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Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
WHERE WE ARE NOW…
Explain what human resource management is and how it relates to the management process.
Show with examples why human resource management is important to all managers.
Illustrate the human resources responsibilities of line and staff (HR) managers.
Briefly discuss and illustrate each of the important trends influencing human resource management.
List and briefly describe important trends in human resource management.
Define and give an example of evidence-based human resource management.
Outline the plan of this book.
Human Resource Management at Work
What Is Human Resource Management (HRM)?
The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
People with formally assigned roles who work together to achieve the organization’s goals.
The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.
The Management Process
Human Resource Management (HRM)
Health and Safety
Human Resource Management Processes
Personnel Aspects of a Manager’s Job
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries
Providing incentives and benefits
Training and developing managers
Building employee commitment
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your firm in court because of discriminatory actions
Have your firm cited by OSHA for unsafe practices
Have 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 labor practices
Basic HR Concepts
The bottom line of managing: Getting results
HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals.
Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals.
Line and Staff Aspects of HRM
Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.
Assists and advises line managers.
Has functional authority to coordinate personnel activities and enforce organization policies.
Line Managers’ HRM Responsibilities
Placing the right person on the right job
Starting new employees in the organization (orientation)
Training employees for jobs that are new to them
Improving the job performance of each person
Gaining creative cooperation and developing smooth working relationships
Interpreting the firm’s policies and procedures
Controlling labor costs
Developing the abilities of each person
Creating and maintaining department morale
Protecting employees’ health and physical condition
Functions of HR Managers
Line Function Line Authority Implied Authority
Coordinative Function Functional Authority
Staff Functions Staff Authority Innovator/Advocacy
Human Resource Managers’ Duties
FIGURE 1–1 Human Resources Organization Chart for a Large Organization
FIGURE 1–2 Human Resources Organization Chart for a Small Company
Labor relations specialist
Human Resource Specialties
New HR Services Groups
Corporate HR group
Embedded HR unit
Transactional HR group
Centers of Expertise
New Approaches to Organizing HR
Globalization and Competition Trends
Indebtedness (“Leverage”) and Deregulation
Trends in HR Management
Workforce and Demographic Trends
Trends in the Nature of Work
Economic Challenges and Trends
Trends Shaping Human Resource Management
FIGURE 1–4 Trends Shaping Human Resource Management
FIGURE 1–5 Employment Exodus: Percent of employers who said they planned as of 2008 to offshore a number of these jobs
Changes in How We Work
Knowledge Work and Human Capital
TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016
Trends Affecting Human Resources
Workforce and Demographic Trends
FIGURE 1–6 Gross National Product (GNP)
FIGURE 1–7 Case-Shiller Home Price Indexes
The New HR Managers
High-Performance Work Systems
Human Resource Management Trends
Important Trends in HRM
The New Human Resource Managers
Find new ways to provide transactional services
Focus more on “big picture” (strategic) issues
Acquire broader business knowledge and new HRM proficiencies
Meeting Today’s HRM Challenges
TABLE 1–2 Some Technological Applications to Support HR
How Used by HR
Application service providers (ASPs) and technology outsourcing
ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers
Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information
Streaming desktop video
Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively
Internet- and network-monitoring software
Used to track employees’ Internet and e-mail activities or to monitor their performance
Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping
Electronic bill presentment and payment
Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers
Data warehouses and computerized analytical programs
Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees’ skills with the firm’s projected strategic needs
FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes
Increase productivity and performance by:
Recruiting, screening and hiring more effectively
Providing more and better training
Paying higher wages
Providing a safer work environment
Linking pay to performance
Providing Evidence for HRM Decision Making
Standards that someone uses to decide what his or her conduct should be
HRM-related Ethical Issues
Security of employee records
Employee privacy rights
HR is becoming more professionalized.
Society for Human Resource Management (SHRM)
SHRM’s Human Resource Certification Institute (HRCI)
SPHR (Senior Professional in HR) certificate
GPHR (Global Professional in HR) certificate
PHR (Professional in HR) certificate
The Plan of This Book: Basic Themes
HRM is the responsibility of every manager.
The workforce is becoming increasingly diverse.
Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services.
The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.
FIGURE 1–10 Strategy and the Basic Human Resource Management Process
K E Y T E R M S
manager management process
human resource management (HRM)
Human Resources Management 12e Gary Dessler
The purpose of this chapter is to explain what human resource management is, and why it’s important to all managers.
We’ll see that HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. And we’ll see that HRM is also a separate function, usually with its own human resource or “HR” manager.
The main topics we’ll cover include the meaning of human resource management; why HRM is important to all managers; global and competitive trends; HRM trends; and the plan of this book. The framework (which introduces each chapter) makes this point: That to formulate and apply HR practices like testing and training you should understand the strategic and legal context in which you’re managing.
Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.
HRM involves several processes. The topics we’ll discuss will provide you with concepts and techniques needed to perform the “people” or personnel aspects of your job as a manager.
Managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people.
Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing.
Carefully studying this book will help you avoid mistakes like these.
Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people.
Line managers manage operational functions that are crucial for the company’s survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control.
Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties.
In small organizations, line managers carry out many personnel duties unassisted. As the organization grows, the need arises for the specialized assistance, knowledge, and advice of a human resource department.
An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers.
The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart like the one in Figure 1-1 would be typical, containing a full complement of specialists for each HR function.
The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. There is generally about one human resource employee per 100 company employees.
• Recruiters search for qualified job applicants.
• Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.
• Job analysts collect and examine information about jobs to prepare job descriptions.
• Compensation managers develop compensation plans and handle the employee benefits program.
• Training specialists plan, organize, and direct training activities.
• Labor relations specialists advise management on all aspects of union–management relations.
Employers are experimenting with offering HR services in new ways. For example, some employers organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise.
Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges.
Trends shaping HRM are summarized in Figure 1-4.
Figure 1-5 illustrates that in the next few years, many employers plan to offshore even highly skilled jobs such as sales managers, general managers—and HR managers.
Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital).
Table 1-1, from the U.S. Department of Labor’s Bureau of Labor Statistics, shows how quickly the U.S. workforce is becoming older and more multi-ethnic.
Demographic trends are making finding, hiring, and supervising employees more challenging.
In Figure 1-6, the gross national product (GNP)—a measure of the United States of America’s total output—boomed between 2001 and 2007.
Figure 1-7 shows that home prices leaped as much as 20% per year between 2001 and 2007.
Trends like these translate into changes in HRM practices, and in what employers expect from their human resource managers.
HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans.
Table 1-2 lists some important ways employers use technology to support their HRM activities.
Figure 1-8 summarizes how human capital—the employees’ knowledge, skills, and experiences—can have a big effect on important organizational outcomes, such as customer satisfaction and profitability.
A high-performance work system is a set of HRM policies and practices that together produce superior employee performance.
Evidence-based HRM is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on.
Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee-related decisions.
As the human resource manager’s job becomes more demanding, HRM is becoming more professionalized. The Society for Human Resource Management’s (SHRM) HR professional certification exams test the HR professional’s knowledge of all aspects of HRM.
In this book, we’ll use several themes and features to emphasize particularly important issues, and to provide continuity from chapter to chapter.
In practice, don’t think of each of this book’s 18 chapters and topics as being unrelated to the others. Each topic interacts with and affects the others, and all should align with the employer’s strategic plan. Figure 1-10 summarizes this idea.
Human Resources Management 12e Gary Dessleryright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Copyright © 2011 Pearson Education, Inc. publishing