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Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

Introduction to Human Resource ManagementIntroduction to Human Resource Management

Chapter 1Chapter 1

Part 1 | IntroductionPart 1 | Introduction

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Make-up lectureMake-up lecture• Date: October 2, 2010 (Saturday)Date: October 2, 2010 (Saturday)• Place: Lt-17Place: Lt-17• Time: 10:30 am – 12:30 pmTime: 10:30 am – 12:30 pm

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The Management ProcessThe Management Process

Planning

Organizing

Leading Staffing

Controlling

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Nature of Human Resource ManagementNature of Human Resource Management• Purpose of Human Resource ManagementPurpose of Human Resource Management

To To improveimprove the the productive contributionproductive contribution of people to of people to the organizationthe organization

• Purpose of studying Human ResourcePurpose of studying Human Resource To To understand what Human Resource Managers dounderstand what Human Resource Managers do

and what they should do in order to and what they should do in order to enhanceenhance the the contributioncontribution of people to the organization’s of people to the organization’s productivityproductivity

More important to the business operation

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Value of Human ResourceValue of Human Resource• ““The The only resourceonly resource that one organization has that that one organization has that

cannot be cannot be duplicatedduplicated by any other organization is by any other organization is its peopleits people” (Kenichi Ohmae)” (Kenichi Ohmae)

• ““We believe that what sets We believe that what sets most successfulmost successful organizations apart is how they manage human organizations apart is how they manage human resources. The ability to achieve and sustain resources. The ability to achieve and sustain competitive advantagecompetitive advantage lies within the workforce” lies within the workforce” (Milkovich & Boudreau)(Milkovich & Boudreau)

• ““Our Our employeesemployees are our are our customers’ greatest customers’ greatest assetasset. To be the employer of choice, we must . To be the employer of choice, we must hire hire and develop employeesand develop employees that that our customersour customers would would wantwant” (David Ulrich)” (David Ulrich)

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FIGURE 1–6 Effects CFOs Believe Human Capital Has on Business Outcomes

Source: 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.

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HR roleHR role continues to evolve (Current continues to evolve (Current trend)trend)

““We are seeing demand for HR We are seeing demand for HR professionals is on the rise, as the professionals is on the rise, as the intention to hire quality human capital intention to hire quality human capital growsgrows,”,” says Francis Mok, president of the HK says Francis Mok, president of the HK Institute of Human Resource Management Institute of Human Resource Management (from (from SCMP, August 14, 2010)SCMP, August 14, 2010)

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Human Resource Management at WorkHuman Resource Management at Work• What Is Human Resource Management What Is Human Resource Management

(HRM)?(HRM)? The The policiespolicies and and practicespractices involved in carrying out involved in carrying out

the “people” or the “people” or human resourcehuman resource aspects of a aspects of a management position, including management position, including recruiting, recruiting, screening, training, rewarding, and appraisingscreening, training, rewarding, and appraising..

Competitive advantages

High

quality HR capital

Retention of HR capital

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Line and Staff Aspects of HRMLine and Staff Aspects of HRM• Line managerLine manager

A manager who is A manager who is authorizedauthorized to to direct the work ofdirect the work of subordinatessubordinates and is responsible for accomplishing and is responsible for accomplishing the organization’s tasks.the organization’s tasks.

• Staff managerStaff manager A manager who A manager who assistsassists and and advisesadvises line managers. line managers.

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ABC Co LtdABC Co Ltd

President

Vice President

Sales & Marketing DeptSales & Marketing Manager

Human Resource DeptHuman Resource Manager

Finance DeptFinance Manager

Administration DeptAdministration Manager

Customer ServiceSupervisor

Bus PromotionSupervisor

CS officer CS officer BP officer BP officer

T & DSupervsor

RecruitmentSupervisor

TD officer TD officer R officer R officer

Supervisor

Accountingclerk

Accountingclerk

Supervisor

Adminclerk

Admin clerk

Senior Management

Middle Management

Chain of command

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Human Resource Managers’ FunctionsHuman Resource Managers’ Functions

Functions ofHR Managers

Line FunctionLine Authority

Staff FunctionsStaff Authority

Employee Advocacy

Coordinative Function

Functional Authority

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Human Resource Managers’ FunctionsHuman Resource Managers’ Functions• Line functionLine function

The authority exerted by HR manager (i.e. The authority exerted by HR manager (i.e. line managerline manager) by ) by directing the activities of the people in directing the activities of the people in his or her own his or her own department department

• Staff function (assist and advise)Staff function (assist and advise) Staff authority gives the manager the right (authority) to Staff authority gives the manager the right (authority) to advise advise

other managers or employeesother managers or employees (i.e. staff manager)(i.e. staff manager) E.g. hiring employee, complying with safety rulesE.g. hiring employee, complying with safety rules

Employee advocacyEmployee advocacy Help define how Help define how managementmanagement should be should be treatingtreating employees, make employees, make

sure sure employeesemployees have the have the mechanismsmechanisms required to contest required to contest unfair unfair practicespractices, and , and representrepresent the the interests of employeesinterests of employees within the within the framework of its primary obligation to senor managementframework of its primary obligation to senor management

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Human Resource Managers’ FunctionsHuman Resource Managers’ Functions• Coordinative functionCoordinative function

The authority exerted by HR manager as coordinator The authority exerted by HR manager as coordinator of personnel activitiesof personnel activities

Coordinates HR activities and HR-related issuesCoordinates HR activities and HR-related issues Functional authority (functional control): Ensure that Functional authority (functional control): Ensure that line line

managersmanagers are are implementingimplementing the firm’s human resource the firm’s human resource policies and practicespolicies and practices

E.g. adhering to sexual harassment policies, health and E.g. adhering to sexual harassment policies, health and safety practices, etc.safety practices, etc.

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ABC Co LtdABC Co Ltd

President

Vice President

Sales & Marketing DeptSales & Marketing Manager

Human Resource DeptHuman Resource Manager

Finance DeptFinance Manager

Administration DeptAdministration Manager

Customer ServiceSupervisor

Bus PromotionSupervisor

CS officer CS officer BP officer BP officer

T & DSupervsor

RecruitmentSupervisor

TD officer TD officer R officer R officer

Supervisor

Accountingclerk

Accountingclerk

Supervisor

Adminclerk

Admin clerk

Senior Management

Middle Management

VacantArrange and take part in the whole R/S process

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Check Point:Check Point:

If you compare staff function with co-If you compare staff function with co-ordinative function, which one does require ordinative function, which one does require more involvement from HR manager?more involvement from HR manager?

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Quick Review:Quick Review:

HR Manager

HR Functions

Authorities

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Write down the type(s) of authority for each Write down the type(s) of authority for each HRM function given in a boxHRM function given in a box

Functions ofHR Managers

Line Function

Staff Functions

Coordinative Function

Line AuthorityFunctional Authority

Staff Authority

Employee Advocacy

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Human Resource Management at WorkHuman Resource Management at Work

Acquisition

Training

Appraisal

Labor RelationsCompensating

Health and Safety

Fairness

Human Resource

Management(HRM)

Development & Evaluation

Personnel planning, recruitment and selection

Employee relations

Compensation & protection

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HRM Topics Covered in CM20370HRM Topics Covered in CM20370

Week TOPIC1 Introduction to Human Resource Management

4 Job analysis

5/6 Personnel planning and recruitment

7/8 Employee testing and selection

9 Training and developing employees

10 Performance management and appraisal

11/12 Compensation management and employee relations

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Human Resource SpecialtiesHuman Resource Specialties

Recruiters

EEO Coordinators

Labor Relations Specialists

Training Specialists Job Analysts

Compensation Managers

Human Resource

Specialties

E.g. CM20324 Training & Development

E.g. CM20326 Recruitment & Selection

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FIGURE 1–1 HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.

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FIGURE 1–2 HR Organizational Chart (Small Company)

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Quick Review:Quick Review:

HR Manager

Types of work HR Functions

Major activities

Responsibilities

Authorities

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Line Managers’ Line Managers’ HRMHRM Responsibilities Responsibilities1.1. Placing the right person on the right jobPlacing the right person on the right job

2.2. Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)

3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them

4.4. Improving the job performance of each personImproving the job performance of each person

5.5. Gaining creative cooperation and developing smooth working Gaining creative cooperation and developing smooth working relationshipsrelationships

6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures

7.7. Controlling labor costsControlling labor costs

8.8. Developing the abilities of each personDeveloping the abilities of each person

9.9. Creating and maintaining department moraleCreating and maintaining department morale

10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

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PersonnelPersonnel Aspects of a Manager’s Job Aspects of a Manager’s Job• Conducting job analyses Conducting job analyses

• Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates

• Selecting job candidatesSelecting job candidates

• Orienting and training new employeesOrienting and training new employees

• Managing wages and salariesManaging wages and salaries

• Providing incentives and benefitsProviding incentives and benefits

• Appraising performanceAppraising performance

• Communicating Communicating

• Training and developing managersTraining and developing managers

• Building employee commitmentBuilding employee commitment

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Cooperative line and staff HR ManagementCooperative line and staff HR ManagementLine Managers’ Line Managers’ HRMHRM Responsibilities Responsibilities1.1. Placing the right person on the right jobPlacing the right person on the right job

2.2. Starting new employees in the Starting new employees in the organization (orientation)organization (orientation)

3.3. Training employees for jobs that are new Training employees for jobs that are new to themto them

4.4. Improving the job performance of each Improving the job performance of each personperson

5.5. Gaining creative cooperation and Gaining creative cooperation and developing smooth working relationshipsdeveloping smooth working relationships

6.6. Interpreting the firm’s policies and Interpreting the firm’s policies and proceduresprocedures

7.7. Controlling labor costsControlling labor costs

8.8. Developing the abilities of each personDeveloping the abilities of each person

9.9. Creating and maintaining department Creating and maintaining department moralemorale

10.10. Protecting employees’ health and physical Protecting employees’ health and physical conditioncondition

Personnel Aspects of a Personnel Aspects of a Manager’sManager’s Job Job1.1. Conducting job analyses Conducting job analyses

2.2. Planning labor needs and recruiting job Planning labor needs and recruiting job candidatescandidates

3.3. Selecting job candidatesSelecting job candidates

4.4. Orienting and training new employeesOrienting and training new employees

5.5. Managing wages and salariesManaging wages and salaries

6.6. Providing incentives and benefitsProviding incentives and benefits

7.7. Appraising performanceAppraising performance

8.8. Communicating Communicating

9.9. Training and developing managersTraining and developing managers

10.10. Building employee commitmentBuilding employee commitment

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FIGURE 1–3 Employment and Recruiting—Who 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.

HRD only

HRD & other departments Other departments

E.g. aptitude test

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ABC Co LtdABC Co Ltd

President

Vice President

Sales & Marketing DeptSales & Marketing Manager

Human Resource DeptHuman Resource Manager

Finance DeptFinance Manager

Administration DeptAdministration Manager

Customer ServiceSupervisor

Bus PromotionSupervisor

CS officer CS officer BP officer BP officer

T & DSupervsor

RecruitmentSupervisor

TD officer TD officer R officer R officer

Supervisor

Accountingclerk

Accountingclerk

Supervisor

Adminclerk

Admin clerk

Vacancy

Arrange and take part in the whole R/S process

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Example: Cooperative line and staff HR Example: Cooperative line and staff HR ManagementManagement• Line and Staff Involvement in RecruitingLine and Staff Involvement in Recruiting

Line manager (e.g. marketing manager) describes Line manager (e.g. marketing manager) describes the the qualifications and skillsqualifications and skills that employees need to that employees need to fill specific positionfill specific position

HR people take over. They interview, HR people take over. They interview, short-list short-list applicants, and administer the appropriate applicants, and administer the appropriate teststests. . Then they refer the best applicants to the line Then they refer the best applicants to the line managersmanagers E.g. book venue for interview; prepare job adE.g. book venue for interview; prepare job ad

Line managers (e.g. marketing manager) interview Line managers (e.g. marketing manager) interview and select those applicants whom they wantand select those applicants whom they want E.g. HR people may be invited to sit on the E.g. HR people may be invited to sit on the interview panelinterview panel

or required to conduct a or required to conduct a separate interviewseparate interview before or after before or after the marketing manager has finished off the interviewsthe marketing manager has finished off the interviews

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The Changing Environment of The Changing Environment of Human Resource ManagementHuman Resource Management

Globalization Trends (e.g. extend sales, manufacturing, etc., to

new market abroad)

Technological Trends

Trends in the Nature of Work (e.g. high tech job, service job)

Workforce Demographic Trends (e.g. aging population)

Changes and Trends in Human Resource

Management

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Do Matching: The Changing Environment of Do Matching: The Changing Environment of Human Resource ManagementHuman Resource Management

The changing environment of The changing environment of HRMHRM• GlobalizationGlobalization• Technological advancesTechnological advances• Changes in the nature of Changes in the nature of workwork• Changes in workforce Changes in workforce demographicsdemographics

ExampleExamplea)a) There are workers from There are workers from

different countries, such as different countries, such as China, India, Pakistan, etc., China, India, Pakistan, etc., at local construction sitesat local construction sites

b)b) China’s Lenovo paid China’s Lenovo paid US$1.75 billion to take over US$1.75 billion to take over IBM’s Thinkpad personal IBM’s Thinkpad personal computer businesscomputer business

c)c) Many factory jobs have been Many factory jobs have been automatedautomated

d)d) Managers use PDAs or Managers use PDAs or handphones to communicate handphones to communicate with their office and do with their office and do business onlinebusiness online

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The Human Resource Manager’s The Human Resource Manager’s ProficienciesProficiencies• New ProficienciesNew Proficiencies

HR proficienciesHR proficiencies Field knowledge and skillsField knowledge and skills

Business proficienciesBusiness proficiencies Assist top management team in formulating strategiesAssist top management team in formulating strategies

- E.g. general direction of a business- E.g. general direction of a business Familiarize with marketing, production, finance, strategic planning, etc. Familiarize with marketing, production, finance, strategic planning, etc.

– E.g. customer-drivenE.g. customer-driven Leadership proficienciesLeadership proficiencies

Work with/lead peopleWork with/lead people Effective communicationEffective communication

Learning proficienciesLearning proficiencies Stay abreast of applying new technologies and practicesStay abreast of applying new technologies and practices

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The Human Resource Manager’s The Human Resource Manager’s Proficiencies (cont’d)Proficiencies (cont’d)

Others proficiencies:Others proficiencies:

• Managing within the LawManaging within the Law Equal employment lawsEqual employment laws

Occupational safety and health lawsOccupational safety and health laws

Labor lawsLabor laws

• Managing EthicsManaging Ethics Ethical lapsesEthical lapses

E.g. Selling personal data of customers

E.g. Recruitment of transsexual employees

E.g. Fire prevention

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HR CertificationHR Certification• HR is becoming more professionalized.HR is becoming more professionalized.

• Institute of Personnel and Development: Institute of Personnel and Development: UKUK

• Society for Human Resource Management Society for Human Resource Management (SHRM): USA(SHRM): USA SHRM’s Human Resource Certification Institute SHRM’s Human Resource Certification Institute

(HRCI)(HRCI) SPHR (senior professional in HR) certificateSPHR (senior professional in HR) certificate PHR (professional in HR) PHR (professional in HR)

certificatecertificate

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HR CertificationHR Certification• HK Institute of Human Resources Management HK Institute of Human Resources Management

(HKIHRM)(HKIHRM)• HK People Management Association (HKPMA)HK People Management Association (HKPMA)• HK Institute for Training Professional (HKITP)HK Institute for Training Professional (HKITP)