HRM.naval.script

GARY DESSLERHUMAN RESOURCE MANAGEMENT 12th EditionChapter 1Introduction to Human Resource ManagementJohnasse Sebastian C. Naval, RN

1*Explain what human resource management is and how it relates to the management process.Show with examples why human resource management is important to all managers.Illustrate the human resources responsibilities of line and staff (HR) managers.Briefly discuss and illustrate each of the important trends influencing human resource management.List and briefly describe important trends in human resource management.Define and give an example of evidence-based human resource management.Outline the plan of this book.LEARNING OUTCOMES

The purpose of this chapter is to explain what human resource management is, and why its important to all managers. Well see that HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every managers job. And well see that HRM is also a separate function, usually with its own human resource or HR manager. The main topics well cover include the meaning of human resource management; why HRM is important to all managers; global and competitive trends; HRM trends; and the plan of this book. The framework (which introduces each chapter) makes this point: That to formulate and apply HR practices like testing and training you should understand the strategic and legal context in which youre managing.

Copyright 2011 Pearson Education1*

Copyright 2011 Pearson Education

1*Human Resource Management at WorkWhat Is Human Resource Management (HRM)?The effective use of people to achieve both organizational and individual goalsThe process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.Why care about HRM?Impact on you as employeesImpact on you as managersPotential future roles as HR professionalsImpact of HRM on organizations

1*Human Resource Management at WorkOrganizationPeople with formally assigned roles who work together to achieve the organizations goals.ManagerThe person responsible for accomplishing the organizations goals, and who does so by managing the efforts of the organizations people.

1*The Management Process

1*Human Resource Management Processes

1*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

1*Hire the wrong person for the job.Experience high turnover.Have your people not doing their best.Waste time with useless interviews.Have your firm in court because of discriminatory actions.Have your firm cited by Occupational Safety Laws for unsafe practices and accidents.Have some employees think their salaries are unfair and inequitable relative to others in the organization.Allow a lack of training to undermine your departments effectiveness.Commit any unfair labor practices.Why HRM Important to all Managers

1*Basic HR ConceptsThe bottom line of managing: Getting resultsHR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals.Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals.*Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people.

1*Line and Staff Aspects of HRMAuthorityThe right to make decisions, direct others work, and give orders.Line authorityThe authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas.Staff AuthorityStaff Authority gives the manager right (authority) to advise other managers or employees.Functional AuthorityThe authority exerted by and HR Manager as coordinator of personnel activities.

1*Line and Staff Aspects of HRMLine ManagerIs authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organizations tasks.Staff ManagerAssists and advises line managers.Has functional authority to coordinate personnel activities and enforce organization policies.

***Line managers manage operational functions that are crucial for the companys survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control.Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties. In an organization, there are three types of authority.Line Authorityis given to line managers for achieving the objectives of the organization.Staff Authorityis given to staff managers for giving advice and service to the line managers.Functional Authorityis given to a line or staff manager to do a specific job. When the job is completed, the authority is taken back.



Functional Authority is different from Line Authority because line authority is given only for one particular department. For e.g. A Production manager is given line authority only for the production department. However, Functional Authority may be given for a particular department or for the full organization. For e.g. In the first example, the Marketing manager is given functional authority to conduct a new year party for the full organization. So, Functional Authority is not restricted to a particular department.

Functional authority is also different from staff authority. This is because the manager that has staff authority cannot do anything. He can only give advice and service. However, the manager that has functional authority can do something. Here, functional authority is similar to line authority. In fact, it is a type of limited line authority.Copyright 2011 Pearson Education1*


Most organization use functional authority only when necessary. This is because too much use of functional authority will have a bad effect on the Line authority. Functional authority is used only to perform specialized functions, which cannot be performed by line managers. In these cases, staff managers or outside experts are given functional authority to perform these functions.

Every manager must know what type of authority he has. If the manager has a line authority, then he has to decide and execute. If he has a staff authority, then he has to only advice and help others. If he has a functional authority, then he has to perform only the specific function which is assigned to him.



For e.g. The normal job of the Marketing manager is to sell the products of the company. The Managing Director (MD) may give him authority to conduct a New Year Party for the full company. This authority is called Functional Authority. So, functional authority is given to a manager to do a specific job. This job is not his normal job. When he is doing this new job, he may or may not do his normal job. The manager already has a line or staff authority to do his normal job. Thus, Functional authority is an additional authority given to him to do the new job. When this new job is completed, the functional authority is taken away, and he has to go back to his normal job.



Features of Functional AuthorityThecharacteristicsor features of functional authority are:-Functional authority is given to a manager to perform a specific function.The manager may be a line manager or a staff manager. But mostly functional authority is given to a staff manager.It is not limited to a particular department. It may even cover the full organization.It is an additional authority. It is given to a manager in addition to his normal (line or staff) authority.It is removed when the work is completed.



1*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

1*Human Resource Managers Duties

1*Functions of the HR ManagerA Line FunctionThe 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 FunctionHR managers also coordinate personnel activities, a duty often referred to as functional control.

Staff (assist and advise) FunctionsAssisting 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.

1*FIGURE 12- Human Resources Organization Chart for a Small Company

1*Human Resource Specialties

*****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.



1*New Approaches to Organizing HR

New Approaches to Organizing HRTransactional HR Departmental activities such as payroll, benefits administration and records keeping are easily outsourced or digitized (or should be) with significant cost savings.Corporate HR HR may be at plant level or may be restricted/ responsible at particular location only. Corporate HR is the person who is working at corporate level & handling centralized HR activity and assist top management in developing long-term strategic plans.

1*

New Approaches to Organizing HREmbedded HR To assign HR generalist directly to departments like sales and production, to provide the localized human resource management assistance and department needs.The Centers of ExpertiseThe Centers of Expertise are like specialized HR consulting firms within the company, providing specialized assistance.1*

1*Trends Shaping Human Resource Management

1*Trends in the Nature of Work

1*Workforce and Demographic Trends

Workforce and Demographic TrendsDemographic trends are making finding, hiring, and supervising employees more challenging.Generation YBorn in the mid-1980's and later, Generation Y legal professionals are in their 20s and are just entering the workforce. With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of todays workforce. As law firms compete for available talent, employers cannot ignore the needs, desires and attitudes of this vast generation.



Workforce and Demographic TrendsBelow are a few common traits that define Generation Y.Tech-Savvy:Generation Y grew up with technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops, cellphones and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations.Family-Centric:The fast-track has lost much of its appeal for Generation Y who is willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance. Whileolder generations may view this attitude as narcissistic or lacking commitment, discipline and drive, Generation Y legal professionals have a different vision of workplace expectations and prioritize family over work.Copyright 2011 Pearson Education1*


Workforce and Demographic TrendsAchievement-Oriented:Nurtured and pampered by parents who did not want to make the mistakes of theprevious generation, Generation Y is confident, ambitious and achievement-oriented. They have high expectations of their employers, seek out new challenges and are not afraid to question authority. Generation Y wants meaningful work and a solid learning curve.Team-Oriented:As children, Generation Y participated in team sports, play groups and other group activities. They value teamwork and seek the input and affirmation of others. Part of a no-person-left-behind generation, Generation Y is loyal, committed and wants to be included and involved.



Workforce and Demographic TrendsAttention-Craving:Generation Y craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers.



1*Important Trends in HRM

1*Meeting Todays HRM Challenges****HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organizations overall strategic plan, and then assisting in execution of the plans.

1*TABLE 12Some Technological Applications to Support HR

Technology How Used by HR Application service providers (ASPs) and technology outsourcing ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computersWeb portals Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information Streaming desktop video Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively Internet- and network-monitoring software Used to track employees Internet and e-mail activities or to monitor their performance Electronic signatures Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping Electronic bill presentment and payment Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers Data warehouses and computerized analytical programs Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees skills with the firms projected strategic needs

1*High-Performance Work SystemsIncrease productivity and performance by:Recruiting, screening and hiring more effectivelyProviding more and better trainingPaying higher wagesProviding a safer work environmentLinking pay to performance

1*Evidence-Based HRMEvidence-based HRM is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on.

1*Managing EthicsEthicsStandards that someone uses to decide what his or her conduct should beHRM-related Ethical IssuesWorkplace safetySecurity of employee recordsEmployee theftAffirmative actionComparable workEmployee privacy rights

1*HR CertificationHR is becoming more professionalized.Society for Human Resource Management (SHRM)SHRMs Human Resource Certification Institute (HRCI)SPHR (Senior Professional in HR) certificateGPHR (Global Professional in HR) certificatePHR (Professional in HR) certificate

1*The Plan of This Book: Basic Themes HRM is the responsibility of every manager. The workforce is becoming increasingly diverse.Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services.The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.

Human Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*The purpose of this chapter is to explain what human resource management is, and why its important to all managers. Well see that HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every managers job. And well see that HRM is also a separate function, usually with its own human resource or HR manager. The main topics well cover include the meaning of human resource management; why HRM is important to all managers; global and competitive trends; HRM trends; and the plan of this book. The framework (which introduces each chapter) makes this point: That to formulate and apply HR practices like testing and training you should understand the strategic and legal context in which youre managing.

Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns. Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*HRM involves several processes. The topics well discuss will provide you with concepts and techniques needed to perform the people or personnel aspects of your job as a manager.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Managers are involved daily with many of the personnel aspects of HRM in accomplishing the organizations goals, and managing the efforts of the organizations people.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Why are the concepts and techniques of HRM important to all managers? Perhaps its easier to answer this by listing some of the personnel mistakes you dont want to make while managing.Carefully studying this book will help you avoid mistakes like these.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Line managers manage operational functions that are crucial for the companys survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control.Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties. In an organization, there are three types of authority.Line Authorityis given to line managers for achieving the objectives of the organization.Staff Authorityis given to staff managers for giving advice and service to the line managers.Functional Authorityis given to a line or staff manager to do a specific job. When the job is completed, the authority is taken back.For e.g. The normal job of the Marketing manager is to sell the products of the company. The Managing Director (MD) may give him authority to conduct a New Year Party for the full company. This authority is called Functional Authority. So, functional authority is given to a manager to do a specific job. This job is not his normal job. When he is doing this new job, he may or may not do his normal job. The manager already has a line or staff authority to do his normal job. Thus, Functional authority is an additional authority given to him to do the new job. When this new job is completed, the functional authority is taken away, and he has to go back to his normal job.Functional Authority is different from Line Authority because line authority is given only for one particular department. For e.g. A Production manager is given line authority only for the production department. However, Functional Authority may be given for a particular department or for the full organization. For e.g. In the first example, the Marketing manager is given functional authority to conduct a new year party for the full organization. So, Functional Authority is not restricted to a particular department.Functional authority is also different from staff authority. This is because the manager that has staff authority cannot do anything. He can only give advice and service. However, the manager that has functional authority can do something. Here, functional authority is similar to line authority. In fact, it is a type of limited line authority.Most organization use functional authority only when necessary. This is because too much use of functional authority will have a bad effect on the Line authority. Functional authority is used only to perform specialized functions, which cannot be performed by line managers. In these cases, staff managers or outside experts are given functional authority to perform these functions.Every manager must know what type of authority he has. If the manager has a line authority, then he has to decide and execute. If he has a staff authority, then he has to only advice and help others. If he has a functional authority, then he has to perform only the specific function which is assigned to him.Features of Functional AuthorityThecharacteristicsor features of functional authority are:-Functional authority is given to a manager to perform a specific function.The manager may be a line manager or a staff manager. But mostly functional authority is given to a staff manager.It is not limited to a particular department. It may even cover the full organization.It is an additional authority. It is given to a manager in addition to his normal (line or staff) authority.It is removed when the work is completed.

Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*In small organizations, line managers carry out many personnel duties unassisted. As the organization grows, the need arises for the specialized assistance, knowledge, and advice of a human resource department.

Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers.

Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. There is generally about one human resource employee per 100 company employees.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*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.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Employers are experimenting with offering HR services in new ways. For example, some employers organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Some trends shaping human resource management practices include globalization, technology, deregulation, debt or leverage, changes in demographics and the nature of work, and economic challenges.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Technology has also had a huge impact on how people work, and on the skills and training todays workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital).Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Demographic trends are making finding, hiring, and supervising employees more challenging.Generation YBorn in the mid-1980's and later, Generation Y legal professionals are in their 20s and are just entering the workforce. With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of todays workforce. As law firms compete for available talent, employers cannot ignore the needs, desires and attitudes of this vast generation.Below are a few common traits that define Generation Y.Tech-Savvy:Generation Y grew up with technology and rely on it to perform their jobs better. Armed with BlackBerrys, laptops, cellphones and other gadgets, Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations.Family-Centric:The fast-track has lost much of its appeal for Generation Y who is willing to trade high pay for fewer billable hours, flexible schedules and a better work/life balance. Whileolder generations may view this attitude as narcissistic or lacking commitment, discipline and drive, Generation Y legal professionals have a different vision of workplace expectations and prioritize family over work.Achievement-Oriented:Nurtured and pampered by parents who did not want to make the mistakes of theprevious generation, Generation Y is confident, ambitious and achievement-oriented. They have high expectations of their employers, seek out new challenges and are not afraid to question authority. Generation Y wants meaningful work and a solid learning curve.Team-Oriented:As children, Generation Y participated in team sports, play groups and other group activities. They value teamwork and seek the input and affirmation of others. Part of a no-person-left-behind generation, Generation Y is loyal, committed and wants to be included and involved.Attention-Craving:Generation Y craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers.

Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Trends like these translate into changes in HRM practices, and in what employers expect from their human resource managers.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organizations overall strategic plan, and then assisting in execution of the plans.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Table 1-2 lists some important ways employers use technology to support their HRM activities.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*A high-performance work system is a set of HRM policies and practices that together produce superior employee performance.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Evidence-based HRM is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee-related decisions.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*As the human resource managers job becomes more demanding, HRM is becoming more professionalized. The Society for Human Resource Managements (SHRM) HR professional certification exams test the HR professionals knowledge of all aspects of HRM.Copyright 2011 Pearson EducationHuman Resources Management 12e Gary DesslerHuman Resources Management 12e Gary DesslerCopyright 2011 Pearson Education1*In this book, well use several themes and features to emphasize particularly important issues, and to provide continuity from chapter to chapter.Copyright 2011 Pearson Education

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