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Human Resource Management

Summer Semester, 2013 11th June 2013

OUTLINE
Introductions Ice-breaker Course Outline and Requirements Expectations from the course What is HRM? The HR Functions HR management responsibilities of line and staff (HR) managers Important trends influencing human resource management Conclusion

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Why Youre Here with Me

Course title: Human Resource Management (HRM) What do you think HRM is? How does HRM fit into the organization?
Its a department (boring) Its a way of solving problems that affect every aspect of the organization (interesting!)

Course mission statement:

Students will learn the fundamentals of how human resources are managed so they can: (A) learn how to succeed in their careers and (B) help the organizations where they work succeed.

About the course

Do you have the outline? Have you read the outline? Take special note of PREPARATION and OUTCOME columns Questions about the outline?

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A word about the Assessments

Assessment Type Class Participation & Quizzes Mid Term Final Term Report & Presentation Final Exam Weightage 10% 30% 20% 40% Due Date Unannounced in regular lecture sessions Week 5 Week 9 Week 11

Lets set our expectations

Work at-least 10 hours a week The teachers role is that of a facilitator. Take responsibility! Remain in contact. Email is the best option. Check email regularly! Participate, be curious, ask questions. Lets make learning fun!

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Introduction to HRM

HRM at Work
What Is HRM?
The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

Organization
People with formally assigned roles who work together to achieve the organizations goals.

Manager
The person responsible for accomplishing the organizations goals, and who does so by managing the efforts of the organizations people.

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The Management Process

Planning

Controlling

Organizing

Leading

Staffing
Dessler, 2010

HR Process

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Human Resource Management Processes

Talent Acquisition Fairness Training

Health and Safety

Human Resource Management (HRM)

Appraisal

Labor Relations

Compensation

Dessler, 2010

In Job Terms
Recruiter

Labor relations specialist Human Resource Specialties Training specialist

EEO coordinator

Job analyst

Compensation manager

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A Quick Quiz on HR
1. Can you legally fire someone for their astrological symbol? 2. When hiring employees, is it better to hire people who you judge to be hard working, organized, and dedicated during a traditional interview, or is an IQ test a better way to pick people? 3. Is it better to hire people based on the fit of their values with the companys values, or is an IQ test better? 4. True or false--Asking applicants about stealing or other negative behavior at work during an interview doesnt help you find better employees, because most people who are going to do bad things at work just lie. 5. True or false--If employees participate in decision making they will be more motivated than if top management sets performance goals? 6. True or falseManagers may think their employees are really concerned about compensation, but when it comes down to it, money doesnt really matter that much to most people.

What Can We Learn?

Dont feel bad if you didnt get them all right
A majority of HR managers get most of them wrong! Major problemmost HR managers learn through following other peoples leads without a system

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A Basic Mental Map for HR

What HR Do You Need to Make a Company Work?
Develop an Overarching Strategy
What does the company do, with whom are they competing, what makes this company unique?

Acquire Staff
Who makes a good employee? How do we get these people to apply? How are people screened? How are people selected?

Can we help new hires feel like part of the company? How do we teach employees the skills they need? How do we encourage civility? How do we measure performance?

How can we match our pay offers to the market? How do we pay people who are working in different job levels? What types of noncash benefits can we offer to employees?

What are the things that motivate employees at work? What prevents employees from performing effectively?

Are there incentives that we should be offering?

How Does HR Work?

New viewstrategic partner Old viewcost center Employee development Keep track of forms Integration with the core Policy and procedure operations of the enforcement organization Change management Payroll and insurance Results oriented Cost reduction oriented Example: new employees go Example: developing a program through orientation with a to select employees for a videotape and a package of dynamic work environment forms

Introductory Lecture 1: Introduction to Human Resources

Train and Develop

Compensation and Benefits

Performance management

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Just for laughs

Myths that keep HR from being a profession

Old Myths
People go into HR because they like people.

New Realities
HR departments are not designed to provide corporate therapy or to act as social or health-and-happiness retreats. HR professionals must create the practices that make employees more competitive, not more comfortable. HR activities are based on theory and research. HR professionals must master both theory and practice.

Anyone can do HR.

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Old Myths
HR deals with the soft side of business and therefore is not accountable.

New Realities
The impact of HR practices on business results can and must be measured. HR professionals must learn to translate their work into financial performance. HR practices must create value by increasing the intellectual capital within the firm. HR professionals must add value, not only reduce costs.

HR focuses on costs, which must be controlled.

Old Myths
HRs job is to be the policy police and the health-and-happiness patrol.

New Realities
The HR function does not own compliance.

HR is full of fads.

HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority.

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Old Myths
HR is staffed by nice people.

New Realities
At times, HR practices should force vigorous debates. HR professionals should be confrontative and challenging as well as supportive. HR work is as important to line managers as are finance, strategy, and other business domains. HR professionals should join with managers in championing HR issues.

HR is HRs job.

HR Outcomes: Service
What services are provided by HR
Employee screening and selection Training classes offered Compensation levels Healthcare benefits

The speed and utility of these services

Time to hire new employees Time to deliver training to employees Time-to-performance for new hires Response to information requests Employee satisfaction with HR

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HR Outcomes: Costs
Human resources staff per FTE Program administration costs
Advertising for recruiting Travel time for interviews Test costs Training materials Compensation and benefits outlays

Managerial time performing HR administration Litigation and settlement expenses

HR Outcomes: Attitudes
Job satisfaction A pleasant feeling from doing work that fulfills ones goals Organizational commitment A desire to work towards your organizations goals and objectives Stress A feeling of psychological arousal that comes from pressure, deadlines, expectations, etc. Absenteeism Failing to report for work as scheduled Turnover Voluntary and permanent departure from an organization

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HR Outcomes: Performance
Productivity/task performance Effectiveness Achieving assigned goals consistently Efficiency Minimizing resource use Creativity Finding new ways to do work, or defining new goals for work Organizational citizenship behavior (OCB) Behavior that enhances the social and psychological environment Firm performance Increased productivity Decreased costs Increased agility

A Structural Model of HR and Firm Performance

Staffing methods
Recruiting the right people Selecting the right people

Employee development
Learning new skills Improving performance

Work outcomes
Improved coordination Reduced turnover Higher productivity

Organization outcomes
Stock prices Lower admin. costs Revenues Customer service

Compensation & benefits

Matching the market Meeting employee needs

Performance management
Improving well-being Rewarding performance

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HR is Associated with Real Results

Human capital focused HR is associated with product quality and employee productivity Use of cognitive ability tests, structured interviews, and validation studies is significantly correlated with organizational profit and profit growth A 1 SD increase in HPWP is associated with a profitability increase of $3,814 per employee PWC estimates a ratio of 3:1 in favour of employee welfare programs whereby $1 spent on employee wellness yields a cost saving of $3

The Challenge for HR means

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.

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Changing Roles of HR Management

Note: Example percentages are based on various surveys.

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For next class discussion. Watch closely!

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