HRM - Introduction to Human Resource Management

PART ONE                                                                INTRODUCTION
CHAPTER		T One
Introduction to   Human Resource Management	1
Lecture Outline
Strategic Overview The Manager’s Human Resource Management      Jobs Why is HRM Important to all Managers? Line and Staff Aspects of HRM Cooperative Line & Staff HRM: An Example From Line Manager to HR Manager The Changing Environment of HR Management HR’s Changing Role A Changing Environment Measuring HR’s Contribution:  Strategy, Metrics,      and The HR Scorecard An Emphasis on Performance Metrics The HR Scorecard The High Performance Work System (HPWS) The New HR Manager New Proficiencies Ethics and HR HR Certification HR and Technology HRM and professionalism HR and cultural values The Plan of This Book The Basic Themes and Features Overview Part I:  Introduction Part II: Recruitment and Placement Part III: Training and Development Part IV: Compensation Part V: Employee Relations Appendix: HR Professional Institutes in Asia Pacific	In Brief:  This chapter gives an overview of what Human Resource Management is and how it relates to the management process. It illustrates how managers can use HR concepts and techniques, line and staff managers’ responsibilities, HR’s role in strategic planning, and the plan of this book.  Interesting Issues:  Human Resources play a key role in helping companies meet the challenges of global competition. Strategic objectives to lower costs, improve productivity and increase organizational effectiveness are enabled by human resource strategies and technologies. Students will learn how HR plays a strategic role in creating high performance work systems that employers need today to thrive.

ANNOTATED OUTLINE

I.          The Manager’s Human Resource Management Jobs – The Management process involves the following functions: planning, organizing, staffing, leading, and controlling.  Staffing involves: 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; being knowledgeable about equal opportunity, affirmative action, and employee health and safety; and handling grievances and labor relations.

            A.  Why Is HR Management Important to All Managers?  Managers do not want to make mistakes while managing areas such as hiring the wrong person, having their company taken to court because of discriminatory actions, or committing unfair labor practices.

            B.  Line and Staff Aspects of HRM – Although most firms have a human resource department with its own manager, all other managers tend to get involved in activities like recruiting, interviewing, selecting, and training.

                       

                 1.    Line Versus Staff Authority – Authority is the right to make decisions, to direct the work of others, and to give orders.  Line managers are authorized to direct the work of subordinates.  Staff managers are authorized to assist and advise line managers in accomplishing their basic goals. HR managers are generally staff managers.

                 2.    Line Managers’ HRM Responsibilities – Most line managers are responsible for line functions, coordinative functions, and some staff functions.

            C. Cooperative Line and Staff HR Management: An Example – In recruiting and hiring, it’s generally the line manager’s responsibility to specify the qualifications employees need to fill specific positions.  Then the HR staff takes over.  They develop sources of qualified applicants and conduct initial screening interviews.  They administer the appropriate test.  Then they refer the best applicants to the supervisor (line manager), who interviews and selects the ones he/she wants.

            D.   From Line Manager to HR Manager:  Line managers may make career stopovers in staff HR manager positions.

           

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NOTES

Educational Materials to Use

II.         The Changing Environment of HR Management – Human Resource responsibilities have become broader and more strategic over time as organizations' human resource requirements have become more complex. The role of HR has evolved from primarily being responsible for hiring, firing, payroll, and benefits administration  to a more strategic role in employee selection, training and promotion, as well as playing an advisory role to the organization  in areas of labor relations and legal compliance,

A. Globalization Trends – Globalization refers to the tendency of companies to extend their sales, ownership, and/or manufacturing to new markets abroad.  Globalization of the world economy and other trends has triggered changes in how companies organize, manage and use their HR departments. The rate of globalization continues to be high, and has several strategic implications for companies.  More globalization means more competition, and more competition means more pressure to lower costs, make employees more productive, and do things better and less expensively.

B. Technological Trends - Virtual online communities, virtual design environments and Internet-based distribution systems have enabled companies to become more competitive.  HR faces the challenge of quickly applying technology to the task of improving its own operations.

C. Trends in the Nature of Work – Jobs are changing due to new technological demands. Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees.  In general, the jobs that remain require more education and more skills.  Non-traditional 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.

                        1. 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.

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

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

D. Workforce Demographics Trends – In many countries, the workforce is getting older and more multi-ethnic. The aging workforce presents significant changes in terms of potential labor shortage, and many companies are introducing new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees. Growing numbers of workers with eldercare responsibilities, and high rates of immigration also present challenges and opportunities for HR managers.

III.        The Changing Role of HR Management - HR’s central task is always to provide a set of services that make sense in terms of the company strategy.  Trends of globalization, increased competition, a changing workforce and more reliance on technology have implications for how companies now organize, manage, and rely on their HR operations. 

HR managers must partner with their top managers to design and implement company strategies.  The focus on operational improvements means that all managers must be more adept at expressing their departmental plans and accomplishments in measurable terms.

            A. Strategic HRM – Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness, and 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 company’s strategic aims.

B.    Creating High Performance Work Systems (HPWS) – HR can impact organizational performance in 3 ways:

-       through the use of technology

-       through effective HR practices

-       by instituting HPWS to maximize the competencies and abilities of employees throughout the organization.

1.     Managing with technology – Internet and computer based systems are improving productivity. Additionally, many HR tasks (payroll, reference checks, wellness programs, eetc) are being outsourced to specialist service providers. 

2.     Effective HR Practices – Pre-employment personality testing and increased training are just two HR practices that can produce employees who perform better.

3.     High Performance Work Systems (HPWS) – Employment security, selective hiring, extensive hiring, self managed team and decentralized decision making, fewer status distinctions, information sharing, contingent rewards, transformational leadership, measurement of managerial practices and emphasis on high quality work are all vital to H{WS.  Implementation of such practice often results in surprising benefits. 

            C.  Measuring the HR Management Team’s Performance - HR managers need a set of quantitative performance measures (metrics) they can use to assess their operations.  These metrics allow managers to measure their HR units’ efficiency. 

            C. Managing with the HR Scorecard – The HR Scorecard is a concise measurement system, showing quantitative standards or “metrics” used to measure HR activities, employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors.  The scorecard highlights the causal link between HR activities, emergent employee behaviors, and the resulting firm-wide strategic outcomes and performance.

IV.        The HR Manager’s Proficiencies

A.    Four proficiencies – are required of the HR Manager today in:   human resources, business, leadership, and learning. 

B.    HR Certification – through the certification by national HR professional institutes, human resource management is becoming more professionalized. Certification and membership in these institutes are earned by those who successfully complete the requirements of the certification program as well as having the required experience.

C.    Managing Within the Law – is increasingly important because many HR-related laws affect HR decision.  Employment laws, occupational safety and health laws are among the areas in which HR professionals need to know.

D.    Managing Ethics – has gained increasing exposure as a result of ethical lapses in corporate behavior.  It is clear that ethics needs to play a bigger role in managers’ decisions.  HR has an important role in promoting ethical behavior at work which will be discussed more fully later in the text.

               

DISCUSSION QUESTIONS

1.  

4.   Why is it important for a company to make its human resources into a competitive advantage?  How can HR contribute to doing so?  Building and maintaining a competitive advantage is what allows a company to be successful, and to remain profitable and in business.  HR can make a critical contribution to the competitive advantage of a company by building the organizational climate and structure that allows the company to tap its special skills or core competencies and rapidly respond to customers' needs and competitors' moves.

high performance work systems, HR metrics or ethics will be mentioned.

4. 

EXPERIENTIAL EXERCISES & CASES

2. 

KEY TERMS

management process               The five basic functions of management are:  planning, organizing, staffing, leading, and controlling.

human resource                       The policies and practices needed to carry out the

management (HRM)                  "people" or human resource aspects of a management position,

                                                including recruiting, screening, training, rewarding,

                                                and  appraising. 

authority                                  The right to make decisions, to direct the work of others, and give orders.

line manager                            A manager who is authorized to direct the work of subordinates-they're always someone's boss.  In addition, line managers are in charge of accomplishing the organization's basic goals. 

staff manager                           Assist and advise line managers in accomplishing the basic goals.  HR managers are generally staff managers.

line authority                            Authority to direct the activities of people in his or her own department.

implied authority                      The authority exerted by virtue of others' knowledge that he or she has access to top management.

functional control                     The authority exerted by a personnel manager as a coordinator of personnel activities.

globalization                            The tendency of firms to extend their sales or manufacturing to new markets abroad.

Non-traditional workers            Those who hold multiple jobs, or who are “contingent” or part-time workers, or people working in alternative work arrangements.

human capital                          Knowledge, education, training, skills, and expertise of a firm’s workers.

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

metrics                                     Quantitative performance measures that are used to assess operations  

HR Scorecard                           A concise measurement system which shows the quantitative standards or “metrics” a firm uses to measure HR activities, to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors.

outsourcing                             Letting outside vendors provide services.