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1-1 Ch. 1 The Strategic Role ofHuman Resource

ManagementThe Management Process Planning

Organizing

Staffing

Leading

Controlling

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1-2

Management Process

Planning Goals and standards

Rules and procedures

Plans and forecasting.

Organizing Tasks

Departments

Delegating

Authority and communication

Coordinating

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1-3

Management Process

Staffing

Hiring Recruiting

Selecting

Performance standards

Compensation Evaluating performance

Counseling

Training and developing

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1-4

Management Process

Leading Getting the job done

Morale

Motivation

Controlling Setting standards

Comparing actual performance to standards

Corrective action

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1-5

HRM Function

Human Resource Management is the processof acquiring, training, appraising, and

compensating employees and attending to

their labor relations, health and safety, and

fairness concerns.

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1-7

HRM is Important to all Managers.

Dont Let These Happen to You!

The wrong person

High turnover

Poor results

Useless interviews

Court actions

Safety citations

Salaries appear unfair

Poor training

Unfair labor practices

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1-8

HRMIts All About Results

For many years it has been said that capital is

the bottleneck for a developing industry. I dont

think this any longer holds true. I think its the

work force and a companys inability to recruit

and maintain a good work force that doesconstitute the bottleneck. F. K. Foulkes

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1-9

Line and Staff Aspects of

HRM Authority

Making decisions

Directing work

Giving orders

Line Managers

Accomplishing goals Staff Managers

Assisting and advising line managers

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1-10

Line Managers HRM Jobs

The right person

Orientation

Training

Performance

Creativity Working

relationships

Policies and

procedures Labor costs

Development

Morale Protecting

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1-11

Staff Managers HRM Jobs

Line authority Implied authority

Functional control

Employee advocacy

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1-12

HR Department

Organizational

Chart

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1-13

Strategic Planning and

Trends

Strategyis the companys long-term plan

for how it will balance its internalstrengths and weaknesses with its

external opportunities and threats to

maintain a competitive advantage.

1 1

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1-14

Strategic Planning

There are three levels of strategic planning as

shown below

Corporate

Strategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

BusinessStrategy

Functional

Strategies

1 15

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1-15

The Strategic Planning

Process SWOT analysis - Strengths, Weaknesses,

Opportunities, and Threats

Best strategic plans balancea companys Strengthsand Weaknesses with the Opportunities and Threatsthe firm faces

Basic strategic trends

Globalization

Technological advances

The nature of work

The workforce

1 16

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1-16

Globalization

0

10

20

30

40

50

60

7080

1920 1950 1970 2000

% fortune 500 with a

global presence

1 17

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1-17

Technological Advances and the

Nature of Work

Technology mandates andenables companies to be

more competitive Knowledge intensive jobs in

industries such asaerospace, computers,

telecommunications, andbiotechnology are replacingfactory jobs in steel, auto,rubber and textiles

arrier

http://www.global.carrier.com/http://www.global.carrier.com/http://www.global.carrier.com/http://www.global.carrier.com/http://www.alcoa.com/

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1-19

HRs evolving role

Protectorand

Screener

Strategic Partner

Change Agent

1 20

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1-20

Strategic HRM

Strategic human resource

management:linking HRM

with strategic goals andobjectives to improve

business performance and

develop organizational

cultures fosteringinnovation and flexibility.

Clarify the business

strategy

Realign the HR

functions and key

people practices

Create needed competencies

and behaviors

Realization of business

strategies and results

Evaluate and refine

1 21

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1-21

HRs evolving role as strategicpartner

HR operations

Corporate strategy

Corporate strategy

HR programs

Corporate strategy

HR programs

Corporate strategy

HR operations

Corporate strategy

HR programs

FedEx

1 22

http://www.fedex.com/ushttp://www.fedex.com/ushttp://www.fedex.com/ushttp://www.fedex.com/us

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1-22

How HR helps strategy

execution Functional strategies

should support

competitivestrategies

Value chain analysis

Outsourcing Strategy Formulation

1 23

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1-23

How HR helps form strategy

Formation of a

companys strategy =

identifying, analyzing

and balancing external

opportunities and

threats with internal

strengths andweaknesses

Environmental

scanning

1-24

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1-24

The Value Chain Approach

1-25

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1-25

Technology can be the HumanResources engine of change

1-26

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HR and technology

Basic HR systems demand paperwork

70% of HRs employees time = paperwork

Off the shelf forms from Office Depot/Officemax

Online forms

Human Resource Information Systems (HRIS)

HR on the Internet

1-27

http://www.ihrim.org/topics/whitepapers/HIPAA1.cfm

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HR portals

Employees can

answer their own

questions

HR moves from

reactiveto proactive

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http://www.authoria.com/

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HR means performance

Can HR have a measurableimpact on a companys

bottom line? Better HRM translates into

improved employeeattitudes and motivation

(e.g., working at home) Well run HR programs drive

employee commitment

http://www.toyota.com/