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Course Outline References
¨ Dessler, Gary. Human Resource Management, 10th ed. Pearson Prentice Hall: 2005
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Outline of Introduction
I. Introduction
II. What is Management?
III. What is Human Capital and Human Resource Management?
IV. How does HRM relate to the functions of management?
V. What is the HRM process?
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I. The Manager’s Human Resource Management Jobs
Why is HR Management Important to All Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An Example
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Outline of Chapter 1
II. Strategic Planning and Strategic Trends
III. HR’s Strategic RoleHR’s Evolving Role
Strategic Human Resource Management
HR’s Role as a Strategic Partner
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Management
Management the process of coordinating work activities so
that they are completed efficiently and effectively with and through other people
elements of definitionProcess - represents ongoing functions or primary
activities engaged in by managersCoordinating - distinguishes a managerial position
from a non-managerial one
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Organization and Manager
An organization consists of people with formally assigned roles who work together to achieve the organization’s goals.
Manager is a person responsible for accomplishing the organization’s goals and who does so by managing the efforts of the organization’s people.
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Management
Management Strives For:Low resource waste (high efficiency)
High goal attainment (high effectiveness)
ResourceUsage
Efficiency (Means)
GoalAttainment
Effectiveness (Ends)
Low Waste High Attainment
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The Management Process
Planning Organizing Staffing Leading Controlling
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Management Process
Planning Establishing Goals and standards Developing Rules and procedures Developing Plans and forecasting.
Organizing Giving each subordinate a specific Tasks Establishing Departments Delegating authority to subordinates Establishing channels of Authority and
communication Coordinating the work of subordinates
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Management Process
Staffing Determining what type of people should be
Hiring Recruiting employees Selecting employees Setting Performance standards Compensating employees Evaluating performance Counseling employees Training and developing employees
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Management Process
Leading Getting the job done Maintaining Morale Motivating subordinates
Controlling Setting standards such as quotas,quality standards Comparing actual performance to standards Taking Corrective action
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Management Functions
Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities
Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are made
Staffing - HRM Leading - directing and motivating all involved parties and
dealing with employee behavior issues Controlling - monitoring activities to ensure that they are
going as planned
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Human Resource Management
Planning - defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities
Organizing - determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, , where decisions are made and who is decision taker
Staffing - HRM Leading - directing and motivating all involved parties and
dealing with employee behavior issues Controlling - monitoring activities to ensure that they are
going as planned
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HRM Function
Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.
Def
initi
on
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HRM People Functions Include:
Conducting Job analyses
Planning Labor needs
Recruiting candidates
Select candidates Orient and training
new employees Wages and salaries Incentives and
benefits
Appraising Performance Communicating Train and develop
managers Employee commitment Equal opportunity Health and safety Grievances/labor
relations Knowing employment
law
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HRM is Important to all Managers.Don’t Let These Happen to You!
The wrong person High turnover Poor results Useless interviews Company taken to Court for discriminatory
actions Safety citations Salaries appear unfair Poor training Unfair labor practices
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HRM – It’s All About Results
“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes
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Line and Staff Aspects of HRM
Authority Right to Make decisions Directing work Giving orders
Line Managers Accomplishing goals by issuing orders
Staff Managers Assisting and advising line managers
Defini
tion
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Line Manager’s HRM Jobs
The right person Orientation Training Performance Creativity Working
relationships
Policies and procedures
Labor costs Development Morale Protecting
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Line & Staff HRExample
Exactly which HR management activities are carried out by line managers & by staff managers?
There is no single division of responsibility applied to all organizations
Example in the recruiting & hiring of employees: Usually the line manager specifies the qualifications needed
to fill specific positions. Then the HR manager develops sources of qualified
candidates, conduct initial screening (tests) and send those filtered to line manager
Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants
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Changing Environment of HR Management
Globalization Technological Advances Exporting Jobs The Nature of Work Workforce Diversity
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Globalization
0
10
20
30
40
50
60
70
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1920 1950 1970 2000
% fortune 500 with aglobal presence
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Globalization
Globalization is the tendency of firms to extend their sales,ownership and manufacturing to new markets abroad.
Eg : Toyota manufactures camry in kentucky and Dell produces PC s in china
Companies expand abroad for several reasons – sales expansion,seek new foreign products and services to sell.
Infosys,tcs,tata steel,mittal steel,ge,american exp,dell ,google ,indian firms affected by recession.
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Companies Expansion - Sales Expansion
Google expanded its china presence by initiating its Google china instant messaging service.
Walmart is opening stores in south America.
Dell is aggressively building plants in china and selling there knowing the future market
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New foreign products and services
Apparel manufacturers design and cut fabrics in Miami and then have actual products assembled in Central America where the labour cost is low.
Prospects of finding new partners abroad – IBM sold its PC division to Chinese firm Lenovo
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Globalization
More globalization means more competition and more competition means more pressure to be world class - to lower costs to make employees more productive and to do things better and less expensively.
The bottom line is that the growing integration of the world class economy into a single huge market place is increasing the intensity of competition in a wide range of manufacturing and service industries.
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Advantages and Disadvantages of
Globalization For consumers it is having more variety of
products at a cheaper prices For business owners it is having many new
customers and more competitors. For employees it poses a threat of job
offshoring. US Imports and exports : 47 billion $ 1960 * 562billion $ -1980 4.3 trillion $ 2008
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Technological Advances and the Nature of Work
Technology mandates and enables companies to be more competitive
High Tech Jobs - Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Eg : zaara ,lockheed,indian railways
Carrier
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Service Jobs Two thirds of US force is employed in
producing and delivering services not products.
Reason for service oriented industry – more manufacturing jobs are shifting to low wage countries.
Service jobs have also shifted to countries like India and Philippines where skilled labour are available at low cost.
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Exporting Jobs
Competitive pressures and the search for greater efficiencies are prompting more employers to export jobs abroad.
Technology has facilitated the move of jobs offshore.
Call centers in India allow for: 24 hours, cheaper labor, standardized, efficient service
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Knowledge Work and Human Capital
Human Capital refers to knowledge education, training,skills and expertise of a firm’s workers.
“ the center of gravity in employment is moving fast from manual and clerical workers to knowledge workers”
HR managers listed “critical thinking/problem solving” and “info tech application” as the two applied skills in importance over next few years.
HRM skills – recruiting,screening,training and paying employees – more important to employers
Bank example
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Demographic Trends
In spite of the recession and job losses workforce demographic trends are making finding and hiring good employees more of a challenge around the world.
Skill shortage is identified as a main hurdle in achieving demographic dividend from its young growing population.
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The Workforce Itself is Diverse
AsianBlackHispanicMenWomen
US Department of Labor website
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The Workforce Itself is Diverse
More women, minorities, and older employees are joining the workforce
Workforce diversification offers increasing opportunities including: a wide range of skills and talents (languages), different points of view, different life experiences
Old perspective was melting pot approach. Now, there is a celebration of differences
The challenge lies in the widening range of employee needs (benefits range is much wider so may be flexi-time would be adopted)
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Generation Y
Young workers are more family oriented or dual balanced.
Old workers are work centric. Todays “millennial” or “generation Y” employees will
bring challenges and strength. The most high maintenance workforce in the history of
world . Refer to them as “most praised generation”. As the first generation to cope up with IT.
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Economic challenges and Trends
In 2001 – 2007 – Gross National Product boomed .Home prices leaped upto 20% and unemployment remained docile (4.7%)
2007-2008 – all these measures seemingly fell off the cliff.Home prices dropped to 20% and unemployment rose to 8%
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Consequences of these basic trends
Technology
Global expansion
Strengths and Weaknesses
Uncertainty, Turbulence, Rapid Change, Changing power bases
Companies must be Fast,Responsive, andCost-effective
Improved competition
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Important Trends In human Resource Management
The New Human Resource Managers Strategic Human Resource Management Evidence Based Human Resource
Management Managing ethics.
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New Human Resource Managers
They are more involved in big picture issue.
Example : Wiscosin based Signicast corp’s president Terry Lutz and his board decided to build a new computerized plant.New automation of plant demanded new employees.HRM dept evolved to select train and organize tech friendly employees
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New HRM
New ways to provide transactional services
They outsource more of their services to outside vendors.
They use latest technologies (internet based websites) to enable employees to self administer benefit plans.
Employees of Dell set up call centers to solve HR related enquiries
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New HRM
They have new proficiencies. They require broader business
knowledge HR managers need to be familiar with
strategic planning,marketing,finance and production.
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HR’s evolving role
Protector and Screener
Strategic Partner
Change Agent
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HR’s evolving role as strategic partner
HR operations
Corporate strategy
Corporate strategy
HR programsCorporate strategy
HR programs
Corporate strategy
HR operations
Corporate strategy
HR programs
FedEx
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The New HR Manager
New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies
The need to know the employment laws HR and technology
Technology improves HR functioning in 4 main ways: self-service, call centers, productivity improvement, and outsourcing.
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Strategic Management
The set of managerial decisions and actions that determines
the long-run performance of an organization.
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Instructor presentation questions: [email protected]
Strategic Human Resource Management
HR strategies refers to the specific human resource management courses of action the company pursues to achieve its aims.
Strategic Human Resource Management means formulating and executing HR systems (HR policies & activities) that produce the employee competencies and behaviors the company needs to achieve its strategic aims
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Instructor presentation questions: [email protected]
HR’s Strategic Roles
Today’s HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulationStrategy execution (traditional role): top management formulates the company’s corporate strategies and HR develops systems that support or align with the corporate strategy.Strategy formulation (today’s role): a partner in the setting of the corporate strategy and its execution.
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HR Scorecard Approach
HR Scorecard: Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.
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Steps in the HR Scorecard Approach
Step 3: Identify the Strategically Required Organizational Outcome
Step 4: Identify the Required Workforce Competencies & Behaviors
Step 5: Identify Relevant HR System Policies & Activities
Step 1: Define the Business Strategy
Step 2: Outline the company’s value chain
Step 6: Design the HR Scorecard Measurement System
Step 7: Periodically Evaluate the Measurement System
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HR Scorecard ApproachExample (Paris Hotel)
1. The Strategy: “The Hotel will use superior guest services to differentiate its properties, and to thereby increase the length of stays and the return rate of guests, and thus boost revenues and profitability”
2. The Value Chain: Service industry, where the product is a satisfied customer. Value chain activities: inbound logistics, operational activities, outbound activities, service activities, support activities.
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HR Scorecard ApproachExample (Paris Hotel)
3. Strategically Required Organizational Outcomes: Each step in the chain presents opportunities for improving guest services. Produce fewer complaints, more written complaints, more guest returns, longer stays, higher expenditure per visit.
4. Relevant Workforce Competencies: motivated, high moral employees
5. Strategic HR System Policies and Activities: Fair and strict HR practices will produce higher moral and thus better service
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Instructor presentation questions: [email protected]
HR Scorecard ApproachExample (Paris Hotel)
6. The HR Scorecard (cause and effect relation):
• Improved disciplinary procedures – how many grievances per month - means
• Improved moral – seminar attitude surveys - leads to
• High quality service – customer complaints per month