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Management ch 12 human resourse management

Chapter 12

Human Resource Management


The Strategic Role
of Human Resource Management


Human Resource management has shed its old personnel
image and gained recognition as a vital player in corporate
strategy



HRM departments not only support the organization’s strategic
objective but actively pursue an ongoing, integrated plan for
furthering the organization’s performance
●Higher

employee productivity

●Stronger financial results
●Achieve organization’s strategic goals
●Key players on management team
Manager’s Challenge: UPS Buffalo, New York

2

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Human Resource Management

All managers
are resource
managers

Employees are
viewed as
assets

Matching process,
integrating the
organization’s
goals with
employees’ needs

How a company manages its workforce may be single
more important factor in sustained competitive success
3

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Current Strategic Issues
Determine a company’s need for skills and employees


Becoming more competitive globally




Improving quality, productivity, & customer
service



Managing mergers & acquisitions



Applying new information technology for ebusiness
Experiential Exercise: Do You Want to be an HR Manager?

4

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Human Resource Management Goals
Company Strategy

Attract an Effective Workforce

HRM Environment
Legislation
Trends in society
International events
Changing
technology

HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce

Wage and salary
Benefits
Labor relations
Terminations

5

Develop an Effective Workforce

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Training
Development
Appraisal


Environmental Influences on HRM




6

Competitive Strategy


Building Human Capital



Information Technology

Federal Legislation

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Three Ways HR Is Changing
1 human capital
Focus on building
2
3
The using of
information technology
7

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Development of
global HR strategies
IHRM


Human Capital - IHRM

8



Human Capital = economic value of the knowledge,
experience, skills, and capabilities of employees



IHRM = addresses the complexity that results from
recruiting, selecting, developing, and maintaining a
diverse workforce on a global scale

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Information Technology

9



Human resource information technology = an
integrated computer system designed to provide
data and information used in HR planning and
decision making



Traditional HR to e-HR significantly affected every
area of human resource management



Some organizations are close to a paperless HRM
system – saves time, money, frees staff

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Federal Legislation

10



Discrimination = hiring or promoting of applicants
based on criteria that are not job relevant



Affirmative action = policy requiring employers to
take positive steps to guarantee equal employment
opportunities for people within protected groups

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Major Federal Laws - HRM
Exhibit 12.3

11



Equal Opportunity/Discrimination Laws



Compensation/Benefits Laws



Health/Safety Laws

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The Changing Social Contract
New Contract

Old Contract

Employee

Employability, personal responsibility
Partner in business improvement
Learning

Job security
A cog in the machine
Knowing

Employer

Continuous learning, lateral career
movement, incentive compensation
Creative development opportunities
Challenging assignments
Information and resources

Traditional compensation package
Standard training program
Routine jobs
Limited information

SOURCE: Based on Louisa Wah, “The New Workplace Paradox “ Management Review, January 1998,7; and Douglas T. Hall and Jonathan B. Moss, “The New Protean Career Contract:
Helping Organizations and Employees Adapt,” Organizational Dynamics, winter 1998, 22-37.

12

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HR Issues in the New Workplace

13



Teams and Projects



Temporary Employees



Technology



Work-Life Balance



Downsizing

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HR Issues in the
New Workplace


Teams and Projects – major trend in today’s workplace



With emphasis on projects, distinctions between job
categories and descriptions are collapsing



Many of today’s workers straddle functional &
departmental boundaries; handle multiple
tasks/responsibilities



Virtual team = made up of members who


are geographically or organizationally dispersed,



rarely meet face to face, and



14

Teams and
Projects

do their work using advance information technologies.

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HR Issues in the
New Workplace

15

Temporary
Employees



In opening years of the 21st century, largest employer
in U.S. was a temporary employment agency,
Manpower, Inc.



Temporary Employees do everything from data entry
to interim CEO



Contingent workers = people who work for an
organization, but not on a permanent or full-time
basis, including temporary placements, contracted
professionals, or leased employees

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HR Issues in the
New Workplace

16

Technology



Telecommuting and virtual teams are related trends



Telecommuting = using computers and
telecommunications equipment to perform work from
home or another remote location



Work anywhere - wireless Internet devices, laptops,
cell phones, fax machines



Extreme telecommuting = people live nd work in
countries far away from the organization’s physical
location

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HR Issues in the
New Workplace

Work-Life
Balance

Many European companies ahead of U.S. companies

17



Telecommuting is one way organizations help
employees lead more balanced lives



Flexible scheduling important in today’s workplace –
27% of workforce/flexible hours



Broad Work-Life Balance initiatives – critical
retention strategy – on-site gym & childcare, paid
leaves & sabbaticals

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HR Issues in the
New Workplace

18

Downsizing



Downsizing = intentional, planned reduction in the size
of a company’s workforce



Managers can smooth the downsizing process


Regularly communicating with employees



Providing them with as much information as possible



Providing assistance to workers who will lose their
jobs



Using training and development for remaining
employees

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HR Issues in the New Workplace


HR issues present many challenges for
organizations and HR managers as they work toward
the three primary HR goals
● Attracting
● Developing
● Maintaining

19

an effective workforce

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Matching Model
Attracting an Effective Workforce



An employee selection approach in which the organization
and the applicant attempt to match each other’s needs,
interests, and values

20

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Attracting an Effective Workforce
HR Planning
Retirements
Growth
Resignations

Choose
ChooseRecruiting
Recruiting
Sources
Sources
Want
Wantads
ads
Headhunters
Headhunters
Internet
Internet

Company Needs
Strategic goals
Current & future competencies
Market changes
Employee turnover
Corporate culture

Select the
Candidate
Application
Interview
Tests

Matching Model
Match with

Welcome New
Employee

Employee Contributions
Ability
Education
Creativity
Commitment
Expertise

Company Inducements

Employee Needs

Pay and benefits
Meaningful work
Advancement
Training
Challenge

Stage of career
Personal values
Promotion aspirations
Outside interests
Family concerns

21

Match with

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Human Resource Planning


22

Forecasting of human resource needs and the
projected matching of individuals with expected
vacancies


? = New technologies emerging



? = Volume of business likely next 5-10 years



? = Turnover rate, how much is avoidable, if
any

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Recruiting




23

Recruiting = activities or practices that define the
desired characteristics of applicants for specific jobs


Internal – promote-from-within policies used by
many to fill high-level positions



External = recruiting newcomers from outside has
advantage of multiple sources

E-cruiting = use of Internet - fastest-growing
approach to recruiting

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Basic Building Blocks
of HR Management

Job Analysis
Job Description
Job Specification

24

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Selecting

25



Selection = process of determining the skills,
abilities, and other attributes a person needs to
perform a particular job



Validity = relationship between an applicant’s score
on a selection device and his or her future job
performance

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