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