Managing Human Resources Today

When you finish studying this chapter, you should be able to:

Answer the question What is human resource management? Discuss the components of the changing environment of human resource management. Give examples of human resource managements role as a strategic partner

WHAT IS HUMAN RESOURCE MANAGEMENT? Human resource (HR) management refers to the practices and policies you need to carry out the personnel aspects of your management job, specifically, acquiring, training, appraising, rewarding, and providing a safe and fair environment for your companys employees

HUMAN RESOURCE MANAGEMENT Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries

HUMAN RESOURCE MANAGEMENT Providing incentives and benefits Appraising performance Training and developing Building employee commitment

Why Is HR Management Important to All Managers?

Personnel mistakes you dont want to make -

Hiring the wrong Having your company person for the job taken to court because of your discriminatory Experiencing high actions turnover Finding employees Having your company cited under federal not doing their best occupational safety laws for unsafe practices

Line Versus Staff Authority

Authority is the right to make decisions, to direct the work of others, and to give orders

Line Versus Staff Authority

Line managers
are authorized to direct the work of subordinates in charge of accomplishing the organizations basic goals

Staff managers
assist and advise line managers in accomplishing these goals HR managers are generally staff managers

Line Managers H R Responsibilities

Placing the right person in the right job Starting new employees in the organization Training employees for jobs that are new to them Interpreting the companys policies and procedures Controlling labor costs Protecting employees health and physical conditions

Human Resource Departments Management Responsibilities

Compensation and benefits Recruiting Training & development Employee relations Occupational safety and health Job analysis

HRs Changing Environment

Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad Technological Advances Nature of Work

HRs Changing Environment

Growing emphasis on knowledge workers and human capital. Human capital refers to the knowledge, education, training, skills, and expertise of a firms workers

HRs Changing Environment

Workforce demographics are becoming more diverse as women, minority-group members, and older workers enter the workforce

HRS STRATEGIC CHALLENGES

The central challenge facing HR is to provide a set of services that make sense in terms of the companys strategy. A strategy is the companys plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage

HRS STRATEGIC CHALLENGES

Most firms strategies increasingly stress building organizational competitiveness and performance
HR must be more involved in designingnot just implementing companies strategies

HR and competitive advantage

Competitive advantage means any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share

HR as competitive advantage
There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes, and systems.

Strategic Human Resource Management The linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility

3 views of HRM
HR activities involve putting out fires, making sure employees are paid on time Role is simply to fit and to help execute the companys strategy HR is an equal partner in the strategic planning process

HRs Role in Formulating Strategy

HR participates in the strategy formulation process by supplying information regarding the companys internal human strengths and weaknesses

HRs Role in Executing Strategy

HR is heavily involved in the execution of most firms downsizing and restructuring strategies, through outplacing employees, instituting pay-forperformance plans, reducing health care costs, and retraining employees.

The Strategic Future of the HR Department Human resource departments will face further downsizing and reengineering, as they face pressure from senior management to add value to the organization or have their functions contracted out.

HR AND TECHNOLOGY
Application Service Providers Web portals PCs and high speed access Streaming desktop video Mobile web and wireless net access