2. 1). A Brief History of Human Resource ManagementThe Craft System
Master craftsman and apprentice
Industrial Revolution
Move to factory system and move to machines
Division of labor
Scientific Management
Taylor Conducted scientific experiments to improve efficiency
Theory X
Human Relations
Hawthorne experiments
The “Hawthorn effect” led researchers to associate social factors with work
Theory Y
2*
3. Workers inherently dislike work
Workers must be coerced, controlled, directed, threatened with punishment to get them to accomplish work objectives
Talent is narrowly distributed
Workers will do as little work as they are required to do
Motivated by money
Need for formal, well established lines of authority
Clearly defined jobsWorkers like work, cooperative, friendly
Work is widely distributed throughout the workforce
Workers can be motivated to work independently
Managers who accepted Y, would not structure, control, or closely supervise the work environment
Encourage self-control, motivate by providing satisfying work (e.g., challenging work)Theory XTheory YDouglas McGregor's Management Styles
Managers could organize, lead, control, and motivate people in different ways
4. Nature of Human Resource ManagementHuman Resource Management
The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals.
All management decisions and practices that directly affect or influence people - planning, acquiring, retaining (controlling turnover), developing or training, performance appraisal, compensation, safety and health, family and work life. HRM has wide range of functions and areas of responsibility.
4*
5. Nature of Human Resource ManagementWho Is an HR Manager?
In the course carrying out their duties, every operating manager is, in essence, an HR manager.
HR specialists design processes and systems that operating managers help implement.
5*
6. Typical Division of HR ResponsibilitiesHR Unit
Develops legal, effective interviewing techniques
Trains managers in conducting selection interviews
Conducts interviews and testing
Sends top three applicants to managers for final review
Checks references
Does final interviewing and hiring for certain job classificationsManagers
Advise HR of job openings
Decide whether to do own final interviewing
Receive interview training from HR unit
Do final interviewing and hiring where appropriate
Review reference information
Provide feedback to HR unit on hiring/rejection decisionsFigure 1–16*
7. HR Management Competencies and CareersHR Generalist
A person with responsibility for performing a variety of HR activities.
HR Specialist
A person with in-depth knowledge and expertise in a limited area of HR.
Important HR Capabilities:
Knowledge of business and organization
Influence and change management
Specific HR knowledge and expertise7*
8. Qualities of Human Resources ManagersResponsibilities
Advice and counsel
Service
Policy formulation and implementation
Employee advocacy
Competencies
Business mastery
HR mastery
Change mastery
Personal credibility
8*
9. HR ActivitiesHR Planning and Analysis
Equal Employment Opportunity
Staffing
HR Development
Compensation and Benefits
Health, Safety, and Security
Employee and Labor/Management Relations9*
10. Human Resource Competency ModelSource: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, “Lower Cost, Higher Value: Human Resource Function in Transformation.” Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851.Figure 1.9Presentation Slide 1–4BusinessMastery
Business acumen
Customer orientation
External RelationsHRMastery
Staffing
Performance appraisal
Rewards system
Communication
Organization designChangeMastery
Interpersonal skillsand influence
Problem-solving skills
Rewards system
Innovation and creativityPersonal Credibility
Trust
Personal relationships
Lived values
Courage10*
11. HR Management Activities11*
12. Traditional and Strategic Views of HRM (a) Personnel-The Traditional ViewThe OrganizationPersonnel
Staffing
Pay
TrainingResearch and
DevelopmentFinanceMarketingProductionWhat is Strategic Human Resource Management (SHRM)?12*
13. Developing Human CapitalHuman Capital
The knowledge, skills, and capabilities of individuals that have economic value to an organization.
Valuable because capital:
Is based on company-specific skills.
Is gained through long-term experience.
Can be expanded through development.13*
14. 2). StrategyStrategic management: set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational objectives.
Competitive advantage: when a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitor.
Sustained competitive advantage: exists only after efforts to replicate that advantage have ceased.14*
15. Strategy Cont.Strategic plan: the overall blueprint that defines how an organization will deploy its capital resources, such as budgetary and human resources, in pursuit of its goals
How do you develop a strategic plan?
Articulate values and mission statement
SWOT Analysis
Establish realistic goals and objectives based on the foregoing steps
Formulate Strategies
Implement Strategies
15*
16. CORPORATE STRATEGYHow companies choose their mixtures of different businesses
Contrasts with business level strategy
Diversification
related
unrelated16*
17. Types of Business Strategies
Cost leadership: A firm pursuing a cost leadership strategy aggressively seeks efficiencies in production and uses tight controls to gain an edge on competitors.
Differentiation strategy: involves an attempt to set a company’s products or services apart from those of its competitors. 17*
18. Linkage of Organizational and HR StrategiesFigure 2–418*
19. Strategic
GoalsHuman
Resource
ManagementFinanceResearch
and
DevelopmentMarketingProductionTraditional and Strategic Views of HRM (b) HRM -- The Strategic View19*
20. Table 2.1 Theoretical Perspectives on SHRM Universalistic There is one best way to manage human resources. Strategic HRM is the process of transforming traditional HR practices into a limited set of “correct” HR procedures and policies.
Strategic Fit Strategic HRM involves matching specific HR practices to the firm’s overall business strategy.
HR as internal Strategic HRM involves HR professionals providing HR service provider services to business units within the firm. The HR goal is to enhance the effectiveness and efficiency of the operations of their business unit customers.Perspective DescriptionWhat is Strategic Human Resource Management (SHRM)? (Continued)20*
21. Table 2.1 Theoretical Perspectives on SHRM Configurational There are various configurations or “bundles” of HR practices that go together and, collectively, can improve business performance. Certain bundles are effective in certain industries and/or in certain business conditions, whereas other bundles should be used in other industries or under different business Circumstances
Resource/Competency SHRM engenders organizational success by enhancing a firm’s ability to acquire, develop, use, and retain employees with high competence levels relevant to firm activities.Perspective DescriptionWhat is Strategic Human Resource Management (SHRM)? (Continued)21*
22. Competitive Advantage through PeopleCore Competencies
Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.
Sustained competitive advantage through people is achieved if these human resources:
Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized for synergy.22*
23. - It involves designing and implementing a set of internally consistent policies and practices that ensure a firm’s human capital contribute to the achievement of its business objectives.
- This includes both vertical (linking HRM practices with strategic management process) and horizontal (the integration of the various HRM practices) integration as well.
- Additionally, linking the people of the firm (in terms of their skills and actions) to the strategic needs of the firm.SHRM Defined23*
24. Different Roles for HR ManagementFigure 1–524*
25. HR Management RolesAdministrative Role
Clerical and administrative support operations (e.g., payroll and benefits work)
Employee Advocate Role
“Champion” for employee concerns
Employee crisis management
Responding to employee complaints
Operational Role
Identification and implementation of HR programs and policies—EEO, hiring, training, and other activities that support the organization.
25*
26. How HR Spends Its TimeFigure 1–6Source: Adapted from “How Much Time Should Your HR staff Spend on Recruiting?” Human Resources Department Management Report, June 2000, p. 6.26*
27. Strategic Role for HRHR becomes a strategic business partner by:
Focusing on developing HR programs that enhance organizational performance .
Involving HR in strategic planning at the onset.
Participating in decision making on mergers, acquisitions, and downsizing.
Redesigning organizations and work processes
Accounting and documenting the financial results of HR activities.27*
28. Overview of HR Management RolesFigure 1–728*
29. HR Management ChallengesOrganizational Restructuring, Mergers, and Acquisitions
“Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and outplacing workers
Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees.
HR managers must work toward ensuring cultural compatibility in mergers.29*
30. 3). HR Management ChallengesEconomic and Technological Changes
Shift in jobs for manufacturing and agriculture to service industries and telecommunications.
Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.
Growth of information technology (Internet).30*
31. Jobs of the FutureFigure 1–3Source: U.S. Department of Labor, Bureau of Labor Statistics, 2001.31*
32. HR Management ChallengesWorkforce Availability and Quality
Inadequate supply of workers with needed skills for “knowledge jobs”
Education of workers in basic skills
Growth in Contingent Workforce
Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:
Need for flexibility in staffing levels
Increased difficulty in firing regular employees.
Reduced legal liability from contract employees32*
33. HR Management ChallengesDemographics and Diversity Issues
More diversity of race, gender, age, and ethnicity in the U.S. workforce
Balancing Work and Family
Dual-career couples
Single-parent households
Decline in the “traditional family”
Working mothers and family/childcare
Single employee “backlash” against family-oriented programs.33*
34. New Moms in the WorkforceFigure 1–4Source: U.S. Census Bureau, 2000.34*
35. Ethics and HRWhat is Ethical Behavior?
What “ought” to be done.
Dimensions of decisions about ethical issues in management:
Extended consequences
Multiple alternatives
Mixed outcomes
Uncertain consequences
Personal effects35*
36. Ethics and HR (cont’d)Responding to Ethical Situations
Guided by values and personal behavior “codes” that include:
Does response meet all applicable laws, regulations, and government codes?
Does response comply with all organizational standards of ethical behavior?
Does response pass the test of professional standards for ethical behavior?36*
37. Ethical Issues in ManagementMost Common Forms of Unethical Conduct
Lying to supervisors
Employee drug use or alcohol abuse
Falsification of records
International Ethical Issues
Gift giving and bribery
Discrimination in hiring and treatment
Addressing Ethical Issues
Code of ethics
Training managers and employees37*
38. Code of EthicsAs a member of the Society for Human Resource Management, I pledge to:
Maintain the highest standards of professional and personal conduct.
Strive for personal growth in the field of HRM.
Support the Society's goals and objectives for developing the human resource management profession.
Encourage my employer to make the fair and equitable treatment of all employees a primary concern.
Strive to make my employer profitable both in monetary terms and through the support and encouragement of effective employment practices.
38*
39. Code of Ethics Cont.Instill in employees and the public a sense of confidence about the conduct and intentions of my employer.
Maintain loyalty to my employer and pursue its objectives in ways that are consistent with the public interest.
Uphold all laws and regulations relating to my employer's activities.
Refrain from using my official positions, either regular or volunteer, to secure special privilege, gain or benefit for myself.
Maintain the confidentiality of privileged information.
Improve public understanding of the role of human resource management.39*
40. Overall Framework for Human Resource ManagementPresentation Slide 1–1COMPETITIVECHALLENGES
Globalization
Technology
Managing change
Human capital
Responsiveness
Cost containmentHUMAN RESOURCES
Planning
Recruitment
Staffing
Job design
Training/development
Appraisal
Communications
Compensation
Benefits
Labor relationsEMPLOYEECONCERNS
Background diversity
Age distribution
Gender issues
Educational levels
Employee rights
Privacy issues
Work attitudes
Family concerns
Figure 1.140*
41. Competitive Challenges and Human Resources ManagementThe most pressing competitive issues facing firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs41*
42. Going GlobalGlobalization
The trend toward opening up foreign markets to international trade and investment.
Impact of Globalization
Partnerships with foreign firms
“Anything, anywhere, anytime” markets
Lower trade and tariff barriers
NAFTA, EU, APEC trade agreements
WTO and GATT42*
43. Going Global (cont’d)Impact on HRM
Different geographies, cultures, laws, and business practices
Issues:
Identifying capable expatriate managers.
Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work.43*
44. Embracing New TechnologyKnowledge Workers
Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving.
The Spread of E-commerce
The Rise of Virtual Workers44*
45. Influence of Technology in HRMHuman Resources Information System (HRIS)
Computerized system that provides current and accurate data for purposes of control and decision making.
Benefits:
Store and retrieve of large quantities of data.
Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increase productivity and response times.45*
46. Human Resource Information SystemsHuman resource information systems (HRIS)
An integrated system of hardware, software, and databases designed to provide information used in HR decision making.
Benefits of HRIS
Administrative and operational efficiency in compiling HR data
Availability of data for effective HR strategic planning
Uses of HRIS
Automation of payroll and benefit activities
EEO/affirmative action tracking46*
47. Major Uses ForHR Information SystemsSource: HR and Technology Survey, Deloitte & Touche and Lawson Software, 1998.HRM 147*
48. Uses of an HR Information System (HRIS)Figure 2–1248*
49. Impact of IT on HRMTransformationalImpactOperationalImpactRelationalImpactHRM49*
50. Designing and Implementing an HRISHRIS Design Issues
What information available and what is information needed?
To what uses will the information be put?
What output format compatibility with other systems is required?
Who will be allowed to access to the information?
When and how often will the information be needed?50*
51. Accessing the HRISIntranet
An organizational (internal) network that operates over the Internet.
Extranet
An Internet-linked network that allows employees access to information provided by external entities.
Web-based HRIS Uses
Bulletin boards
Data access
Employee self-service
Extended linkage51*
52. A Guide To Internet SitesAmerican Management Association (http://www.amanet.org/start.htm)AMA membership, programs, training, etc.
Society for Human Resource Management (http://www.shrm.org)Current events, information, connections, articles.
HR Professional’s Gateway to the Internet (http://www.hrisolutions.com/index2.html) Links to HR-related web pages.
Training and Development Homepage (http://www.tcm.com/trdev/)Job mart, training links, T&D electronic mailing list links.HRM 252*
53. A Guide To Internet Sites (cont’d)FedWorld (http://www.fedworld.gov) A gateway to many government web sites.
U.S. Department of Labor(http://www.dol.gov) Job bank, labor statistics, press releases, grants, contract information.
Occupational Safety and Health Resources(http://osh.net) OSHA-related sites, government pages, resources, etc.
AFL-CIO(http://www.aflcio.org/home.htm)Union news, issue papers, press releases, links to labor sites.HRM 253*
54. HRM IT Investment FactorsInitial costs and annual maintenance costs
Fit of software packages to the employee base
Ability to upgrade Increased efficiency and time savings
Compatibility with current systemsUser-friendliness
Availability of technical support
Needs for customizing
Time required to implement
Training time required for HR and payroll54*
55. Managing ChangeTypes of Change
Reactive change
Change that occurs after external forces have already affected performance
Proactive change
Change initiated to take advantage of targeted opportunities
Formal change management programs help to keep employees focused on the success of the business.55*
56. Managing ChangeWhy Change Efforts Fail:
Not establishing a sense of urgency.
Not creating a powerful coalition to guide the effort.
Lacking leaders who have a vision.
Lacking leaders who communicate the vision.
Not removing obstacles to the new vision.
Not systematically planning for and creating short-term “wins.”
Declaring victory too soon.
Not anchoring changes in the corporate culture.56*
57. Responding to the MarketTotal Quality Management (TQM)
A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.
Six Sigma
A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.57*
58. Responding to the MarketReengineering
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
Requires that managers create an environment for change.
Depends on effective leadership and communication processes.
Requires that administrative systems be reviewed and modified.58*
59. Containing CostsDownsizing
The planned elimination of jobs (“head count”).
Outsourcing
Contracting outside the organization to have work done that formerly was done by internal employees.
Employee Leasing
The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.59*
60. Downsizing and UpsizingPercent of companies reporting that they:*All annual readings are for 12 months ending at midyear. Categories are not mutually exclusive.Source: Gene Koretz, “Hire Math: Fire 3, Add 5,” Business Week Online (March 13, 2000).Figure 1.260*
61. Containing Costs (cont’d)Hidden Costs of Layoff
Severance and rehiring costs
Accrued vacation and sick day payouts
Pension and benefit payoffs
Potential lawsuits from aggrieved workers
Loss of institutional memory and trust in management
Lack of staffers when the economy rebounds
Survivors who are risk-averse, paranoid, and political61*
62. Containing Costs (cont’d)Benefits of a No-Layoff Policy
A fiercely loyal,more productive workforce
Higher customer satisfaction
Readiness to snap back with the economy
A recruiting edge
Workers who aren’t afraid to innovate, knowing their jobs are safe.62*
63. Productivity EnhancementsFigure 1.3Presentation Slide 1–2MOTIVATION
Job enrichment
Promotions
Coaching
Feedback
Rewards
ENVIRONMENT
Empowerment
Teams
Leader support
CultureABILITY
Recruitment
Selection
Training
DevelopmentPerf = f (A,M,E)63*
64. Social Issues and HRMChanging Demographics
Shrinking pool of entry-level workers
Productivity
Individual differences
Retirement benefits
Social Security contributions
Skills development
Use of temporary employees HRM 464*
65. Social Issues and HRM (cont’d)Employer/Employee Concerns
Job as an entitlement
Right to work
Whistle-blowing
Employment at will
AIDS
Comparable worth
Concern for privacy
Mandated benefitsHRM 465*
66. Social Issues and HRM (cont’d)Attitudes Toward Work and Family
Day care
Flextime
Job sharing
Alternative work schedules
Elder care
Job rotation
Parental leave
TelecommutingHRM 466*
67. Labor Force and Racial DistributionFigure 1.4aSource: “Labor Force,” Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 36–41.67*
68. Labor Force Growth By Race And Hispanic Origin, Projected 2000–2010Figure 1.4bSource: “Labor Force,” Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 36–41.68*
69. Labor Force Share By Race And Hispanic Origin, 2000 And Projected 2010Figure 1.4cSource: “Labor Force,” Occupational Outlook Quarterly 45. no. 4 (Winter 2001/2002): 36–41.69*
70. Labor Force Participation Rate By Sex,1950–2000 And Projected 2000–2010Figure 1.5a70*
71. Labor Force Growth By Sex,Projected 2000–2010Figure 1.5b71*
72. Labor Force Share By Sex,1990, 2000, And Projected 2010Figure 1.5c72*
73. EducationPaysSource: U.S. Department of Labor.Figure 1.673*
74. Model of Diversity Management StrategyFigure 1.7Source: Kathleen Iverson, “Managing for Effective Workforce Diversity,” Cornell Hotel and Restaurant Administration Quarterly 41, no. 2 (April 2000): 31–38.74*
75. Why Diversity?The primary business reasons for diversity management include…HRM 5Source: Association of Executive Search Consultants (member survey). Used with permission of the Association of Executive Search Consultants, http://www.aesc.org.Presentation Slide 1–3Better utilization of talent(93%)Increased marketplace understanding (80%)Enhanced creativity(53%)Increased quality of team problem solving(40%)Breadth of understanding in leadership positions(60%)75*
76. Top Issues for Managers in Balancing Work and HomeExecutive recruiters say 75 percent of senior management candidates and 88 percent of middle managers raised concerns about balancing work and home. Top issues:Source: Association of Executive Search Consultants (member survey). Used with permission of the Association of Executive Search Consultants, http://www.aesc.org.Figure 1.876*