Introduction to Human Resource Management
M. Khasro MIAH Ph.D.
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Personnel Mistakes
Hire the wrong person for the jobExperience high turnoverHave your people not doing their bestWaste time with useless interviewsHave your company in court because of
discriminatory actionsHave some employees think their salaries are
unfair and inequitable relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labor practices04/08/23MBA Summer 2011 Section 1 1–2
Human Resource Management
Human Resource Management is the organizational function that deals with issues related to people such as hiring, training, promotion, performance management, compensation, organization development, safety, wellness, benefits, employee motivation, communication, administration and Industrial relations.
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Therefore, human resource management can be defined as a specific combination of HR practices, work structures, and processes that maximizes employee knowledge, skill, commitment, and flexibility.
It composed of many interrelated parts that complement one another to reach the goals of an organization, large or small.
Set of activities directed at attracting, developing, and maintaining an effective workforce capable of achieving the firm’s objective.
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”Soft” and ”Hard” HRM Soft HRM emphasizes the importance of highcommitment, learning, enlightened leadership;human resources are valuable assets, notvariable costs. Models and theories focus ontapping the human potential, based onorganizational behavior theories (e.g. Maslow,1954; Herzberg, 1966; McGregor, 1960)• Hard HRM emphasizes the calculative,quantitative and strategic management aspects( Strategy, Structure) and of managing the
workforce in a rational way (Storey, 1989).
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Evolution of HRM
Human resource management has changed in name various times throughout history.
Industrial welfare was the first form of human resource management (HRM).
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Evolution of HRM
• In 1833 the factories act stated that there should be male factory inspectors.
• In 1878 legislation was passed to regulate the hours of work for children and women by having a 60 hour week. During this time trade unions started to be formed.
• In 1868 the 1st trade union conference was held.
• This was the start of collective bargaining.
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Evolution of HRM(cont’s)
In 1916 it became compulsory to have a welfare worker in explosive factories and was encouraged in arms factories.
The armed forces focused on how to test abilities and IQ along with other research in human factors at work.
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Evolution of HRM(cont’s)
1917-18: 1st formal personnel department created to deal with tight labor market, high turnover, waste and
inefficiency, widespread strikes, union growth,government intervention, takeovers
1920’s: HR used to “win” worker cooperation, through ensuring job security, benefits, etc.
1930’-50’s: “Human Relations” recognizes that there are psychological and social influences to worker
satisfaction, cooperation, performance; first focus ongroups (not teams).
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Evolution of HRM
1960’s: Work design, rather than communication and cooperation in groups, is the key to increasing worker motivation. Small work group design leads to greater employee effort, group work provides opportunities for “self-actualization”; work is more interesting and fulfilling.
1970’s: Quality of Work Life (QWL): emphasis on the value
of human resources. PM becomes HR.
1990’s-Present: TQM, reengineering, globalization, strategic HR, new technologies, diversity, contingency models, holistic approaches to HR. HRM models include “high involvement”, “high commitment”, “high performance work system”, “innovative work practices”. HR becomes HRM.
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The Management Process
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Planning
Organizing
Leading Staffing
Controlling
Human Resource Management at Work
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Acquisition
Training
Appraisal
CompensatingLabor Relations
Health and Safety
Fairness
Human Resource
Management(HRM)
Personnel Aspects of a Manager’s Job
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries
Providing incentives and benefits
Appraising performance
Communicating
Training and developing managers
Building employee commitment
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DIFFERENCES BETWEEN TRADITIONAL AND NEW HRM
FactorsFactors Traditional HRTraditional HR New HRM ConceptNew HRM Concept
Responsibility Responsibility of HRof HR
Staff specialists Line managersLine managers
FocusFocus Employee relations Partnership with internal and Partnership with internal and external customers and external customers and stakeholdersstakeholders
Role of HRRole of HR Transactional, change follower and respondents
Transformational, change Transformational, change leader and initiatorleader and initiator
InitiativesInitiatives Slow reactive, fragmented Fast, proactive, integratedFast, proactive, integrated
Time HorizonsTime Horizons Short term Short, median and long as Short, median and long as necessary necessary
ControlControl Bureaucratic- rules, policies, procedures
Organic- flexible, whatever is Organic- flexible, whatever is needed to succeedneeded to succeed
Job DesignJob Design Tight division of labor, independence, specialization
Broad, flexible, cross-training Broad, flexible, cross-training
Key Key InvestmentInvestment
Capital, Products People, knowledge People, knowledge
AccountabilityAccountability Cost centre Investment centre Investment centre 1–14MBA Summer 2011 Section 1
Basic HR Concepts
The bottom line of managing: Getting results
HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.
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Line and Staff Aspects of HRM
Line manager A manager who is authorized to direct
the work of subordinates and is responsible for accomplishing the organization’s tasks.
Staff manager A manager who assists and advises line
managers.
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Line Managers’ HRM Responsibilities
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 firm’s 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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Human Resource Managers’ Duties
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Functions ofHR Managers
Line FunctionLine Authority
Implied Authority
Staff FunctionsStaff Authority
InnovatorEmployee Advocacy
Coordinative Function
Functional Authority
Human Resource Specialties
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Recruiters
EEO Coordinators
Labor Relations Specialists
Training Specialists
Job Analysts
Compensation Managers
Human Resource
Specialties
A Systems View of Human Resource Management
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Goals of Human Resource Management
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Human Resource Management as a Center of Expertise
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FIGURE 1–1 HR Organization Chart for a Large Organization
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Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.
FIGURE 1–2 HR Organizational Chart (Small Company)
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FIGURE 1–3 Employment and Recruiting—Who Handles It? (Percentage of All Employers)
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Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center.
Note: Length of bars represents prevalence of activity among all surveyed employers.
The Changing Environment of Human Resource
Management
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Globalization Trends
Technological Trends
Trends in the Nature of Work
Workforce Demographic Trends
Changes and Trends in Human Resource
Management
FIGURE 1–4 Employment migration: Projected Loss of Jobs and Wages
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Source: Michael Schroeder, “States Fight Exodus of Jobs,” Wall Street Journal, June 3, 2003, p. 84. Reproduced with permission of Dow Jones & Co. Inc. via Copyright Clearance Center.
The Changing Role of Human Resource Management
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New Responsibilities for HR Managers
Measuring the HRM Team’s Performance
Managing with the HR Scorecard
Process
Creating High- Performance Work
Systems
Strategic Human Resource
Management
TABLE 1–1 Technological Applications for HR
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Application Service Providers (ASPs) and technology outsourcing
Web portals
PCs and high-speed access
Streaming desktop video
The mobile Web and wireless net access
E-procurement
Internet- and network-monitoring software
Bluetooth
Electronic signatures
Electronic bill presentment and payment
Data warehouses and computerized analytical programs
High-Performance Work System Practices
Employment securitySelective hiringExtensive trainingSelf-managed teams/decentralized decision
makingReduced status distinctionsInformation sharingContingent (pay-for-performance) rewardsTransformational leadershipMeasurement of management practicesEmphasis 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 1–5 Five Sample HR Metrics
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HR Metric* How to Calculate It
Absence rate # of days absent in month× 100
Average # of employees during month × # of workdays
Cost per hire Advertising + agency fees + employee referrals + travel cost ofapplicants and staff + relocation costs + recruiter pay and benefits
Number of hires
HR expense factor
HR expense
Total operating expense
Time to fill Total days elapsed to fill job requisitions
Number hired
Turnover rate Number of separations during month× 100
Average number of employees during month
Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; 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 Management 39, no. 1 (Spring 2000), pp. 93–105; [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..
Measuring HR’s 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 Manager’s Proficiencies
New Proficiencies HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
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FIGURE 1–6 Effects CFOs Believe Human Capital Has on Business Outcomes
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Source: Steven H. Bates, “Business Partners,” HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.
HR Certification
HR is becoming more professionalized.
Society for Human Resource Management (SHRM) SHRM’s Human Resource Certification
Institute (HRCI)
SPHR (senior professional in HR) certificate
PHR (professional in HR) certificate
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FIGURE 1–72004 SHRM®
Learning SystemModuleDescriptions
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The Human Resource Manager’s Proficiencies (cont’d) Managing within the Law
Equal employment laws
Occupational safety and health laws
Labor laws
Managing Ethics Ethical lapses
Sarbanes-Oxley in 2003
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An integrated approach to people resourcing
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HR strategy: the integration of HR activities to manage performance
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HRM in the twenty-first century?
K E Y T E R M SK E Y T E R M S
management process
human resource management(HRM)
authority
line manager
staff manager
line authority
staff authority
implied authority
functional control
employee advocacy
globalization
human capital
strategy
strategic plan
metrics
HR Scorecard
outsourcing
ethics
strategic human resource management
high-performance work system
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