discussion 1.2

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Human Resource Management
13th Edition

Chapter 1
STRATEGIC HUMAN RESOURCE MANAGEMENT:
AN OVERVIEW

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Learning Objectives

Describe employer branding and define human resource management.
Identify the human resource management functions.
Identify the external environmental factors that affect human resource management and describe the trend for increased mobility of tasks performed by HR professionals.
Explain why corporate culture is a major internal environment factor.
Explain who performs human resource management tasks.

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Learning Objectives (Cont.)

Describe how human resource management activities may be different for small businesses.
Describe the various human resource classifications, including executives, generalists, and specialists.
Describe the evolution of human resource management and explain the evolving HR organization.
Describe the professionalization of human resource management.
Explain the possible hurdles of managing human resources across different country’s culture.

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Corporate Culture

Corporate culture: System of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms
Throughout text the importance of various topics related to corporate culture will be described
Employer Branding is the first topic

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HRM in Action: Corporate Culture and Employer Branding

Employer branding: Firm’s corporate image or culture created to attract and retain the type of employees the firm is seeking
Companies want a brand that will entice individuals to join and remain with the firm

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Human Resource Management (HRM)

Utilization of individuals to achieve organizational objectives
Concern of all managers at every level
Face a multitude of challenges

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HRM Functions

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Human Resource Management

Human Resource Development

Compensation

Staffing

Employee and Labor Relations

Safety and Health

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Staffing

Process of ensuring the organization always has:

Proper number of employees
Employees with appropriate skills
Employees in the right jobs at the right time
Involves job analysis, human resource planning, recruitment, and selection

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Job Analysis

Systematic process of determining skills, duties, and knowledge required for performing jobs in organization
Impacts virtually every aspect of HRM

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Human Resource Planning

Matching internal and external supply of people with anticipated job openings over specified period of time
Sets the stage for recruitment or other HR actions

Recruitment and Selection

Recruitment: Attracting individuals
to apply for jobs

Must be timely
Applicants need appropriate qualifications
Need sufficient number of applicants

Selection: Choosing individual best suited for a particular position and the organization

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Human Resource Development

Major HRM function; includes:

Training
Development
Career planning
Career development
Organization development
Performance management
Performance appraisal

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Training and Development

Training: Providing learners with knowledge and skills needed for their present jobs

Development: Offering learning that goes beyond present job

Long-term focus

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Career Planning and Development

Career planning: Ongoing process.

Individual sets career goals

Identifies means to achieve them

Career development: Formal approach used by the organization.

Ensures a pipeline of people with proper qualifications and experiences

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Organization Development

Planned and systematic attempt to:

Make the organization more effective
Create positive behavioral environment

Performance Management

Goal-oriented process to ensure organizational processes are in place to maximize productivity

Applies to employees, teams, and ultimately, the organization

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Performance Appraisal

Formal system of review and evaluation

Individual
Team

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Compensation

All rewards that individuals receive as a result of their employment

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Financial Compensation

Direct: Pay employee receives in form of wages, salaries, bonuses, or commissions

Indirect: Benefits employee receives

Paid vacations, sick leave, holidays, medical insurance

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Nonfinancial Compensation

Satisfaction that person receives from:

Job itself
Psychological and/or physical environment

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Safety and Health

Safety: Protecting employees from injuries caused by work-related accidents

Health: Employees' freedom from illness and their general physical and mental well-being

Labor Unions and Collective Bargaining

Businesses are required by law to recognize a union and bargain with it in good faith if firm’s employees want union to represent them
Human resource activity with a union is often referred to as industrial relations

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Internal Employee Relations

HRM activities associated with the movement of employees within the organization. Examples:

Promotions
Demotions
Terminations
Resignations

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Interrelationships of HRM Functions

All HRM functions are interrelated
Each function affects the others

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Environment of Human Resource Management

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Legal Considerations

Federal, state, and local legislation
Court decisions
Presidential executive orders

Labor Market

Potential employees located within certain geographic area
Always changing

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Society

Firm must accomplish its purpose while complying with societal norms

Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation

Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves

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Unions

Group of employees who have joined together to collectively bargain with their employer
Become a third party when dealing with the company

Shareholders

Owners of corporation
Have invested money in firm
May at times challenge programs considered by management to be beneficial to organization

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Competition

In product or service and labor markets
Firms must maintain a supply of competent employees
Bidding war often results

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Customers

People who actually use firm’s goods and services
Employment practices should not antagonize members of the market the firm serves
Workforce should be capable of providing top-quality goods and services

Trends & Innovations: Mobile HR: Is the Cloud the Limit?

Trend: Increased mobility of tasks performed by HR professionals
Mobile applications are available for many HR functions
Cloud computing: Means of providing software and data via the Internet

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HR Technology

Rapid technological changes provide:

Increased sophistication
Ability to design more useful human resource information systems (HRIS)

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HRIS

An organized approach for obtaining information on which to base HR decisions
An umbrella for merging the various subsystems
Mainstay HR responsibilities need an HRIS

Economy

When economy is booming, it is often more difficult to recruit qualified workers
In economic downturn, more applicants are typically available

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Unanticipated Events

Unforeseen occurrences in external environment
Require a tremendous amount of adjustment with regard to HRM

Corporate Culture as a Major Internal Environment Factor

Gives people a sense of how to behave and what they ought to be doing
Topics related to corporate culture are presented throughout this text

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HR’s Changing Role: Questions

Can some HR tasks be performed more efficiently by line managers or outside vendors?
Can some HR tasks be centralized or eliminated?
Can technology perform tasks that were previously done by HR personnel?

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Who Performs Human
Resource Management Tasks?

Human resource managers
HR outsourcing
HR shared service centers
Professional employer organization (employee leasing)
Line managers

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Human Resource Manager

Historically, the HR manager was responsible for each of the five HR functions
Acts in advisory or staff capacity
Works with other managers to help them deal with human resource matters
Today, HR departments continue to get smaller

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HR Outsourcing

Transfers responsibility to an external provider
Discrete services
Business process outsourcing (BPO)

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Discrete Services

Single set of high-volume repetitive functions is outsourced to a third party
Typically transactional HR activities
Example: 401(k) administration

Business Process Outsourcing (BPO)

Majority of HR services are transferred to third party
Largest HR outsourcer is IBM
Kraft Foods Inc. and IBM signed a multi-year BPO agreement

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Recruitment Process Outsourcing (RPO)

As recession slowed and firms began to hire, some companies realized that they had lost their recruiting skills
Many had not kept up with the rapidly changing technology
RPO companies are stepping in to fill void in recruitment skills

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HR Shared Service Centers (SSCs)

Takes routine, transaction-based activities that are dispersed and consolidates them in one location
Provide an alternative to HR outsourcing

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Professional Employer Organization (Employee Leasing)

Company that leases employees to other businesses

Advantages:

Economies of scale
Greater job mobility for workers
Job security through leasing company
PEO can handle compliance requirements of programs

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Line Managers Performing
HR Tasks

Line managers: Individuals directly overseeing the accomplishment of the organization’s primary goals
Involved with human resources by nature of their jobs
Now performing some duties typically done by HR

Human Resource Management in Small Businesses

Many college graduates obtain jobs in small businesses
Same HR functions must be accomplished
Manner in which they are accomplished may be altered

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Evolution Of Human Resource Management

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Traditional Human Resource Function in Large Firm

Included separate sections
Sections were placed under an HR manager
Each HR function may have a supervisor and staff
HR manager works closely with top management in formulating policy

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The Evolving HR Organization

HR outsourcing
HR shared service centers
Professional employer organization
Line manager
HR becoming more strategic

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A Possible Evolving HR
Organization Example

President and CEO

Vice President, Operations

Vice President, Strategic Human Resources

Vice President, Finance

Director of Safety and Health

Training & Development (Outsourced)

Compensation (Shared Service Centers)

Staffing (Line Managers, use of Applicant Tracking Systems)

Vice President, Marketing

Professionalization of Human Resource Management

Profession: A vocation characterized by a:

Common body of knowledge
Procedure for certifying members of profession

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Society for Human Resource Management (SHRM)

Largest national professional organization for HR management individuals
Basic goals of the society:
Defining, maintaining, and improving standards of excellence in the practice of human resource management
Publishes HRMagazine

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Human Resource Certification Institute (HRCI)

Recognizes HR professionals through certification program
Offers three certifications for HR professionals:
PHR (Professional in Human Resources)
SPHR (Senior Professional in Human Resources)
GPHR (Global Professional in Human Resources)

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American Society for Training and Development (ASTD)

World’s largest association dedicated to workplace learning and performance professionals
ASTD Certification Institute has the Certified Professional in Learning and Performance (CPLP) credential

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WorldatWork

Focused on compensation, benefits, work–life effectiveness, and integrated total rewards
Certification of professionals
Strategies to attract, motivate, and retain an engaged and productive workforce

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A Global Perspective: Country Culture as a Possible Barrier to Global Business

Country’s culture: Set of values, symbols, beliefs, languages, and norms that guide human behavior within the country
Cultural differences between countries are a major factor influencing global business
Cultural misunderstandings are common

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