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PowerPoint Presentation by Charlie Cook The University of West Alabama

Chapter 1 Introduction to Human Resource Management

Part One | Introduction

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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WHERE WE ARE NOW…

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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The purpose of this chapter is to explain what human resource management is, and why it’s important to all managers.

We’ll see that HRM activities such as hiring, training, appraising, compensating, and developing employees are part of every manager’s job. And we’ll see that HRM is also a separate function, usually with its own human resource or “HR” manager.

The main topics we’ll cover include the meaning of human resource management; why HRM is important to all managers; global and competitive trends; HRM trends; and the plan of this book. The framework (which introduces each chapter) makes this point: That to formulate and apply HR practices like testing and training you should understand the strategic and legal context in which you’re managing.

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Explain what human resource management is and how it relates to the management process.
Show with examples why human resource management is important to all managers.
Illustrate the human resources responsibilities of line and staff (HR) managers.
Briefly discuss and illustrate each of the important trends influencing human resource management.
List and briefly describe important trends in human resource management.
Define and give an example of evidence-based human resource management.
Outline the plan of this book.

LEARNING OUTCOMES

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Human Resource Management at Work

What Is Human Resource Management (HRM)?

The process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

Organization

People with formally assigned roles who work together to achieve the organization’s goals.

Manager

The person responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people.

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.

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The Management Process

Planning

Organizing

Leading

Staffing

Controlling

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Most experts agree that managing involves five functions: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process.

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Human Resource Management Processes

Acquisition

Training

Appraisal

Compensation

Labor Relations

Health and Safety

Fairness

Human Resource Management (HRM)

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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HRM involves several processes. The topics we’ll discuss will provide you with concepts and techniques needed to perform the “people” or personnel aspects of your job as a manager.

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Personnel Aspects of a Manager’s Job

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

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Managers are involved daily with many of the personnel aspects of HRM in accomplishing the organization’s goals, and managing the efforts of the organization’s people.

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Personnel Mistakes

Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your firm in court because of discriminatory actions
Have your firm cited by OSHA for unsafe practices
Have some employees think their salaries are unfair and inequitable relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labor practices

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Why are the concepts and techniques of HRM important to all managers? Perhaps it’s easier to answer this by listing some of the personnel mistakes you don’t want to make while managing.

Carefully studying this book will help you avoid mistakes like these.

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Basic HR Concepts

The bottom line of managing:
Getting results
HR creates value by engaging in activities that produce the employee behaviors that the organization needs to achieve its strategic goals.
Looking ahead: Using evidence-based HRM to measure the value of HR activities in achieving those goals.

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Hiring the right people for the right jobs and motivating, appraising, and developing them will likely get the results you are seeking. Remember that success comes through people.

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Line and Staff Aspects of HRM

Line Manager

Is authorized (has line authority) to direct the work of subordinates and is responsible for accomplishing the organization’s tasks.

Staff Manager

Assists and advises line managers.

Has functional authority to coordinate personnel activities and enforce organization policies.

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Line managers manage operational functions that are crucial for the company’s survival. Staff managers run departments that are advisory or supportive, like purchasing, HRM, and quality control.

Human resource managers are usually staff managers. They assist and advise line managers with recruiting, hiring, and compensation. However, line managers still have human resource duties.

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Line Managers’ HRM Responsibilities

Placing the right person on the right job

Starting new employees in the organization (orientation)

Training employees for jobs that are new to them

Improving the job performance of each person

Gaining creative cooperation and developing smooth working relationships

Interpreting the firm’s policies and procedures

Controlling labor costs

Developing the abilities of each person

Creating and maintaining department morale

Protecting employees’ health and physical condition

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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In small organizations, line managers carry out many personnel duties unassisted. As the organization grows, the need arises for the specialized assistance, knowledge, and advice of a human resource department.

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Human Resource Managers’ Duties

Line Function
Line Authority
Implied Authority

Staff Functions
Staff Authority
Innovator/Advocacy

Functions of
HR Managers

Coordinative
Function
Functional Authority

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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An HR manager directs the activities of the people in the HR department, coordinates organizational-wide personnel activities and provides HRM assistance and advice to line managers.

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FIGURE 1–1 Human Resources Organization Chart for a Large Organization

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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The size of the human resource department reflects the size of the employer. For a very large employer, an organization chart like the one in Figure 1-1 would be typical, containing a full complement of specialists for each HR function.

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FIGURE 1–2 Human Resources Organization Chart for a Small Company

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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The HR team for a small firm may contain just five or six (or fewer) staff, and have an organization similar to that in Figure 1-2. There is generally about one human resource employee per 100 company employees.

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Human Resource Specialties

Recruiter

EEO coordinator

Labor relations specialist

Training specialist

Job analyst

Compensation manager

Human Resource Specialties

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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• Recruiters search for qualified job applicants.

• Equal employment opportunity (EEO) coordinators investigate and resolve EEO grievances; examine organizational practices for potential violations; and compile and submit EEO reports.

• Job analysts collect and examine information about jobs to prepare job descriptions.

• Compensation managers develop compensation plans and handle the employee benefits program.

• Training specialists plan, organize, and direct training activities.

• Labor relations specialists advise management on all aspects of union–management relations.

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New Approaches to Organizing HR

Transactional HR group

Corporate
HR group

Embedded
HR unit

New HR Services Groups

Centers of Expertise

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Employers are experimenting with offering HR services in new ways. For example, some employers organize their HR services around four groups: transactional, corporate, embedded, and centers of expertise.

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Trends Shaping Human Resource Management

Globalization
and Competition Trends

Technological Trends

Indebtedness (“Leverage”) and Deregulation

Trends in the Nature of Work

Workforce and Demographic Trends

Economic Challenges and Trends

Trends in HR Management

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Some trends shaping human resource management practices include globalization, technology, deregulation, debt or “leverage,” changes in demographics and the nature of work, and economic challenges.

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FIGURE 1–4 Trends Shaping Human Resource Management

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Trends shaping HRM are summarized in Figure 1-4.

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FIGURE 1–5 Employment Exodus: Percent of employers who said they
planned as of 2008 to offshore a number of these jobs

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Figure 1-5 illustrates that in the next few years, many employers plan to offshore even highly skilled jobs such as sales managers, general managers—and HR managers.

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Trends in the Nature of Work

High-Tech
Jobs

Service
Jobs

Changes in How We Work

Knowledge Work and Human Capital

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Technology has also had a huge impact on how people work, and on the skills and training today’s workers need. Jobs are becoming more high tech, less-labor intensive, and require more knowledge and higher skill levels (human capital).

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TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Table 1-1, from the U.S. Department of Labor’s Bureau of Labor Statistics, shows how quickly the U.S. workforce is becoming older and more multi-ethnic.

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Workforce and Demographic Trends

Demographic Trends

Generation “Y”

Retirees

Nontraditional Workers

Trends Affecting Human Resources

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Demographic trends are making finding, hiring, and supervising employees more challenging.

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FIGURE 1–6 Gross National Product (GNP)

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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In Figure 1-6, the gross national product (GNP)—a measure of the United States of America’s total output—boomed between 2001 and 2007.

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FIGURE 1–7 Case-Shiller Home Price Indexes

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Figure 1-7 shows that home prices leaped as much as 20% per year between 2001 and 2007.

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Important Trends in HRM

The New HR Managers

High-Performance Work Systems

Strategic
HRM

Evidence-Based HRM

Managing
Ethics

HR
Certification

Human Resource Management Trends

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Trends like these translate into changes in HRM practices, and in what employers expect from their human resource managers.

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Meeting Today’s HRM Challenges

Focus more on “big picture” (strategic) issues

Find new ways to provide transactional services

The New Human Resource Managers

Acquire broader business knowledge and new HRM proficiencies

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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HR managers can play big roles in strategic planning and management by helping the top managers in devising functional and departmental plans that support the organization’s overall strategic plan, and then assisting in execution of the plans.

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TABLE 1–2 Some Technological Applications to Support HR

Technology	How Used by HR
Application service providers (ASPs) and technology outsourcing	ASPs provide software application, for instance, for processing employment applications. The ASPs host and manage the services for the employer from their own remote computers
Web portals	Employers use these, for instance, to enable employees to sign up for and manage their own benefits packages and to update their personal information
Streaming desktop video	Used, for instance, to facilitate distance learning and training or to provide corporate information to employees quickly and inexpensively
Internet- and network-monitoring software	Used to track employees’ Internet and e-mail activities or to monitor their performance
Electronic signatures	Legally valid e-signatures that employers use to more expeditiously obtain signatures for applications and record keeping
Electronic bill presentment and payment	Used, for instance, to eliminate paper checks and to facilitate payments to employees and suppliers
Data warehouses and computerized analytical programs	Help HR managers monitor their HR systems. For example, they make it easier to assess things like cost per hire, and to compare current employees’ skills with the firm’s projected strategic needs

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Table 1-2 lists some important ways employers use technology to support their HRM activities.

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FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Figure 1-8 summarizes how human capital—the employees’ knowledge, skills, and experiences—can have a big effect on important organizational outcomes, such as customer satisfaction and profitability.

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High-Performance Work Systems

Increase productivity and performance by:

Recruiting, screening and hiring more effectively

Providing more and better training

Paying higher wages

Providing a safer work environment

Linking pay to performance

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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A high-performance work system is a set of HRM policies and practices that together produce superior employee performance.

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Evidence-Based HRM

Actual measurements

Existing
data

Providing Evidence for HRM Decision Making

Research
studies

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Evidence-based HRM is the deliberate use of the best-available evidence in making decisions about the human resource management practices you are focusing on.

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Managing Ethics

Ethics

Standards that someone uses to decide what his or her conduct should be

HRM-related Ethical Issues

Workplace safety

Security of employee records

Employee theft

Affirmative action

Comparable work

Employee privacy rights

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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Every line manager or human resource manager needs to keep in mind the ethical implications of his or her employee-related decisions.

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HR Certification

HR is becoming more professionalized.
Society for Human Resource Management (SHRM)

SHRM’s Human Resource Certification Institute (HRCI)

SPHR (Senior Professional in HR) certificate

GPHR (Global Professional in HR) certificate

PHR (Professional in HR) certificate

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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As the human resource manager’s job becomes more demanding, HRM is becoming more professionalized. The Society for Human Resource Management’s (SHRM) HR professional certification exams test the HR professional’s knowledge of all aspects of HRM.

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The Plan of This Book: Basic Themes

HRM is the responsibility of every manager.
The workforce is becoming increasingly diverse.
Current economic challenges require that HR managers develop new and better skills to effectively and efficiently deliver and manage HR services.
The intensely competitive nature of business today means human resource managers must defend their plans and contributions in measurable terms.

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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In this book, we’ll use several themes and features to emphasize particularly important issues, and to provide continuity from chapter to chapter.

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FIGURE 1–10 Strategy and the Basic Human Resource Management Process

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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In practice, don’t think of each of this book’s 18 chapters and topics as being unrelated to the others. Each topic interacts with and affects the others, and all should align with the employer’s strategic plan. Figure 1-10 summarizes this idea.

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K E Y T E R M S

organization

manager
management process

human resource management (HRM)

authority

line authority

staff authority

line manager

staff manager

functional authority

globalization

human capital

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

Human Resources Management 12e Gary Dessler

Human Resources Management 12e
Gary Dessler

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