Chapter 1 Power Point Slides Ch01

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2009 Pearson Education South Asia Pte Ltd.All rights reserved.

Gary Dessler and Chwee Huat TanGary Dessler and Chwee Huat Tan

ChapterChapter 11

Human ResourceHuman Resource

Management:Management:An Asian PerspectiveAn Asian Perspective(Second Edition)

Introduction to

Human ResourceManagement


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2009 Pearson Education South Asia. All rights reserved. 12

After studying this chapter,After studying this chapter,you should be able to:you should be able to:

1. Explain what HRM is and how it relates tothe management process.

2. Discuss how managers can use HRconcepts.

3. Compare the HR responsibilities of line

and staff managers.

4. Explain the changing role of HRmanagers.


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After studying this chapter,After studying this chapter,you should be able to:you should be able to:

5. Discuss the changing environment of HRM.

6. Discuss HRM as a profession.

7. Explain how HR practices are influenced bycultural and religious values.

8. Know the plan of this book.


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The Managers Human ResourceManagement Jobs

Management process

The five basic functions of planning,organizing, staffing, leading, and

controlling.


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The Managers Human ResourceManagement Jobs

Human resource management (HRM)

The policies and practices involved incarrying out the people or human resourceaspects of a management position, includingrecruiting, training, appraising andrewarding.


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HR Aspects Of A Managers Job

Conducting job analyses (determining thenature of each employees job)

Planning manpower needs and recruiting jobcandidates

Selecting job candidates

Orienting and training new employees


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Managing wages and salaries(compensating employees)

Providing incentives and benefits

Appraising performance

Communicating (interviewing, counseling,disciplining)

Building employee commitment


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Understanding employment laws

Knowing employee health and safety issues

Handle grievances and employment relations


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Basic HR Concepts

Getting results

The bottom line of managing

HR creates value by engaging in

activities that produce the employee

behaviors the company needs to

achieve its strategic goals.


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Line and Staff Aspects of HRM

Authority

The right to make decisions, direct otherswork, and give orders.

Staff authority (Advisory) The authority gives right to the HR manager

to advise other managers or employees.

Line authority (Superior-Subordinate)

The authority of managers to direct people inhis or her own department.


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Line and Staff Aspects of HRM

Line manager (Line Authority)

A manager who is authorized to direct thework of subordinates and is responsible for

accomplishing the organizations tasks.

Staff manager (Staff Authority)

A manager who assists and advises linemanagers.


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Line Managers HRMResponsibilities

1. Place the right person on the right job

2. Orientate new employees

3. Train employees for jobs new to them

4. Improve the job performance of each person

5. Gain creative cooperation and developing

smooth working relationships


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Line Managers HRMResponsibilities

6. Interpret the companys policies and

procedures

7. Control costs8. Develop the abilities of each person

9. Maintain morale

10.Protect employees health and physicalcondition


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Carries out 3 distinct functions:-

1. Line function

2. Coordination function3. Staff function

Functions of the HR Manager


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A line function

The HR manager directs the activities ofthe people in his or her own departmentand in related service areas (like the plantcafeteria).



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A coordinative function

HR managers also coordinate personnelactivities, a duty often referred to asfunctional control.



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Staff (assist and advise) functions

Assisting and advising line managers is theheart of the HR managers job.



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Size of HR Department

Example of HR department in a small

company:


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Size of HR Department

Example of HR department in a large company:


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Duties of HR Specialists

Training Specialist

Plan, organize and direct training

Advise managers on training

Job Analyst

Collect information about jobs

Prepare job description


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Recruiter

Collect information about jobs

Interview and recommend suitablecandidates

EEO (Equal Employment Opportunity)

Coordinator

Investigate EEO grievances Examine HR practices for potential

violations


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Compensation Manager

Develop compensation plans

Handle employee benefits program

Employment relations specialist

Advise managers on ER issues

Negotiate with unions


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The Changing Environment OfHR Management

HR managers must be able to respond to

changes that are happening every day

Major changes or trends as follows:

Globalization

Technological advances

Changes in nature of work

Changes in workforce demographics


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Globalization

Tendency of companies to extend sales,ownership, or production to other

countries More competition more pressure to be

world class Lower costs and toincrease productivity of employees

E.g.

Toyota produces cars in China,Thailand and many other countries.


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Technological Advances

Use of internet and informationcommunication technology (ICT) to

increase competitiveness in business

Enabled businesses to outsource theirnon-core activities to other countrieswhere costs are lower

Causes changes in nature of work


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Changes in nature of work

Caused by technological advances as well

From manufacturing jobs to service jobs

Usage of non-traditional workers staffholding multiple jobs, or part-time staff


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Changes in environmentHR managers to

take on new responsibilities

HR functions more strategic

The Changing Role OfHR Management


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Strategic HRM

Formulating HR policies and introducingpractices that produce staff competencies

and behaviors that the company needs toachieve its strategic goals.



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Strategic HRM

HR managers today are more involved inpartnering with their top managers in

both designing and implementing theircompanies strategies

Top management wants to see, precisely,how the HR managers plans will make

the company more valuable.



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High Performance Work Systems (HPWS)

Integrated set of HRM policies andpractices that together produce superior

staff performance Need to focus on performance

No fixed rule of items that comprisesHPWS but should include:

Employment security



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No fixed rule of items that comprisesHPWS but should include (cont):

Selective hiring

Extensive training

Self managed teams and decentralized decision

making



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No fixed rule of items that comprisesHPWS but should include (cont):

Reduced status distinctions among managers andworkers

Information sharing among managers

Pay-for-performance rewards

Emphasis on high quality work



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Benefits of 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



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Benefits of HPWS (cont)

Produce more qualified applicants per position

More employees are hired based on validated

selection tests

Provide more hours of training for new employees

Higher percentages of employees receiving regular

performance appraisals.



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Measuring HRM Teams Performance

Employees expect HR teams to providemeasurable proof of the effectiveness of

their programs

Require quantitative measures

Metrics and HR Scorecard are used



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Metrics A set of quantitative performance measures that

HR managers use to assess their operations

E.g. of HR Metrics

Absence Rate

[(Number of days absent in month) (Averagenumber of employees during mo.) (number of

workdays)] 100



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Metrics E.g. of HR Metrics (cont)

Cost per Hire

(Advertising + Agency Fees + Employee Referrals+ Travel cost of applicants and staff + Relocationcosts + Recruiter pay and benefits) Number of

Hires



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Metrics E.g. of HR Metrics (cont)

Health Care Costs per Employee

Total cost of health care Total Employees

HR Expense Factor

HR expense Total operating expense

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.

Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13

20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,

Employees, and Financial Metrics, Human Resource Management39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce

Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.



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HR Scorecard

Measures the HR functions effectiveness and

efficiency in producing employee behaviorsneeded to achieve the companys strategic goals

Concise and simple measurement system



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HR Scorecard Use to measure:

HR activities (testing, training, compensation andsafety)

Employee behaviors resulting from such

activities

Organizational outcomes of those employee

behaviors (higher performance, and companyprofit)



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The New HR Manager

New Proficiencies

HR proficiency

Business proficiency

Leadership proficiency

Learning proficiency


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The New HR Manager


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HRM and Professionalism

HR Certification

HR is becoming more professionalized.

Professional institutes- Certification

- Upgrading skills and expertise

- Exchange views

- Contribute to community


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HRM and Professionalism

Professional Institutes

Training and education

Up-to-date knowledge and information

Maintain links with similar organizationsin other countries

Active in regional associations

International conferences

Authority to specify qualification ofmembers


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HR and Cultural Values

Confucianism

Harmonious relationship

Mutual obligations

Hierarchy

Social order

Sun Tzus Art of War

Explains theories of organization,planning, leadership and strategies

Importance of training, discipline andloyalty


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Han Fei Tzu: Reward and Punishment

A leader should: Find talented subordinates

Set up a system of rules

Explain these rules to subordinates

Appropriate time and place to deal with problems

Strictly administer reward and punishment


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Han Fei Tzu: Reward and Punishment

Role of a leader (summarized)


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Other approaches

Thailand: Buddhist approach

Malaysian cultural values

National Values: Indonesia: Pancasila

Malaysia: Rukunegara

Singapore: National Shared Values


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The Plan ofThis Book:Basic Themes

HR management is the responsibility of everymanagernot just those in the HR department.

HR managers must be ready to defend their plans

and contributions in measurable terms. An HR departments performance is measured

relative to achieving the companys strategic aims.

HR managers increasingly rely on IT to help support

the companys strategic aims. Virtually every HR-related decision managers make

has legal implications.

Globalization and diversity are important HR issuestoday.

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Chapter 1 Power Point Slides Ch01