Week 1 Discussion
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cf_HRM599_wk1_ch1.pptx
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The New Human Resource Management Process
Chapter 1
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Why Study HRM?
Competitive advantage
Employee engagement
Job satisfaction
Willingness to perform
Organizational success
Employee engagement
Effective management
Productivity
Profit
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Why Study HRM?
To learn how to engage employees more effectively. Employee engagement is a combination of both job satisfaction and a willingness to perform for the organization at a high level over an extended period of time.
Organizations that engage and manage their people more successfully than their competitors have a much greater chance of being more productive and profitable than their competition.
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HRM Past and Present
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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| Past | Present |
| HR managers were paper pushers and simply organized personnel files. | HR managers improve organizational revenues and profits by creating the right working environment. |
| HR functioned more as a cost or revenue center. | HR functions more as a productivity and profit center. |
HRM in the 21st Century
Advocate for workers
Support employees
Reinforce value of workers and their skills
Improve working conditions and benefits
Communicate the company’s values and directives
Maintain best practices and stay within established budget
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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The role of HRM in the 21st century
HR professionals fill a vital role in business:
They are advocates for the workers, that is, support initiatives that reinforce the value of workers and the skills they provide that enhance the success of the company (improve working conditions and benefits).
But HR professionals also are beholden to the company’s values and directives that require them to maintain best practices within the confines of established budgetary constraints.
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Company A
Company B
Consider This
Fails to recruit top talent
Does not nurture talent
Has high turnover
Spends time defending their practices in court
Recruits better
Trains and develops better
Retains talent
Avoids lawsuits
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Imagine the future of two comparable companies with similar revenues and identical market share:
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Productivity
What is it?
Amount of output organizations receive per unit of input.
What does it require?
Effectiveness in getting the job done.
Think “Did we do the right thing?”
Efficiency in using resources to get the job done.
Think “Did we do things right?”
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Challenges for HR Managers
Challenges
Job satisfaction: the extent to which people like their jobs and the environment in which they work.
Turnover: the permanent loss of workers, which costs the organization in many ways.
Absenteeism: failure of an employee to report to work as scheduled.
Effects
Productivity
Employee and organizational performance
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Challenges for HR Managers
HR managers have no direct control over employees’
Productivity
Job Satisfaction
Turnover
Absenteeism
Therefore, HR managers should
foster employee willingness
create a desire to work
assist in effective and efficient performance.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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HR managers have no direct control over people, specifically their:
Productivity,
job satisfaction,
Turnover, and
absenteeism.
Therefore, they must create workplace conditions that foster employee willingness and desire to come to work and perform effectively and efficiently.
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Types of Turnover
Functional turnover: loss of a poor performer
Dysfunctional turnover: loss of an effective performer
Avoidable turnover: loss of a good worker that could have been avoided
Unavoidable turnover: loss of an employee that could not have been avoided
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Turnover Can Be Both Voluntary & Involuntary
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The HRM Strategic View
Took hold within the past 30 years.
Shift from reactive to proactive (i.e., taking on a strategic role).
Gives organization a sustainable competitive advantage.
Carries out organizational ideas and reaches goals of the overall strategic plan.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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The HRM Strategic View
HRM’s shift from reactive to proactive (i.e., taking on a strategic role), which took hold within the past 30 years, gives the organization a sustainable competitive advantage, because HRM efforts are critical to being able to carry out organizational plans and reach goals that have been defined by the overall strategic plan.
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The HRM Strategic View
Gain of HR leaders having a “seat at the table” as it pertains to strategic planning.
Enhance value of HR to be viewed as part of the solution and not the problem.
Dissolution of “us” versus “them” mentality.
Collaboration allows companies to progress rapidly in their pursuit of success.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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In addition to the movement that has resulted in the role of HR as a proactive force in the business world, there has also been a movement whereby the leaders in HR have gained a “seat at the table” as it pertains to strategic planning.
As HR has come to enhance its value as and been viewed as part of the solution and not the problem, there has also been a dissolution of “us” versus “them” mentality.
This collaboration has allowed companies to progress more rapidly in their pursuit of success.
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Main Goals of Strategic HRM
Encourage employees through:
Motivation
Leadership
Environmental analysis
Organizational changes
Engage employees
Increase productivity and job satisfaction
Lower absenteeism and turnover
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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The Main Goals of Strategic HRM
To encourage employees through motivation, leadership, environmental analysis, and organizational changes that work to improve job satisfaction.
Doing so engages employees, which in turn increases productivity and job satisfaction, and lowers absenteeism and turnover.
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Personnel of Organizations
HR has positioned itself as a force that supports a well-managed and people-centric business.
Senior executives realize their “personnel” are not headcount, overhead, or subordinates. They are investors and stakeholders in the future potential and prosperity of their business.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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As HR has become instrumental in the development of company initiatives and positioned itself as a force that supports a well-managed, people-centric business, senior executives have reached the realization that their “personnel” (as the antiquated term was once used) are not headcount, not overhead, not subordinates; but instead are investors and stakeholders in the future potential and prosperity of their business.
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Technology and Knowledge
HR managers are experiencing a shift in labor-intensive talents to technology-intensive and knowledge skills.
Technology enhances effectiveness, efficiency, and productivity while “doing more with less.”
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Technology and Knowledge
The job of the HR manager changed from administrator to strategic partner primarily because the type of work we do today has changed from requiring labor-intensive skills to technology-intensive and knowledge skills.
The New Human Resource Management Process
Technology and Knowledge
Technology is a tool that is capable of enhancing both effectiveness and efficiency. When used to its greatest advantage it allows knowledge workers the ability to be more productive while “doing more with less” which is the modern day business mantra.
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Talent Pool and Demographic Challenges for HR
Talent pool
HR managers compete to hire and retain technologically skilled employees. There is a shortage of employees with the knowledge to perform these increasingly complex jobs.
Demographics
HR managers must be culturally conscious of employees with different work ethics, cultural norms, and language differences.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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21st Century Talent Pool and Demographic Challenges for HR managers
They will compete to hire and retain technologically skilled workers due to a shortage of people with the knowledge to perform these increasingly complex jobs.
They will need to be more culturally aware and able to deal with individuals with significantly different work ethics, cultural norms and even language differences.
Advances in preventive medicine are allowing older workers, with high-value skills, the opportunity to be productive later in life.
It is estimated that some 90% of growth in the U.S. labor force between 2006 and 2016 will be from workers over the age of 55.
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Skills for Successful HRM
Technological skills: methods and techniques to perform a task.
Human relations skills: ability to work well with individuals and groups.
Conceptual and design skills: ability to evaluate a situation, identify and select reasonable alternatives, and make decisions that implement solutions.
Business skills: analytical and quantitative skills that help the manager understand and contribute to the profitability of the organization.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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More Skills for Successful HRM
Communication skills: ability to effectively write, speak and present. This requires clear, concise communication skills.
Social media skills: ability to capitalize on the benefits of social networking.
Perceptive and spatial thinking skills: ability to develop lateral thinking and honing a sense perception. This clarity of thinking is valued for senior level managers.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Technological skills--using methods and techniques to perform a task.
Human relations skills--the ability to work well with individuals and groups.
Conceptual and design skills--the ability to evaluate a situation, identify and select reasonable alternatives, and make decisions that implement solutions.
Business skills--analytical and quantitative skills that help the manager understand and contribute to the profitability of the organization.
Communication skills--of paramount importance among the many skills required to be successful in all future business endeavors, the ability to effectively write, speak and present using clear, concise communication skills is of greatest value..
Social media skill--the ability to capitalize on the benefits of social networking through the effective use of social media will be a critical skill necessary for success in the 21st century.
Perceptive and spatial thinking skills--the ability to develop lateral thinking and honing a sense of being perceptive will also prove valuable in many business settings. People with strengths in these areas have the innate ability to “see how all of the pieces of the puzzle” fit together enterprise wide and this clarity of thinking is valued for senior level managers.
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Line Versus Staff Management
Line managers
Control what the organization does by creating processes and assisting employees who produce what the business sells.
Usually depicted in an organization chart with a straight line of responsibility.
Staff managers (HR managers)
Advise line management on issues within their fields of specialized knowledge.
Usually depicted on an organization chart using a dotted line.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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HR Responsibilities of Line Management
Legal considerations
Labor cost controls
Leadership and motivation
Training and development
Appraisal and promotion
Safety and security of employees
Ethics and sustainability
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Disciplines with HRM
Legal: EEO and diversity management
Staffing
Training and development
Employee relations
Labor and industrial relations
Compensation and benefits
Safety and security
Ethics and sustainability
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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HRM Careers
These are professional associations and certification programs that help employees obtain and advance in HR careers:
The Society for Human Resource Management (SHRM)
American Society for Training and Development (ASTD)
WorldatWork.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Professional Liability
The organization and managers can be sued by employees who feel their rights under employment laws have been violated.
For this reason, it is important to understand HRM concepts as thoroughly as possible.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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The organization and managers with authority to make organizational decisions can be sued by employees who feel their rights under employment laws have been violated.
Therefore, you need to understand HRM concepts as thoroughly as possible.
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Practitioner's Model for HRM
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Strategy, the legal environment and diversity management are the basis for everything else that a 21st century HR manager does; they are the most critical to the organization’s basic stability and success.
Getting the right people into the right jobs allows the organization to get its work done successfully over long periods of time.
Managing people through training, evaluation, development, counseling, and employee and labor relations to keep them satisfied and productive.
Rewarding and maintaining workers through compensation and benefits packages, and protecting worker safety and health, to ensure ongoing organizational success.
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Practitioner's Model for HRM
Strategy, the legal environment, and diversity management are critical to the organization’s stability and success.
Pair employees with fitting jobs to allow the organization to achieve success over longer periods of time
Maintain employee satisfaction and productivity through training, evaluation, development, counseling, and employee and labor relations.
Reward employees through compensation and benefits packages.
Protect and expand the reach of the organization.
Lussier, Human Resources Management 3e. © SAGE Publications, 2019.
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Getting the right people into the right jobs allows the organization to get its work done successfully over long periods of time.
Managing people through training, evaluation, development, counseling, and employee and labor relations to keep them satisfied and productive.
Rewarding and maintaining workers through compensation and benefits packages, and protecting worker safety and health, to ensure ongoing organizational success.
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