INTRODUCTION

What Is Human Resource

Management? (1 of 2)
• The Management Process
– Planning
– Organizing
– Staffing
– Leading
• To understand what human resource management is, it’s useful to start with what
managers do. Most writers agree that managing involves performing five basic
functions: planning, organizing, staffing, leading, and controlling. These functions in total
represent the management process.

• Planning – involves establishing goals and standards; developing rules and procedures;
developing plans and forecasts.

• Organizing – involves giving each subordinate a specific task; establishing departments;

delegating authority to subordinates; establishing channels of authority and
communication; coordinating the work of subordinates.

• Staffing – involves determining what type of people should be hired; recruiting

prospective employees; selecting employees; setting performance standards;
compensating employees; evaluating performance; counseling employees; training and
developing employees.

• Leading – involves getting others to get the job done; maintaining morale, motivating
subordinates.

• Controlling – involves setting standards such as sales quotas, quality standards, or

production levels; checking to see how actual performance compares with these
standards; taking corrective action as needed.
What Is Human Resource
Management? (2 of 2)
Techniques every manager needs to perform the “people” or personnel aspects of
management.
These concepts and techniques include the following:
1. Conducting job analyses (determining the nature of each employee’s job).

2. Planning labor needs and recruiting job candidates.

3. Selecting job candidates.

4. Orienting and training new employees.

5. Managing wages and salaries (compensating employees).

6. Providing incentives and benefits.

7. Appraising performance.

8. Communicating (interviewing, counseling, disciplining).

9. Training employees, and developing managers.

10. Building employee relations and engagement.

Why Is Human Resource Management
Important to All Managers?
• To Avoid Personnel Mistakes
• To Improve Profits and Performance
• You May Spend Some Time as an HR Manager
• HR for Small Business – you may end up as your
own human resource manager
Line and Staff Aspects of Human
Resource Management
• Authority is the right to make decisions, to direct
the work of others, and to give orders. Managers
usually distinguish between line authority and staff
authority.
Line and Staff Managers
• Line authority
gives you the right
to issue orders
• Staff authority
gives you the right
to advise others in
the organization
Line Manager’s HR Management
Responsibilities (1 of 3)
• Placing the right person in the right job

• Starting new employees in the organization (orientation)

• Training employees for jobs that are new to them

• Improving the job performance of each person

• Gaining creative cooperation and developing smooth working relationships

• Interpreting the company policies and procedures

• Controlling labor cost

• Developing the abilities of each person

• Creating and maintaining departmental morale

• Protecting employees’ health and physical conditions

The Human Resources Department

FIGURE 1-1 Human Resource Department Organization Chart Showing Typical HR

Job Titles
Source: “Human Resource Development Organization Chart Showing Typical HR Job Titles,”
www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf. Courtesy of Pinellas County Human Resources. Reprinted
with permission.
Trends in Human Resource
Management
• Workforce Demographics and Diversity Trends
• Trends in How People Work
• Improving Performance at Work: HR as a Profit
Center
• Globalization Trends
• Economic Trends
• Technology Trends
• Demographic and Workforce Trends. The composition of the workforce will continue to
change over the next few years; specifically, it will continue to become more diverse with
more women, minority group members, and older workers in the workforce.

• Trends in How People Work. At the same time, work has shifted from manufacturing
jobs to service jobs in North America and Western Europe. Today over two-thirds of the
U.S. workforce is employed in producing and delivering services, not products. Example
of this is on demand workers like Uber.

• Improving Performance At Work: HR as a Profit Center Boosting Customer Service.

A bank installed special software that made it easier for its customer service
representatives to handle customers’ inquiries. However, the bank did not otherwise
change the service reps’ jobs in any way. Here, the new software system did help the
service reps handle more calls. But otherwise, this bank saw no big performance gains.
A second bank installed the same software. But, seeking to capitalize on how the new
software freed up customer reps’ time, this bank also had its human resource team
upgrade the customer service representatives’ jobs. This bank taught them how to sell
more of the bank’s services, gave them more authority to make decisions, and raised
their wages. Here, the new computer system dramatically improved product sales and
profitability, thanks to the newly trained and empowered customer service reps. Value-
added Human resource practices like these improve employee performance and
company profitability.
• Talk About it (Discussion): Discuss three more specific examples of what you believe
this second bank’s HR department could have done

• to improve the reps’ performance

• Globalization. Refers to companies extending their sales, ownership, and/or

manufacturing to new markets abroad. For example, Toyota builds Camrys in Kentucky,
while Apple assembles iPhones in China. Free-trade areas—agreements that reduce
tariffs and barriers among trading partners—further encourage international trade.
NAFTA (the North American Free Trade Agreement) and the EU (European Union) are
examples.

• Economic Trends. Although globalization supported a growing global economy, the

past 10 or so years were difficult economically. Look at Figure 1-2, Gross National
Product (GNP)—a measure of the United States of America’s total output—it boomed
between 2001 and 2007. During this period, home prices (see Figure 1-3) leaped as
much as 20% per year. Unemployment remained docile at about 4.7%. Then, around
2007–2008, all these measures fell off a cliff. GNP fell. Home prices dropped by 10% or
more (depending on city). Unemployment nationwide soon rose to more than 10%.

• Technology. It may be technology that most characterizes the trends shaping human
resource management today. Let’s take a look at the five main types of digital
technologies that are driving this transfer of functionality from HR professionals to
automation.
More on HR Technology Trends
• There are 5 main types of digital technologies
driving HR professionals to automation:
– Social Media
– Mobile Applications
– Gaming
– Cloud Computing
– Data Analytics (as known as Talent Analytics)
 • Employers increasingly use social media—tools such as Twitter, Facebook, and
LinkedIn (rather than, say, as many employment agencies) —to recruit new
employees.
Employers use new mobile applications, for instance, to monitor employee
location and to provide digital photos at the facility clock-in location to identify
workers.
Employers use gaming, new training applications, and websites such as Knack,
Gild, and True Office enable employers to inject gaming features into training,
performance appraisal, and recruiting.
Employers use cloud computing which enable employers to monitor and report
on things like a team’s goal attainment and to provide real-time evaluative
feedback.
Employers also use data analytics, also called talent analytics, which use
statistical techniques, algorithms, and problem-solving to identify relationships
among data for the purpose of solving particular problems (such as what the ideal
candidate’s traits are, or how can I tell in advance which of my best employees is
likely to quit?)
III.
Today’s New Human Resource Management

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
Today’s New Human Resource
Management
• A Brief History of Personnel/Human Resource
Management
• Distributed HR and the New Human Resource
Management
• Trends Shaping HR: Digital and Social Media
A Quick Summary

FIGURE 1-4
What Trends Mean
for Human Resource
Management
HR and Strategy
Strategic Human Resource Management
• Strategic human resource management –
means formulating and executing human resource
policies and practices that produce the employee
competencies and behaviors that the company
needs to achieve its strategic aims.
Improving Performance: The
Strategic Context

Building L.L. Bean

Let’s take a look at the heart of their strategy.

HR and Performance
The Human Resource Manager is expected to
spearhead employee performance.
Three Levers can be applied to do so:
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever
HR and Evidence Based Management
• Evidence-based human resource
management – is the use of data, facts,
analytics, scientific rigor, critical evaluation, and
critically evaluated research/case studies to
support human resource management proposals,
decisions, practices, and conclusions.
HR and Adding Value
• Adding value – means helping the firm and its
employees improve in a measurable way as a
result of the human resources manager’s actions.
HR and Performance and
Sustainability
• It is about measuring companies in terms of
maximizing profits but also on their environmental
and social performance as well.
HR and Employee Engagement
• Employee engagement – refers to being
psychologically involved in, connected to, and
committed to getting one’s job done.
The New Human Resource Manager
• The HR Manager should be able to exhibit:

• ● Leadership & Navigation – the ability to direct and contribute to initiatives and processes within the organization.

• ● Ethical Practice –the ability to integrate core values, integrity, and accountability throughout all organizational and
business practices.

• ● Business Acumen – the ability to understand and apply information with which to contribute to the organization’s
strategic plan.

• ● Relationship Management – the ability to manage interactions to provide service and to support the organization.

• ● Consultation – the ability to provide guidance to organizational stakeholders.

• ● Critical Evaluation – the ability to interpret information with which to make business decisions and recommendations.

• ● Global & Cultural Effectiveness – the ability to value and consider the perspectives and backgrounds of all parties.

• ● Communication – the ability to effectively exchange information with stakeholders.

 What basic functional areas of HR should they have command?
HR managers must have command of the basic functional areas of HR as
follows:
● Functional Area #1: Talent Acquisition & Retention
● Functional Area #2: Employee Engagement
● Functional Area #3: Learning & Development
● Functional Area #4: Total Rewards
● Functional Area #5: Structure of the HR Function
● Functional Area #6: Organizational Effectiveness & Development
● Functional Area #7: Workforce Management
● Functional Area #8: Employee Relations
● Functional Area #9: Technology & Data
● Functional Area #10: HR in the Global Context
● Functional Area #11: Diversity & Inclusion
● Functional Area #12: Risk Management
● Functional Area #13: Corporate Social Responsibility
● Functional Area #14: U.S. Employment Law & Regulations
● Functional Area #15: Business & HR Strategy
ey have command?
IV.
The New Human Resource Manager

Copyright © 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved
HRM MODELS
 The Fombrun, Tichy & Devanna Model

Human Resource
Development

Organisational
Selection Appraisal Effectiveness

Rewards
 The Harvard Model
Stakeholder Interest
Shareholders
Management
Government Human Human
Community Unions Resource Resource
Management outcomes
Commitment
Competence
Congruence
Situational Factors
Workforce Character Long-Term
Business Strategy & Consequences
Conditions Individual well-
Unions being
Labour Market Organisational
Laws & Societal well-
Societal values being
 The Guest Model
HRM HR Behavioral Performa-
Practices Outcomes Outcomes nce
Hiring Commitment Motivation Outcomes
Training Quality Co- Positive
HRM
Appraisal Flexibility Operation Productivity
Strategy
Compensatio Organisatio Innovation
n nal Quality
Relations Citizenship Negative
Turnover

Financial
Outcomes
Profits
ROI
The Warwick Model of HRM
 Socio-Economic Outer Context
Technical
Political-Legal
Competitive

Culture Inner Context

Structure
Politics/Leaders
Task-Technology
Business Outputs
Business Strategy Content HRM Context
Objectives Role
Product Market Definition
Strategy & Tactics Organisation
HR Outputs
HRM Content
HR Flows
Work Systems
Reward Systems
Employee-
Relations