Human Resources Management 11th Edition
Chapter 1STRATEGIC HUMAN
RESOURCE MANAGEMENT: AN OVERVIEW
1-1
Human Resource Management
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Utilization of individuals to achieve organizational objectives
All managers at every level must concern themselves with human resource management
Five functions
HUMAN RESOURCE MANAGEMENT FUNCTIONS
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1-4
1
Human Resource
Management
Human Resource
Development
Com
pens
atio
n
Staffing
Em
ployee and
Labor Relations
Safety and Health
Human Resource Management Functions
Staffing
Job Analysis Human Resource Planning Recruitment Selection
1-5
Human Resource Development1-9
Training Development Career Planning Career Development Organizational Development Performance Management Performance Appraisal
Compensation
Compensation - All rewards that individuals receive as a result of their employment
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Compensation1-14
Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions
Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance
Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works
Safety and Health
Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.
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Legal Considerations
Federal, state and local legislation
Court decisions Presidential
executive orders
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HR’s Changing Role: Questions That Are Being Asked
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Can some HR tasks be performed more efficiently by line managers or outside vendors?
Can some HR tasks be centralized or eliminated altogether?
Can technology perform tasks that were previously done by HR personnel?
Many HR departments continue to get smaller.
HR’s Changing Role: Who Performs Human Resource Management Tasks?
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
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Human Resource Managers HR Outsourcing HR Shared Service Centers Professional Employer Organization
(Employee Leasing) Line Managers
Human Resource Manager
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
1-20
Historically, the human resource manager was responsible for each of the five HR functions
Acts in advisory or staff capacity Works with other managers to help
them deal with human resource matters
Today HR departments continue to get smaller because others are accomplishing certain functions
HR Outsourcing
Transfers responsibility to an external provider
Market for HR outsourcing is growing dramatically
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HUMAN RESOURCE AS A STRATEGIC PARTNER
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HR as a Strategic Partner
HR executives must understand complex organizational design
Sharp deviation from what has traditionally been an administrative-type role for HR
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Strategic Activities CEOs Want from HR
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Make workforce strategies integral to company strategies and goals
Leverage HR’s role in major change initiatives
Earn the right to a seat at the corporate table
Understand finance and profits Help line managers achieve their goals
Strategic Activities CEOs Want from HR (Cont.)
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HR professionals must integrate goals of HR with goals of the organization
Must focus on expanding its strategic and high-level corporate participation with an emphasis on adding value
HR must demonstrate that it can produce a return on investment for its programs
Questions to Be Answered to Determine if HR Is Involved Strategically1-26
Is HR present at mergers and acquisitions planning meetings, strategy reviews, and restructuring discussions?
Does HR provide an annual report on its ROI?
Does HR lead the people strategy? Has it developed performance indicators
for the success of that strategy?
Questions to Be Answered to Determine if HR Is Involved Strategically (Cont.)1-27
Is HR rated by its customers? Does the organization conduct strategic
versus entitlement employee surveys? Are employee and other survey
initiatives linked to customer and financial metrics?
Is there an ROI process to evaluate HR initiatives connected to the business strategy?
Human Capital Metrics
Measures of HRperformance
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Examples of HR Metrics1-29
Time to fill open positions HR headcount ratios Administrative cost per employee Turnover cost Training return on investment Quality of hire
HUMAN RESOURCE DESIGNATIONS
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Characteristics of an HR Executive1-31
Performs one or more HR functions
A top-level manager
Reports directly to CEO or head of major
division
Characteristics of an HR Generalist
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Performs tasks in various HR-related areas
Involved in several, or all, of the five HRM functions
Characteristics of an HR Specialist1-33
May be an HR executive, manager, or
non-manager
Typically concerned with only one of
the five functional areas
EVOLUTION OF HUMAN RESOURCE MANAGEMENT
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Traditional Human Resource Function in Large Firm
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Separate sections were often created Placed under an HR Manager Each HR function may have a
supervisor & staff HR Manager works closely with top
management in formulating policy
Traditional Human Resource Functions
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President and CEO
Vice President, Marketing
Vice President, Operations
Vice President, Finance
Vice President, Human
Resources
Manager, Training and Development
Manager, Compensation
Manager, Staffing
Manager, Safety and
Health
Manager, Labor
Relations
A Possible Evolving HR Organization Example
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President and CEO
Vice President, Operations
Vice President, Strategic Human
Resources
Vice President, Finance
Director of Safety
and Health
Training & Development (Outsourced)
Compensation (Shared Service
Centers)
Staffing (Line Managers, Use of Applicant Tracking
Systems)
Vice President, Marketing
Next1-38
PART II. HR ETHICAL, LEGAL, AND SOCIAL
CONSIDERATIONS
Chapter 3: Workforce Diversity, Equal
Employment Opportunity, and Affirmative Action