Discussion Question
CHAPTER 1
Human Resource Management in Organizations
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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 H R functions
Provide an overview of four challenges facing H R today
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives (continued)
Explain how ethical issues in organizations affect H R management
Explain the key competencies needed by H R professionals and why certification is important
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Resource (H R) Management
Designing formal systems in an organization to manage human talent for accomplishing organizational goals
Roles
Selecting, training, rewarding, managing, and retaining employees
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Organizations Need H R Management
Assists organizations in achieving higher:
Profits
Stock price
Productivity
Assists organizations in adapting to:
A globalized workforce
Age diversity
Deals with government regulations
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Core Competency and Organizational Assets
Core competency: Unique capability that creates high value for a company
Organizational assets
Physical assets
Financial assets
Intellectual property assets
Human assets
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Human Capital
Human capital: The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organization’s workforce
Called intellectual capital to reflect employees’ contributions
Ability-motivation-opportunity (A M O) model
H R practices that lead to greater skill, greater motivation, and greater opportunity for workers to contribute to the organization
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Productivity
Productivity: Measure of the quantity and quality of work done, considering the cost of the resources used
Unit labor cost: Computed by dividing the average cost of workers by their average levels of output
Can be improved by organizational restructuring, redesigning work, aligning H R activities, and outsourcing analyses
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Customer Service, Quality, and Innovation
H R assists managers and employees in focusing on customers’ needs
Contributes significantly to achieving organizational goals and maintaining a competitive advantage
Innovation: Process whereby new ideas are generated that create value for an organization
Facilitated by selection of appropriate talent, training, and sharing of knowledge
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Organizational Culture
Shared values and beliefs that give members of an organization meaning and provide them with rules for behavior
Is constant and enduring
Comprises the organizational social environment within a firm
Affects service and quality, organizational productivity, and financial results
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H R Functions
Strategy and planning
Equal employment opportunity
Talent acquisition
Talent management
Total rewards
Risk management and worker protection
Employee and labor relations
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Roles for Human Resource Departments
Administrative
Focusing on clerical administration, recordkeeping, legal paperwork, and policy implementation
Operational and employee advocate
Managing H R activities based on the strategies and operations identified by management
Strategic
Helping define and implement business strategies
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Mix of Roles for H R Departments
Prioritization in the past
Strategic
Operational and employee advocate
Administrative
Prioritization in the future
Administrative
Operational and employee advocate
Strategic
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H R Management Challenges
Competition, cost pressures, and restructuring
Globalization
A changing workforce
Human resource and technology
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Competition, Cost Pressures, and Restructuring
Job shifts
Gig economy: Most work is performed by freelance workers rather than full-time employees
Skill shortages
Inadequate supply of workers with the skills needed to perform emerging jobs
Major improvements need to be made to educational systems in the United States
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Globalization
Globalization of businesses has shifted from trade and investment to the integration of:
Global operations
Management
Strategic alliances
Globalized firms face difficulties in certain areas
Strategy, people, complexity, and risk
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
A Changing Workforce
Racial and ethnic diversity
Racial and ethnic minorities account for a growing percentage of the overall labor force
Gender in the workforce
Women may be a majority in certain occupations in the U.S. workforce
Age considerations
Many employees may retire in the near future
Millennials may represent 75 percent of the workforce by 2025
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Benefits and Challenges of Technology
Helps in strategic H R planning
Improves administrative and operational efficiency of H R functions
Reduces costs
Supports recruitment, selection, and training
Challenge – Overreliance may negatively impact learning
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Technology Trends
Mobile devices
A D P Mobile – Individuals can view employee information and perform other H R functions
H R leaders should encourage the use of mobile devices with B Y O D policies
Social media: Online communities where users create and share content and participate in networking
Negative comments by employees may affect a firm’s reputation
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H R and Organizational Ethics
Areas for potential ethical problems in H R
Compensation, development, staffing, performance management, E E O, and training
Ethical or unethical treatment of employees influences the following organizational parameters
Job satisfaction, turnover, absenteeism, commitment, job performance, and ethical decisions
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Ethical Culture and Practices
Programs that emphasize ethical behavior
Written code of ethics
Ethical behavior training
Advice on ethical situations
Confidential reporting systems
Public recognition and recommendation for ethical behavior
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Ethics and Global Differences
Differences in legal, political, and cultural values and practices in different countries exist
Global employers must comply with both their home-country laws as well as the laws of other countries
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Role of H R 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?
H R management plays a key role as the keeper and voice of organizational ethics
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Examples of H R-Related Ethical Misconduct
Compensation
Misrepresenting hours and time worked
Falsifying work and reports
Employee relations
Employees lying to supervisors and coworkers
Misusing or stealing organizational assets and supplies
Staffing and equal employment
Sexual harassment of other employees
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H R Management Competencies
H R professionals need to be:
Strategic positioners
Credible activists
Capacity builders
Change champions
Innovators and integrators
Technology proponents
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Figure 1-10: S H R M H R Competency Model
Applicable only to examinees testing within the United States
Source: www.shrm.org
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Management as a Career Field
H R generalist: A person who has responsibility for performing a variety of H R activities
H R specialist: A person who has in-depth knowledge and expertise in a specific area of H R
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Human Resource Professionalism and Certification
H R professionals require considerable knowledge about the legal and operational aspects of managing the human resources in an organization
Earning a certification is an important step in establishing proficiency and credibility
Continued education and recertification are equally important to effectively manage H R programs and practices
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H R Organizations
Society for Human Resource Management (S H R M)
International Personnel Management Association for Human Resources (I P M A – H R)
World Federation of People Management Associations (W F P M A)
WorldatWork Association
Association for Talent Development (A T D)
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Certifications
H R C I certification
Professional in Human Resources (P H R)
Senior Professional in Human Resources (S P H R)
SHRM exams and certification
WorldatWork certifications
Certified Compensation Professional (C C P)
Master Certified Compensation Professional (M C C P)
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H R Certifications (continued)
Certified Benefits Professional (C B P)
Work-Life Certified Professional (W L C W)
Global Remuneration Professional (G R P)
Other certifications
Certified Recognition Professional (C R P)
Certified Employee Benefits Specialist Program (C E B S)
Certified Professional in Learning and Performance (C P L P)
© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
H U M A N R E S O U R C E
MANAGEMENT
V A L E N T I N E M E G L I C H M A T H I S J A C K S O N
S I X T E E N T H E D I T I O N