Human Resource Human Resource ManagementManagementHuman Resource Human Resource ManagementManagement
Human Resource Management
• The function performed in organizations
that facilitates the most effective use of
people (employees) to achieve
organizational and individual goals.
Human Resource Management (HRM) Activities: (1 of 2)
• Equal employment opportunity (EEO) compliance
• Job analysis
• Human resource planning
• Employee recruitment, selection, motivation, and orientation
Human Resource Management (HRM) Activities: (2 of 2)
• Performance evaluation and compensation
• Training and development
• Labor relations
• Safety, health, and wellness
Four descriptions of the HRM function:
1. It is action-oriented
2. It is people-oriented
3. It is globally-oriented
4. It is future-oriented
Scientific Management Welfare Work
Industrial Psychology Human Relations
Historical Foundations of HRM
Strategic Importance of HRM
• The increased strategic importance of HRM means that:– Human resource specialists must show that they
contribute to the goals and mission of the firm
• The actions, language, and performance of the HRM function must be:– Measured– Precisely communicated– Evaluated
The new strategic The new strategic positioning of HRM positioning of HRM means that means that accountability must accountability must be taken seriouslybe taken seriously
Key Strategic HRM Concepts That Must Be Applied: (1 of 2)
• Analyzing and solving problems from a profit-oriented point of view
• Assessing and interpreting costs or benefits of HRM issues
• Using planning models that include realistic, challenging, specific, and meaningful goals
Key Strategic HRM Concepts That Must Be Applied: (2 of 2)
• Preparing reports on HRM solutions to problems encountered by the firm
• Training the human resources staff– Emphasizing the strategic importance of HRM– Emphasizing the importance of contributing to
the firm’s profits
If the HRM function is If the HRM function is to be successful, to be successful, managers in other managers in other functions must be functions must be knowledgeable and knowledgeable and involvedinvolved
HRM and Organizational Effectiveness
• Performance
• Legal compliance
• Employee satisfaction
• Absenteeism
• Turnover
• Training effectiveness
• Training return on investment
• Grievance rates
• Accident rates
Objectives of the HRM Function (1 of 3)
• Helping the organization reach its goals
• Employing the skills and abilities of the
workforce efficiently
• Providing the organization with well-
trained and well-motivated employees
• Increasing to the fullest the employee’s job
satisfaction and self-actualization
Objectives of the HRM Function (2 of 3)
• Developing and maintaining a quality of work life that makes employment in the organization desirable
• Communicating HRM policies to all
employees
• Helping to maintain ethical policies and
socially responsible behavior
Objectives of the HRM Function (3 of 3)
• Managing change to the mutual advantage of the organization’s stakeholders
• Managing increased urgency and faster cycle time
Who Performs HRM Activities
In most organizations two groups perform HRM activities:
1) HR manager-specialists (staff)
2) Operating managers (line)
Competencies Needed by HR Professionals:• Communication skills• Problem solving• Leadership• Recruiting/staffing• Employment law• Training and
development
• Technology• Forecasting• Compensation design• Benefits design and
administration• Accounting and
finance• Record keeping
The HR department has a responsibility to be a proactive, integral component of management and the strategic planning process
HRM’s Place in Management
• HRM must:– ascertain specific organizational needs for the
use of its competence– evaluate the use and satisfaction among other
departments– educate management and employees about
the availability and use of HRM services
HRM Strategy
• The HRM strategy will help aggregate and allocate a firm’s resources into a unique entity on the basis of:– Its internal strengths and weaknesses– Changes in the environment– The anticipated actions of competitors
Relationship Between Strategy, Objectives, Policies, and Rules:
More specific
More specific
More specific
Strategy – The plan that integrates major objectives
Objectives – Goals that are specific and measurable
Policies – Guides to decision making
Procedures/Rules – Specific directions for decision making
Summary
• HRM is action-oriented, individual-oriented, globally-oriented, and future oriented– It focuses on satisfying the needs of
individuals at work
• HRM is a necessary function– Effectively performed, it can make the crucial
difference between successful and unsuccessful organizations
Summary
• One of the challenges faced in HRM is that many decisions require input from both operating managers and HR specialists
• This dual role can lead to conflict, or it can result in more effective HRM decisions