Chap 01 The Strategic Role of HRM

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Presentation Transcript

Introduction to Human Resource Management : 

Introduction to Human Resource Management Chapter 1 Part 1 | Introduction Dr. Ipek Kalemci TÜZÜN

Slide 2: 

2

The Management Process : 

3 The Management Process Planning Organizing Staffing Leading Controlling

Management Process : 

4 Management Process Planning Goals and standards Rules and procedures Plans and forecasting. Organizing Tasks Departments Delegating Authority and communication Coordinating

Management Process : 

5 Management Process Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

Management Process : 

6 Management Process Leading Getting the job done Morale Motivation Controlling Setting standards Comparing actual performance to standards Corrective action

HRM Function : 

7 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. Human Resource Management can be defined as the implementation of the strategies, plans and programs required to attract, motivate, develop, reward and retain the best people to meet the organizational goals and operational objectives of the organization. Definition

HRM Functions Include: : 

8 HRM Functions Include: Conducting job analyses (determining the nature of each employee’s job) Planning labor 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) Training and developing managers Building employee commitment Building loyalty

HRM is Important to all Managers.Don’t Let These Happen to You! : 

9 HRM is Important to all Managers.Don’t Let These Happen to You! The wrong person High turnover(**) **(turnover rate; number of replacement * 100 average number of employee Poor results Useless interviews Safety citations Salaries appear unfair Poor training Unfair labor practices ** In order to decrease turnover rate; Better advancement opportunities More training Flexible schedules Improved benefits Greater employee involvement in operations Recognition programs Good communication of rules and regulations Resolving employee complaints

So, : 

10 So, Human Resources are the people in the organization Human Resource Management is a series of activities and decisions carried out by all line managers that help employees get the job done and achieve their objectives Human Resource Department consist of specially trained professionals who help managers carry out human resource management responsinsibilities

Line and Staff Aspects of HRM : 

11 Line and Staff Aspects of HRM Authority is the right to make decisions, to direct the work of others, and to give orders Line Managers are authorized to direct the work of subordinates. They are always someone’s boss. In general they are in charge of accomplishing of the group’s goals Staff Managers are authorized to assist and advise line managers in their goals. They aid line managers in areas like recruiting, hiring and compensation Definition

Line Manager’s HRM Jobs : 

12 Line Manager’s HRM Jobs 1. Placing the right person on the right job 2. Starting new employees in the organization (orientation) 3. Training employees for jobs that are new to them 4. Improving the job performance of each person 5. Gaining creative cooperation and developing smooth working relationships 6. Interpreting the company’s policies and procedures 7. Controlling labor costs 8. Developing the abilities of each person 9. Creating and maintaining department morale 10. Protecting employees’ health and physical condition

Human Resource Managers’ Duties : 

13 Human Resource Managers’ Duties

Staff Manager’s HRM Jobs : 

14 Staff Manager’s HRM Jobs Line authority The authority exerted by a personnel manager by directing the activities of the people in his or her own department and in service areas (like the plant cafeteria). Implied authorityThe authority exerted by a personnel manager by virtue of others’ knowledge that he or she has access to top management (in areas like testing and affirmative action). Functional controlThe authority exerted by an HR manager as coordinator of personnel activities. Employee advocacyHR must take responsibility for clearly defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

Human Resource Specialties : 

15 Human Resource Specialties

Typical HR Positions : 

16 Typical HR Positions Recruiters; maintain contact with community and search for qualified job applicants. Job analysts; Collect and examine information about jobs to prepare job descriptions and job specifications 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.

FIGURE 1–1 HR Organization Chart for a Large Organization : 

17 FIGURE 1–1 HR Organization Chart for a Large Organization Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

FIGURE 1–2 HR Organizational Chart (Small Company) : 

18 FIGURE 1–2 HR Organizational Chart (Small Company)

FIGURE 1–3 Employment and Recruiting—Who Handles It? (Percentage of All Employers) : 

19 FIGURE 1–3 Employment and Recruiting—Who Handles It? (Percentage of All Employers) Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center. Note: Length of bars represents prevalence of activity among all surveyed employers.

The Changing Environment of Human Resource Management : 

20 The Changing Environment of Human Resource Management

The Changing Environment of Human Resource Management : 

21 The Changing Environment of Human Resource Management Globalization; tendency of firms to extend their sales and manufacturing to new markets abroad Technological advances; technology has been forcing and enabling firms to become more competitive (skilled employee, empowerment) The nature of work; Human capital(knowledge, education, training, skills and expertise of a firm’s worker) provides competitive advantage The workforce diversity; increased diversity provide challenges for HR management

The Changing Role of Human Resource Management : 

22 The Changing Role of Human Resource Management

TABLE 1–1 Technological Applications for HR : 

23 TABLE 1–1 Technological Applications for HR Application Service Providers (ASPs) and technology outsourcing Web portals PCs and high-speed access Streaming desktop video The mobile Web and wireless net access E-procurement Internet- and network-monitoring software Bluetooth Electronic signatures Electronic bill presentment and payment Data warehouses and computerized analytical programs

High-Performance Work System Practices : 

24 High-Performance Work System Practices Employment security Selective hiring Extensive training Self-managed teams/decentralized decision making Reduced status distinctions Information sharing Contingent (pay-for-performance) rewards Transformational leadership Measurement of management practices Emphasis on high-quality work

Benefits of a High-Performance Work System (HPWS) : 

25 Benefits of a High-Performance Work System (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 Produce more qualified applicants per position Hiring based on validated selection tests Provide more hours of training for new employees Conduct more performance appraisals

FIGURE 1–5 Five Sample HR Metrics : 

26 FIGURE 1–5 Five Sample HR Metrics 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/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management..

Measuring HR’s Contribution : 

27 Measuring HR’s Contribution The HR Scorecard Shows the quantitative standards, or “metrics” the firm uses to measure HR activities. Measures the employee behaviors resulting from these activities. Measures the strategically relevant organizational outcomes of those employee behaviors.

The Human Resource Manager’s Proficiencies : 

28 The Human Resource Manager’s Proficiencies New Proficiencies HR proficiencies Business proficiencies Leadership proficiencies Learning proficiencies

FIGURE 1–6 Effects CFOs Believe Human Capital Has on Business Outcomes : 

29 FIGURE 1–6 Effects CFOs Believe Human Capital Has on Business Outcomes Source: Steven H. Bates, “Business Partners,” HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.

HR Certification : 

30 HR Certification HR is becoming more professionalized. Society for Human Resource Management (SHRM) SHRM’s Human Resource Certification Institute (HRCI) SPHR (senior professional in HR) certificate PHR (professional in HR) certificate

FIGURE 1–72004 SHRM®Learning SystemModuleDescriptions : 

31 FIGURE 1–72004 SHRM®Learning SystemModuleDescriptions

The Human Resource Manager’s Proficiencies (cont’d) : 

32 The Human Resource Manager’s Proficiencies (cont’d) Managing within the Law Equal employment laws Occupational safety and health laws Labor laws Managing Ethics Ethical lapses Sarbanes-Oxley in 2003

The Plan of This Book: Basic Themes : 

33 The Plan of This Book: Basic Themes HRM is the responsibility of every manager. HR managers must defend their plans and contributions in measurable terms. All personnel actions and decisions have strategic implications. All managers rely on information technology. Virtually every personnel decision has legal implications.

The Human Resource Manager’s Proficiencies (cont’d) : 

34 The Human Resource Manager’s Proficiencies (cont’d) Managing within the Law Equal employment laws Occupational safety and health laws Labor laws Managing Ethics Ethical lapses Sarbanes-Oxley in 2003

FIGURE 1–8 Strategy and the Basic Human Resource Management Process : 

35 FIGURE 1–8 Strategy and the Basic Human Resource Management Process

K E Y T E R M S : 

36 K E Y T E R M S management process human resource management(HRM) authority line manager staff manager line authority staff authority implied authority functional control employee advocacy globalization human capital strategy strategic plan metrics HR Scorecard outsourcing ethics strategic human resource management high-performance work system