices, and by instituting HPWS to maximize the competencies and abilities of employees throughout the organization Managing with Technology Internet and computer based systems are improving productivity. Additionally, many HR tasks (payroll, reference checks, wellness programs, etc.) are being outsourced to specialist service providers. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 126 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 127 TABLE 11 Some Technological Applications to Support HR Technology How Used by HR Application service providers (ASPs) and technology outsourcing ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers Web portals Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively Internet- and network- monitoring software Used to track employees Internet and e-mail activities or to monitor their performance Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping Electronic bill presentment and payment Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers Data warehouses and computerized analytical programs Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees skills with the firms projected strategic needs Creating High Performance Work Systems (HPWS) Effective HR Practices Pre-employment personality testing and increased training are just two HR practices that can produce employees who perform better. High Performance Work Systems integrated set of human resource management polices & practices that together produce superior performance. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 128 2008 Prentice Hall, Inc. All rights reserved. 129 High-Performance Work System Practices Employment security Selective hiring Extensive training Self-managed teams/decentralized decision making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work 2008 Prentice Hall, Inc. All rights reserved. 130 Benefits of a High-Performance Work System (HPWS) Generate more job applicants Screen candidates more effectively Provide more and better training Link pay more explicitly to performance Provide a safer work environment Produce more qualified applicants per position Hiring based on validated selection tests Provide more hours of training for new employees Conduct more performance appraisals Measuring The HRMs Teams Performance Strategic HRM Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness, and for the expected efficiency and effectiveness of new or proposed HR programs. Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firms strategic aims. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 131 Measuring The HRMs Teams Performance HR managers need a set of quantitative performance measures (metrics) they can use to assess their operations. These metrics allow managers to measure their HR units efficiency. See page 16 for some examples of HRM metrics Managing with the HR Scorecard Process Example: For Signicast100% applicants tested with new selection test improved average employee performance on automated machines higher plant productivity Signicast achieving its strategic profitability goals Pg.17 Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 132 Measuring The HRM Teams Performance Managing With the HR Scorecard The HR Scorecard is a concise measurement system, showing quantitative standards or “metrics” used to measure HR activities, employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors. The scorecard highlights the causal link between HR activities, emergent employee behaviors, and the resulting firm- wide strategic outcomes and performance. Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 133 2008 Prentice Hall, Inc. All rights reserved. 134 The Human Resource Managers Proficiencies New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 135 FIGURE 16 pg.18 Effects CFOs Believe Human Capital Has on Business Outcomes Copyright 2011 Pearson Education, Inc. publishing as Prentice Hall 136 HR Certification HR is becoming more professionalized. Society for Human Resource Management (SHRM) SHRMs Human Resource Certification Institute (HRCI) v SPHR (Senior Professional in HR) certificate v GPHR (Global Professional in HR) certificate v PHR (Professional in HR) certificate 2008 Prentice Hall, Inc. All rights reserved. 137 The Human Resource Managers Proficiencies (contd) Managing within the Law Equal employment laws Occupational safe

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