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Human ResourceManagement
and the Environment
McGraw-Hill/IrwinHuman Resource Management, 10/e 2007 The McGraw-Hill Companies, Inc. All rights reserved.
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Introduction
Human resource management (HRM) is the effectivemanagement of people at work
The goal: make workers more satisfied and
productive
When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
Every manager must be concerned with people,
whether or not there is a human resources department
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Introduction
HRM consists of numerous activities:Equal employment opportunity (EEO) compliance
Job analysis
Human resource planningRecruitment, selection, motivation, and orientation
Performance evaluation and compensation
Training and development
Labor relations
Safety, health, and wellness
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Introduction
The HRM unit is oriented toward:Action
People
Global enterpriseThe future
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A Brief History of HRM
HRM can be traced to England, where craftspeopleorganized guilds
They used unity to improve working conditions
The Industrial Revolution in the 18th century laid
the basis for a new, complex industrial society
Changing work conditions, social patterns, and labor
created a gap between workers and owners
During the world wars era, scientific management,welfare work, and industrial psychology merged
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A Brief History of HRM
Frederick W. Taylor, the father of scientificmanagement, summarized scientific managementas:
Science
Harmony
Cooperation
Maximum output
Industrial psychology, initiated in 1913, focused on:
The worker
Individual differences
The maximum well being of the worker
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A Brief History of HRM
Personnel departments were created to deal with:Drastic changes in technology
Organizational growth
The rise of unionsGovernment intervention
concerning working people
Around the 1920s, more organizations
noticed and acted on employee-management conflict
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A Brief History of HRM
The Hawthorne studies (1924 to 1933):Were to determine the effects of
illumination on workers and their output
Rather, it pointed out the importance of
social interaction on output and satisfaction
Until the 1960s, the personnel function was
concerned only with blue-collar employees
File clerk, house-keeper, social worker, firefighter,and union trouble defuser
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Strategic Importance of HRM
Strategic HRM differs significantly from traditionalHRM
In traditional arrangements, responsibility for
managing human resources lies with specialists in a
division
In a strategic approach, people management rests
with any individual who is in direct contact with
workers or line managers
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Strategic Importance of HRM
Item Traditional HRM Strategic HRM
Responsibility for
human resources
Specialists Line managers
Objective Better performance Improved understanding
and use of human assets
Role of HRM area 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
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HRM and Organizational Effectiveness
For a firm to survive and prosper, reasonable goalsmust be achieved in:
Performance
Legal compliance
Employee satisfaction
Absenteeism
Turnover
Training effectiveness and ROI
Grievance rates
Accident rates
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HRM and Organizational Effectiveness
It is important to remember that
the people who do the work and create the ideas
allow the organization to survive
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HRM and Organizational Effectiveness
Changes experienced by organizations:Growing global competition
Rapidly expanding technologies
Increased demand for individual, team, andorganizational competencies
Faster cycle times
Increasing legal and compliance scrutiny
Higher customer expectations
The mechanized, routine-oriented workforce is
giving way to a knowledge-based workforce
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Objectives of the HRM Function
HRM contributions to organizational effectiveness:
Helping the organization reach its goals
Employing workforce skills and abilities efficiently
Increasing job satisfaction, self-actualization, and
quality of work life
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Objectives of the HRM Function
HRM contributions to organizational effectiveness(continued):
Communicating HRM policies to all employees
Maintaining ethical policies and socially responsible
behavior
Managing change to the mutual advantage of
individuals, groups, the enterprise, and the public
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Objectives of the HRM Function
Increasing employees job satisfaction and self-actualization
Employees must feel that the job is right for their
abilities and that they are being treated equitably
Satisfied employees are not automatically more
productive
However, unsatisfied employees tend to be absent and
quit more often and produce lower-quality work
Both satisfied and dissatisfied employees can perform
equally in quantitative terms
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Objectives of the HRM Function
Quality of work life (QWL) is a general concept thatrefers to several aspects of the job, including:
Management and supervisory style
Freedom and autonomy to make decisions on the job
Satisfactory physical surroundings
Job safety
Satisfactory working hours
Meaningful tasks
The job and work environment should be structured
to meet as many workers needs as possible
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Objectives of the HRM Function
Communicating HRM policies toall employees:
HRM policies, programs, and
procedures must be communicated
fully and effectively
They must be represented to outsiders
Top-level managers must understand
what HRM can offer
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Objectives of the HRM Function
Maintaining ethical policies and socially responsiblebehavior:
HRM managers must show by example that HRM
activities are fair, truthful, and honorable
People must not be discriminated against
Their basic rights must be protected
These principles should apply to all activities in the
HRM area
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Who Performs HRM Activities
A large part of an operating managers day is spent:In scheduled and unscheduled meetings
In telephone conversations
Solving problems that have a direct impact on peopleIn smaller organizations, the operating manager has
such HRM responsibilities as:
Scheduling work
Recruitment and selection
Compensating people
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Who Performs HRM Activities
As the organization grows, the operating managers
HR work may be shifted to HRM specialists
HR specialists are found in organizations with
100 to 150 employees
A HR department is typically created when the
number of employees reaches 200 to 500
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Interaction of Operating & HR Managers
With both operating managers and HR specialistsmaking HRM decisions, there can be conflict
They have different orientations and objectives
Conflict is worse if joint decisions must be made on:Discipline
Physical working conditions
Termination
Transfer
Promotion
Employment planning
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Interaction of Operating & HR Managers
perating managers and HR specialists can alsodiffer on:
How much authority employees
have over job design
Labor relations
Organizational planning
Rewards, such as bonuses
and promotions
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Necessary HRM Competencies
Communication Technology
Problem solving Forecasting
LeadershipC
ompensation designRecruiting/staffing Benefit design
Employment law Accounting/finance
Training/development Record keeping
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HRMs Place in Management
The HR department must be a proactive, integralpart of management and strategic planning
Ascertain specific organizational needs for the
use of its competence
Evaluate the use and satisfaction among other
departments
Educate management and employees about the
availability and use of HRM services
HRM strategic plans must build on the firm's
strengths
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Clarifying Meaningful HRM Objectives
More specific
Strategy: The plan that
integrates major objectives
Objectives:Goals that arespecific and measurable
Policies: Guides to decision
making
Procedures/Rules:Specific
directions for decision making
More specific
More specific
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HRM Policy
Apolicy is a general guide that expresses limitswithin which action should occur
Policies arise from past or potential problems
They free managers from making certain decisions
They ensure some consistency in behavior
They allow managers to concentrate on decisions in
which they have the most experience and knowledge
For some organizations, the next step is to develop
procedures and rules
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HRM Procedures
Procedures (rules) are a specific direction to actionIn large organizations, procedures are collected and
put into manuals called standard operating
procedures (SOPs)
Organizations must ensure that consistent decision
making flows from a well-developed, but not
excessive, set of policies and procedures
Procedures should be developed for only the mostvital areas
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