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Gary Dessler and Chwee Huat TanGary Dessler and Chwee Huat Tan
ChapterChapter 11
Human ResourceHuman Resource
Management:Management:An Asian PerspectiveAn Asian Perspective(Second Edition)
Introduction to
Human ResourceManagement
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After studying this chapter,After studying this chapter,you should be able to:you should be able to:
1. Explain what HRM is and how it relates tothe management process.
2. Discuss how managers can use HRconcepts.
3. Compare the HR responsibilities of line
and staff managers.
4. Explain the changing role of HRmanagers.
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After studying this chapter,After studying this chapter,you should be able to:you should be able to:
5. Discuss the changing environment of HRM.
6. Discuss HRM as a profession.
7. Explain how HR practices are influenced bycultural and religious values.
8. Know the plan of this book.
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The Managers Human ResourceManagement Jobs
Management process
The five basic functions of planning,organizing, staffing, leading, and
controlling.
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The Managers Human ResourceManagement Jobs
Human resource management (HRM)
The policies and practices involved incarrying out the people or human resourceaspects of a management position, includingrecruiting, training, appraising andrewarding.
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HR Aspects Of A Managers Job
Conducting job analyses (determining thenature of each employees job)
Planning manpower needs and recruiting jobcandidates
Selecting job candidates
Orienting and training new employees
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HR Aspects Of A Managers Job
Managing wages and salaries(compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling,disciplining)
Building employee commitment
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HR Aspects Of A Managers Job
Understanding employment laws
Knowing employee health and safety issues
Handle grievances and employment relations
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Basic HR Concepts
Getting results
The bottom line of managing
HR creates value by engaging in
activities that produce the employee
behaviors the company needs to
achieve its strategic goals.
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Line and Staff Aspects of HRM
Authority
The right to make decisions, direct otherswork, and give orders.
Staff authority (Advisory) The authority gives right to the HR manager
to advise other managers or employees.
Line authority (Superior-Subordinate)
The authority of managers to direct people inhis or her own department.
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Line and Staff Aspects of HRM
Line manager (Line Authority)
A manager who is authorized to direct thework of subordinates and is responsible for
accomplishing the organizations tasks.
Staff manager (Staff Authority)
A manager who assists and advises linemanagers.
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Line Managers HRMResponsibilities
1. Place the right person on the right job
2. Orientate new employees
3. Train employees for jobs new to them
4. Improve the job performance of each person
5. Gain creative cooperation and developing
smooth working relationships
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Line Managers HRMResponsibilities
6. Interpret the companys policies and
procedures
7. Control costs8. Develop the abilities of each person
9. Maintain morale
10.Protect employees health and physicalcondition
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Carries out 3 distinct functions:-
1. Line function
2. Coordination function3. Staff function
Functions of the HR Manager
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A line function
The HR manager directs the activities ofthe people in his or her own departmentand in related service areas (like the plantcafeteria).
Functions of the HR Manager
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A coordinative function
HR managers also coordinate personnelactivities, a duty often referred to asfunctional control.
Functions of the HR Manager
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Staff (assist and advise) functions
Assisting and advising line managers is theheart of the HR managers job.
Functions of the HR Manager
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Size of HR Department
Example of HR department in a small
company:
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Size of HR Department
Example of HR department in a large company:
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Duties of HR Specialists
Training Specialist
Plan, organize and direct training
Advise managers on training
Job Analyst
Collect information about jobs
Prepare job description
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Duties of HR Specialists
Recruiter
Collect information about jobs
Interview and recommend suitablecandidates
EEO (Equal Employment Opportunity)
Coordinator
Investigate EEO grievances Examine HR practices for potential
violations
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Duties of HR Specialists
Compensation Manager
Develop compensation plans
Handle employee benefits program
Employment relations specialist
Advise managers on ER issues
Negotiate with unions
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The Changing Environment OfHR Management
HR managers must be able to respond to
changes that are happening every day
Major changes or trends as follows:
Globalization
Technological advances
Changes in nature of work
Changes in workforce demographics
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The Changing Environment OfHR Management
Globalization
Tendency of companies to extend sales,ownership, or production to other
countries More competition more pressure to be
world class Lower costs and toincrease productivity of employees
E.g.
Toyota produces cars in China,Thailand and many other countries.
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The Changing Environment OfHR Management
Technological Advances
Use of internet and informationcommunication technology (ICT) to
increase competitiveness in business
Enabled businesses to outsource theirnon-core activities to other countrieswhere costs are lower
Causes changes in nature of work
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The Changing Environment OfHR Management
Changes in nature of work
Caused by technological advances as well
From manufacturing jobs to service jobs
Usage of non-traditional workers staffholding multiple jobs, or part-time staff
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Changes in environmentHR managers to
take on new responsibilities
HR functions more strategic
The Changing Role OfHR Management
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Strategic HRM
Formulating HR policies and introducingpractices that produce staff competencies
and behaviors that the company needs toachieve its strategic goals.
The Changing Role OfHR Management
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Strategic HRM
HR managers today are more involved inpartnering with their top managers in
both designing and implementing theircompanies strategies
Top management wants to see, precisely,how the HR managers plans will make
the company more valuable.
The Changing Role OfHR Management
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High Performance Work Systems (HPWS)
Integrated set of HRM policies andpractices that together produce superior
staff performance Need to focus on performance
No fixed rule of items that comprisesHPWS but should include:
Employment security
The Changing Role OfHR Management
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High Performance Work Systems (HPWS)
No fixed rule of items that comprisesHPWS but should include (cont):
Selective hiring
Extensive training
Self managed teams and decentralized decision
making
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High Performance Work Systems (HPWS)
No fixed rule of items that comprisesHPWS but should include (cont):
Reduced status distinctions among managers andworkers
Information sharing among managers
Pay-for-performance rewards
Emphasis on high quality work
The Changing Role OfHR Management
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High Performance Work Systems (HPWS)
Benefits of 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
The Changing Role OfHR Management
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High Performance Work Systems (HPWS)
Benefits of HPWS (cont)
Produce more qualified applicants per position
More employees are hired based on validated
selection tests
Provide more hours of training for new employees
Higher percentages of employees receiving regular
performance appraisals.
The Changing Role OfHR Management
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Measuring HRM Teams Performance
Employees expect HR teams to providemeasurable proof of the effectiveness of
their programs
Require quantitative measures
Metrics and HR Scorecard are used
The Changing Role OfHR Management
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Measuring HRM Teams Performance
Metrics A set of quantitative performance measures that
HR managers use to assess their operations
E.g. of HR Metrics
Absence Rate
[(Number of days absent in month) (Averagenumber of employees during mo.) (number of
workdays)] 100
The Changing Role OfHR Management
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Measuring HRM Teams Performance
Metrics E.g. of HR Metrics (cont)
Cost per Hire
(Advertising + Agency Fees + Employee Referrals+ Travel cost of applicants and staff + Relocationcosts + Recruiter pay and benefits) Number of
Hires
The Changing Role OfHR Management
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Measuring HRM Teams Performance
Metrics E.g. of HR Metrics (cont)
Health Care Costs per Employee
Total cost of health care Total Employees
HR Expense Factor
HR expense Total operating expense
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. 13
20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics, Human Resource Management39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce
Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
The Changing Role OfHR Management
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Measuring HRM Teams Performance
HR Scorecard
Measures the HR functions effectiveness and
efficiency in producing employee behaviorsneeded to achieve the companys strategic goals
Concise and simple measurement system
The Changing Role OfHR Management
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Measuring HRM Teams Performance
HR Scorecard Use to measure:
HR activities (testing, training, compensation andsafety)
Employee behaviors resulting from such
activities
Organizational outcomes of those employee
behaviors (higher performance, and companyprofit)
The Changing Role OfHR Management
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The New HR Manager
New Proficiencies
HR proficiency
Business proficiency
Leadership proficiency
Learning proficiency
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The New HR Manager
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HRM and Professionalism
HR Certification
HR is becoming more professionalized.
Professional institutes- Certification
- Upgrading skills and expertise
- Exchange views
- Contribute to community
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HRM and Professionalism
Professional Institutes
Training and education
Up-to-date knowledge and information
Maintain links with similar organizationsin other countries
Active in regional associations
International conferences
Authority to specify qualification ofmembers
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HR and Cultural Values
Confucianism
Harmonious relationship
Mutual obligations
Hierarchy
Social order
Sun Tzus Art of War
Explains theories of organization,planning, leadership and strategies
Importance of training, discipline andloyalty
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HR and Cultural Values
Han Fei Tzu: Reward and Punishment
A leader should: Find talented subordinates
Set up a system of rules
Explain these rules to subordinates
Appropriate time and place to deal with problems
Strictly administer reward and punishment
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HR and Cultural Values
Han Fei Tzu: Reward and Punishment
Role of a leader (summarized)
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HR and Cultural Values
Other approaches
Thailand: Buddhist approach
Malaysian cultural values
National Values: Indonesia: Pancasila
Malaysia: Rukunegara
Singapore: National Shared Values
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HR and Cultural Values
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The Plan ofThis Book:Basic Themes
HR management is the responsibility of everymanagernot just those in the HR department.
HR managers must be ready to defend their plans
and contributions in measurable terms. An HR departments performance is measured
relative to achieving the companys strategic aims.
HR managers increasingly rely on IT to help support
the companys strategic aims. Virtually every HR-related decision managers make
has legal implications.
Globalization and diversity are important HR issuestoday.
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Strategy and the Basic HRProcess