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Human Resource Management Chapter 1: Introduction to Human Resource Management

Ass. Prof. Ipek Kalemci TUZUN

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Personnel Management Approach

Human Resource Management Approach

Resource centered Strategic Staff oriented

Manpower centered Pragmatic Job oriented

Employee-organization relations

by HRM approach

HRM is a term for what historically was referred as personnel administration

or personnel management. In todays arena, HR managers are sometimes called people managers and employees are refereed as our associates.
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The Management Process

Planning Organizing Staffing Leading Controlling

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The evolution of HRM

Decade Pre-1900s 1900s 1920s Major Business Ideas Small business and workers guilds Common HR titles No HR people

Large-scale enterprise Labor relations, growth personnel Depression, first labor legislation Industrial relations, personnel
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Decade 1940s

Major Business Ideas WW II, growth of large diversified enterprises

Common HR titles Personnel administration

1960s 1980s

Civil rights and compliance Personnel Growing impact of Personnel, globalization and Human technology; human capital; Resources emergency of the knowledge/service economy
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Decade 2000s

Major Business Ideas

Common HR titles Human Resource Management

Modern organizations, organization effectiveness, strategic HR planning

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

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

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

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.

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HRM Functions Include:

Conducting job analyses

(determining the nature of each employees 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

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HHRM is Important to all Managers.

** In order to decrease turnover

The wrong person, High

turnover(**) **(turnover rate; number of replacement * 100

average number of employee

Low effectiveness and

efficiencies Useless interviews Poor training Unfair labor practices

rate; Better advancement opportunities More training Flexible schedules mproved benefits Greater employee involvement in operations Recognition programs Good communication of rules and regulations Resolving employee complaints

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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

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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 someones boss. In general they are in charge of accomplishing of the groups 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

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Line Managers 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 companys

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

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FIGURE 13 Employment and RecruitingWho Handles It? (Percentage of All Employers)

Note: Length of bars represents prevalence of activity among all surveyed employers.
Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center.

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As a company grows, line managers need the assistance as well as the specialized knowledge and advice of a separate HR staff

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HRM DEPARTMENT

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.

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Human Resource Managers Duties

Line Function
Line Authority Implied Authority

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Coordinative Function
Functional Authority

Functions of HR Managers

Staff Functions
Staff Authority Innovator
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Human Resource Specialties

Recruiters

Labor Relations Specialists

Training Specialists

Human Resource Specialties

EEO Coordinators

Job Analysts

Compensation Managers

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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 unionmanagement relations.

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FIGURE 11 HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

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FIGURE 12 HR Organizational Chart (Small Company)

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The changing role of HR

Effective HRM selection, training, pay and employee

fairness practices are crucial to capitalizing on technology and remaining competitive

HR departments must move away from a

housekeeping focus to strategic maneuvering HRM must evolve to remain dynamic

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The new HR manager

Provides efficient operational services including

outsourcing service when necessary

Supports top managements strategic planning efforts Acts as the companys internal consultant for

identifying and institutionalizing changes that enhance employees skills allowing them to contribute to the companys success

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The Changing Environment of Human Resource Management

Globalization Trends Technological Trends

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Changes and Trends in Human Resource Management

Trends in the Nature of Work,

Human Capital Workforce Demographic Trends

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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 firms worker) provides competitive advantage The workforce diversity; increased diversity provide challenges for HR management: Older, more multi-ethnic workforce,Nontraditional workers, Generation Y,Retirees

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The Changing Role of Human Resource Management

Strategic Human Resource Management

Managing with the HR Scorecard Process

New Responsibilities for HR Managers

Creating HighPerformance Work Systems

Measuring the HRM Teams Performance

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Important HRM issues

Strategic human resource management

HRs use of technology

Managing ethics

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What is strategic HRM?

A strategy is a companys plan for matching internal

strengths and weakness with external opportunities and threats

Strategic HRM is the formulation and execution of HR

policies and practices that produce competent employees with the behaviors needed to achieve the companys strategic goals

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FIGURE 18 Strategy and the Basic Human Resource Management Process

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HR and technology
Self-service

Call centers
Productivity

improvement
Outsourcing

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Some Ways HR Managers Use Technology

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Issues related to HR ethics

Workplace safety

Security of employee records

Employee theft Affirmative action Comparable work Employee privacy rights

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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
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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
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FIGURE 15 Five Sample HR Metrics

HR Metric* Absence rate How to Calculate It # of days absent in month Average # of employees during month # of workdays Cost per hire 100

Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits Number of hires

HR expense factor

HR expense Total operating expense Total days elapsed to fill job requisitions Number hired

Time to fill

Turnover rate

Number of separations during month Average number of employees during month

100

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; 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. 1320; 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. 93105; [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..

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Measuring HRs 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.

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The Human Resource Managers Proficiencies

New Proficiencies

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HR proficiencies Business proficiencies Leadership proficiencies

Learning proficiencies

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