Strategic Human Resource

Management(Week 1)

LEARNING OBJECTIVES

1. Explain what Human Resource Management is and how it relates to the management process

2. The trends shaping HR Management

3. Important Trends in HR management

4. Managing Ethics

HUMAN RESOURCE MANAGEMENT

& ITS IMPORTANCE

The Management Process

Planning

Organizing

Leading Staffing

Controlling

What is Human Resource Management (HRM)?

The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including:

Recruiting, Screening, Training, Rewarding, Appraising etc

Human Resource Management at Work

1–6

Acquisition

Training

Appraisal

CompensatingLabor Relations

Health and Safety

Fairness

Human Resource

Management(HRM)

Personnel Aspects of a Manager’s Job

Conducting job analyses

Planning labor needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries

Providing incentives and benefits

Appraising performance

Communicating

Training and developing managers

Building employee commitment

Personnel MistakesHire 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 labor inspectors 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 department’s effectiveness

Commit any unfair labor practices

Basic HR Concepts

The bottom line of managing: Getting results

HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals:

• Lower Costs

• Improve Productivity

• Increase Organizational Effectiveness

Line and Staff Aspects of HRM

Line Manager◦A manager who is authorized to direct the

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

Staff Manager◦A manager who assists and advises line

managers.

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 that are new to them

4. Improving the job performance of each person

5. Gaining creative cooperation and developing smooth working relationships

6. Interpreting the firm’s 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

Human Resource Managers’ Duties

Functions ofHR Managers

Line FunctionLine Authority

Implied Authority

Staff FunctionsStaff Authority

InnovatorEmployee Advocacy

Coordinative Function

Functional Authority

Human Resource Specialties

1–13

Recruiters

Human Resource

Development Specialists

Employment/Industrial Relations Specialist

Training Specialists

Job Analysts

Compensation Managers

Human Resource

Specialties

Employee Welfare Officers

HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php.

HR Organizational Chart (Small Company)

TRENDS SHAPING HUMAN RESOURCE

MANAGEMENT

Globalization Trends

Trends in the Nature of Work

Workforce Demographic Trends

Economic Challenges and Trends

Changes and Trends in Human Resource

Management

Trends Shaping Human Resource Management

Indebtedness and Deregulation

Technological Trends

Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to markets abroad.

Triggered changes in organization, management and use of HR Departments

Means more competition, more pressure to lower costs, making employees more productive and do better things less expensively

Globalization and Competition Trends

Government stipends stripped away rules and regulations.

e.g. In the US and EU, the rules that prevented commercial banks from expanding into new businesses, such as stock brokering, were relaxed.

Indebtedness and Deregulation

Technological Applications for HR

• Application Service Providers (ASPs) and technology outsourcing

• Web portals

• PCs and high-speed access

• Streaming desktop video

• The mobile Web and wireless net access

• E-procurement

Technological Applications for HR

• Internet- and network-monitoring software

• Bluetooth

• Electronic signatures

• Electronic bill presentment and payment

• Data warehouses and computerized analytical programs

Jobs are changing due to new technological demands.

Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees.

Nontraditional workers, such as those who hold multiple jobs, “contingent” or part-time workers, or people working in alternative work arrangements, enable employers to keep costs down.

Trends in the Nature of Work

• High-Tech Jobs – More jobs have gone high tech, requiring workers to have more education and skills. Even traditional blue-collar jobs require more math, reading, writing, and computer skills than ever before.

• Service Jobs – Most newly created jobs are and will continue to be in the service sector.

• Knowledge Work and Human Capital – This refers to the knowledge, education, training, skills, and expertise of a firm’s workers. The HR function must employ more sophisticated and creative means to identify, attract, select, train, and motivate the required workforce.

Trends in the Nature of Work

The labor force is getting older and more multi-ethnic

The aging labor force presents significant changes in terms of potential labor shortages

Many firms are instituting new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees

Growing numbers of workers with eldercare responsibilities

High rates of immigration also present challenges and opportunities for HR managers

Workforce Demographic Trends

New economies growing

Free trade agreements and Zones

Economic Challenges and Trends

IMPORTANT TRENDS INHUMAN RESOURCE

MANAGEMENT

• Companies are competing in a very challenging new environment.

• Globalization, competition, technology, workforce trends, and economic upheaval confront employers with new challenges.

• In that context, they expect and demand that their human resource managers exhibit the competencies required to help the company address these new challenges proactively

THE NEW HUMAN RESOURCE MANAGEMENT

STRATEGIC HUMAN RESOURCE MANAGEMENT

• Management expects HR to provide measurable, benchmark-based evidence • for its current efficiency and effectiveness• for the expected efficiency and

effectiveness of new or proposed HR programs

• Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firm’s strategic aims.

High-Performance Work System Practices

Employment securitySelective hiringExtensive trainingSelf-managed teams/decentralized decision

makingReduced status distinctionsInformation sharingContingent (pay-for-performance) rewardsTransformational leadershipMeasurement of management practicesEmphasis on high-quality work

Benefits of a High-Performance Work System (HPWS)

Generate more job applicants

Screen candidates more effectively

Provide more and better training

Link pay more explicitly to performance

Provide a safer work environment

Produce more qualified applicants per position

Hiring based on validated selection tests

Provide more hours of training for new employees

Conduct more performance appraisals

It is the use of

• Data

• Facts

• Analytics

• Scientific Rigor

• Critical Evaluation

• Critically Evaluated Research/Case Studies

to support human resource management proposals, decisions, practices, and conclusions

Evidence-Based Human Resource Management

The Human Resource Manager’s Proficiencies

New Proficiencies

• HR proficiencies

Business proficiencies

• Leadership proficiencies

• Learning proficiencies

The Human Resource Manager’s Proficiencies (continued)

Managing within the Law

• Equal employment laws

• Industrial Disputes laws

• Occupational safety and health laws

• Other labor laws

Managing Ethics

THE NEW HUMAN RESOURCE MANAGEMENT

New Responsibilities for HR Managers

Measuring the HRM Team’s Performance

Managing with the HR Scorecard

Process

Creating High- Performance Work

Systems

Strategic Human Resource

Management

Effects CFOs Believe Human Capital Has on Business Outcomes

Source: Steven H. Bates, “Business Partners,” HR Magazine, September 2003, p. 49. Reproduced with permission of the Society for Human Resource Management via Copyright Clearance Center.

Basic Themes

HRM is the responsibility of every manager.

HR managers must defend their plans and contributions in measurable terms.

All personnel actions and decisions have strategic implications.

All managers rely on information technology.

Virtually every personnel decision has legal implications.