1-1

HRM Defined

Concerns the personnel policies, managerial practices and system that influence the workforce by influencing employees’:

-behavior -attitudes -performance

HRM plays a major role in:•Clarifying an organization’s human resource problems•Developing solutions for them

Two groups normally perform HRM activities:•HR manager-specialists•Operating managers

HRM strategies must reflect the organization’s strategy regarding people, profit, and effectiveness

An investment in people effects organizational effectiveness more than money, materials, or equipment

Management is responsible for maintaining order; leadership is responsible for producing change.

1-2

HRM and Organizational Effectiveness

For a firm to survive and prosper, reasonable goals must be achieved in:PerformanceLegal complianceEmployee satisfactionAbsenteeismTurnoverTraining effectiveness and ROIGrievance ratesAccident rates

1-3

Objectives of the HRM Function

Help the organization reach goals

Employ workforce skills/abilities efficiently

Increase satisfaction, self-actualization, quality of work life

Communicate HRM policies to all employees

Maintain ethical policies, socially responsible behavior

Manage change to the mutual advantage of individuals, groups, the enterprise, and the public

HRM Contributions to Effectiveness

Provide trained, motivated employees

1-4

Impact of Human Resource Management

1-5

HRM Activities

Five major domains of HRM

1. Organizational design: the interaction of people, technology and tasks performed in the context of the mission, goals, and strategic plan of the organization.

2. Staffing: recruitment, orientation, selection, promotion and termination.

3. Performance Management & Appraisal: assessments of individual, unit or other aggregated levels of performance to measure, and improve work performance.

4. Employee Training & Organizational Development: establishing, fostering, and maintaining employee skills based on organizational and employee needs.

5. Reward Systems, Benefits, & Compliance: any type of reward or benefits available to employees

1-5

1-6

HR Competencies

HR ProfessionalHR Professional

Business Competence

Professional & Technical Knowledge

IntegrationCompetence

Ability to Manage and/or Lead Change

1-7

A Brief History of HRM

Masons, carpenters, leather workers, other craftspeople

EnglishGuilds

Changing work conditions and social patterns

IndustrialRevolution

Scientific management, welfare work, industrial psychologyWorld Wars

1-8

Strategic Importance of HRM

Traditional HRM = focus on specialists

Strategic HRM = all managers are responsible

Responsibility for human resources

Specialists Line managers

Objective Better performance Improved understanding and use of human assets

Role of HRM Respond to needs Lead, inspire, understand

Time focus Short-term results Short, intermediate, long term

Control Rules, policies, position power

Flexible, based on human resources

Culture Bureaucratic, top-down, centralization

Open, participative, empowerment

Major emphasis Following the rules Developing people

Accountability Cost centers Investment in human assets

1-9

Skills of HRM Professionals

1-10

Median Salaries for HRM Positions

1-11

Organization of an HR Department

HR specialists are usually located at the headquarters of an organization

Chief HR Executive

Chief HR Executive

Typically reports to the top manager

Typically reports to the top manager

Small/Medium Firms

Small/Medium Firms

NonprofitsNonprofits HRM is typically a unit in the

business office

HRM is typically a unit in the business office

HRM and another function may be in a single department

HRM and another function may be in a single department

1-12

HRM’s Place in Management

To educate others about the HR implications of decisions, HR executives must understand

Investments Advertising

MarketingProduction

IT

R&D

1-13

Changes in the Professional World

• Work in small groups and identify five changes in the professional world in the past 5 to 10 years.

• Identify one positive and one negative implication of each change from an HR perspective.

• Record your changes and select a speaker from your group to present your findings to the large group.