Introduction to H.R.M - Chapter#01 - Presentation

GARY DESSLER
HUMAN RESOURCE MANAGEMENT
Global Edition 12e
Chapter 1
Introduction to
Human Resource
Management
PowerPoint Presentation by Ms. Anum
Govt. Emerson College, Bosan Road, Multan
Copyright © 2011 Pearson Education
Part 1 Introduction

Copyright © 2011 Pearson Education 1–2
Human Resource Management at WorkHuman Resource Management at Work
• What Is Human Resource Management (HRM)?What Is Human Resource Management (HRM)?
 The process of acquiring, training, appraising, andThe process of acquiring, training, appraising, and
compensating employees, and of attending to their laborcompensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.relations, health and safety, and fairness concerns.
• OrganizationOrganization
 People with formally assigned roles who work together toPeople with formally assigned roles who work together to
achieve the organization’s goals.achieve the organization’s goals.
• ManagerManager
 The person responsible for accomplishing the organization’sThe person responsible for accomplishing the organization’s
goals, and who does so by managing the efforts of thegoals, and who does so by managing the efforts of the
organization’s people.organization’s people.

Performance appraisalPerformance appraisal
A performance appraisal is a systematic and periodic process thatA performance appraisal is a systematic and periodic process that
assesses an individual employee’s job performance and productivity.assesses an individual employee’s job performance and productivity.
CompensationCompensation
Compensation is the total amount of the monetary and non-monetaryCompensation is the total amount of the monetary and non-monetary
pay provided to an employee by an employer in return for workpay provided to an employee by an employer in return for work
performed as required.performed as required.

Management processManagement process
1)Planning1)Planning
Establishing goals and standards.Establishing goals and standards.
2)Organizing2)Organizing
Assigning subordinates(juniors) their duties andAssigning subordinates(juniors) their duties and
tasks.tasks.
3)Staffing3)Staffing
Determining what type of people you should beDetermining what type of people you should be
hired, recruiting, selecting employees; training andhired, recruiting, selecting employees; training and
compensating them etc.compensating them etc.
4)Leading4)Leading
Getting others to get the job done and motivatingGetting others to get the job done and motivating
subordinates.subordinates.
5)Controlling5)Controlling
Setting standards and checking the performance bySetting standards and checking the performance by
comparing with standard.comparing with standard.Copyright © 2011 Pearson Education 1–4

Human Resource Management ProcessesHuman Resource Management Processes
Acquisition
Training
Appraisal
CompensationLabor Relations
Health and Safety
Fairness
Human
Resource
Management
(HRM)

Personnel Aspects of a Manager’s JobPersonnel Aspects of a Manager’s Job
• Conducting job analysesConducting job analyses
• Planning labor needs and recruiting job candidatesPlanning labor needs and recruiting job candidates
• Selecting job candidatesSelecting job candidates
• Orienting and training new employeesOrienting and training new employees
• Managing wages and salariesManaging wages and salaries
• Providing incentives and benefitsProviding incentives and benefits
• Appraising performanceAppraising performance
• CommunicatingCommunicating
• Training and developing managersTraining and developing managers
• Building employee commitmentBuilding employee commitment

Personnel MistakesPersonnel Mistakes
• Hire the wrong person for the jobHire the wrong person for the job
• Experience high turnoverExperience high turnover
• Have your people not doing their bestHave your people not doing their best
• Waste time with useless interviewsWaste time with useless interviews
• Have your firm in court because of discriminatory actionsHave your firm in court because of discriminatory actions
• Have your firm cited by OSHA for unsafe practicesHave your firm cited by OSHA for unsafe practices
• Have some employees think their salaries are unfair andHave some employees think their salaries are unfair and
inequitable relative to others in the organizationinequitable relative to others in the organization
• Allow a lack of training to undermine your department’sAllow a lack of training to undermine your department’s
effectivenesseffectiveness
• Commit any unfair labor practicesCommit any unfair labor practices

Basic HR ConceptsBasic HR Concepts
• The bottom line of managing:The bottom line of managing:
Getting resultsGetting results
• HR creates value by engaging in activitiesHR creates value by engaging in activities
that produce the employee behaviors thatthat produce the employee behaviors that
the organization needs to achieve itsthe organization needs to achieve its
strategic goals.strategic goals.
• Looking ahead: Using evidence-basedLooking ahead: Using evidence-based
HRM to measure the value of HR activitiesHRM to measure the value of HR activities
in achieving those goals.in achieving those goals.

Line and Staff Aspects of HRMLine and Staff Aspects of HRM
• Line ManagerLine Manager
 Is authorized (has line authority) to direct the work ofIs authorized (has line authority) to direct the work of
subordinates and is responsible for accomplishing thesubordinates and is responsible for accomplishing the
organization’s tasks.organization’s tasks.
• Staff ManagerStaff Manager
 Assists and advises line managers.Assists and advises line managers.
 Has functional authority to coordinate personnel activitiesHas functional authority to coordinate personnel activities
and enforce organization policies.and enforce organization policies.

Line Managers’ HRM ResponsibilitiesLine Managers’ HRM Responsibilities
1.1. Placing the right person on the right jobPlacing the right person on the right job
2.2. Starting new employees in the organization (orientation)Starting new employees in the organization (orientation)
3.3. Training employees for jobs that are new to themTraining employees for jobs that are new to them
4.4. Improving the job performance of each personImproving the job performance of each person
5.5. Gaining creative cooperation and developing smoothGaining creative cooperation and developing smooth
working relationshipsworking relationships
6.6. Interpreting the firm’s policies and proceduresInterpreting the firm’s policies and procedures
7.7. Controlling labor costsControlling labor costs
8.8. Developing the abilities of each personDeveloping the abilities of each person
9.9. Creating and maintaining department moraleCreating and maintaining department morale
10.10. Protecting employees’ health and physical conditionProtecting employees’ health and physical condition

Human Resource Managers’ DutiesHuman Resource Managers’ Duties
Line Function
Line Authority
Implied Authority
Staff Functions
Staff Authority
Innovator/Advocacy
Functions of
HR Managers
Coordinative
Function
Functional Authority

Human Resource SpecialtiesHuman Resource Specialties
Recruiter
EEO coordinator
Labor relations
specialist
Training specialist Job analyst
Compensation
manager
Human
Resource
Specialties

New Approaches to Organizing HRNew Approaches to Organizing HR
Transactional HR
group
Corporate
HR group
Embedded
HR unit
New HR Services Groups
Centers of
Expertise

Trends Shaping Human ResourceTrends Shaping Human Resource
ManagementManagement
Globalization
and Competition
Trends
Technological
Trends
Indebtedness
(“Leverage”) and
Deregulation
Trends in the
Nature of Work
Workforce and
Demographic
Trends
Economic
Challenges and
Trends
Trends in HR
Management

FIGURE 1–4 Trends Shaping Human Resource Management

Trends Shaping Human Resource Management
Globalization
The tendency of firms to extend their
sales, ownership, and/or manufacturing
to new markets abroad is globalization.
Companies expand abroad for several
reasons.Some companies wants to
increase their sales and some wants to
cut labor costs.because of globalization
companies are facing more
competetion.So to compete
successfully,companies and employees
need to work harder.

Indebtedness ( Leverage ) and
Deregulation
As economies boomed, more businesses
and consumers went deeply into
debt(loan).Homebuyers bought homes,
often with little money with the help of
debt. Deregulation plays important role in
economical progress. the rules that
prevented commercial banks from
expanding were relaxed.because of
relaxation of rules economy make
progress.

Trends in the Nature of WorkTrends in the Nature of Work
High-Tech
Jobs
Service
Jobs
Changes in How We Work
Knowledge Work and
Human Capital

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

Workforce and Demographic TrendsWorkforce and Demographic Trends
Demographic Trends
Generation “Y”
Retirees
Nontraditional Workers
Trends Affecting
Human Resources

Workforce and demographic trendsWorkforce and demographic trends
demographics trends are those which are related todemographics trends are those which are related to
age, gender and population of workforce. the U.S.age, gender and population of workforce. the U.S.
workforce is becoming older and moreworkforce is becoming older and more
multiethnic.34 Table 1-1 provides a bird s-eye view.multiethnic.34 Table 1-1 provides a bird s-eye view.
For example, between 1998 and 2018, the percent ofFor example, between 1998 and 2018, the percent of
the workforce that it classifies as white, non-the workforce that it classifies as white, non-
Hispanic will drop from 83.8% to 79.4%. At theHispanic will drop from 83.8% to 79.4%. At the
same time, the percent of the workforce that is blacksame time, the percent of the workforce that is black
will rise from 11.6% to 12.1%,those classified Asianwill rise from 11.6% to 12.1%,those classified Asian
will rise from 4.6% to 5.6%, an The percentages ofwill rise from 4.6% to 5.6%, an The percentages of
younger workers will fall. At the same time,younger workers will fall. At the same time,
demographic trends are making finding and hiringdemographic trends are making finding and hiring
employees more challenging.employees more challenging.

Generation y(1977-2000)Generation y(1977-2000)
Gen Y employees are different. According to one expert,Gen Y employees are different. According to one expert,
they are show high-performance and they high-they are show high-performance and they high-
maintenance workforce.they are more creative andmaintenance workforce.they are more creative and
challenging workforce.so employers should bechallenging workforce.so employers should be
competentent to deal with them.competentent to deal with them.
RetireesRetirees
Many human resource professionals call the agingMany human resource professionals call the aging
workforce the biggest demographic trend affectingworkforce the biggest demographic trend affecting
employers.The basic problem is that there are not enoughemployers.The basic problem is that there are not enough
younger workers to replace the older-worker retireesyounger workers to replace the older-worker retirees
Employers are dealing with this challenge in various ways.Employers are dealing with this challenge in various ways.
some are offering employment options designed to attractsome are offering employment options designed to attract
and retain semiretired workers.and retain semiretired workers.

Non traditional workersNon traditional workers
Part time workersPart time workers
two individuals sharing one jobtwo individuals sharing one job

FIGURE 1–6 Gross National Product (GNP)

Economic challenges and trendsEconomic challenges and trends
As shown in Figure 1-5, gross national product (GNP) aAs shown in Figure 1-5, gross national product (GNP) a
measure of U.S. total output boomed between 2001 and 2008.measure of U.S. total output boomed between 2001 and 2008.
During this period, home prices leaped as much as 20% perDuring this period, home prices leaped as much as 20% per
year. (See Figure 1-6.) Unemployment remained at aboutyear. (See Figure 1-6.) Unemployment remained at about
4.7%.45 Then, around 2007 2008, all these measures4.7%.45 Then, around 2007 2008, all these measures
seemingly fell down. GNP fell. Home prices dropped by 20%seemingly fell down. GNP fell. Home prices dropped by 20%
or more (depending on city). Unemployment nationwide roseor more (depending on city). Unemployment nationwide rose
to more than 9.1%. Why did all this happen? That is ato more than 9.1%. Why did all this happen? That is a
complicated question, but for one thing, all this is because ofcomplicated question, but for one thing, all this is because of
excessive debt(loan)excessive debt(loan).so because of these challenges,.so because of these challenges,
employers will have to be more active and creative inemployers will have to be more active and creative in
managing their human resources than perhaps theymanaging their human resources than perhaps they
have been in the past.have been in the past.

Important Trends in HRMImportant Trends in HRM
The New HR
Managers
High-Performance
Work Systems
Strategic
HRM
Evidence-Based
HRM
Managing
Ethics
HR
Certification
Human
Resource
Management
Trends

Meeting Today’s HRM ChallengesMeeting Today’s HRM Challenges
Focus more on
“big picture”
(strategic) issues
Find new ways to
provide
transactional
services
The New Human Resource
Managers
Acquire broader
business
knowledge and
new HRM
proficiencies

TABLE 1–2 Some Technological Applications to Support HR
Technology How Used by HR
Application service providers
(ASPs) and technology
outsourcing
ASPs provide software application, for instance, for processing
employment applications. The ASPs host and manage the services
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-
monitoring software
Used to track employees’ Internet and e-mail activities or to monitor
their performance
Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping
Electronic bill presentment
and payment
Used, for instance, to eliminate paper checks and to facilitate
payments to employees and suppliers
Data warehouses and
computerized analytical
programs
Help HR managers monitor their HR systems. For example, they
make it easier to assess things like cost per hire, and to compare
current employees’ skills with the firm’s projected strategic needs

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

High-Performance Work SystemsHigh-Performance Work Systems
• Increase productivity and performance by:Increase productivity and performance by:
 Recruiting, screening and hiring more effectivelyRecruiting, screening and hiring more effectively
 Providing more and better trainingProviding more and better training
 Paying higher wagesPaying higher wages
 Providing a safer work environmentProviding a safer work environment
 Linking pay to performanceLinking pay to performance

Evidence based HRMEvidence based HRM
this is the use of data, facts, analytics, s criticalthis is the use of data, facts, analytics, s critical
evaluation, and critically evaluated research/caseevaluation, and critically evaluated research/case
studies to support human resource managementstudies to support human resource management
proposals, decisions, practices, and conclusions.proposals, decisions, practices, and conclusions.
Measuring the performance of hrm activities forMeasuring the performance of hrm activities for
example to measure whether the new testing programexample to measure whether the new testing program
reduce employee turnover.whether training increasesreduce employee turnover.whether training increases
productivity or not.(measuring performance in terms ofproductivity or not.(measuring performance in terms of
numbers(figures) and facts)numbers(figures) and facts)

Managing EthicsManaging Ethics
• EthicsEthics
 Standards that someone uses to decideStandards that someone uses to decide
what his or her conduct should bewhat his or her conduct should be
• HRM-related Ethical IssuesHRM-related Ethical Issues
 Workplace safetyWorkplace safety
 Security of employee recordsSecurity of employee records
 Employee theftEmployee theft
 Affirmative actionAffirmative action
 Comparable workComparable work
 Employee privacy rightsEmployee privacy rights

HR CertificationHR Certification
• HR is becoming more professionalized.HR is becoming more professionalized.
• SHRM is an professional (SHRM) Institute offersSHRM is an professional (SHRM) Institute offers
exams.in which it tests the professional knowledge ofexams.in which it tests the professional knowledge of
all aspects of human resource management, includingall aspects of human resource management, including
ethics, management practices, staffing, development,ethics, management practices, staffing, development,
compensation, labor relations, and health and safety.compensation, labor relations, and health and safety.
Those who successfully complete all requirementsThose who successfully complete all requirements
earn the SPHR (Senior Professional in HR), GPHRearn the SPHR (Senior Professional in HR), GPHR
(Global Professional in HR), or PHR (Professional in(Global Professional in HR), or PHR (Professional in
HR) certificate.HR) certificate.

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