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Human Resource
Management
Chapter 2
Fundamentals of HRM
Management Essentials
 Management involves setting goals and allocating

scarce resources to achieve them.
 Management is the process of efficiently
achieving the objectives of the organization with
and through people.
Management Essentials
 Primary Functions of Management
 Planning – establishing goals
 Organizing – determining what activities need to be

done
 Leading – assuring the right people are on the job
and motivated
 Controlling – monitoring activities to be sure goals
are met
Why is HRM Important to an
Organization?
 The role of human resource managers has

changed. HRM jobs today require a new level
of sophistication.
 Federal and state employment legislation has

placed new requirements on employers.
 Jobs have become more technical and skilled.
 Traditional job boundaries have become blurred
with the advent of such things as project teams and
telecommuting.
 Global competition has increased demands for
productivity.
Why is HRM Important to an
Organization?
 The Strategic Nature – HRM must be
 a strategic business partner and represent

employees.
 forward-thinking, support the business strategy, and
assist the organization in maintaining competitive
advantage.
 concerned with the total cost of its function and for
determining value added to the organization.
Why is HRM Important to an
Organization?
 HRM is the part of the organization concerned

with the “people” dimension.
 HRM is both a staff, or support function that
assists line employees, and a function of every
manager’s job.
Why is HRM Important to an
Organization?
 HRM Certification
 Colleges and universities offer HR programs.
 The Society for Human Resource Management

and Human Resource Certification Institute offer
professional certification.
Why is HRM Important to an
Organization?
Four basic
functions:
 Staffing
 Training and
Development
 Motivation
 Maintenance
How External Influences Affect HRM

 Strategic Environment
 Governmental Legislation

 Labor Unions
 Management Thought
How External Influences Affect HRM
 HRM Strategic Environment includes:
 Globalization
 Technology
 Work force diversity
 Changing skill requirements
 Continuous improvement
 Work process engineering
 Decentralized work sites
 Teams
 Employee involvement
 Ethics
How External Influences Affect HRM
 Governmental Legislation
 Laws supporting employer and employee actions

 Labor Unions
 Act on behalf of their members by negotiating

contracts with management
 Exist to assist workers
 Constrain managers
 Affect non unionized workforce
How External Influences Affect HRM
 Management Thought
 Management principles, such as those from

scientific management or based on the
Hawthorne studies influence the practice of HRM.
 More recently, continuous improvement programs

have had a significant influence on HRM activities.
Staffing Function Activities
 Employment planning
 ensures that staffing will contribute to the

organization’s mission and strategy
 Job analysis
 determining the specific skills, knowledge and

abilities needed to be successful in a particular job
 defining the essential functions of the job
Staffing Function Activities
 Recruitment
 the process of attracting a pool of qualified

applicants that is representative of all groups in the
labor market
 Selection
 the process of assessing who will be successful on

the job, and
 the communication of information to assist job
candidates in their decision to accept an offer
Goals of the Training and
Development Function
 Activities in HRM concerned with

assisting employees to develop up-todate skills, knowledge, and abilities
 Orientation and socialization help
employees to adapt
 Four phases of training and development
 Employee training
 Employee development
 Organization development
 Career development
The Motivation Function
 Activities in HRM concerned with helping

employees exert at high energy levels.
 Implications are:
 Individual
 Managerial

 Organizational

 Function of two factors:
 Ability
 Willingness
 Respect
The Motivation Function
 Managing motivation includes:
 Job design
 Setting performance standards
 Establishing effective compensation and benefits

programs
 Understanding motivational theories
The Motivation Function
 Classic Motivation Theories
 Hierarchy of Needs –Maslow
 Theory X – Theory Y –McGregor
 Motivation – Hygiene – Herzberg
 Achievement, Affiliation, and Power Motives –

McClelland
 Equity Theory – Adams
 Expectancy Theory - Vroom
How Important is the Maintenance
Function
 Activities in HRM concerned with maintaining

employees’ commitment and loyalty to the
organization.





Health
Safety
Communications
Employee assistance programs

 Effective communications programs provide

for 2-way communication to ensure that
employees are well informed and that their
voices are heard.
Translating HRM Functions into
Practice
 Four Functions:
 Employment
 Training and development
 Compensation/benefits
 Employee relations
Translating HRM Functions into
Practice
 Employment - Employment specialists:
 coordinate the staffing function
 advertising vacancies
 perform initial screening
 interview
 make job offers
 do paperwork related to hiring
 Training and Development –
 help employees to maximize their potential
 serve as internal change agents to the organization
 provide counseling and career development
Translating HRM Functions into
Practice
 Compensation and Benefits –
 establish objective and equitable pay systems
 design cost-effective benefits packages that help

attract and retain high-quality enployees.
 help employees to effectively utilize their
benefits, such as by providing information on
retirement planning.
Translating HRM Functions into
Practice
 Employee Relations – involves:
 communications
 fair application of policies and procedures
 data documentation
 coordination of activities and services that enhance

employee commitment and loyalty
 Employee relations should not be confused with
labor relations, which refers to HRM in a unionized
environment.
Translating HRM Functions into
Practice
 Purpose and Elements of HRM Communications
 Keep employees informed of what is happening and

knowledgeable of policies and procedures.
 Convey that the organization values employees.
 Build trust and openness, and reinforce company
goals.
Translating HRM Functions into
Practice
 Effective Communication programs involve:
 Top Management Commitment
 Effective Upward Communication
 Determining What to Communicate
 Allowing for Feedback
 Information Sources
Does HRM Really Matter?
 Research has shown that a fully functioning

HR department does make a difference.
 Organizations that spend money to have
quality HR programs perform better than
those who don’t.
 Practices that are part of superior HR services
include:





rewarding productive work
creating a flexible work-friendly environment
properly recruiting and retaining quality workers
effective communications
HRM in an Entrepreneurial
Enterprise
 General managers may perform HRM

functions, HRM activities may be
outsourced, or a single generalist may
handle all the HRM functions.
 Benefits include
 freedom from many government regulations
 an absence of bureaucracy
 an opportunity to share in the success of the

business
HRM in a Global Village
 HRM functions are more complex when

employees are located around the world.
 Consideration must be given to such things as
foreign language training, relocation and
orientation processes, etc.
 HRM also involves considering the needs of
employees’ families when they are sent overseas.
HR and Corporate Ethics
 HRM must:
 Make sure employees know about corporate ethics

policies
 Train employees and supervisors on how to act
ethically
HR and Corporate Ethics
 The Sarbanes-Oxley Act passed in

2002, establishes procedures for public
companies regarding how they handle and report
their financial status.
 Establishes penalties for noncompliance.

 Provides protection for employees who report

executive wrongdoing.
 Requires that companies have mechanisms in
place where complaints can be received and
investigated.

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Hrm chp 2

  • 2. Management Essentials  Management involves setting goals and allocating scarce resources to achieve them.  Management is the process of efficiently achieving the objectives of the organization with and through people.
  • 3. Management Essentials  Primary Functions of Management  Planning – establishing goals  Organizing – determining what activities need to be done  Leading – assuring the right people are on the job and motivated  Controlling – monitoring activities to be sure goals are met
  • 4. Why is HRM Important to an Organization?  The role of human resource managers has changed. HRM jobs today require a new level of sophistication.  Federal and state employment legislation has placed new requirements on employers.  Jobs have become more technical and skilled.  Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting.  Global competition has increased demands for productivity.
  • 5. Why is HRM Important to an Organization?  The Strategic Nature – HRM must be  a strategic business partner and represent employees.  forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage.  concerned with the total cost of its function and for determining value added to the organization.
  • 6. Why is HRM Important to an Organization?  HRM is the part of the organization concerned with the “people” dimension.  HRM is both a staff, or support function that assists line employees, and a function of every manager’s job.
  • 7. Why is HRM Important to an Organization?  HRM Certification  Colleges and universities offer HR programs.  The Society for Human Resource Management and Human Resource Certification Institute offer professional certification.
  • 8. Why is HRM Important to an Organization? Four basic functions:  Staffing  Training and Development  Motivation  Maintenance
  • 9. How External Influences Affect HRM  Strategic Environment  Governmental Legislation  Labor Unions  Management Thought
  • 10. How External Influences Affect HRM  HRM Strategic Environment includes:  Globalization  Technology  Work force diversity  Changing skill requirements  Continuous improvement  Work process engineering  Decentralized work sites  Teams  Employee involvement  Ethics
  • 11. How External Influences Affect HRM  Governmental Legislation  Laws supporting employer and employee actions  Labor Unions  Act on behalf of their members by negotiating contracts with management  Exist to assist workers  Constrain managers  Affect non unionized workforce
  • 12. How External Influences Affect HRM  Management Thought  Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM.  More recently, continuous improvement programs have had a significant influence on HRM activities.
  • 13. Staffing Function Activities  Employment planning  ensures that staffing will contribute to the organization’s mission and strategy  Job analysis  determining the specific skills, knowledge and abilities needed to be successful in a particular job  defining the essential functions of the job
  • 14. Staffing Function Activities  Recruitment  the process of attracting a pool of qualified applicants that is representative of all groups in the labor market  Selection  the process of assessing who will be successful on the job, and  the communication of information to assist job candidates in their decision to accept an offer
  • 15. Goals of the Training and Development Function  Activities in HRM concerned with assisting employees to develop up-todate skills, knowledge, and abilities  Orientation and socialization help employees to adapt  Four phases of training and development  Employee training  Employee development  Organization development  Career development
  • 16. The Motivation Function  Activities in HRM concerned with helping employees exert at high energy levels.  Implications are:  Individual  Managerial  Organizational  Function of two factors:  Ability  Willingness  Respect
  • 17. The Motivation Function  Managing motivation includes:  Job design  Setting performance standards  Establishing effective compensation and benefits programs  Understanding motivational theories
  • 18. The Motivation Function  Classic Motivation Theories  Hierarchy of Needs –Maslow  Theory X – Theory Y –McGregor  Motivation – Hygiene – Herzberg  Achievement, Affiliation, and Power Motives – McClelland  Equity Theory – Adams  Expectancy Theory - Vroom
  • 19. How Important is the Maintenance Function  Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization.     Health Safety Communications Employee assistance programs  Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard.
  • 20. Translating HRM Functions into Practice  Four Functions:  Employment  Training and development  Compensation/benefits  Employee relations
  • 21. Translating HRM Functions into Practice  Employment - Employment specialists:  coordinate the staffing function  advertising vacancies  perform initial screening  interview  make job offers  do paperwork related to hiring  Training and Development –  help employees to maximize their potential  serve as internal change agents to the organization  provide counseling and career development
  • 22. Translating HRM Functions into Practice  Compensation and Benefits –  establish objective and equitable pay systems  design cost-effective benefits packages that help attract and retain high-quality enployees.  help employees to effectively utilize their benefits, such as by providing information on retirement planning.
  • 23. Translating HRM Functions into Practice  Employee Relations – involves:  communications  fair application of policies and procedures  data documentation  coordination of activities and services that enhance employee commitment and loyalty  Employee relations should not be confused with labor relations, which refers to HRM in a unionized environment.
  • 24. Translating HRM Functions into Practice  Purpose and Elements of HRM Communications  Keep employees informed of what is happening and knowledgeable of policies and procedures.  Convey that the organization values employees.  Build trust and openness, and reinforce company goals.
  • 25. Translating HRM Functions into Practice  Effective Communication programs involve:  Top Management Commitment  Effective Upward Communication  Determining What to Communicate  Allowing for Feedback  Information Sources
  • 26. Does HRM Really Matter?  Research has shown that a fully functioning HR department does make a difference.  Organizations that spend money to have quality HR programs perform better than those who don’t.  Practices that are part of superior HR services include:     rewarding productive work creating a flexible work-friendly environment properly recruiting and retaining quality workers effective communications
  • 27. HRM in an Entrepreneurial Enterprise  General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions.  Benefits include  freedom from many government regulations  an absence of bureaucracy  an opportunity to share in the success of the business
  • 28. HRM in a Global Village  HRM functions are more complex when employees are located around the world.  Consideration must be given to such things as foreign language training, relocation and orientation processes, etc.  HRM also involves considering the needs of employees’ families when they are sent overseas.
  • 29. HR and Corporate Ethics  HRM must:  Make sure employees know about corporate ethics policies  Train employees and supervisors on how to act ethically
  • 30. HR and Corporate Ethics  The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status.  Establishes penalties for noncompliance.  Provides protection for employees who report executive wrongdoing.  Requires that companies have mechanisms in place where complaints can be received and investigated.