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Transcript of Mondy hrm13 inppt01.ppt
Human Resource Management
13th Edition
Chapter 1 STRATEGIC HUMAN RESOURCE
MANAGEMENT: AN OVERVIEW
Copyright © [2014] Pearson Education 4-1
Learning Objectives• Describe employer branding and define human
resource management.
• Identify the human resource management functions.
• Identify the external environmental factors that affect human resource management and describe the trend for increased mobility of tasks performed by HR professionals.
• Explain why corporate culture is a major internal environmental factor.
• Explain who performs human resource management tasks.
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Learning Objectives (Cont.)• Describe how human resource management activities
may be different for small businesses.
• Describe the various human resource classifications including executives, generalists, and specialists.
• Describe the evolution of human resource management and explain the evolving HR organization.
• Describe the professionalization of human resource management.
• Explain the possible hurdles of managing human resources across different cultures.
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Corporate Culture
• Corporate culture: System of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms
• Throughout the text, the importance of various topics related to corporate culture will be described beginning with Employer Branding
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HRM in Action: Corporate Culture and Employer Branding
• Employer branding: Firm’s corporate image or culture created to attract and retain the type of employees the firm is seeking
• Companies want a brand that will entice individuals to join and remain with the firm
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Human Resource Management (HRM)
• Utilization of individuals to achieve organizational objectives
• Concern of all managers at every level
• Face a multitude of challenges
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HRM Functions
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1
Human Resource
Management
Human Resource
Development
Com
pens
atio
n
Staffing
Em
ployee and
Labor Relations
Safety and Health
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Staffing
Process of ensuring the organization always has:•Required number of employees
•Employees with appropriate skills
•Employees in the right jobs at the right time
•Constant job analysis, human resource planning, recruitment, and selection
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Job Analysis
• Systematic process of determining skills, duties, and knowledge required for performing jobs in an organization
• Impacts virtually every aspect of HRM
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Human Resource Planning
• Matching internal and external supply of people with anticipated job openings over a specified period of time
• Sets the stage for recruitment and other HR actions
Copyright © [2014] Pearson Education
Recruitment and Selection
Recruitment: Attracting individuals to apply for jobs
•Must be timely
•Applicants need appropriate qualifications
•Need sufficient number of applicants
Selection: Choosing individual best suited for a particular position and the organization
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Human Resource Development
Major HRM functions include:– Training
– Development – Career planning – Career development– Organization development– Performance management– Performance appraisal
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Training and Development
Training: Providing learners with knowledge and skills needed for their present jobs
Development: Offering learning that goes beyond present job•Long-term focus
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Career Planning and Development
Career planning: Ongoing process. • Individual sets career goals
• Identifies means to achieve them
Career development: Formal approach used by the organization. • Ensures a pipeline of people with proper
qualifications and experiences
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Organization Development
Planned and systematic attempt to:
–Make the organization more effective
–Create positive behavioral environment
Copyright © [2014] Pearson Education
Performance Management
Goal-oriented process to ensure organizational processes are in place to maximize productivity•Applies to employees, teams, and ultimately, the organization
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Performance Appraisal
Formal system of review and evaluation– Individual
– Team
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Compensation
All rewards that individuals receive as a result of their employment
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Financial Compensation
Direct: Pay employee receives in form of wages, salaries, bonuses, or commissions
Indirect: Benefits employee receives•Paid vacations, sick leave, holidays, medical insurance
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Nonfinancial Compensation
Satisfaction that employees receive from:
–Job itself
–Psychological and/or physical environment
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Safety and Health
Safety: Protecting employees from injuries caused by work-related accidents
Health: Employees' freedom from illness and their general physical and mental well-being
Copyright © [2014] Pearson Education
Labor Unions and Collective Bargaining
• Businesses are required by law to recognize a union and bargain with it in good faith if firm’s employees want a union to represent them
• Human resource activity with a union is often referred to as industrial relations
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Internal Employee Relations
HRM activities associated with the movement of employees within the organization. Examples:
– Promotions
– Demotions
– Terminations
– Resignations
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Interrelationships of HRM Functions
• All HRM functions are interrelated so that each function affects the others
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Legal Considerations
• Federal, state, and local legislation
• Court decisions
• Presidential executive orders
Copyright © [2014] Pearson Education
Labor Market
• Potential employees located within certain geographic area
• Always changing
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Society
Firm must accomplish its purpose while complying with societal norms
Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation
Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves
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Unions
• Group of employees who have joined together to collectively bargain with their employer
• Become a third party when dealing with the company
Copyright © [2014] Pearson Education
Shareholders
• Owners of a corporation
• Have invested money in the firm
• May at times challenge programs considered by management to be beneficial to organization
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Competition
• In product or service and labor markets
• Firms must maintain a supply of competent employees
• Bidding war often results
Copyright © [2014] Pearson Education
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Customers
• People who actually use firm’s goods and services
• Employment practices should not antagonize members of the market that the firm serves
• Workforce should be capable of providing top-quality goods and services
Copyright © [2014] Pearson Education
Trends & Innovations: Mobile HR - Is the Cloud the Limit?
• Trend: Increased mobility of tasks performed by HR professionals
• Mobile applications are available for many HR functions
• Cloud computing: Means of providing software and data via the Internet
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HR Technology
Rapid technological changes provide:
•Increased sophistication
•Ability to design more useful human resource information systems (HRIS)
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HRIS
• An organized approach for obtaining information on which to base HR decisions
• An umbrella for merging the various subsystems
• Mainstay HR responsibilities need an HRIS
Copyright © [2014] Pearson Education
Economy
• When economy is booming, it is often more difficult to recruit qualified workers
• In economic downturn, more applicants are typically available
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Unanticipated Events
• Unforeseen occurrences in external environment
• Require a tremendous amount of adjustment with regard to HRM
Copyright © [2014] Pearson Education
Corporate culture as a Major Internal Environment Factor
• Gives people a sense of how to behave and what they ought to be doing
• Topics related to corporate culture are presented throughout this text
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HR’s Changing Role: Questions
• Can some HR tasks be performed more efficiently by line managers or outside vendors?
• Can some HR tasks be centralized or eliminated?
• Can technology perform tasks that were previously done by HR personnel?
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Who Performs Human Resource Management Tasks?
• Human resource managers
• HR outsourcing
• HR shared service centers
• Professional employer organization (employee leasing)
• Line managers
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Human Resource Manager
• Historically, the HR manager was responsible for each of the five HR functions
• Acts in advisory or staff capacity• Works with other managers to help them
deal with human resource matters• Today, HR departments continue to get
smaller
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HR Outsourcing
• Transfers responsibility to an external provider– Discrete services
– Business process outsourcing (BPO)
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Discrete Services
• Single set of high-volume repetitive functions is outsourced to a third party
• Typically transactional HR activities
• Example: 401(k) administration
Copyright © [2014] Pearson Education
Business Process Outsourcing (BPO)
• Majority of HR services are transferred to third party
• Largest HR outsourcer is IBM
• Kraft Foods Inc. and IBM signed a multi-year BPO agreement
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Recruitment Process Outsourcing (RPO)
• As recession slowed and firms began to hire, some companies realized that they had lost their recruiting skills
• Many had not kept up with the rapidly changing technology
• RPO companies are stepping in to fill the void in recruitment skills
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HR Shared Service Centers (SSCs)
• Takes routine, transaction-based activities that are dispersed and consolidates them in one location
• Provide an alternative to HR outsourcing
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Professional Employer Organization (Employee Leasing)
Company that leases employees to other businesses
Advantages:– Economies of scale– Greater job mobility for workers– Job security through leasing company – PEO can handle compliance requirements
of programs
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Line Managers Performing HR Tasks
• Line managers: Individuals directly overseeing the accomplishment of the organization’s primary goals
• Involved with human resources by nature of their jobs
• Now performing some duties typically done by HR
Copyright © [2014] Pearson Education
Human Resource Management in Small Businesses
• Many college graduates obtain jobs in small businesses
• Same HR functions must be accomplished
• Manner in which they are accomplished may be altered
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Human Resource Executives, Generalists, and Specialists
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Traditional Human Resource Function in Large Firm
• Included separate sections
• Sections were placed under an HR manager
• Each HR function had a supervisor and staff
• HR manager worked closely with top management in formulating policy
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The Evolving HR Organization
• HR outsourcing
• HR shared service centers
• Professional employer organization
• Line manager
• HR becoming more strategic
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A Possible Evolving HR Organization Example
President and CEO
Vice President, Operations
Vice President, Strategic Human
Resources
Vice President, Finance
Director of Safety
and Health
Training & Development (Outsourced)
Compensation (Shared Service
Centers)
Staffing (Line Managers, use of Applicant Tracking Systems)
Vice President, Marketing
Copyright © [2014] Pearson Education
Professionalization of Human Resource Management
Profession: A vocation characterized by a:
– Common body of knowledge
– Procedure for certifying members of profession
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Society for Human Resource Management (SHRM)
• Largest national professional organization for HR management individuals
• Basic goals of the society:– Defining, maintaining, and improving
standards of excellence in the practice of human resource management
– Publishes HRMagazine
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Human Resource Certification Institute (HRCI)
• Recognizes HR professionals through certification program
• Offers three certifications for HR professionals:– PHR (Professional in Human Resources)
– SPHR (Senior Professional in Human Resources)
– GPHR (Global Professional in Human Resources)
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American Society for Training and Development (ASTD)
• World’s largest association dedicated to workplace learning and performance professionals
• ASTD Certification Institute has the Certified Professional in Learning and Performance (CPLP) credential
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WorldatWork
• Focused on compensation, benefits, work–life effectiveness, and integrated total rewards
• Certification of professionals
• Strategies to attract, motivate, and retain an engaged and productive workforce
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A Global Perspective: Country Culture as a Possible Barrier to Global
Business • Country’s culture: Set of values,
symbols, beliefs, languages, and norms that guide human behavior within the country
• Cultural differences between countries are a major factor influencing global business
• Cultural misunderstandings are common
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