hrm overview final
TRANSCRIPT
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2005 Prentice Hall Inc.All rights reserved.
PowerPoint Presentation by Charlie CookThe University of West Alabama
t e n t h e d i t i o n
Gary Dessler
Part 1 IntroductionChapter1
The Strategic Role of
Human Resource Management
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Human
Resources???
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People???
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Most Important Assetof the company
Human Resources
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Management
Management processes
The five basic functions ofplanning, organizing, staffing,leading, and controlling.
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The Management Process
Planning involves determining a future course ofaction. The planning process begins by decidingwhat is desired; then a way is designed foraccomplishing that objective
Organizing refers to the administrative structure ofthe organization. It involves putting the pieces ofthe system together in such a way that desiredresults can be achieved. It requires decisionsregarding who, what, where, when and how
Staffing involves selection and training of thepersonnel who will operate the system
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The Management Process
Directing refers to the issuance ofcommands or orders, making suggestions,
or otherwise motivating subordinates to
perform their assigned duties in a timely andefficient manner
Controlling involves measuring the results of
operations, deciding if they are acceptable,
and instituting corrective action if need be
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Human resource management (HRM)
The policies and practices involved in
carrying out the people or humanresource aspects of a managementposition, including recruiting,
screening, training, rewarding, andappraising.
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Personnel Aspects Of A Managers Job
Conducting job analyses (determining the nature of each
employees job)
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment
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Personnel Mistakes
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company in court because of discriminatory actions
Have your company cited by OSHA for unsafe practices
Have some employees think their salaries are unfair and
inequitable relative to others in the organization
Allow a lack of training to undermine your departmentseffectiveness
Commit any unfair labor practices
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Basic HR Concepts
Getting results The bottom line of managing
HR creates value by engaging
in activities that produce
the employee behaviors
the company needs to
achieve its strategicgoals.
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Line and Staff Aspects of HRM
Line managerA manager who is authorized to direct the work of
subordinates and is responsible for accomplishingthe organizations tasks.
Staff managerA manager who assists and advises line managers.
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HR Department Organizational Chart (Large Company)
Figure 11Source:Adapted from BNA Bulletin to Management, June 29, 2000.
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Line Managers HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth workingrelationships
6. Interpreting the firms policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees health and physical condition
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Examples of HR Job Duties
Recruiters Search for qualified job applicants.
Equal employment opportunity (EEO)
coordinators
Investigate and resolve EEO grievances, examineorganizational practices for potential violations,and compile and submit EEO reports.
Job analysts
Collect and examine information about jobs toprepare job descriptions.
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Examples of HR Job Duties (contd)
Compensation managers Develop compensation plans and handle the
employee benefits program.
Training specialists
Plan, organize, and direct training activities.
Labor relations specialists
Advise management on all aspects of unionmanagement relations.
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Cooperative Line and Staff HRManagement
1. The line managers responsibility is to specify the
qualifications employees need to fill specific
positions.
2. HR staff then develops sources of qualifiedapplicants and conduct initial screening interviews
3. HR administers the appropriate tests and refers the
best applicants to the supervisor (line manager),
who interviews and selects the ones he or shewants.
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Measuring HRs Contribution
Strategy The companys long-term plan for how it will
balance its internal strengths and weaknesses withits external opportunities and threats to maintain a
competitive advantage. HR managers today are more involved in partnering with
their top managers in both designing and implementing
their companies strategies.
Top management wants to see, precisely, how theHR managers plans will make the company morevaluable.
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HR Metrics
Absence Rate
[(Number of days absent in month) (Average number ofemployees during mo.) (number of workdays)] 100
Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel
cost of applicants and staff + Relocation costs + Recruiterpay and benefits) Number of Hires
Health Care Costs per Employee
Total cost of health care Total Employees
HR Expense Factor
HR expense Total operating expense
Figure 15
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13
20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics, Human Resource Management39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce
Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
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HR Metrics (contd)
Human Capital ROI
Revenue (Operating Expense [Compensation cost +Benefit cost]) (Compensation cost + Benefit cost)
Human Capital Value Added
Revenue (Operating Expense ([Compensation cost +
Benefit Cost]) Total Number of FTE
Revenue Factor
Revenue Total Number of FTE
Time to fillTotal days elapsed to fill requisitions Number hired
Figure 15 (contd)
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey,
and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review,
January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to
Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management39,
no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA
2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
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HR Metrics (contd)
Training Investment Factor
Total training cost Headcount
Turnover Costs
Cost to terminate + Cost per hire + Vacancy Cost + Learningcurve loss
Turnover Rate
[Number of separations during month Average number ofemployees during month] 100
Workers Compensation Cost per EmployeeTotal WC cost for Year Average number of employees
Figure 15 (contd)
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey,
and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review,
January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to
Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management39,
no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA
2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
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Strategy and the Basic HR Process
Figure 18