HUMAN RESOURCE MANAGEMENT

Chapter # 1
Introduction to Human Resource Management

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

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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 Human Resource Management Processes

Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensation

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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

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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

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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.

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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.

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Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth
working relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition

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 Human Resource Managers’ Duties

Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

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

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

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 Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist Job analyst

Compensation
manager

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New Approaches to Organizing HR

New HR Services Groups

Transactional HR Corporate Embedded Centers of

group HR group HR unit Expertise

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 Trends Shaping Human Resource
Management

Globalization
and Competition
Trends

Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends

Economic
Challenges and
Trends

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 FIGURE 1–4 Trends Shaping Human Resource Management

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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

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Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs and Human Capital

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

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Workforce and Demographic Trends

Demographic Trends

Generation “Y”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

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 FIGURE 1–6 Gross National Product (GNP)

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 FIGURE 1–7 Case-Shiller Home Price Indexes

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 Important Trends in HRM

The New HR
Managers

Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

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 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Acquire broader
Find new ways to
Focus more on business
provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies

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 TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers ASPs provide software application, for instance, for processing
(ASPs) and technology employment applications. The ASPs host and manage the services
outsourcing 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- Used to track employees’ Internet and e-mail activities or to monitor
monitoring software their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping

Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate
and payment payments to employees and suppliers

Data warehouses and Help HR managers monitor their HR systems. For example, they
computerized analytical make it easier to assess things like cost per hire, and to compare
programs current employees’ skills with the firm’s projected strategic needs

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

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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

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 Evidence-Based HRM

Providing Evidence for

HRM Decision Making

Actual Existing Research

measurements data studies

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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

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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

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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.

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

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