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Mathis_16e_PPT_Ch01_IE.pptx

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

H R Functions

Strategy and planning

Equal employment opportunity

Talent acquisition

Talent management

Total rewards

Risk management and worker protection

Employee and labor relations

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 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 Challenges

Competition, cost pressures, and restructuring

Globalization

A changing workforce

Human resource and technology

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 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 Competencies

H R professionals need to be:

Strategic positioners

Credible activists

Capacity builders

Change champions

Innovators and integrators

Technology proponents

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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

© 2020 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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