Prepared by Joseph B. Mosca, Monmouth University & Marla M. Kameny, Baton Rouge Community College PowerPoint Presentation Design by Charlie Cook, The University of West Alabama

Prepared by Joseph B. Mosca, Monmouth University & Marla M. Kameny, Baton Rouge Community College PowerPoint Presentation Design by Charlie Cook, The University of West Alabama

© 2012 South-Western, Cengage Learning, Inc. All rights reserved.© 2012 South-Western, Cengage Learning, Inc. All rights reserved.

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Learning ObjectivesAfter studying this chapter, you should be able to:Learning ObjectivesAfter studying this chapter, you should be able to:

1. Describe contemporary human resource management perspectives.

2. Trace the evolution of the human resource function in organizations.

3. Identify and discuss the fundamental goals of human resource management.

4. Describe the job of human resource managers from the perspectives of professionalism and careers.

5. Discuss the setting for human resource management.

1. Describe contemporary human resource management perspectives.

2. Trace the evolution of the human resource function in organizations.

3. Identify and discuss the fundamental goals of human resource management.

4. Describe the job of human resource managers from the perspectives of professionalism and careers.

5. Discuss the setting for human resource management.

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Human Resources (HR)Human Resources (HR)

The people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards.

The people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards.

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What Is Human Resource Management (HRM) ?

What Is Human Resource Management (HRM) ?

The comprehensive set of managerial The comprehensive set of managerial activities and tasks concerned with activities and tasks concerned with developing and maintaining a qualified developing and maintaining a qualified workforceworkforce——human resourceshuman resources——in ways in ways

that contribute to organizational that contribute to organizational effectiveness.effectiveness.

The comprehensive set of managerial The comprehensive set of managerial activities and tasks concerned with activities and tasks concerned with developing and maintaining a qualified developing and maintaining a qualified workforceworkforce——human resourceshuman resources——in ways in ways

that contribute to organizational that contribute to organizational effectiveness.effectiveness.

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•Contemporary HRM PerspectivesRecognizing the importance of people as

a source of competitive advantage

Hiring, rewarding, and managing people effectively within the limits of the law

Balancing legal and ethical concerns with the needs of the organization

•Contemporary HRM PerspectivesRecognizing the importance of people as

a source of competitive advantage

Hiring, rewarding, and managing people effectively within the limits of the law

Balancing legal and ethical concerns with the needs of the organization

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Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of an individuals’s race, color, religious beliefs, sex, or national origin

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Evolution of the Human Resource Function

Evolution of the Human Resource Function

Scientific Management,Was concerned with how to structure jobs to maximize efficiency and productivity.

The Human Relations Era Emphasized keeping workers happy, since “happy workers

were productive workers.”

Personnel Management.Organizations grew and

created personnel departments to work with

employees.

HR SpecialistsThe 1964 Civil Rights Act and other legal regulations made

hiring and promoting employees more complex

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HRM in the Electronic Age

HRM in the Electronic Age

• Electronic technology has not drastically affected how human resources are managed, but certainly is affecting on how HRM systems are delivered.

• Electronic technology has not drastically affected how human resources are managed, but certainly is affecting on how HRM systems are delivered.

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•Emerging HR ChallengesFinancial crises

Stress in employees’ lives

Managing knowledge workers

•Emerging HR ChallengesFinancial crises

Stress in employees’ lives

Managing knowledge workers

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Reasons for a “No Lay-Off” PolicyReasons for a “No Lay-Off” Policy

Severance and re-hiring.Severance and re-hiring.

Accrued vacation and sick day payouts.Accrued vacation and sick day payouts.

Pension and benefit payoffs.Pension and benefit payoffs.

Potential lawsuits.Potential lawsuits.

Loss of institutional memory.Loss of institutional memory.

Lack of staffers when economy rebounds.Lack of staffers when economy rebounds.

Survivors often suffer from stress.Survivors often suffer from stress.

Beyond the Book: HR Managers Advocate “No Lay-Off”Beyond the Book: HR Managers Advocate “No Lay-Off”

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Goals of Human Resource Management

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Promoting Individual Growth and Development

Education

Skills training

Career development

Promoting Individual Growth and Development

Education

Skills training

Career development

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HR Management as aStaff Versus Line Function

HR Management as aStaff Versus Line Function

• Line managersLine managersAre directly responsible for creating Are directly responsible for creating

goods and services.goods and services.

• Staff managersStaff managersAre responsible for supporting line Are responsible for supporting line

management’s efforts to achieve management’s efforts to achieve organizational roles and objectives.organizational roles and objectives.

• Organizations have blurred this distinction.Organizations have blurred this distinction.

• Line managersLine managersAre directly responsible for creating Are directly responsible for creating

goods and services.goods and services.

• Staff managersStaff managersAre responsible for supporting line Are responsible for supporting line

management’s efforts to achieve management’s efforts to achieve organizational roles and objectives.organizational roles and objectives.

• Organizations have blurred this distinction.Organizations have blurred this distinction.

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HRM in Smaller

Organizations

HRM in Smaller

Organizations• Small organizations use operating managers to handle basic HR functions.

• Small independent businesses generally operate in the same way as small organizations.

• Very small organizations are exempt from many legal regulations.

• Small organizations use operating managers to handle basic HR functions.

• Small independent businesses generally operate in the same way as small organizations.

• Very small organizations are exempt from many legal regulations.

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HRM in Larger

Organizations

HRM in Larger

Organizations• As an organization grows, a separate HR unit becomes a necessity.At 200 to 250 employees, it establishes

a self-contained HR department.

As growth continues, the HR department develops into specialized departments.

• As an organization grows, a separate HR unit becomes a necessity.At 200 to 250 employees, it establishes

a self-contained HR department.

As growth continues, the HR department develops into specialized departments.

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The HRM Function at Texas Instruments

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Human Resource Management System

Human Resource Management System

An integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed.

An integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed.

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A Systems-Based PerspectiveA Systems-Based Perspective

• The HRM subsystem both affects and is affected by other organizational subsystems.

• Utility AnalysisThe attempt to measure, in objective terms,

the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance.

• The HRM subsystem both affects and is affected by other organizational subsystems.

• Utility AnalysisThe attempt to measure, in objective terms,

the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance.

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A Systems View of HRM

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Key elements in successfully engineering change:Key elements in successfully engineering change: Link the change through the business strategyLink the change through the business strategy

Create quantifiable benefitsCreate quantifiable benefits

Engage key employees and suppliers earlyEngage key employees and suppliers early

Integrate required behavior changesIntegrate required behavior changes

Lead clearly and consistentlyLead clearly and consistently

Invest to implement a sustained changeInvest to implement a sustained change

Communicate continuallyCommunicate continually

Sell commitment to the changeSell commitment to the change

Beyond the Book: Managing Change in OrganizationsBeyond the Book: Managing Change in Organizations

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HRM as a Center for Expertise

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•Careers in HR are expected to continue to grow.

• How to enter the HR field:

Earn a degree—a master of science or MBA in HR.

Seek an entry level job, and become a line manager.

•Careers in HR are expected to continue to grow.

• How to enter the HR field:

Earn a degree—a master of science or MBA in HR.

Seek an entry level job, and become a line manager.