Chapter 1Chapter 1Jack Welch- Winning“Elevate HR to a position of power and primacy in the organization, and make sure HR people have the special qualities to help managers build leaders and careers. In fact, the best HR types are pastors and parents in the same package.”
“The head of human resources at any company should be at least as important as the CFO.”
Leaders are ReadersPeter DruckerThe Essential Drucker (2008)“Business management must always, in every
decision and action, put economic performance first.”
Learning ObjectivesAfter you have read this chapter, you should be
able to:Define HR management and identify the seven
categories of HR activities.Discuss three challenges facing HR today.Describe how the major roles of HR management
are being transformed.Identify the purposes and uses of HR technology.Discuss why ethical issues affect HR management.Explain the key competencies needed by HR
professionals and why certification is important.
Today In what kind of environment are we doing HR
today?
HR Activities- what do HR people do?
HR Management Challenges- what external and internal factors influence what HR people do?
HR Roles- how do HR people do their jobs?
Nature of Human Resource Management
Human Resource (HR) ManagementThe design of formal systems in an organization
to ensure effective and efficient use of human talent to accomplish organizational goals.
Nature of Human Resource Management cont.Who Is an HR Manager?
In the course carrying out their duties, every operating manager is, in essence, an HR manager.
HR specialists design processes and systems that operating managers help implement.
CWU’s HR Programmatic ApproachBusiness Core Courses (ACT, FIN, MGT,
MKT, SCM, ECON)HR Specialization Courses
HRM 381- IntroductionHRM 442- Training and DevelopmentHRM 445- Staffing OrganizationsHRM 479- Employee RelationsHRM 488- CompensationHRM 486- Capstone Course/Strategic HR
HR ActivitiesStrategic HR
ManagementWhat is “Strategic”?MetricsEnvironmental
Scanning/AnticipationHigh Performance Work
PracticesLeveraging Core
Competencies
HR Activities ContinuedEqual Employment Opportunity
Compliance Multicultural OrganizationsDiversityAffirmative ActionGlobal Impacts: Resources, Markets, EmployeesEEOC and the OFCCP
HR Activities ContinuedStaffing
AttractionSelectionAttrition ModelJob DescriptionJob Analysis QualificationsRecruiting, Interviewing
HR DevelopmentOrientationSocializationJob TrainingLeadership DevelopmentPerformance Management
HR Activities ContinuedCompensation and Benefits
Base PayMerit Pay/IncentivesGainsharingEmployee OwnershipManagement of Health and Dental CostsCafeteria PlansEmployee Rewards
HR Activities ContinuedHealth, Safety, and Security
OSHA (1970)…who has the responsibility for healthy employees?
Safety in the workplaceSecurity post 9-11EAPsHealth Promotion
Employee and Labor RelationsUnionizationPolicies and ProceduresCommunication (Justice Theory)
Compliance with Compliance with Government Government RegulationsRegulations
Compliance with Compliance with Government Government RegulationsRegulations
Shortage of Shortage of Qualified Qualified WorkersWorkers
Shortage of Shortage of Qualified Qualified WorkersWorkers
Increasing Increasing Costs of Costs of BenefitsBenefits
Increasing Increasing Costs of Costs of BenefitsBenefits
Rising TaxesRising TaxesRising TaxesRising Taxes
Issues of Issues of Greatest Greatest ConcernConcern
Issues of Issues of Greatest Greatest ConcernConcern
Small Businesses
Large piece of economic sector
Larger piece of job creation in U.S.
When do we need an HR person? (80-100 employees)
Management of Human Capital In Organizations
Physical, Financial, Intangible andHuman Capital
The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce. Also known as intellectual capital. How to measure the strategic value of human
assets?Core Competency
A unique capability that creates high value and differentiates an organization from its competition. HR competencies: a source of competitive advantage.
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Human Capital
The collective value of the capabilities, knowledge,
skills, life experiences, and motivation of an
organizational workforce.
Core Competency
A unique capability that creates high value and
differentiates an organization from its
competition.
HR Management ChallengesGlobalization of Business
Outsourcing and increased competition Stockholder, employee, manager concerns? Is this socially responsible? Should the U.S. pass legislation protecting these
jobs? Why/Why not? What about the perspective that this is good for the
long run as it lowers the costs of goods and services? Do you agree? Why/Why not?
HR Management ChallengesGlobalization of Business
The threat of terrorism- How does this impact what we do? OSHA?
Economic and Technological ChangesOccupational shifts from manufacturing and
agriculture to service industries and telecommunications.
Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.
Technological Shifts and the InternetGrowth of information technology.
HR Management ChallengesWorkforce Availability and Quality Concerns
Inadequate supply of workers with needed skills for “knowledge jobs” 80% of manufacturing jobs report shortage of qualified
workersEducation of workers in basic skills
Not enough specific skills, not enough technology skillsGrowth in Contingent Workforce
Represents 20% of the workforce Increases in temporary workers, independent contractors,
leased employees, and part-timers caused by: Need for flexibility in staffing levels Increased difficulty in firing regular employees. Reduced legal liability from contract employees Boeing Strategy- manage employment cycles in suppliers and
partners
HR Management ChallengesWorkforce Demographics and Diversity
Increasing Racial/Ethnic Diversity From the Melting Pot to the Salad Bowl
More Women in the Workforce Single-parent households
Dual-career couples
Domestic partners
Working mothers and family/childcare
Significantly Aging Workforce Age discrimination
HR Management ChallengesOrganizational Cost Pressures and
RestructuringMergers and Acquisitions“Right-sizing”—eliminating of layers of
management, closing facilities, merging with other organizations, and outplacing workers Intended results are flatter organizations, increases in
productivity, quality, service and lower costs. Costs are “survivor mentality”, loss of employee
loyalty, and turnover of valuable employees.HR managers must work toward ensuring
cultural compatibility in mergers.
HR Management RolesAdministrative Role
Clerical and administrative support operations (e.g., payroll and benefits work) Technology is transforming how HR services are
delivered. Outsourcing HR services to reduce HR staffing
costs
Operational and Employee Advocate Role“Champion” for employee concerns
Employee crisis management Responding to employee complaints
Strategic Role for HRAdministrative RoleOperational RoleEmployee Advocate RoleStrategic Role
“Contributing at the Table” to organizational results HR becomes a strategic business partner by:
Focusing on developing HR programs that enhance organizational performance.
Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions,
and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR
activities.
Some HR people get this, some don’t…CEOs want those that do and oust those that don’t
HR TechnologyHuman Resource Management System (HRMS)
An integrated system providing information used by HR management in decision making.
Purposes (Benefits) of HRMS Administrative and operational efficiency in compiling
HR data Availability of data for effective HR strategic planning
Uses of HRMS Automation of payroll and benefit activities EEO/affirmative action tracking HR Workflow: increased access to HR information
Employee self-service reduces HR costs.
Uses of an HRMSHRMS
Bulletin boards What information will be available and what is
information needed?Data access
To what uses will the information be put?Employee self-service
Who will be allowed to access to what information? Web-based services and access
Extended linkage When, where, and how often will the information be
needed?
Ethics and HR ManagementFirms with High Ethical Standards
Are more likely to reach strategic goals.Are viewed more positively by stakeholdersAre better able to attract and retain human
resources.Ethics and Global Differences
Different legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers.
Foreign Corrupt Practices Act (FCPA) Prohibits U.S. firms from engaging in bribery and
other practices in other countries.
Leaders are Readers The Smartest Guys in the Room (2004)McLean and Elkind “The tale of Enron is a story of human
weakness, of hubris and greed and rampant self-delusion; of ambition run amok; of a grand experiment in the deregulated world; of a business model that didn’t’ work; and of smart people who believed their next gamble could cover up their last disaster—and who couldn’t admit they were wrong”.
© 2011 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part. 1–34
Ethics Program Elements
Written code of
ethics and standards of
conduct
Employee training on
ethical behaviors
Advice to employees on ethical situations
Confidential reporting of ethical problems
Legal Question Ethical Question
•Does the behavior or result meet all applicable laws, regulations, and government codes?
•Does the behavior or result meet both organizational standards and professional standards of ethical behavior?
HR Ethics and Sarbanes-Oxley (SOX)Reduce the likelihood of illegal and unethical
behaviors by:Having a written code of ethics and conduct
standardsProviding ethical behavior training and adviceEstablishing confidential reporting systems for
ethical misconductProviding whistle-blower protectionSupporting HR’s role as “keeper and voice” of
organizational ethics
Ethical Behavior and Organizational Culture
Classic Management Article“The perpetuation of unethical practices in
organizations” Socialization Attrition Justification from small to large
HR Management Competencies and Careers
Important HR CompetenciesStrategic contribution to organizational successBusiness knowledge of organization and its
strategiesEffective and effective delivery of HR servicesFamiliarity with HRMS technologyPersonal credibility
SPEAK THE LANGUAGE OF THE BUSINESS
HR Management as a Career FieldHR Generalist
A person with responsibility for performing a variety of HR activities.
HR SpecialistA person with in-depth knowledge and
expertise in a limited area of HR.HR Manager
A person who is a line manager for HR Generalists and Specialists
HR CertificationsProfessional Human Resource (PHR- 2 Years)Senior Professional Human Resource (SPHR- 5 years)Global Professional Human Resource (GPHR-4 years with 2
international)Certified Compensation Professional (CCP), sponsored by the World
at Work AssociationCertified Employee Benefits Specialist (CEBS), sponsored by the
International Foundation of Employee Benefits PlansCertified Benefits Professional (CBP), sponsored by the WorldatWork
AssociationCertified Performance Technologist (CPT), co- sponsored by the
American Society for Training & Development and the International Society for Performance Improvement
Certified Safety Professional (CSP), sponsored by the Board of Certified Safety Professionals
Occupational Health and Safety Technologist (OHST), given by the American Board of Industrial Hygiene and the Board of Certified Safety Professionals
Certified Professional Outsourcing, provided by New York University and the Human Resource Outsourcing Association