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Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

Chapter 2Fundamentals of HRM

Fundamentals of Human Resource ManagementEighth Edition

DeCenzo and Robbins


Management Essentials

• Management involves setting goals and allocating scarce resources to achieve them.

• Management is the process of efficiently achieving the objectives of the organization with and through people.


Management Essentials

• Primary Functions of Management– Planning – establishing goals– Organizing – determining what activities

need to be done– Leading – assuring the right people are on

the job and motivated– Controlling – monitoring activities to be

sure goals are met


Why is HRM Important to an Organization?

• The role of human resource managers has changed. HRM jobs today require a new level of sophistication. – Federal and state employment legislation has

placed new requirements on employers. – Jobs have become more technical and skilled. – Traditional job boundaries have become blurred

with the advent of such things as project teams and telecommuting.

– Global competition has increased demands for productivity.



• The Strategic Nature – HRM must be– a strategic business partner and represent

employees. – forward-thinking, support the business

strategy, and assist the organization in maintaining competitive advantage.

– concerned with the total cost of its function and for determining value added to the organization.



• HRM is the part of the organization concerned with the “people” dimension.

• HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.



• HRM Certification – Colleges and universities offer HR

programs. – The Society for Human Resource

Management and Human Resource Certification Institute offer professional certification.



Four basic functions:

• Staffing• Training and

Development• Motivation• Maintenance


How External Influences Affect HRM

• Strategic Environment• Governmental Legislation• Labor Unions• Management Thought



• HRM Strategic Environment includes:– Globalization– Technology– Work force diversity– Changing skill requirements– Continuous improvement– Work process engineering– Decentralized work sites– Teams– Employee involvement– Ethics



• Governmental Legislation– Laws supporting employer and employee

actions• Labor Unions

– Act on behalf of their members by negotiating contracts with management

– Exist to assist workers – Constrain managers– Affect non unionized workforce



• Management Thought– Management principles, such as those

from scientific management or based on the Hawthorne studies influence the practice of HRM.

– More recently, continuous improvement programs have had a significant influence on HRM activities.


Staffing Function Activities

• Employment planning– ensures that staffing will contribute to the

organization’s mission and strategy• Job analysis

– determining the specific skills, knowledge and abilities needed to be successful in a particular job

– defining the essential functions of the job


Staffing Function Activities

• Recruitment– the process of attracting a pool of qualified

applicants that is representative of all groups in the labor market

• Selection – the process of assessing who will be

successful on the job, and– the communication of information to assist

job candidates in their decision to accept an offer


Goals of the Training and Development Function

• Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities

• Orientation and socialization help employees to adapt

• Four phases of training and development– Employee training– Employee development– Organization development– Career development


The Motivation Function

• Activities in HRM concerned with helping employees exert at high energy levels.

• Implications are:– Individual– Managerial– Organizational

• Function of two factors:– Ability– Willingness

• Respect



• Managing motivation includes:– Job design– Setting performance standards– Establishing effective compensation and

benefits programs– Understanding motivational theories



• Classic Motivation Theories– Hierarchy of Needs –Maslow– Theory X – Theory Y –McGregor– Motivation – Hygiene – Herzberg– Achievement, Affiliation, and Power Motives

– McClelland– Equity Theory – Adams– Expectancy Theory - Vroom


How Important is the Maintenance Function

• Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization.– Health– Safety– Communications– Employee assistance programs

• Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.


Translating HRM Functions into Practice

• Four Functions:– Employment– Training and development– Compensation/benefits– Employee relations



• Employment - Employment specialists:– coordinate the staffing function– advertising vacancies– perform initial screening– interview– make job offers– do paperwork related to hiring

• Training and Development – – help employees to maximize their potential– serve as internal change agents to the organization– provide counseling and career development



• Compensation and Benefits – – establish objective and equitable pay

systems– design cost-effective benefits packages

that help attract and retain high-quality enployees.

– help employees to effectively utilize their benefits, such as by providing information on retirement planning.



• Employee Relations – involves:– communications– fair application of policies and procedures– data documentation – coordination of activities and services that

enhance employee commitment and loyalty– Employee relations should not be confused

with labor relations, which refers to HRM in a unionized environment.



• Purpose and Elements of HRM Communications– Keep employees informed of what is

happening and knowledgeable of policies and procedures.

– Convey that the organization values employees.

– Build trust and openness, and reinforce company goals.



• Effective Communication programs involve:– Top Management Commitment– Effective Upward Communication– Determining What to Communicate– Allowing for Feedback– Information Sources


Does HRM Really Matter?• Research has shown that a fully functioning

HR department does make a difference. • Organizations that spend money to have

quality HR programs perform better than those who don’t.

• Practices that are part of superior HR services include:– rewarding productive work– creating a flexible work-friendly environment– properly recruiting and retaining quality workers– effective communications


HRM in an Entrepreneurial Enterprise

• General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.

• Benefits include– freedom from many government regulations– an absence of bureaucracy– an opportunity to share in the success of

the business


HRM in a Global Village

• HRM functions are more complex when employees are located around the world.

• Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.

• HRM also involves considering the needs of employees’ families when they are sent overseas.


HR and Corporate Ethics

• HRM must:– Make sure employees know about

corporate ethics policies– Train employees and supervisors on how

to act ethically


HR and Corporate Ethics

• The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status. – Establishes penalties for noncompliance. – Provides protection for employees who

report executive wrongdoing. – Requires that companies have

mechanisms in place where complaints can be received and investigated.

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