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  • 1. Human ResourceManagementELEVENTH EDITION1 GARY DESSLER Part 1 | IntroductionChapter 1Introduction to Human Resource Management

2. 12 3. Human Resource Management at WorkWhat Is Human Resource Management (HRM)?The policies and practices involved in carrying out the people or humanresource aspects of a management position, including recruiting, training,appraising, and compensating employees, and of attending to their laborrelations, health & safety, and fairness concern. One aspect of the Management Process (planning, Organizing, Staffing, Leading, & Controlling) Basic HR Concepts HR creates value by engaging in activities that produce theemployee behaviors that the company needs to achieveits strategic goals. 13 4. Personnel Aspects of a Managers Job Conducting job analyses (determining the nature of each employees job) Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Training and developing managers Building employee commitmentAnd a Manager should know about: Equal opportunity & affirmative action Employee health & safety Handling grievances and labor relations14 5. What Motivates Employees? Feeling in on things8 Good wages1 Good working conditions 4 Job security2 Full appreciation of work that is done5 Tactful disciplining9 Employer loyalty to employees 7 Interesting work3 Promotion and growth in the organization6 Karl and Sutton, 1996 15 6. Why HRM Important to all Managers Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by labor court for unsafe practices Have some employees think their salaries are unfair andinequitable relative to others in the organization Allow a lack of training to undermine your departmentseffectiveness Commit any unfair labor practices16 7. Why We Care About HRM? Impact on you as employees Impact on you as managers Potential future roles as HR professionals Impact of HRM on organizations 17 8. Principles of HRM Strategic Integration An attempt to treat all labourmanagement processes from recruitment and training toremuneration and retrenchment in a strategic fashion byintegrating them with the broader business concerns of theenterprise. Organisational flexibility Commitment, from control to commitment throughchanging the organisations culture. Mission statement shouldstate these core values. Also only recruiting those prepared tosubscribe to these core values. Quality ensuring culture of quality: Quality work, qualityworkers, quality products and services; Total QualityManagement, Quality assurance and zero defects, Internalcustomers, Empowering workers via team working. 18 9. Line and Staff Aspects of HRM Authority & Responsibility The right to make decisions, direct others work, and give orders; with responsible actions utilizing such authorities in maximum resulting in benefits for all the parties involved. Line Authority; the Line manager Line authority gives the managers the right to issue orders to other managers or employees. It creates a superior-subordinate relationship. Thus the line manager is a manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks. Staff Authority; the Staff manager Staff authority gives the managers the right to advise other managers or employees. It creates an advisory relationship. Thus the staff manager is a manager who assists and advises line managers. 19 10. Functions of the HR Manager A Line Function The HR manager directs the activities of the people in his or her own department and in related service areas. While they generally can not wield line authority outside, they hold Implied authority (the authority exerted by an HR manager by virtue of others knowledge that he or she has access to top management). A Coordinative Function HR managers also coordinate personnel activities, a duty often referred to as functional control. Staff (assist and advise) Functions Assisting and advising line managers is the heart of the HR managers job. It plays an employee advocacy role by: Clearly defining how management should be treating employees. Making sure employees have the mechanisms required to contest unfair practices. Represent the interests of employees within the framework of its primary obligation to senior management.110 11. Line Managers HRM ResponsibilitiesThough HR managers assist & advise line managers in areas like recruiting,hiring, & compensation, the line managers still have their HR duties: Placing the right person on the right job Starting new employees in the organization (orientation) Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships Interpreting the firms policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining department moraleProtecting employees health and physical condition 111 12. Examples of HR Job Duties Recruiters Search for qualified job applicants. Equal employment opportunity (EEO) coordinators Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports. Job analysts Collect and examine information about jobs to prepare job descriptions. Compensation managers Develop compensation plans and handle the employee benefits program. Training specialists Plan, organize, and direct training activities. Labor relations specialists Advise management on all aspects of unionmanagement relations. 112 13. Cooperative Line & Staff HR Management HRM is part of every managers job. Thus generally its a cooperative relationship between the line & staff managers: The line managers responsibility is to specify the qualifications employees need to fill specific positions. HR staff then develops sources of qualified applicants and conduct initial screening interviews HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants. 113 14. HR Organizational Chart (Small Company)Size of the HR department reflects the size of the company, there isgenerally about one HR employee per 100 company employees.Figure 12 114 15. HR Department Organizational Chart (Large Company)Figure 11Source: Adapted from BNA Bulletin to Management, June 29, 2000. 115 16. Employment and RecruitingWho Handles It? (percentage of all employers) Note: length of bars represents prevalence of activity among all surveyed employers.Figure 13 Source: HR Department Benchmarks and Analysis, BNA/Society for Human Resource Management, 2002. 116 17. A Changing HR Environment Globalization The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad Both workers and companies have to work harder and smarter than they did before globalization Government regulation Stronger knowledge/research base Changing role for labor unions Challenge of matching worker expectations with competitivedemands 117 18. A Changing HR Environment (contd.) Technological Advances Companies use virtual online communities to improveefficiency Creating high-tech jobs, service jobs, knowledge work(human capital)Implications for HR The key to effectively utilizing all that new technology isusually not the technology, but the people. Todays employers need more sophisticated HRMselection, training, pay, and employee fairness practices118 19. Changing Role of HRM Strategy The companys long-term plan for how it will balance itsinternal strengths and weaknesses with its externalopportunities and threats to maintain a competitiveadvantage. HR managers today are more involved in partnering with their top managers in both designing and implementing their companies strategies. Strategic HRM Formulating and executing HR policies and practices thatproduce the employee competencies and behaviors thecompany needs to achieve its strategic aims.119 20. Creating High-Performance Work System Practices Employment securityBenefits of a HPWS Selective hiring Generate more job applicants Screen candidates more effectivelyExtensive training Provide more and better training Self-managed teams/decentralized Link pay more explicitly todecision makingperformance Reduced status distinctions Provide a safer work environment Information sharing Produce more qualified applicants Contingent (pay-for-performance) per position More employees are hired basedrewards on validated selection tests Transformational leadership Provide more hours of training for Measurement of managementnew employeespractices Higher percentages of employees Emphasis on high-quality workreceiving regular performance appraisals. 120 21. Measuring HRs Contribution: The HR Scorecard HR Scorecard measures the HR functions effectiveness & efficiency in producing employee behaviors needed to achieve the companies strategic goals. It shows the measurable, cause-and-effect links between three things:1. HR activities, such as improving the firms incentive plan,2. Intermediate employee results, such as improved morale,3. End-result company metrics, such as improved customer service and higher profits. 121 22. HR Managers ProficienciesBeing a HR manager today is challenging and requires several proficiencies: HR proficiencies Represent traditional knowledge & skills in areas like employeeselection, training, and compensation. Business proficiencies Reflect HR managers new strategic role, like assisting top managemen