HRM-1
CHAPTER 1
Human Resource Management in Organizations
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Objectives
Understand human resource management and define human capital
Identify how human resource management and employees can be core competencies for organizations
Name the seven categories of HR functions
Provide an overview of four challenges facing HR today
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Objectives
Explain how ethical issues in organizations affect HR management
Explain the key competencies needed by HR professionals and why certification is important
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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What is Human Resource (HR) Management
Human resource management: Designing formal systems in an organization to manage human talent for accomplishing organizational goals
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Why Organizations Need HRM
Address worker engagement, performance, leadership development, retention
Manage a globalized workforce, diversity, sustainability, and social media
Facilitate the sharing of employee knowledge and expertise
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Why Organizations Need HRM
Deal with government regulations
Maintain legal compliance
Manage health care, retirement concerns, hiring, and educating
Regardless of organizational size; companies need HR
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Core Competency
Core competency: Unique capability that creates high value for a company
Differentiates an organization from its competitors
Is a key determinant of competitive advantage
HR department focus on using people as a core competency
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1-1: Types of Organizational Assets
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Human Capital
Human capital: Collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization’s workforce
Called intellectual capital to reflect the contributions of employees:
Thinking
Knowledge
Creativity
Decision making
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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STRATEGIC USE OF HUMAN CAPITAL
Employees are human assets who increase in value to organization and marketplace when investments of appropriate policies & programs are applied
Effective organizations recognize that employees have value and as much as organization’s physical & capital assets have value
Employees are valuable source of sustainable competitive advantage – they cannot be duplicated
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1-4: HR Management Functions
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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HR Management Functions
HR strategy and planning
Equal employment opportunity
Staffing
Talent management and development
Rewards
Risk management and worker protection
Employee and labor relations
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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HR Management Functions
Influenced by forces of external environment:
Global
Environmental
Cultural/Geographic
Political
Social
Legal
Economic
Technological
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Roles of HR Management
Administrative
Clerical administration, recordkeeping, legal paperwork, and policy implementation
Major shifts: Use of technology and outsourcing
Operational and Employee Advocate
Cooperate with managers to ensure fair employee treatment
Identify and implement needed programs and policies
Strategic
Address business realities
Focus on future business requirements
Contribute to devising and implementing success strategies
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1-5: Mix of Roles for HR Departments
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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HR Management Challenges
Human Resource Management
Competition, Cost Pressures, and Restructuring
Globalization
A Changing Workforce
Human Resource and Technology
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Competition, Cost Pressures, and Restructuring
Job Shifts
Highest percentage shift in higher-education jobs
Highest numbers shift in lower-education jobs
Skill Shortages
Inadequate supply of workers with the skills needed to perform the emerging new jobs
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Benefits of Technology
Improves administrative and operational efficiency of HR functions and reduces costs
Helps in strategic HR planning
Supports recruitment, selection, and training
Contributes to organizational performance through collection and analysis of HR-related data
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Technology Trends
Mobile Devices
Mobile devices are used to access HR info
Personal devices are allowed to enhance work
Social Media
Wikis, blogs, tweets, text messaging, etc.
Social media is used to communicate within and outside the organization
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1-8: HR and Organizational Ethics
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Ethics Culture and Practices
Programs that emphasize ethical behavior:
Written code of ethics
Ethical behavior training
Advice on ethical situations
Confidential reporting systems
Ethics includes corporate social responsibility and sustainable practices
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Ethics and Global Differences
Differences in legal, political, and cultural values and practices in different countries
Global employers must comply with both their home-country laws and the laws of other countries
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Role of HR in Organizational Ethics
Legal Question
Does the behavior or result meet all applicable laws, regulations, and government codes?
Ethical Question
Does the behavior or result meet both organizational standards and professional standards of ethical behavior?
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 1-9: Examples of HR-Related Ethical Misconduct
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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