![© 2008 Prentice Hall, Inc. All rights reserved. 1–28
FIGURE 1–5 Five Sample HR Metrics
HR Metric* How to Calculate It
Absence rate # of days absent in month
× 100
Average # of employees during month × # of workdays
Cost per hire Advertising + agency fees + employee referrals + travel cost of
applicants and staff + relocation costs + recruiter pay and benefits
Number of hires
HR expense
factor
HR expense
Total operating expense
Time to fill Total days elapsed to fill job requisitions
Number hired
Turnover rate Number of separations during month
× 100
Average number of employees during month
Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,”
Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using
Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;]
SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management..](https://image.slidesharecdn.com/desslerch1-230619064220-71a5c169/85/dessler_ch1-ppt-28-320.jpg)
dessler_ch1.ppt
- 1. PowerPoint Presentation by Charlie Cook The University of West Alabama 1 Human Resource Management ELEVENTH EDITION G A R Y D E S S L E R © 2008 Prentice Hall, Inc. All rights reserved. Introduction to Human Resource Management Chapter 1 Part 1 | Introduction
- 2. © 2008 Prentice Hall, Inc. All rights reserved. 1–2 After studying this chapter, you should be able to: 1. Explain what human resource management is and how it relates to the management process. 2. Give at least eight examples of how all managers can use human resource management concepts and techniques. 3. Illustrate the human resources responsibilities of line and staff (HR) managers. 4. Provide a good example that illustrates HR’s role in formulating and executing company strategy. 5. Write a short essay that addresses the topic: Why metrics and measurement are crucial to today’s HR managers. 6. Outline the plan of this book.
- 3. Introduction • Competitiveness – a company’s ability to maintain and gain market share • Human resource management – the policies, practices, and systems that influence employees’ behavior, attitudes, and performance includes recruiting, selecting, training , screening rewarding &apprising .
- 4. Responsibilities of HR Departments • Employment and recruiting • Training and development • Compensation • Benefits • Employee services • Employee and community relations • Personnel records • Health and safety • Strategic planning
- 5. What Roles Do HR Departments Perform? Administrative Services and Transactions Compensation, hiring &staffing Business Partner Services Systems, practices ,actions Strategic Partner based on human Capital and business capital Human Resources
- 6. How is the HRM Function Changing? • Time spent on administrative tasks is decreasing and its roles as a strategic business partner, change agent, and employee advocate are increasing • This shift presents two important challenges: Self-service – giving employees online access to information about HR issues Outsourcing – the practice of having another company provide services
- 7. © 2008 Prentice Hall, Inc. All rights reserved. 1–7 The Management Process Planning Goals& Standards Organizing Tasks& Department Leading Influencer& motivating Staffing Hired& selecting Controlling Standards&Perf ormance
- 8. © 2008 Prentice Hall, Inc. All rights reserved. 1–8 Human Resource Management at Work • What Is Human Resource Management (HRM)? The process of a management position, including recruiting, screening, training, rewarding, and appraising.
- 9. © 2008 Prentice Hall, Inc. All rights reserved. 1–9 Human Resource Management Process at Work Acquisition Training Appraisal Compensating Labor Relations Health and Safety Fairness Human Resource Management (HRM)
- 10. © 2008 Prentice Hall, Inc. All rights reserved. 1–10 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
- 11. © 2008 Prentice Hall, Inc. All rights reserved. 1–11 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 company in court because of discriminatory actions • Have your company 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
- 12. © 2008 Prentice Hall, Inc. All rights reserved. 1–12 Basic HR Concepts • The bottom line of managing: Getting results • HR creates value by engaging in activities that produce the employee behaviors that the company needs to achieve its strategic goals.
- 13. © 2008 Prentice Hall, Inc. All rights reserved. 1–13 Line and Staff Aspects of HRM • Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. • Staff manager A manager who assists and advises line managers.
- 14. © 2008 Prentice Hall, Inc. All rights reserved. 1–14 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
- 15. © 2008 Prentice Hall, Inc. All rights reserved. 1–15 Human Resource Managers’ Duties Functions of HR Managers Line Function Line Authority his dpt Implied Authority Staff Functions Staff Authority Assists & advise hiring training ,rewarding Coordinative Function Functional Authority right arm to GM
- 16. © 2008 Prentice Hall, Inc. All rights reserved. 1–16 Human Resource Specialties Recruiters Qualified job applicants EEO Coordinators Org. Practices Violations Labor Relations Specialists Advise management on UMR Training Specialists Plan, organize & direct Job Analysts Information for job descriptions Compensation Managers Human Resource Specialties
- 17. © 2008 Prentice Hall, Inc. All rights reserved. 1–17 FIGURE 1–2 HR Organizational Chart (Small Company)
- 18. © 2008 Prentice Hall, Inc. All rights reserved. 1–18 The Changing Environment of Human Resource Management Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends Changes and Trends in Human Resource Management
- 19. The Changing Environment of HR Management :Globalization Trends © 2008 Prentice Hall, Inc. All rights reserved. 1–19 1. Globalization refers to the tendency of firms to extend their sales, ownership, and/or manufacturing to new markets abroad. 1. Globalization of the world economy and other trends has triggered changes in how companies organize, manage and use their HR departments. 1. More globalization means more competition, and more competition means more pressure to lower costs, make employees more productive, and do things better and less expensively.
- 20. The Changing Environment of HR Management :Technological Trends © 2008 Prentice Hall, Inc. All rights reserved. 1–20 1. Virtual online communities, virtual design environments and Internet-based distribution systems have enabled firms to become more competitive. 1. HR faces the challenge of quickly applying technology to the task of improving its own operations.
- 21. The Changing Environment of HR Management :Trends in the Nature of Work © 2008 Prentice Hall, Inc. All rights reserved. 1–21 - Jobs are changing due to new technological demands. -Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees - Nontraditional workers, such as those who hold multiple jobs, part-time workers, or people working in alternative work arrangements, enable employers to keep costs down. 1. High-Tech Jobs – More jobs have gone high tech, requiring workers to have more education and skills. 2. Service Jobs – Most newly created jobs are and will continue to be in the service sector. 3. Human Capital - refers to the knowledge, education, training, skills, and expertise of a firm’s workers The HR function must employ more sophisticated and creative means to identify, attract, select, train and motivate the required work force
- 22. The Changing Environment of HR Management :Workforce Demographic Trends © 2008 Prentice Hall, Inc. All rights reserved. 1–22 1. The labor force is getting older and more multi- ethnic. 2. The aging labor force presents significant changes in terms of potential labor shortages, and many firms are instituting new policies aimed at encouraging aging employees to stay, or at attracting previously retired employees. 3. Growing numbers of workers with eldercare responsibilities, and high rates of immigration also present challenges and opportunities for HR managers.
- 23. © 2008 Prentice Hall, Inc. All rights reserved. 1–23 The Changing Role of Human Resource Management New Responsibilities for HR Managers Measuring the HRM Team’s Performance Managing with the HR Scorecard Process Creating High- Performance Work Systems Strategic Human Resource Management
- 24. The Changing Role of HR Management © 2008 Prentice Hall, Inc. All rights reserved. 1–24 Strategic HRM ; 1. Management expects HR to provide measurable, benchmark-based evidence for its current efficiency and effectiveness of new or proposed HR programs. 2. Management expects solid, quantified evidence that HR is contributing in a meaningful and positive way to achieving the firm’s strategic aims.
- 25. © 2008 Prentice Hall, Inc. All rights reserved. 1–25 Creating High Performance Work Systems (HPWS) HR can impact organizational performance in 3 ways: 1. through the use of technology many HR tasks (payroll, reference checks, wellness programs, etc.) are being outsourced to specialist service providers. 2. through effective HR practices Pre-employment personality testing and increased training are just two HR practices that can produce employees who perform better. 3. High Performance Work Systems – Employment security, selective hiring, extensive training, self managed team and decentralized decision making, information sharing, contingent rewards, Implementation of such practices often results in surprising benefits. such practices often results in surprising benefits.
- 26. Measuring the HR Management Team’s Performance © 2008 Prentice Hall, Inc. All rights reserved. 1–26 1. HR managers need a set of quantitative performance measures (metrics) they can use to assess their operations. 2. These metrics allow managers to measure their HR units’ efficiency.
- 27. © 2008 Prentice Hall, Inc. All rights reserved. 1–27 Managing With the HR Scorecard : The HR Scorecard is a concise measurement system, showing quantitative standards or “metrics” 1. used to measure HR activities, employee behaviors resulting from these activities, 2. and to measure the strategically relevant organizational outcomes of those employee behaviors. 3. The scorecard highlights the causal link between HR activities, emergent employee behaviors, and the resulting firm-wide strategic outcomes and performance
- 28. © 2008 Prentice Hall, Inc. All rights reserved. 1–28 FIGURE 1–5 Five Sample HR Metrics HR Metric* How to Calculate It Absence rate # of days absent in month × 100 Average # of employees during month × # of workdays Cost per hire Advertising + agency fees + employee referrals + travel cost of applicants and staff + relocation costs + recruiter pay and benefits Number of hires HR expense factor HR expense Total operating expense Time to fill Total days elapsed to fill job requisitions Number hired Turnover rate Number of separations during month × 100 Average number of employees during month Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management..
- 29. © 2008 Prentice Hall, Inc. All rights reserved. 1–29 The Human Resource Manager’s Proficiencies • New Proficiencies HR proficiencies represent knowledge and skills in the area such as selection Business proficiencies Hr Manager should be strategists thinking Leadership proficiencies ability to work and lead management group Learning proficiencies ability to apply new technology and practices
- 30. © 2008 Prentice Hall, Inc. All rights reserved. 1–30 FIGURE 1–8 Strategy and the Basic Human Resource Management Process
- 31. © 2008 Prentice Hall, Inc. All rights reserved. 1–31 K E Y T E R M S management process human resource management (HRM) authority line manager staff manager line authority staff authority implied authority functional control employee advocacy globalization human capital strategy strategic plan metrics HR Scorecard outsourcing ethics strategic human resource management high-performance work system