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1 Human Human Resource Resource Management Management ELEVENTH EDITION ELEVENTH EDITION G A R Y D E S S L E G A R Y D E S S L E R R Introduction to Human Resource Introduction to Human Resource Management Management Chapter Chapter 1 Part 1 | Part 1 | Introduction Introduction

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Human Resource Human Resource ManagementManagement

ELEVENTH EDITIONELEVENTH EDITION

G A R Y D E S S L E RG A R Y D E S S L E R

Introduction to Human Resource ManagementIntroduction to Human Resource Management

Chapter 1Chapter 1

Part 1 | IntroductionPart 1 | Introduction

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Human Resource Management at WorkHuman Resource Management at Work

What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?The policies and practices involved in carrying out the “people” or human The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, training, resource aspects of a management position, including recruiting, training, appraising, and compensating employees, and of attending to their labor appraising, and compensating employees, and of attending to their labor relations, health & safety, and fairness concern.relations, health & safety, and fairness concern.

One aspect of the Management Process (planning, Organizing, One aspect of the Management Process (planning, Organizing, StaffingStaffing, Leading, & Controlling), Leading, & Controlling)

Basic HR ConceptsBasic HR Concepts• HR creates value by engaging in activities that produce the HR creates value by engaging in activities that produce the

employee behaviors that the company needs to achieve employee behaviors that the company needs to achieve its strategic goals.its strategic goals.

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Personnel Aspects of a Manager’s JobPersonnel Aspects of a Manager’s Job• Conducting job analyses (determining the nature of each employee’s job)Conducting job analyses (determining the nature of each employee’s job)

• Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates

• Selecting job candidatesSelecting job candidates

• Orienting and training new employeesOrienting and training new employees

• Managing wages and salaries (compensating employees)Managing wages and salaries (compensating employees)

• Providing incentives and benefitsProviding incentives and benefits

• Appraising performanceAppraising performance

• Communicating (interviewing, counseling, disciplining)Communicating (interviewing, counseling, disciplining)

• Training and developing managersTraining and developing managers

• Building employee commitmentBuilding employee commitment

And a Manager should know about:And a Manager should know about: Equal opportunity & affirmative actionEqual opportunity & affirmative action Employee health & safetyEmployee health & safety Handling grievances and labor relationsHandling grievances and labor relations

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What Motivates Employees?What Motivates Employees?• Feeling “in” on thingsFeeling “in” on things• Good wagesGood wages

• Good working conditionsGood working conditions

• Job securityJob security

• Full appreciation of work that is doneFull appreciation of work that is done• Tactful discipliningTactful disciplining

• Employer loyalty to employeesEmployer loyalty to employees

• Interesting workInteresting work

• Promotion and growth in the organizationPromotion and growth in the organization

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Karl and Sutton, 1996Karl and Sutton, 1996

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Why HRM Important to all ManagersWhy HRM Important to all Managers

• Hire the wrong person for the jobHire the wrong person for the job

• Experience high turnoverExperience high turnover

• Have your people not doing their bestHave your people not doing their best

• Waste time with useless interviewsWaste time with useless interviews

• Have your company in court because of discriminatory actionsHave your company in court because of discriminatory actions

• Have your company cited by labor court for unsafe practicesHave your company cited by labor court for unsafe practices

• Have some employees think their salaries are unfair and Have some employees think their salaries are unfair and inequitable relative to others in the organizationinequitable relative to others in the organization

• Allow a lack of training to undermine your department’s Allow a lack of training to undermine your department’s effectivenesseffectiveness

• Commit any unfair labor practicesCommit any unfair labor practices

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Why We Care About HRM?Why We Care About HRM?

• Impact on you as employeesImpact on you as employees

• Impact on you as managersImpact on you as managers

• Potential future roles as HR professionalsPotential future roles as HR professionals

• Impact of HRM on organizationsImpact of HRM on organizations

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1.1. Strategic IntegrationStrategic Integration An attempt to treat all labour An attempt to treat all labour management processes – from recruitment and training to management processes – from recruitment and training to remuneration and retrenchment – in a remuneration and retrenchment – in a strategicstrategic fashion by fashion by integrating them with the broader business concerns of the integrating them with the broader business concerns of the enterprise.enterprise.

2.2. Organisational flexibilityOrganisational flexibility 3.3. CommitmentCommitment, from ‘control’ to ‘commitment’ through , from ‘control’ to ‘commitment’ through

changing the organisation’s culture. Mission statement should changing the organisation’s culture. Mission statement should state these core values. Also only recruiting those prepared to state these core values. Also only recruiting those prepared to subscribe to these core values.subscribe to these core values.

4.4. QualityQuality ensuring culture of quality: Quality work, quality ensuring culture of quality: Quality work, quality workers, quality products and services; Total Quality workers, quality products and services; Total Quality Management, Quality assurance and zero defects, Internal Management, Quality assurance and zero defects, Internal customers, Empowering workers via team working.customers, Empowering workers via team working.

Principles of HRM

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Line and Staff Aspects of HRMLine and Staff Aspects of HRM• Authority & ResponsibilityAuthority & Responsibility

The right to make decisions, direct others’ work, and give orders; with The right to make decisions, direct others’ work, and give orders; with responsible actions utilizing such authorities in maximum resulting in responsible actions utilizing such authorities in maximum resulting in benefits for all the parties involved.benefits for all the parties involved.

• Line Authority; the Line managerLine Authority; the Line manager Line authority gives the managers the right to issue orders to other Line authority gives the managers the right to issue orders to other

managers or employees. managers or employees. It creates a ‘It creates a ‘superior-subordinatesuperior-subordinate’ relationship. ’ relationship. Thus the line manager is a manager who is authorized to direct the work Thus the line manager is a manager who is authorized to direct the work

of subordinates and is responsible for accomplishing the organization’s of subordinates and is responsible for accomplishing the organization’s tasks.tasks.

• Staff Authority; the Staff managerStaff Authority; the Staff manager Staff authority gives the managers the right to advise other managers or Staff authority gives the managers the right to advise other managers or

employees. employees. It creates an ‘It creates an ‘advisoryadvisory’ relationship. ’ relationship. Thus the staff manager is a manager who assists and advises line Thus the staff manager is a manager who assists and advises line

managers.managers.

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Functions of the HR ManagerFunctions of the HR Manager• A Line FunctionA Line Function

The HR manager directs the activities of the people in his or her own The HR manager directs the activities of the people in his or her own department and in related service areas. While they generally can not department and in related service areas. While they generally can not wield line authority outside, they hold wield line authority outside, they hold Implied authorityImplied authority (the authority (the authority exerted by an HR manager by virtue of others’ knowledge that he or she exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management).has access to top management).

• A Coordinative FunctionA Coordinative Function HR managers also coordinate personnel activities, a duty often referred HR managers also coordinate personnel activities, a duty often referred

to as to as functional controlfunctional control..

• Staff (assist and advise) FunctionsStaff (assist and advise) Functions Assisting and advising line managers is the heart of the HR manager’s Assisting and advising line managers is the heart of the HR manager’s

job. It plays an job. It plays an employee advocacyemployee advocacy role by: role by: Clearly defining how management should be treating employees.Clearly defining how management should be treating employees. Making sure employees have the mechanisms required to contest unfair Making sure employees have the mechanisms required to contest unfair

practices.practices. Represent the interests of employees within the framework of its primary Represent the interests of employees within the framework of its primary

obligation to senior management.obligation to senior management.

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Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities

Though HR managers assist & advise line managers in areas like recruiting, Though HR managers assist & advise line managers in areas like recruiting,

hiring, & compensation, the line managers still have their HR duties:hiring, & compensation, the line managers still have their HR duties:

Placing the right person on the right jobPlacing the right person on the right job

Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)

Training employees for jobs that are new to themTraining employees for jobs that are new to them

Improving the job performance of each personImproving the job performance of each person

Gaining creative cooperation and developing smooth working relationshipsGaining creative cooperation and developing smooth working relationships

Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures

Controlling labor costsControlling labor costs

Developing the abilities of each personDeveloping the abilities of each person

Creating and maintaining department moraleCreating and maintaining department morale

Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

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Examples of HR Job DutiesExamples of HR Job Duties• RecruitersRecruiters

Search for qualified job applicants.Search for qualified job applicants.

• Equal employment opportunity (EEO) coordinatorsEqual employment opportunity (EEO) coordinators Investigate and resolve EEO grievances, examine organizational Investigate and resolve EEO grievances, examine organizational

practices for potential violations, and compile and submit EEO reports.practices for potential violations, and compile and submit EEO reports.

• Job analystsJob analysts Collect and examine information about jobs to prepare job descriptions.Collect and examine information about jobs to prepare job descriptions.

• Compensation managersCompensation managers Develop compensation plans and handle the employee benefits Develop compensation plans and handle the employee benefits

program.program.

• Training specialistsTraining specialists Plan, organize, and direct training activities.Plan, organize, and direct training activities.

• Labor relations specialistsLabor relations specialists Advise management on all aspects of union–management relations.Advise management on all aspects of union–management relations.

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Cooperative Line & Staff HR ManagementCooperative Line & Staff HR Management

HRM is part of every manager’s job. Thus generally it’s a HRM is part of every manager’s job. Thus generally it’s a cooperative relationship between the line & staff managers:cooperative relationship between the line & staff managers:

1.1. The line manager’s responsibility is to specify the The line manager’s responsibility is to specify the qualifications employees need to fill specific positions.qualifications employees need to fill specific positions.

2.2. HR staff then develops sources of qualified applicants HR staff then develops sources of qualified applicants and conduct initial screening interviewsand conduct initial screening interviews

3.3. HR administers the appropriate tests and refers the HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants.interviews and selects the ones he or she wants.

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HR Organizational Chart (Small Company)HR Organizational Chart (Small Company)

Figure 1–2

Size of the HR department reflects the size of the company, there is Size of the HR department reflects the size of the company, there is generally about one HR employee per 100 company employees.generally about one HR employee per 100 company employees.

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HR Department Organizational Chart (Large Company)HR Department Organizational Chart (Large Company)

Figure 1–1 Source: Adapted from BNA Bulletin to Management, June 29, 2000.

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Employment and Recruiting—Who Handles It? Employment and Recruiting—Who Handles It? (percentage of all employers)(percentage of all employers)

Figure 1–3 Source: HR Department Benchmarks and Analysis,” BNA/Society for Human Resource Management, 2002.

Note: length of bars represents prevalence of activity among all surveyed employers.

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A Changing HR EnvironmentA Changing HR Environment

• GlobalizationGlobalization

The tendency of firms to extend their sales, ownership, and/or The tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroadmanufacturing to new markets abroad

Both workers and companies have to work harder and smarter than Both workers and companies have to work harder and smarter than they did before globalization they did before globalization

• Government regulationGovernment regulation

• Stronger knowledge/research baseStronger knowledge/research base

• Changing role for labor unionsChanging role for labor unions

• Challenge of matching worker expectations with competitive Challenge of matching worker expectations with competitive

demandsdemands

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A Changing HR Environment A Changing HR Environment (contd.)(contd.)

• Technological AdvancesTechnological Advances

Companies use virtual online communities to improve Companies use virtual online communities to improve efficiencyefficiency

Creating high-tech jobs, service jobs, knowledge work Creating high-tech jobs, service jobs, knowledge work (human capital)(human capital)

Implications for HRImplications for HR

The key to effectively utilizing all that new technology is The key to effectively utilizing all that new technology is usually not the technology, but the people.usually not the technology, but the people.

Today’s employer’s need more sophisticated HRM Today’s employer’s need more sophisticated HRM selection, training, pay, and employee fairness practicesselection, training, pay, and employee fairness practices

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Changing Role of HRMChanging Role of HRM• StrategyStrategy

The company’s long-term plan for how it will balance its The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external internal strengths and weaknesses with its external opportunities and threats to maintain a competitive opportunities and threats to maintain a competitive advantage.advantage.

HR managers today are more involved in partnering with their top HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ managers in both designing and implementing their companies’ strategies.strategies.

• Strategic HRMStrategic HRM

Formulating and executing HR policies and practices that Formulating and executing HR policies and practices that produce the employee competencies and behaviors the produce the employee competencies and behaviors the company needs to achieve its strategic aims.company needs to achieve its strategic aims.

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Creating High-Performance Work System PracticesCreating High-Performance Work System Practices

• Employment securityEmployment security

• Selective hiringSelective hiring

• Extensive trainingExtensive training

• Self-managed teams/decentralized Self-managed teams/decentralized

decision makingdecision making

• Reduced status distinctionsReduced status distinctions

• Information sharingInformation sharing

• Contingent (pay-for-performance) Contingent (pay-for-performance)

rewardsrewards

• Transformational leadershipTransformational leadership

• Measurement of management Measurement of management

practicespractices

• Emphasis on high-quality workEmphasis on high-quality work

Benefits of a HPWSBenefits of a HPWS• Generate more job applicantsGenerate more job applicants• Screen candidates more effectivelyScreen candidates more effectively• Provide more and better trainingProvide more and better training• Link pay more explicitly to Link pay more explicitly to

performanceperformance• Provide a safer work environmentProvide a safer work environment• Produce more qualified applicants Produce more qualified applicants

per positionper position• More employees are hired based More employees are hired based

on validated selection testson validated selection tests• Provide more hours of training for Provide more hours of training for

new employeesnew employees• Higher percentages of employees Higher percentages of employees

receiving regular performance receiving regular performance appraisals.appraisals.

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Measuring HR’s Contribution: The HR ScorecardMeasuring HR’s Contribution: The HR Scorecard

HR Scorecard measures the HR function’s effectiveness & HR Scorecard measures the HR function’s effectiveness & efficiency in producing employee behaviors needed to achieve efficiency in producing employee behaviors needed to achieve the companies strategic goals.the companies strategic goals.

It shows the measurable, cause-and-effect links between three It shows the measurable, cause-and-effect links between three things: things:

1.1. HR activities, such as improving the firm’s incentive plan, HR activities, such as improving the firm’s incentive plan,

2.2. Intermediate employee results, such as improved morale,Intermediate employee results, such as improved morale,

3.3. End-result company metrics, such as improved customer End-result company metrics, such as improved customer service and higher profits.service and higher profits.

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HR Manager’s ProficienciesHR Manager’s Proficiencies

Being a HR manager today is challenging and requires several proficiencies:Being a HR manager today is challenging and requires several proficiencies:

• HR proficienciesHR proficiencies Represent traditional knowledge & skills in areas like employee Represent traditional knowledge & skills in areas like employee

selection, training, and compensation.selection, training, and compensation.

• Business proficienciesBusiness proficiencies Reflect HR manager’s new strategic role, like assisting top management Reflect HR manager’s new strategic role, like assisting top management

in formulating strategies.in formulating strategies.

• Leadership proficienciesLeadership proficiencies They need the ability to work with and lead management groups, and to They need the ability to work with and lead management groups, and to

drive the changes required.drive the changes required.

• Learning proficienciesLearning proficiencies The ability to stay side-by-side of and apply all the new technologies The ability to stay side-by-side of and apply all the new technologies

and practices affecting the professionand practices affecting the profession

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A New Model of HRM is NeededA New Model of HRM is Needed

• More strategic (More strategic (not strictly focused on day-not strictly focused on day-to-day operational needs)to-day operational needs)

• More proactive (More proactive (less reactiveless reactive))

• More of a consultant to line management More of a consultant to line management ((less of a bureaucratic specialistless of a bureaucratic specialist))

• More of an “employee champion” More of an “employee champion” (less of (less of an organizational “cop”)an organizational “cop”)