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HUMAN RESOURCE

MANAGEMENT:

AN OVERVIEW

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Chapter Objectives

Explain human capital management.

Define human resource management.

Identify the human resource management

functions.

Identify the external environmental factors

that affect human resource management.

Explain who performs the human resource

management tasks.

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Chapter Objectives (Continued)

Explain the need for human resources to be a strategic partner.

Describe the various human resource classifications including executives, generalists, and specialists.

Describe the changes that occur in the human resource function as a firm grows larger and more complex and the evolving HR organization.

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Human Resource Management

Utilization of individuals to achieve

organizational objectives

All managers at every level must

concern themselves with human

resource management.

Five functions

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1

Human

Resource

Managemen

t

Safety and

Health

The Human Resource Management

Functions

6

Staffing

Job Analysis

Human Resource Planning

(HRP)

Recruitment

Selection

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Staffing (Continued)

Staffing - Process through which an organization ensures that it always has proper number of employees with appropriate skills in right jobs at right time to achieve organization’s objectives

Job analysis - Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization

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Staffing (Continued)

Human resource planning - Process of

systematically reviewing human resource

requirements to ensure that required

numbers of employees, with required

skills, are available when needed.

Recruitment - Process of attracting

qualified individuals and encouraging

them to apply for work with organization

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Staffing (Continued)

Selection - Process through which

organization chooses, from a group of

applicants, those individuals best suited

both for open positions and for the

company

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Human Resource Development

Training

Development

Career Planning

Career Development

Organizational Development

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Human Resource

Development (Continued)

Training - Designed to provide learners with the knowledge and skills needed for their present jobs.

Development - Involves learning that goes beyond today's job; it has a more long-term focus

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Human Resource

Development (Continued)

Career planning - An ongoing process

whereby individual sets career goals and

identifies means to achieve them

Career development - Formal approach

used by organization to ensure that people

with proper qualifications and experiences

are available when needed

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Human Resource

Development (Continued)

Organization development – Organization

wide application of behavioral science to

planned development and support of

strategies, structures and processes for

improving firm’s effectiveness

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Compensation and Benefits

Compensation -

All rewards that

individuals receive

a a result of their

employment

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Compensation & Benefits

Pay - Money that a person receives for performing a job

Benefits - Additional financial rewards, other than base pay such as sick leave, vacations, holidays and medical insurance

Nonfinancial Rewards

The Job

Pleasant working environment

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Safety and Health

Employees who

work in a safe

environment and

enjoy good health

are more likely to

be productive and

yield long-term

benefits to the

organization.

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Safety and Health

Safety - Involves protecting employees

from injuries caused by work-related

accidents

Health - Refers to the employees' freedom

from illness and their general physical and

mental well being

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Employee and Labor Relations

Private-sector union membership

has fallen from 39 percent in 1958

to 9 percent today.

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Employee and Labor Relations

Business required by

law to recognize

union and bargain

with it in good faith if

firm’s employees

want union

representation.

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Human Resource Research

Human resource

research is not a

separate function.

It pervades all HR

functional areas.

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Interrelationships of HRM

Functions

All HRM functions

are interrelated.

Each function

affects other areas.

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The Dynamic Human

Resource

Management

Environment

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Environment of Human Resource Management

EXTERNAL ENVIRONMENT

INTERNAL ENVIRONMENT

1

Human

Resource

Managemen

t

Other

Functiona

l Areas

OperationsMarketing

Finance

Leg

al C

on

sid

era

tio

ns

Th

e E

co

no

my

Tech

no

log

y

Society

Sh

are

ho

lders

Unions

Customers Competition Labor Force

Safety and

Health

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Labor Force

Pool of individuals

external to firm

from which

organization

obtains its workers

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Legal Considerations

Federal, state

and local

legislation

Court decisions

Presidential

executive orders

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Society

Social responsibility – Implied, enforced

or felt obligation of managers to serve or

protect interests of groups other than

themselves

Ethics – Discipline dealing with what is

good and bad, or right and wrong, or with

moral duty and obligation

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Ethics and HR

Management

Discipline dealing

with what is:

good & bad right & wrong

moral duty & obligation

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Unions

Group of employees

who have joined

together for purpose

of dealing

collectively with their

employer

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Shareholders

Owners of a corporation

Because they have invested money in a firm, they may at times challenge programs considered by management to be beneficial to the organization

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Customers

Because sales critical

to firm’s survival,

management must

ensure employment

practices do not

antagonize the

customers they serve

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Competition

In order to

succeed, grow and

prosper, a firm

must be able to

maintain a supply

of competent

employees.

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Technology

As technology changes:

Certain skills no longer required

New skills needed

Necessitates some retraining of current

workforce

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The Economy

In general, when

economy is booming,

it is often more difficult

to recruit qualified

workers.

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HR’s Changing Role:

Who Performs Human

Resource Management Tasks?

Human Resource Managers

Shared Service Centers

Outsourcing Firms

Line Managers

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Human Resource Manager

Acts in advisory or staff

capacity

Works with other managers to

help them deal with human

resource matters

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Shared Service Centers

(SSCS)

Takes routine,

transaction-based

activities that are

dispersed and

consolidates them in

one location.

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Shared Service Centers (SSCS)

Performing HR Tasks

Fewer HR Personnel

Needed

HR Managers Assume

a More Strategic RoleImproves Quality

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Outsourcing Firms

Transfers

responsibility to

an external

provider

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Outsourcing

Reduces:

• Cost• Transaction Time

Improves Quality

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Line Managers Performing

HR Tasks

Involved with human

resources by nature of their

jobs

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HR as a Strategic Partner

HR executives must

understand complex

organizational design.

Must be able to

determine capabilities

of company's

workforce, today and

in the future

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Human Resource

Designations

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Human Resource Executives,

Generalists, and Specialists

Vice President,

Human

Resources

Vice President,

Industrial

Relations

Manager,

Compensation

and Benefits

Manager,

Staffing

Manager,

Training and

Development

Benefits Analyst Executive:

Generalist:

Specialist:

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Characteristics of an HR

Executive

Performs one or more HR functions

A top-level manager

Reports directly to the corporation's CEO or

head of major division

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Characteristics of an HR

Generalist

Often an executive

Performs tasks in various HR related

areas

Involved in several, or all, of the five

HRM functions

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Characteristics of an HR

Specialist

May be an HR executive, manager, or

non-manager

Typically concerned with only one of the

five functional areas

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The Human Resource

Function In

Organizations Of

Various Sizes

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HR in Small Businesses

Seldom have a formal HR unit

Focuses on hiring & retaining capable

employees

Some aspects of HR function may be

more significant in smaller firms than in

larger ones.

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The Human Resource Function in a

Small Business

Manager/Owner

Sales Operations Finance

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HR in a Medium-sized Firm

Little specialization

HR manager is essentially the

entire department.

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The Human Resource Function in a

Medium-Sized Business

Sales

Manager

President

Operations

Manager

Finance

Manager

Human

Resource

Manager

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Traditional Human Resource

Functions in a Large Firm

Separate sections are often created

Placed under an HR Manager

Each HR function may have a supervisor

& staff

HR Manager works closely with top

management in formulating policy

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The Human Resource Function in a

Large Firm

President

and CEO

Vice President,

Marketing

Vice President,

Operations

Vice President,

Finance

Vice President,

Human

Resources

Manager,

Training and

Development

Manager,

Compensation

and Benefits

Manager,

Staffing

Manager,

Safety and

Health

Manager,

Labor

Relations

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A New and Evolving HR Organization for

Large-Sized Firms

Outsource

Shared Service Centers

Evolve to make HR more strategic

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An Evolving Human Resource

Organization Example

President

and CEO

Vice President,

Operations

Vice President,

Human

Resources

Vice President,

Other Major

Functions

Director of

Safety and

Health

Executive

Development

Manager,

Training

Manager,

Other HRM

Functions

Employee

Benefits

Shared

Service

Center

Outsourced

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