After studying this chapter, you should be able to:Explain what human resource management is and how it relates to the management process.Give at least eight examples of how all managers can use human resource management concepts and techniques.Illustrate the human resources responsibilities of line and staff (HR) managers.Provide a good example that illustrates HRs role in formulating and executing company strategy.Write a short essay that addresses the topic: Why metrics and measurement are crucial to todays HR managers.Outline the plan of this book.

The Management Process

Human Resource Management at WorkWhat Is Human Resource Management (HRM)?The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Human Resource Management at Work

Personnel Aspects of a Managers JobConducting job analyses Planning labor needs and recruiting job candidatesSelecting job candidatesOrienting and training new employeesManaging wages and salariesProviding incentives and benefitsAppraising performanceCommunicating Training and developing managersBuilding employee commitment

Personnel MistakesHire the wrong person for the jobExperience high turnoverHave your people not doing their bestWaste time with useless interviewsHave your company in court because of discriminatory actionsHave your company cited by OSHA for unsafe practicesHave some employees think their salaries are unfair and inequitable relative to others in the organizationAllow a lack of training to undermine your departments effectivenessCommit any unfair labor practices

Basic HR ConceptsThe bottom line of managing: Getting resultsHR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.

Line and Staff Aspects of HRMLine managerA manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks.Staff managerA manager who assists and advises line managers.

Line Managers HRM ResponsibilitiesPlacing the right person on the right jobStarting new employees in the organization (orientation)Training employees for jobs that are new to themImproving the job performance of each personGaining creative cooperation and developing smooth working relationshipsInterpreting the firms policies and proceduresControlling labor costsDeveloping the abilities of each personCreating and maintaining department moraleProtecting employees health and physical condition

Human Resource Managers Duties

Human Resource Specialties

FIGURE 11 HR Organization Chart for a Large OrganizationSource: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

FIGURE 12HR Organizational Chart (Small Company)

FIGURE 13Employment and RecruitingWho Handles It? (Percentage of All Employers)Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002. Reproduced with permission via Copyright Clearance Center.Note: Length of bars represents prevalence of activity among all surveyed employers.

The Changing Environment of Human Resource Management

FIGURE 14Employment Exodus: Projected Loss of Jobs and WagesSource: Michael Schroeder, States Fight Exodus of Jobs, Wall Street Journal, June 3, 2003, p. 84. Reproduced with permission of Dow Jones & Co. Inc. via Copyright Clearance Center.

The Changing Role of Human Resource Management

TABLE 11Technological Applications for HRApplication Service Providers (ASPs) and technology outsourcingWeb portalsPCs and high-speed accessStreaming desktop videoThe mobile Web and wireless net accessE-procurementInternet- and network-monitoring softwareBluetoothElectronic signaturesElectronic bill presentment and paymentData warehouses and computerized analytical programs

High-Performance Work System PracticesEmployment securitySelective hiringExtensive trainingSelf-managed teams/decentralized decision makingReduced status distinctionsInformation sharingContingent (pay-for-performance) rewardsTransformational leadershipMeasurement of management practicesEmphasis on high-quality work

Benefits of a High-Performance Work System (HPWS)Generate more job applicantsScreen candidates more effectivelyProvide more and better trainingLink pay more explicitly to performanceProvide a safer work environmentProduce more qualified applicants per positionHiring based on validated selection testsProvide more hours of training for new employeesConduct more performance appraisals

FIGURE 15Five Sample HR MetricsSources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320; Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research 2006 Strategic HR Management Survey Report, Society for Human Resource Management..

HR Metric*How to Calculate ItAbsence rate# of days absent in month 100Average # of employees during month # of workdays

Cost per hireAdvertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefitsNumber of hires

HR expense factorHR expenseTotal operating expense

Time to fillTotal days elapsed to fill job requisitionsNumber hired

Turnover rateNumber of separations during month 100Average number of employees during month

Measuring HRs ContributionThe HR ScorecardShows the quantitative standards, or metrics the firm uses to measure HR activities.Measures the employee behaviors resulting from these activities.Measures the strategically relevant organizational outcomes of those employee behaviors.

The Human Resource Managers ProficienciesNew ProficienciesHR proficienciesBusiness proficienciesLeadership proficienciesLearning proficiencies

FIGURE 16Effects CFOs Believe Human Capital Has on Business OutcomesSource: Steven H. Bates, Business Partners, HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.

HR CertificationHR is becoming more professionalized.Society for Human Resource Management (SHRM)SHRMs Human Resource Certification Institute (HRCI)SPHR (senior professional in HR) certificatePHR (professional in HR) certificate

FIGURE 172004 SHRMLearning SystemModuleDescriptions

The Human Resource Managers Proficiencies (contd)Managing within the LawEqual employment lawsOccupational safety and health lawsLabor lawsManaging EthicsEthical lapsesSarbanes-Oxley in 2003

The Plan of This Book: Basic ThemesHRM is the responsibility of every manager.HR managers must defend their plans and contributions in measurable terms.All personnel actions and decisions have strategic implications.All managers rely on information technology.Virtually every personnel decision has legal implications.

FIGURE 18Strategy and the Basic Human Resource Management Process

K E Y T E R M Smanagement process human resource management (HRM) authority line manager staff manager line authority staff authority implied authority functional control employee advocacyglobalizationhuman capitalstrategystrategic planmetricsHR Scorecardoutsourcingethicsstrategic human resource managementhigh-performance work system