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Human Resource Management

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Learning Objectives

Explain Human Resources (HR) management and identify

the seven categories of HR activities

2.

Describe how the major roles of HR management are

being transformed

3.

Identify the purposes and uses of HR technology

4.

Discuss why ethical issues affect HR management

5.

Explain the
professionals

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key

competencies

needed

by

HR

Human Resources today

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HR Activities: what do HR people do?

In what kind of environment are we doing HR today?

HR Management Challenges: what external and internal

factors influence what HR people do?

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HR Roles: how do HR people organize their jobs?

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Nature of Human Resource Management

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Human Resource Management

The design of formal systems in an organization to
ensure effective and efficient use of human talent to
accomplish organizational goals.

Nature of Human Resource Management (cont.)

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In the course carrying out

their duties, every operating
manager is, in essence, an
HR manager.
HR
specialists
design
processes and systems that
operating managers help
implement.

Who is an HR Manager?

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HR Management Activities

Source: HR Department
Benchmarks and Analysis
Survey 2009 (Bureau of
National Affairs).

HR Activities
Strategic HR Management

What is Strategic?
Metrics

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Environmental
Scanning/Anticipation

Leveraging Core
Competencies

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High Performance Work

Practices

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HR Activities (cont.)

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Equal Employment Opportunity

Compliance Multicultural Organizations
Diversity
Affirmative action
Global Impacts: Resources, Markets, Employees

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HR Development
Orientation
Socialization
Job Training
Leadership Development
Performance Management

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Staffing
Attraction Selection Attrition Model
Job Description
Job Analysis Qualifications
Recruiting, Interviewing

HR Activities (cont.)

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HR Activities (cont.)

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Compensation and Benefits

Base Pay
Merit Pay/Incentives
Employee Ownership
Management of Health and Its Costs
Cafeteria Plans
Employee Rewards

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HR Activities (cont.)

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Employee and Labor Relations

Unionization
Policies and Procedures
Communication

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Health, Safety, and Security

Who has the responsibility for healthy employees?
Safety in the workplace
Security
Health Promotion

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Smaller Organizations and HR Management

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Small Businesses

Large piece of economic sector

Larger piece of job creation

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When do we need an HR person?

(80-100 employees)

Compliance
with
Government
Regulations

Shortage of
Qualified
Workers

Issues of
Greatest
Concern

Increasing
Costs of
Benefits

Rising Taxes

Management of Human Capital in Organizations

Physical, Financial, Intangible

The collective value of the capabilities, knowledge, skills,
life experiences, and motivation of an organizational
workforce.

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o Also known as intellectual capital.

o How to measure the strategic value of human assets?

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Core Competency
A unique capability that creates high value and
differentiates an organization from its competition.
o HR competencies: a source of competitive advantage.

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Human Capital in Organizations

Core Competency

The collective value of the

capabilities, knowledge, skills,
life experiences, and motivation
of an organizational workforce.

A unique capability that creates

high value and differentiates an
organization from its
competition.

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Human Capital

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HR Management Challenges
Globalization of Business
o Stockholder, employee, manager concerns?

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o Is this socially responsible?

Outsourcing and increased competition

o Should the job legislation protecting these? Why/Why not?

o What about the perspective that this is good for the long run as
it lowers the costs of goods and services? Do you agree?

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Why/Why not?

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HR Management Challenges

Globalization of Business
Economic and Technological Changes

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Occupational shifts from manufacturing and agriculture to

service industries and telecommunications.
Pressures of global competition causing firms to adapt by
lowering costs and increasing productivity.

Technological Shifts and the Internet

Growth of information technology.

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Fastest Growth in Job Changes to 2016

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HR Management Challenges

Workforce Availability and Quality Concerns

Inadequate supply of workers with needed skills for knowledge
jobs
o 80% of manufacturing jobs report shortage of qualified workers

Education of workers in basic skills

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o Not enough specific skills, not enough technology skills

Growth in Contingent Workforce

Represents 20% of the workforce
Increases in temporary workers, independent contractors, leased
employees, and part-timers caused by:
o Need for flexibility in staffing levels
o Increased difficulty in firing regular employees.
o Reduced legal liability from contract employees
o Manage employment cycles in suppliers and partners
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HR Management Challenges
Workforce Demographics and
Diversity

Increasing Racial/Ethnic
Diversity

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More Women in the

Workforce
o Single-parent households
o Dual-career couples
o Working mothers and
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o Domestic partners

Significantly Aging Workforce

o Age discrimination

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HR Management Challenges

Organizational Cost Pressures and Restructuring

Mergers and Acquisitions

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Right-sizing: eliminating of layers of management, closing

facilities, merging with other organizations, and outplacing
workers
o Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
o Costs are survivor mentality, loss of employee loyalty, and
turnover of valuable employees.

HR managers must work toward ensuring cultural

compatibility in mergers.

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HR Management Roles
Administrative Role

Clerical and administrative support operations (e.g., payroll

and benefits work)

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o Technology is transforming how HR services are delivered.

o Outsourcing HR services to reduce HR staffing costs

Operational and Employee Advocate Role

Champion for employee concerns

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o Employee crisis management

o Responding to employee complaints

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Changing Roles of HR Management

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Administrative Role

Operational Role

Employee Advocate Role

Strategic Role

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Contributing at the Table to organizational results

Strategic Role for HR

HR becomes a strategic business partner by:

o Focusing on developing HR programs that enhance organizational

performance.
o Involving HR in strategic planning at the onset.

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o Participating in decision making on mergers, acquisitions, and

downsizing.
o Redesigning organizations and work processes

o Accounting and documenting the financial results of HR activities.

Some HR people get this, some dontCEOs want those that do and
oust those that dont

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Operational to Strategic Transformation of HR

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HR Technology
Human Resource Management System (HRMS)

An integrated system providing information used by HR

management in decision making
Purposes (Benefits) of HRMS

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o Administrative and operational efficiency in compiling HR data

o Availability of data for effective HR strategic planning

Uses of HRMS

o Automation of payroll and benefit activities

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o Action tracking

o HR Workflow: increased access to HR information

o Employee self-service reduces HR costs.

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Uses of an HRMS

HRMS

Bulletin boards

o What information will be available and what is information

needed?

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Data access

o To what uses will the information be put?

Employee self-service
o Who will be allowed to access to what information?

o Web-based services and access

Extended linkage
o When, where, and how often will the information be
needed?

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Ethics and HR Management

Firms with High Ethical Standards
Are viewed more positively by stakeholders

Are more likely to reach strategic goals.

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Are better able to attract and retain human resources.

Ethics and Global Differences

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Different legal, political, and cultural factors in other

countries can lead to ethical conflicts for global managers.

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Business Ethics and HR

Management Consequences

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Ethical Behavior and Organizational Culture

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Employee
training on
ethical
behaviors

Advice to
employees
on ethical
situations

Confidential
reporting of
ethical
problems

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Written code
of ethics and
standards of
conduct

Ethics Program
Elements

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HRs Role in Organizational Ethics

Ethical Question

Does the behavior or result

meet all applicable laws,
regulations, and
government codes?

Does the behavior or result

meet both organizational
standards and professional
standards of ethical
behavior?

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Legal Question

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Examples of HR-Related Ethical Misconduct Activities

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HR Ethics

Reduce the likelihood of illegal and unethical behaviors by:

Having a written code of ethics and conduct standards
Providing ethical behavior training and advice

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Establishing confidential reporting systems for ethical

misconduct
Providing whistle-blower protection
Supporting HRs role
organizational ethics

as

keeper

and

voice

of

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HR Management as a Career Field

HR Generalist:
A person with responsibility for performing a variety of HR
activities.

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HR Specialist:
A person with in-depth knowledge and expertise in a
limited area of HR.

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HR Manager:
A person who is a line manager for HR Generalists and
Specialists.

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HR Specialists

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Conclusions

Strategic contribution to organizational success

Important HR Competencies

Effective delivery of HR services

Familiarity with HRMS technology

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Personal credibility

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Business knowledge of organization and its strategies

Speak the Language of the Business

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Copyright

This didactic material is meant for the personal use of the student only, and is
copyrighted. Its reproduction, even for a partial utilization, is strictly forbidden
in compliance with and in force of the law on Authors rights.

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