HRM Case

MelvinThomas

LussierFundamentalsofHRMPPT01-Student.pptx

Home >Human Resource Management homework help >HRM Case

Chapter 1: The New Human Resource Management Process

Jack Welch: The Role of HR

https://www.youtube.com/watch?v=rByDmC0SqtM

Video Highlights

HR is a highly important function in a company

Drives the winning team – finds the right players

Be a strategic partner – do not limit department to forms and management of company benefits

HR practitioners – love to see people grow

Why Study HRM?

Competitive advantage

Employee engagement

Job satisfaction

Willingness to perform at high level

Willingness to perform long-term

Organizational success

Employee engagement

Effective management

Productivity

Profit

Historical Evolution of HRM

Pre-Industrialization

Craft system

Subsistence Farming, agricultural economies

Products produced in people’s homes using hand tools or basic machines

Industrialization

Shift to powered, special-purpose machinery, factories, and mass production

Division of Labor – Frederick Taylor (train and pay more to increase efficiency)

Mass production – focus on output not worker needs or rights

First record of HR unit– National Cash Register Co. in 1901. Unit formed to manage employee grievances, discharges, safety and other issues to manage worker strike and discourage union formation

Timeline of the history of HR

https://www.youtube.com/watch?v=RpHX03q_3UI

HR Timeline

1912 – 8hr work shift (1914 Henry Ford)

1921 – Multidivisional organizational structure

1970 – Performance management – directing work behaviors to higher levels of performance

1973 – Competencies introduced

1974 – 1st HRD department, not HRM

1990 – strategic pay-96

Balances score card – non-financial measures included

Strategic pay

2008 – result-only work environment – pay for results not work hrs.

Evolution will continue

Staffing Function

One of the most important organizational functions

Functions: Organizing, Planning, Controlling, Leading, Staffing

Basic concept of HR

Organization is made up for 4 resources

Manpower

Material

Money

Machinery

Man power (human element) that makes use of non-human resources

All other functions depend on manpower to be effective

Non-Human

Staffing Function Con’t

HRM is the strategic manifestation of staffing – focus on aligning human resources (HR) with strategic organization goals.

HRM

is a continuous activity

Efficient management of personnel

Aims to create satisfied and productive employees

When an organization is concerned about people, its total philosophy, culture, and orientation reflects it

Staffing Function Con’t

What does it mean to manage Human resources or human capital?

First: what is human capital (HC)?

HC refers to skills, knowledge, and experiences possessed by an individual. It is viewed in terms of value or cost to an organization

Second: Who possesses these resources

Individuals can rent their resources in exchange for pay

Individuals create products through work that can be owned by an organization

Third: Humans as an organization resource

HRM views employees as assets with quantifiable value that can increase a firm’s value through the use of specific management techniques

Consider This

Company A

Recruits better

Trains and develops better

Retains talent

Avoids lawsuits

Company B

Fails to recruit top talent

Does not nurture talent

Has high turnover

Spends time defending its practices in court

Imagine the future of two comparable companies with similar revenues and identical market share:

21st Century HRM

Communicate the Company’s values and directives

Maintain best practices

Stay within established budget

Hire senior HR manager (CHRO)

Create and improve effectiveness and efficiency within organizations

HRM Then and Now

Past	Present
HR managers were paper pushers who simply organized personnel files.	HR managers improve organizational revenues and profits by creating the right working environment.
HR functioned more as a cost center.	HR functions more as a productivity and profit center through building effectiveness and efficiency

HR as Cost v. Revenue Center

Cost perspective

HR is a drain on profits, burden to profit & loss statement, our biggest expenditure

Types of costs: Recruiting expenses, salary/wage, employment taxes (e.g., Social security, unemployment, Medicare, workers’ compensation insurance), benefits, space, equipment.

HR as Cost v. Revenue Center

Cost estimate:

The costs (basic salary, employment taxes and benefits) are typically in the 1.25 to 1.4 times base salary range - e.g. the cost range for a$50,000/year employee might $62,500 to $70,000.

Salaries alone can account for 18 to 52 percent of your operating budget, according to the Society for Human Resource Management

HR as Cost v. Revenue Center

Revenue perspective:

Divisions or departments that directly generate monetary returns for the company

Ideally HR departments should be productivity centers

Enhances productivity or organization by enhancing productivity of employees

Productivity results from …

Effectiveness – job gets done

Efficiency – best use of resources, did we do it right?

HRM deals primarily with improving the efficiency of people within an organization – getting more per unit of time!

The Skills Needed for HRM

1. Technical Skills – perform required task

2. Human Relation Skills – communicate with, understand, and work well with others

3. Conceptual and Design Skills – identify threats and opportunities, determine alternatives, design a solution

4. Business Skills – analytic and quantitative skills

Robert Katz

HRM Careers

Examples of HR titles

Recruiter

Compensation Analyst

Human Resources Assistant

Employee Relations Manager

Benefits Manager

Work/Life Coordinator

Training and Development Manager

Human Resources Manager

Vice President for Human Resources

An engaged employee is fully absorbed by and enthusiastic about their work.

1. Is employee engagement possible in an age when people tend to have very little loyalty to their employers and vise versa?

2. If possible, how would you work to increase employee engagement as a manager?

HRM Challenges

Challenges

Retaining and rewarding best employees

Developing next generation of corporate leaders

Creating culture that attracts best employees

Critical Competencies and Sub-competencies

Business acumen – business knows how to make money in its market

Organizational leadership and navigation

Relationship management

Communication

SHRM Summit – Key HR Challenges

Highlights – HR Challenges

What is SHRM – largest and most recognized of the HRM advocacy organizations in United States.

Align HR strategies to business strategies

Be a leaders of change

Excellent function delivery

Helping people do the right things…

Critical Dependent Variables

HR managers have no direct control over these employee factors:

Productivity

Job satisfaction

Turnover

Absenteeism

Technology and Knowledge

The Information Age: An era that began around 1980, in which information became one of the main products used in organizations; it is characterized by exponential increases in available information in all industries

The pace of technological change: Technology is currently outstripping our ability to use it.

Technology and Knowledge

HR managers experiencing shift from labor-intensive talents to technology-intensive and knowledge skills

Working less with hands and more with minds

Technology enhances effectiveness, efficiency, and productivity while “doing more with less”

Creating “knowledge” workers

Knowledge workers are in short supply

Labor Demographics

Demographic changes foreseeable over the next 20 years

Greater diversity than ever

Older workers remain in the workforce longer

Need for cultural awareness regarding different work ethics, cultural norms, and language differences.

Disciplines Within 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

HR Responsibilities of Staff and Line Management

Legal: EEO and Diversity Management

Staffing

Training and Development

Employee Relations

Labor and Industrial Relations

Compensation and Benefits

Safety and Security

Ethics and Sustainability

Line Versus Staff Management How HR responsibilities differ, while still being related

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/HR Managers

Advise line management on issues within their fields of specialized knowledge

Usually depicted on an organization chart using a dotted line

Skills for Successful HRM

Technical Skills: Know methods and techniques to perform a task

Human Relations Skills: Possess ability to work well with individuals and groups

Conceptual and Design Skills: Possess ability to evaluate a situation, identify and select reasonable alternatives, and make decisions that implement solutions

Business Skills: Possess analytical and quantitative skills that help the manager understand and contribute to the profitability of the organization

HRM Careers

Professional Associations and Certification Programs

The Society for Human Resource Management (SHRM): the largest and most recognized of the HRM advocacy organizations in the United States

American Society for Training and Development (ASTD)

WorldatWork

Human Resource Certificate Institute (HRCI)

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’s important to understand HRM concepts as thoroughly as possible.

Be aware of personal and professional liability.

Practitioner’s Model for HRM

Section I: 21st Century HRM, Strategic Planning, and HR Laws

Strategy, the legal environment, and diversity management are critical to the organization’s stability and success.

Section II: Staffing

Pair employees with fitting jobs to allow the organization to achieve success over longer periods of time.

Practitioner’s Model for HRM

Section III: Developing and Managing

Maintain employee satisfaction and productivity through training, evaluation, development, counseling, and employee and labor relations.

Section IV: Compensating

Reward employees through compensation and benefits packages.

Section V: Protecting and Expanding

Protect and expand the reach of the organization.

Exhibit 1-3: Practitioner’s Model for HRM

Trends and Issues in HRM

Creating an Engaged Workforce

Employees: Integral part of workforce

Hire and train managers for employee engagement

Create and adhere to company values

Remove disengaged employees

Reverse Discrimination Rulings

What are they?

Ricci v. DeStefano

Discrimination of all types important