Date post: | 04-Apr-2018 |
Category: |
Documents |
Upload: | abraha-gebremariam |
View: | 232 times |
Download: | 0 times |
of 49
7/29/2019 1.HRM Envt
1/49
1-1
1
Human ResourceManagement
and the Environment
7/29/2019 1.HRM Envt
2/49
1-2
Objectives
Define the term human resource management.
Describe the strategic importance of human resource
management (HRM) activities.
Explain what career opportunities are available in the
HRM field.
Discuss the role that specialists and operating managers
play in performing HRM activities.
List the main objectives pursued by HRM units!
7/29/2019 1.HRM Envt
3/49
1-3
Introduction
Human resource management (HRM) is the effective
management of people at work
The goal: make workers more satisfied and
productive
When an organization is concerned about people, itstotal philosophy, culture, and orientation reflect it
Every manager must be concerned with people,
whether or not there is a human resources department
7/29/2019 1.HRM Envt
4/49
1-4
Introduction
HRM consists of numerous activities:
Equal employment opportunity (EEO) compliance
Job analysis
Human resource planning
Recruitment, selection, motivation, and orientation
Performance evaluation and compensation
Training and development
Labor relations
Safety, health, and wellness
7/29/2019 1.HRM Envt
5/49
1-5
Introduction
The HRM unit is oriented toward:
Action
People
Global enterprise
The future !
7/29/2019 1.HRM Envt
6/49
1-6
A Brief History of HRM
HRM can be traced to England, where craftspeople
organized guilds/ associations
They used unity to improve working conditions
The Industrial Revolution in the 18th century laid
the basis for a new, complex industrial society
Changing work conditions, social patterns, and labor
created a gap between workers and owners
During the world wars era, scientific management,welfare work, and industrial psychology merged
7/29/2019 1.HRM Envt
7/49
1-7
A Brief History of HRM
Frederick W. Taylor, the father of scientific
management, summarizedscientific management as:
Science
Harmony
Cooperation
Maximum output
Industrial psychology, initiated in 1913, focused on:
The worker
Individual differences
The maximum well being of the worker
7/29/2019 1.HRM Envt
8/49
1-8
A Brief History of HRM
Personnel departments were created to deal with:
Drastic changes in technology
Organizational growth
The rise of unions
Government intervention concerning working people
Around the 1920s, more organizations noticed and
acted on employee-management conflict
7/29/2019 1.HRM Envt
9/49
1-9
A Brief History of HRM
The Hawthorne studies (1924 to 1933):
Were to determine the effects of illumination on
workers and their output
Rather, it pointed out the importance of social
interaction on output and satisfaction
Until the 1960s, the personnel function was
concerned only with blue-collar employees
File clerk, house-keeper, social worker, fire-fighter,and union trouble defuser !!
7/29/2019 1.HRM Envt
10/49
1-10
Strategic Importance of HRM
Today, HRM plays a major role in:
Clarifying the firms human resource problems
Developing solutions for them
It is oriented toward:Action
The individual
Worldwide interdependenceThe future
7/29/2019 1.HRM Envt
11/49
1-11
Strategic Importance of HRM
Strategic HRM differs significantly from traditional
HRM
In traditional arrangements, responsibility for
managing human resources lies with different
specialists in each department or divisionIn a strategic approach, people management rests
with an individual who is in direct contact with
workers or line managers
7/29/2019 1.HRM Envt
12/49
1-12
Strategic Importance of HRM
Investment in human
assets
Cost centersAccountability
Developing peopleFollowing the rulesMajor emphasis
Open, participative,empowerment
Bureaucratic, top-down,centralization
Culture
Flexible, based on human
resources
Rules, policies, position
power
Control
Short, intermediate, long
term
Short-term resultsTime focus
Lead, inspire, understandRespond to needsRole of HRM area
Improved understanding
and use of human assets
Better performanceObjective
Line managersSpecialistsResponsibility forhuman resources
Strategic HRMTraditional HRMItem
7/29/2019 1.HRM Envt
13/49
1-13
Strategic Importance of HRM
For years, the HRM function was not linked to
corporate profit
Organizations focused only on current performance
HR managers did not have a strategic perspective
Executives categorized HRM in a traditional manner
It was difficult to develop metrics for HRM activities
Recognition of the importance of people made HRM
a major player in developing strategic plans
HRM strategies must reflect the organizations
strategy regarding people, profit, and effectiveness
7/29/2019 1.HRM Envt
14/49
1-14
Strategic Importance of HRM
Key concepts that must be applied:
Analyze and solve problems from a profit-oriented
point of view
Assess and interpret costs and benefits of HRM issues
Planning models must include realistic, challenging,
specific, and meaningful goals
Prepare reports on HRM solutions to problems
encountered by the firm
1 1
7/29/2019 1.HRM Envt
15/49
1-15
Strategic Importance of HRM
Key concepts that must be applied (continued):
Train the human resources staff
Emphasize the strategic importance of HRM
Show managers that they contribute to the
goals/mission of the firm
The actions, language, and performance of the
HRM function must be:
Measured
Precisely communicated
Evaluated
1 16
7/29/2019 1.HRM Envt
16/49
1-16
Strategic Importance of HRM
The era of HRM accountability resulted from:
Concerns about productivity
Organizational downsizing and redesign
An increasingly diverse workforce
The need to effectively use all organizational
resources to compete in an increasingly complex
and competitive world
1 17
7/29/2019 1.HRM Envt
17/49
1-17
Strategic Importance of HRM
For the HRM function to be successful, managers in
other functions must be knowledgeable and involved
Managers play a major role in setting the direction,
tone, and effectiveness of the relationship between:
The employees
The firm
The work performed
Without managerial participation, there are likely tobe major human resource problems !!!
1 18
7/29/2019 1.HRM Envt
18/49
1-18
HRM and Organizational Effectiveness
For a firm to survive and prosper, reasonable goals
must be achieved in:
Performance
Legal compliance
Employee satisfaction
Absenteeism
Turnover
Training effectiveness and ROI
Grievance rates
Accident rates
1 19
7/29/2019 1.HRM Envt
19/49
1-19
HRM and Organizational Effectiveness
Effectiveness is measured by the balance of such
complimentary characteristics as:
Reaching goals
Employing the skills/abilities of employees efficiently
Ensuring the influx/ entry and retention of well-
trained, motivated employees
Three elements needed for firms to be effective:
Mission and strategyOrganizational structure
HRM
1 20
7/29/2019 1.HRM Envt
20/49
1-20
HRM and Organizational Effectiveness
It is important to remember that
the people who do the work andcreate the ideas allow the
organization to survive
1 21
7/29/2019 1.HRM Envt
21/49
1-21
HRM and Organizational Effectiveness
Changes experienced by organizations:
Growing global competition
Rapidly expanding technologies
Increased demand for individual, team, and
organizational competencies
Faster cycle times
Increasing legal and compliance scrutiny
Higher customer expectations
The mechanized, routine-oriented workforce is
giving way to a knowledge-based workforce
1 22
7/29/2019 1.HRM Envt
22/49
1-22
HRM and Organizational Effectiveness
Top management has trouble making strategic
planning decisions regarding people
All other resources are evaluated in terms of money
Implementing high performance management
practices results in:
Profitability gains
Stock price increases
Higher company survival rates !!!
1 23
7/29/2019 1.HRM Envt
23/49
1-23
Objectives of the HRM Function
HRM contributions to organizational effectiveness:
Helping the organization reach its goals
Employing workforce skills and abilities efficiently
Increasing job satisfaction, self-actualization, and
quality of work life
Communicating HRM policies to all employees
Maintaining ethical policies and socially responsible
behaviorManaging change to the mutual advantage of
individuals, groups, the enterprise, and the public
1 24
7/29/2019 1.HRM Envt
24/49
1-24
Objectives of the HRM Function
Increasing employees job satisfaction and self-
actualization
Employees must feel that the job is right for their
abilities and that they are being treated equitably
Satisfied employees are not automatically moreproductive
However, unsatisfied employees tend to be absent and
quit more often and produce lower-quality work
Both satisfied and dissatisfied employees can perform
equally in quantitative terms
1-25
7/29/2019 1.HRM Envt
25/49
1-25
Objectives of the HRM Function
Quality of work life (QWL) is a general concept that
refers to several aspects of the job, including:
Management and supervisory style
Freedom and autonomy to make decisions on the job
Satisfactory physical surroundings
Job safety
Satisfactory working hours
Meaningful tasks
The job and work environment should be structured
to meet as many workers needs as possible
1-26
7/29/2019 1.HRM Envt
26/49
1-26
Objectives of the HRM Function
Communicating HRM policies to allemployees:
HRM policies, programs, and procedures must
be communicated fully and effectivelyThey must be represented to outsiders
Top-level managers must understand what
HRM can offer
1-27
7/29/2019 1.HRM Envt
27/49
1-27
Objectives of the HRM Function
Maintaining ethical policies and socially responsible
behavior:
HRM managers must show by example that HRM
activities are fair, truthful, and honorable
People must not be discriminated against
Their basic rights must be protected
These principles should apply to all activities in the
HRM area
1-28
7/29/2019 1.HRM Envt
28/49
1 28
Objectives of the HRM Function
Trends that strain employer-employee relationships:
Telecommuting
Outsourcing HRM
Family medical leave
Child careSpouse-relocation assistance
Pay for skills
Benefit cost-sharing
Union-management negotiation
These changes are due to the emergence of new
lifestyles and an aging population
1-29
7/29/2019 1.HRM Envt
29/49
1 29
Objectives of the HRM Function
Managing increased urgency and fastercycle times:
Firms are placing a growing emphasis on:
Increasing customer serviceDeveloping new products and services
Training and educating technicians,
managers, and decision makers
1-30
7/29/2019 1.HRM Envt
30/49
1 30
Objectives of the HRM Function
Faster, more urgent management behaviors have
been caused by:
Foreign and domestic competition
Technological changes
The emergence of new opportunities
Pressure to increase learning and reduce cycle time,
while also reducing cost, is a competitive reality
HRM activities must be in sync with the firms
environment !!!
1-31
7/29/2019 1.HRM Envt
31/49
1 31
Who Performs HRM Activities
Two groups normally perform HRM activities:
HR manager-specialists
Operating managers
The effectiveness of the human resource declinesmore quickly than all other resources
An investment in people effects organizational
effectiveness more than money, materials, or
equipment
1-32
7/29/2019 1.HRM Envt
32/49
Who Performs HRM Activities
A large part of an operating managers day is spent:
In scheduled and unscheduled meetings
In telephone conversations
Solving problems that have a direct impact on people
In smaller organizations, the operating manager has
such HRM responsibilities as:
Scheduling work
Recruitment and selection
Compensating people
1-33
7/29/2019 1.HRM Envt
33/49
Who Performs HRM Activities
As the organization grows, the operatingmanagers HR work may be shifted to HRM
specialists
HR specialists are found in organizations with100 to 150 employees
A HR department is typically created when the
number of employees reaches 200 to 500
1-34
7/29/2019 1.HRM Envt
34/49
Outsourcing
Outsourcing HRM activities is growing in popularity
because of:
Downsizing
Rapid growth or decline of business
Globalization
Increased competition
Restructuring
1-35
7/29/2019 1.HRM Envt
35/49
Outsourcing
Some executives assume that outsourcing can:
Reduce costs
Improve flexibility
Permit the hiring of specialized expertise
The choice to outsource HRM activities is being
made with little empirical support !!
1-36
7/29/2019 1.HRM Envt
36/49
Interaction of Operating & HR Managers
With both operating managers and HR specialists
making HRM decisions, there can be conflict
They have different orientations and objectives
Conflict is worse if joint decisions must be made on:
Discipline
Physical working conditions
Termination
Transfer
Promotion
Employment planning
1-37
7/29/2019 1.HRM Envt
37/49
Interaction of Operating & HR Managers
Operating managers and HR specialists can also
differ on:
How much authority employees have over job design
Labor relations
Organizational planning
Rewards, such as bonuses and promotions
1-38
I i f O i & HR M
7/29/2019 1.HRM Envt
38/49
Interaction of Operating & HR Managers
The roles of HRM and operating managers have
been impacted by:
Sweeping changes in business
Globalization
Technology
Demography
People dont leave companies, they leave managers
HRM can help managers do a better job
1-39
I t ti f O ti & HR M
7/29/2019 1.HRM Envt
39/49
Interaction of Operating & HR Managers
HRM is often seen as a company policeman
It is also seen as inflexible and over-attentive to detail
HRM specialists are encouraged to:
Analyze every activity and prove its added valueUnderstand the business
Become a strategic partner with line managers
Seek out operating managers
Help managers avoid problems
Be flexible and open to the ideas of others !!
1-40
N HRM C t i
7/29/2019 1.HRM Envt
40/49
Necessary HRM Competencies
Record keeping...Training/development
Accounting/financeEmployment law
Benefit designRecruiting/staffing
Compensation designLeadership
ForecastingProblem solving
TechnologyCommunication
1-41
HRM Pl i M t
7/29/2019 1.HRM Envt
41/49
HRMs Place in Management
The HR department must be a proactive, integral
part of management and strategic planning
Ascertain specific organizational needs for the
use of its competence
Evaluate the use and satisfaction among other
departments
Educate management and employees about the
availability and use of HRM services
HRM strategic plans must build on the firm's
strengths
1-42
HRM Pl i M t
7/29/2019 1.HRM Envt
42/49
HRMs Place in Management
To develop a competitive advantage over other
firms:
Organizations must create value in a way that is rare
and difficult for competitors to imitate
These things must become so important and effective
that every unit in the firm knows they are needed for
success:
The compensation systemTraining opportunities
Diversity management programs
1-43
HRM Pl i M t
7/29/2019 1.HRM Envt
43/49
HRMs Place in Management
HR executives must educate other departments
about the human resource implications of decisions
This requires being familiar with other aspects of the
organization, including:
InvestmentsAdvertising
Marketing
Production controlComputer utilization
Research and development !!!
1-44
HRM St t
7/29/2019 1.HRM Envt
44/49
HRM Strategy
A firm's HRM strategy integrates major objectives,
policies, and procedures into a cohesive whole
A well-formulated HRM strategy aggregates and
allocates a firm's resources on the basis of:
The organizations internal strengths andweaknesses
Changes in the environment
The anticipated actions of competitors ..
1-45
Cl if i M i f l HRM Obj ti
7/29/2019 1.HRM Envt
45/49
Clarifying Meaningful HRM Objectives
Theobjectivesof an organization or department are
the goals it seeks to achieve
Most objectives are stated in very general terms, from
which more specific statements are developed
These plans are calledpolicies and procedures orrules
1-46
Cl if i M i f l HRM Obj ti
7/29/2019 1.HRM Envt
46/49
Clarifying Meaningful HRM Objectives
More specific
Strategy: The plan thatintegrates major objectives
Objectives: Goals that are
specific and measurable
Policies: Guides to decisionmaking
Procedures/Rules: Specificdirections for decision making
More specific
More specific
1-47
HRM P li
7/29/2019 1.HRM Envt
47/49
HRM Policy
Apolicy is a general guide that expresses limits
within which action should occur
Policies arise from past or potential problems
They free managers from making certain decisions
They ensure some consistency in behavior
They allow managers to concentrate on decisions in
which they have the most experience and knowledge
For some organizations, the next step is to developprocedures and rules
1-48
HRM Proced res
7/29/2019 1.HRM Envt
48/49
HRM Procedures
Procedures (rules) are a specific direction to action
In large organizations, procedures are collected and
put into manuals called standard operating
procedures (SOPs)
Organizations must ensure that consistent decisionmaking flows from a well-developed, but not
excessive, set of policies and procedures
Procedures should be developed for only the most
vital areas ...
1-49
Organization of an HR Department
7/29/2019 1.HRM Envt
49/49
Organization of an HR Department
In most organizations, the chief HR executive
reports to the top manager
In medium- and small-sized organizations, HRM and
another function may be in a single department
In nonprofit organizations, HRM is typically a unit inthe business office
HR specialists are usually located at the headquarters
of an organization ..!!!