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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

Chapter Chapter 11

Human Resource Human Resource Management:Management:An Asian An Asian PerspectivePerspective(Second Edition)

Introduction to Human Resource Management

© 2009 Pearson Education South Asia. All rights reserved. 1–2

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 to the management process.

2. Discuss how managers can use HR concepts.

3. Compare the HR responsibilities of line and staff managers.

4. Explain the changing role of HR managers.


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 by cultural and religious values.

8. Know the plan of this book.


The Manager’s Human ResourceManagement Jobs

Management process– The five basic functions of planning,

organizing, staffing, leading, and controlling.


The Manager’s Human ResourceManagement Jobs

Human resource management (HRM)– The policies and practices involved in

carrying out the “people” or human resource aspects of a management position, including recruiting, training, appraising and rewarding.


HR Aspects Of A Manager’s Job

Conducting job analyses (determining the nature of each employee’s job)

Planning manpower needs and recruiting job candidates

Selecting job candidates Orienting and training new employees



Managing wages and salaries (compensating employees)

Providing incentives and benefits Appraising performance Communicating (interviewing, counseling,

disciplining) Building employee commitment



Understanding employment laws Knowing employee health and safety issues Handle grievances and employment relations


Personnel Mistakes

Hire the wrong person for the job Experience high turnover Your people not doing their best Waste time with useless interviews Have your company sued for discriminatory

actions


Personnel Mistakes

Have your company fined for unsafe practices

Some employees think their salaries are unfair and inequitable relative to others in the organization

Allow a lack of training to undermine your department’s effectiveness

Commit any unfair employment practices


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.


Line and Staff Aspects of HRM

Authority– The right to make decisions, direct

others’ work, 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 in his or her own department.


Line and Staff Aspects of HRM

Line manager (Line Authority)– A manager who is authorized to direct

the work of subordinates and is responsible for accomplishing the organization’s tasks.

Staff manager (Staff Authority)– A manager who assists and advises line

managers.


Line Managers’ HRM Responsibilities

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


Line Managers’ HRM Responsibilities

6. Interpret the company’s policies and procedures

7. Control costs

8. Develop the abilities of each person

9. Maintain morale

10.Protect employees’ health and physical condition


Carries out 3 distinct functions:-1. Line function2. Coordination function3. Staff function

Functions of the HR Manager


A line function– The HR manager directs the activities of the

people in his or her own department and in related service areas (like the plant cafeteria).



A coordinative function– HR managers also coordinate

personnel activities, a duty often referred to as functional control.



Staff (assist and advise) functions– Assisting and advising line managers

is the heart of the HR manager’s job.



Size of HR Department

Depends on company size– Small Company:

Only a few personnel

– Large Company: Full range of HR specialist for each different

function



Example of HR department in a small company:



Example of HR department in a large company:


Duties of HR Specialists

Training Specialist– Plan, organize and direct training– Advise managers on training

Job Analyst– Collect information about jobs– Prepare job description



Recruiter– Collect information about jobs– Interview and recommend suitable

candidates EEO (Equal Employment Opportunity)

Coordinator– Investigate EEO grievances– Examine HR practices for potential

violations



Compensation Manager– Develop compensation plans– Handle employee benefits program

Employment relations specialist– Advise managers on ER issues– Negotiate with unions


Cooperative Line and Staff HR Management

Differentiating HR duties to be carried out by line managers and HR managers:

– No standard rule for all organizations


Cooperative Line and Staff HR Management

Some common practices:


The Changing Environment Of HR 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



Globalization– Tendency of companies to extend

sales, ownership, or production to other countries

– More competition more pressure to be “world class” Lower costs and to increase productivity of employees

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



Technological Advances– Use of internet and information

communication technology (ICT) to increase competitiveness in business

– Enabled businesses to outsource their non-core activities to other countries where costs are lower

– Causes changes in nature of work



Changes in nature of work– Caused by technological advances

as well– From manufacturing jobs to service

jobs– Usage of “non-traditional” workers

staff holding multiple jobs, or part-time staff



Changes in workforce demographics– Diversified workforce staff employed

are of different race, religion, nationality, gender, age and culture

– Challenge for HR managers– E.g. Workers from Bangladesh, China,

India, Indonesia, Pakistan and Thailand in Singapore’s construction sector


Changes in environment HR managers to take on new responsibilities

HR functions more strategic

The Changing Role Of HR Management


Strategic Planning– The company’s long-term plan for

how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

– 3 questions in strategic planning• Current business position• Future business position expected to be• How to get to expected future business

position



Strategic HRM– Formulating HR policies and

introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.



Strategic HRM– HR managers today are more involved

in partnering with their top managers in both designing and implementing their companies’ strategies

– Top management wants to see, precisely, how the HR manager’s plans will make the company more valuable.



Outsourcing HR Activities– Computer-based systems easy to

outsource HR activities by providing access to service providers to the company’s HR information database

– E.g. Payroll, Benefits, Wellness Programs and Employee Training



High Performance Work Systems (HPWS)– Integrated set of HRM policies and

practices that together produce superior staff performance

– Need to focus on performance– No fixed rule of items that comprises

HPWS but should include:• Employment security



High Performance Work Systems (HPWS)– No fixed rule of items that comprises

HPWS but should include (cont):• Selective hiring

• Extensive training

• Self managed teams and decentralized decision making



High Performance Work Systems (HPWS)– No fixed rule of items that comprises

HPWS but should include (cont):• Reduced status distinctions among managers

and workers• Information sharing among managers• Pay-for-performance rewards• Emphasis on high quality work



High Performance Work Systems (HPWS)– 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



High Performance Work Systems (HPWS)– 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.



Measuring HRM Team’s Performance– Employees expect HR teams to

provide measurable proof of the effectiveness of their programs

– Require quantitative measures– Metrics and HR Scorecard are used



Measuring HRM Team’s Performance– 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) ÷ (Average number of employees during mo.) × (number of workdays)] × 100




• E.g. of HR Metrics (cont)

– Cost per Hire(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires




• 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. 29–35; 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 Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.



Measuring HRM Team’s Performance– HR Scorecard

• Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals

• Concise and simple measurement system



Measuring HRM Team’s Performance– HR Scorecard

• Use to measure:– HR activities (testing, training, compensation

and safety)– Employee behaviors resulting from such

activities– Organizational outcomes of those employee

behaviors (higher performance, and company profit)



The New HR Manager

New Proficiencies– HR proficiency– Business proficiency– Leadership proficiency– Learning proficiency


The New HR Manager


HRM and Professionalism

HR Certification

– HR is becoming more professionalized.

– Professional institutes- Certification

- Upgrading skills and expertise

- Exchange views

- Contribute to community



Is HR a profession?

– To look at criteria for a Profession



Professional Institutes– Training and education– Up-to-date knowledge and

information– Maintain links with similar

organizations in other countries– Active in regional associations– International conferences– Authority to specify qualification of

members


HR and Cultural Values

Confucianism– Harmonious relationship– Mutual obligations– Hierarchy– Social order

Sun Tzu’s Art of War– Explains theories of organization, planning,

leadership and strategies– Importance of training, discipline and

loyalty



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



Han Fei Tzu: Reward and Punishment– Role of a leader (summarized)



Other approaches– Thailand: Buddhist approach– Malaysian cultural values– National Values:

• Indonesia: Pancasila• Malaysia: Rukunegara• Singapore: National Shared Values




The Plan of This Book: Basic Themes

HR management is the responsibility of every manager—not just those in the HR department.

HR managers must be ready to defend their plans and contributions in measurable terms.

An HR department’s performance is measured relative to achieving the company’s strategic aims.

HR managers increasingly rely on IT to help support the company’s strategic aims.

Virtually every HR-related decision managers make has legal implications.

Globalization and diversity are important HR issues today.


Strategy and the Basic HR Process

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