1._HRM_Today

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Managing Human Resources Today

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When you finish studying this chapter, you should be able to:

• Answer the question “What is human

resource management?”

• Discuss the components of thechanging environment of human

resource management.

• Give examples of human resourcemanagement’s role as a strategic

partner

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WHAT IS HUMAN RESOURCE

MANAGEMENT? • Human resource (HR) management

refers to the practices and policies you

need to carry out the personnel aspectsof your management job, specifically,

acquiring, training, appraising,

rewarding, and providing a safe and fairenvironment for your company’s

employees

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HUMAN RESOURCE MANAGEMENT

• Conducting job analyses

• Planning labor needs and recruiting job

candidates• Selecting job candidates

• Orienting and training new employees

• Managing wages and salaries

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HUMAN RESOURCE MANAGEMENT

• Providing incentives and

benefits

• Appraising performance

• Training and developing

• Building employee

commitment

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Why Is HR Management Important to All

Managers?

• Hiring the wrong

person for the job

• Experiencing highturnover

• Finding employees

not doing their best

• Having your company

taken to court because

of your discriminatoryactions

• Having your company

cited under federal

occupational safetylaws for unsafe

practices

Personnel mistakes you don’t want to make -

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Line Versus Staff Authority

• Authority is the

right to make

decisions, todirect the work of

others, and to

give orders

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Line Versus Staff Authority

• Line managers

are authorized to

direct the work ofsubordinates

• in charge of

accomplishing the

organization’s basicgoals

• Staff managers

assist and advise

line managers inaccomplishing these

goals

• HR managers are

generally staffmanagers

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Line Managers’ H R Responsibilities

• Placing the right person in the right job

• Starting new employees in the organization

• Training employees for jobs that are new tothem

• Interpreting the company’s policies and

procedures

• Controlling labor costs

• Protecting employees’ health and physical

conditions

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Human Resource Department’s

Management Responsibilities• Compensation and

benefits

• Recruiting• Training & development

• Employee relations

• Occupational safety andhealth

• Job analysis

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HR’s Changing Environment

• Globalization refers to the tendency of

firms to extend their sales, ownership,

and/or manufacturing to new marketsabroad

• Technological Advances

• Nature of Work

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HR’s Changing Environment

• Workforce demographics are

becoming more diverse as women,

minority-group members, and older

workers enter the workforce

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HR’S STRATEGIC CHALLENGES

• The central challenge

facing HR is to provide

a set of services that

make sense in terms ofthe company’s strategy.

• A strategy is the

company’s plan for how

it will balance its

internal strengths andweaknesses with

external opportunities

and threats in order to

maintain a competitiveadvantage

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HR’S STRATEGIC CHALLENGES

• Most firms’

strategies

increasinglystress building

organizational

competitivenessand performance

• HR must be more

involved indesigning —not just

implementing—

companies’

strategies

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HR and competitive advantage

• Competitive advantage means “any

factors that allow an organization to

differentiate its product or service fromthose of its competitors to increase

market share”

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HR as competitive advantage

• There is greater

recognition that

distinctive competenciesare obtained through

highly developed

employee skills,

distinctive organizationalcultures, management

processes, and systems.

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Strategic Human Resource Management

• The linking of HRM with strategic goals

and objectives in order to improve

business performance and develop

organizational cultures that foster

innovation and flexibility

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3 views of HRM

• HR activities involve “putting out fires”,

making sure employees are “paid on

time” • Role is simply to “fit” and to help

execute the company’s strategy

• HR is an equal partner in the strategicplanning process

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HR’s Role in FormulatingStrategy

• HR participates in the strategy

formulation process by supplying

information regarding the company’sinternal human strengths and

weaknesses

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HR’s Role in Executing Strategy

• HR is heavily involved in the execution

of most firms’ downsizing and

restructuring strategies, through out-

placing employees, instituting pay-for-

performance plans, reducing health

care costs, and retraining employees.

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The Strategic Future of the HRDepartment

Human resource departments will face

further downsizing and “reengineering,

as they face pressure from seniormanagement to add value to the

organization or have their functions

contracted out.”

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HR AND TECHNOLOGY

• Application Service Providers

• Web portals

• PCs and high speed access

• Streaming desktop video

• Mobile web and wireless net access

1._HRM_Today

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