HUMAN RESOURCE

MANAGEMENT

CHAPTER 1
Human Resource Management in Organizations

1–1
 LEARNING OBJECTIVES

• 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 traits of today s human
resource managers.
• Define and give an example of evidence-based human
resource management.

1–2
Types of Organizational Assets

Assets

Physical Financial Intangible Human

1–3
1–4
Then an organization is….

A group consisting of people with

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

5
FUNCTIONS OF ORGANIZATION

6
• Management involves coordinating and
overseeing the work activities of others so
that their activities are completed
efficiently and effectively.

1–7
 The Management Process

Planning

Controlling Organizing

Leading Staffing
 The Management Process
• Planning:
 Establishing goals and standards;
• Organizing:
 Giving each subordinate a special task;
• Staffing:
 Determining what type of people should be hired;
• Leading:
 Getting others to get the job done;
• Controlling:
 Setting standards such as sales quotas, quality standards or
production levels.
 Nature of Human Resource Management
• Human Resource (HR) Management
 Designing management systems to ensure that
human talent is used effectively and efficiently to
accomplish organizational goals.
 The process of acquiring, training, appraising, and
compensating employees, and of attending to their
labor relations, health and safety, and fairness
concerns.
• Who Is an HR Manager?
 In the course carrying out their duties, every operating
manager is, in essence, an HR manager.
 HR specialists design processes and systems that
operating managers help implement. 1–10
Human Resource Management Processes

Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensation

Human Resource Management Processes

1. Conducting job analyses

2. Planning labor needs and recruiting job
candidates
3. Selecting job candidates
4. Orienting and training new employees
5. Managing wages and salaries
6. Supporting the motivation process of
employees
Human Resource Management Processes (2)

• Providing incentives and benefits

• Appraising performance
• Communicating
• Training employees and developing
managers
• Building employee relations and
engagement
Why is Human Resource Management
Important to All Managers?

• AVOID PERSONNEL MISTAKES

• IMPROVE PROFITS AND PERFORMANCE
 AVOID 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 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
IMPROVE PROFITS AND PERFORMANCE
• Similarly, effective human resource management can
help ensure that you get results through people.
• Many managers have been successful even with
inadequate plans, organizations, or controls.
• They were successful because they had the knack of
hiring the right people for the right jobs and motivating,
appraising, and developing them. Remember as you
read this book that getting results is the bottom line of
managing, and that, as a manager, you will have to get
those results through people.
Line and Staff Aspects of HRM

How do the duties of this human

resource manager and department
relate to the human resource duties of
sales and production and other
managers?

1–17
Line and Staff Aspects of HRM

• Authority is the right to make decisions, to

direct the work of others, and to give
orders.
• Managers usually distinguish between line
authority and staff authority.

1–18
Line and Staff Aspects of HRM
• Line Authority
 Gives managers the right (or authority) to issue
orders to other managers or employees.
 It creates superior-subordinate relationship.
• Staff Authority
 Gives the manager the right to advise other
managers or employees.
 It creates an advisory relationship.
 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 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.
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
 Human Resource Managers’ Duties

Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy
Human Resource Managers’ Duties
• Line Function
 An HR manager directs the activities of the people in
the HR department.
• Coordinative Function
 An HR manager coordinates organizational-wide
personnel activities
• Staff Function
 An HR manager provides HRM assistance and advice
to line managers.
1–24
25
26
Human Resource Specialties
• 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.
 Human Resource Specialties

Recruiter

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

Compensation
manager
 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
FIGURE 1–4 Trends Shaping Human Resource Management
Globalization and Competition Trends
• Globalization refers to the tendency of firms to extend their
sales, ownership, and/or manufacturing to new markets
abroad.
• For businesspeople, globalization means more competition,
and more competition means more pressure to be world-class
to lower costs, to make employees more productive, and to do
things better and less expensively.
• Globalization therefore brings both benefits and threats. For
consumers it means lower prices and higher quality on
products from computers to cars, but for workers it means the
prospect of working harder, and perhaps less secure jobs.
Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs and Human Capital
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
THE HUMAN RESOURCE MANAGER S
COMPETENCIES
FIGURE 1–10 Strategy and the Basic Human Resource Management Process
KEY TERMS

organization
manager
management process
human resource management (HRM)
authority
line authority
staff authority
line manager
staff manager
functional authority
globalization
human capital
 Social Responsibilities and HR
• HR Advantages and Social Responsibilities
 Attracting and retaining employees
 Achieving sustainability in dealing
with economic challenges
 Creating a “green culture”

• Global Social Responsibility and HR

 Results in higher organizational images globally,
better employee morale and loyalty, and more
competitive advantages with consumers

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whole or in part. 1–37
 Customer Service and Quality Linked to HR

• Linking HR to social responsibility, customer

service, and quality significantly affects
organizational effectiveness.

Human Resource Management

Social Customer
Quality
Responsibility Service

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copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 1–38
 Employee Engagement and HR Culture
• Employee Engagement
 Is the extent to which individuals feel linked to
organizational success and how the organization
performs positively.
• Social Networking
 Involves communicating to other employees, nonwork
friends, community contacts, and others.
 Has evolved from personal contacts and oral
communications to include:
 E-mail and text messages
 Twitters
 Blogs
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 FIGURE 1–4 Business Ethics and HR Management Consequences

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 Ethical Behavior and Organizational Culture

Ethics Program
Elements

Written code Employee Advice to Confidential

of ethics and training on employees reporting of
standards of ethical on ethical ethical
conduct behaviors situations problems

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copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 1–41
 HR’s Role in Organizational Ethics

Legal Question Ethical Question

• Does the behavior or • Does the behavior or

result meet all result meet both
applicable laws, organizational standards
regulations, and and professional
government codes? standards of ethical
behavior?

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whole or in part. 1–42
 FIGURE 1–5 Examples of HR-Related Ethical Misconduct Activities

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 HR Ethics and Sarbanes-Oxley (SOX)
• Reduce the likelihood of illegal and unethical
behaviors by:
 Having a written code of ethics and conduct standards
 Providing ethical behavior training and advice
 Establishing confidential reporting systems for ethical
misconduct
 Providing whistle-blower protection
 Supporting HR’s role as “keeper and voice” of
organizational ethics

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whole or in part. 1–44
 Current HR Management Challenges

Organizational Cost Economics

Pressures and and
Restructuring Job Changes

Human
Resource
Management

Globalization of Workforce
Organizations Demographics
and HR and Diversity

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copied or duplicated, or posted to a publicly accessible Web site, in
whole or in part. 1–45
 Economics and Job Changes

Future
Job Change
Concerns

Workforce Growth in
Occupational Talent
Availability and Contingent
Shifts Management
Quality Workforce

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whole or in part. 1–46
 FIGURE 1–6 Fastest Growth in Job Changes to 2016

Source: U.S. Bureau of Labor Statistics, www.bls.gov.

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whole or in part. 1–47
 FIGURE 1–7 Hourly Compensation Costs for Manufacturing
Production Workers

Source: U.S. Bureau of Labor Statistics, www.bls.gov.

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whole or in part. 1–48
 HR Technology
• Human Resource Management System (HRMS)
 An integrated system providing information used by
HR management in decision making.
• Purposes of HRMS Data Collection
 Administrative and operational efficiency in :
 Automation of payroll and benefit activities
 EEO/affirmative action tracking
 Web-based communication with employees
 Availability of data for HR strategic planning

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whole or in part. 1–49
 Uses of a Web-Based HRMS

HRMS on
the Internet

Bulletin Data Employee Extended

Boards Access Self-Service Linkage

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 Smaller Organizations and HR Management

HR Issues

Shortage of Increasing Government

Qualified Costs of Rising Taxes Regulation
Workers Benefits Compliance

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 HR Cooperation with Operating and Line Managers
• HR Unit • Managers
 Develops legal, effective  Advise HR of job openings
interviewing techniques  Decide whether to do own
 Trains managers in final interviewing
conducting selection  Receive interview training
interviews from HR unit
 Conducts interviews and  Do final interviewing and
testing hiring where appropriate
 Sends top three applicants  Review reference
to managers for final review information
 Checks references  Provide feedback to HR unit
 Does final interviewing and on hiring/rejection decisions
hiring for certain job
classifications
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 FIGURE 1–8 Typical Division of HR Responsibilities: Recruiting

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 HR Management Roles

HR Management Roles

Operational and
Administrative Employee Strategic
Advocate

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whole or in part. 1–54
 FIGURE 1–9 Roles of HR Management

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 HR Management Competencies
and Careers

Strategic
Contribution

Business Knowledge

HR
HR Delivery
Competencies

HR Technology

Personal Credibility

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 HR Management as a Career Field

HR Generalist HR Specialist

A person who has A person who has in-

responsibility for depth knowledge and
performing a variety expertise in a limited
of HR activities. area of HR.

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 FIGURE 1–10
HR Certifications
at a Glance
* In addition to meeting the
exam eligibility requirements,
successful exam candidates
usually have the above work
experience.

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whole or in part. 1–58