chapter 1 of human resource management
Introduction to the course
OVERVIEW
For some time, managers have acknowledged that the human resource is the most important resource of an organisation. The advent of the knowledge era, however, has served to accentuate this fact as organisations strive to remain competitive in an environment in which creativity and innovation have emerged as critical success factors.
In all of this, the demands on management styles and function have increased as organisations strive to attract, develop, and retain key personnel to ensure sustainability in the dynamic marketplace.
Strategic Human Resource Planning is designed to help executives understand the strategic role of the Human Resource function and how it can be used to create organisational value and improve financial result
This course provides the student with a contemporary view of human resource management. Emphasis is placed on the basic functions of HR management, i.e. planning, recruitment, selection, training, performance appraisal, and compensation. Other topics covered include: the strategic importance of HRM, diversity management and EEO legislation, ethics and fair treatment, safety and health, and labor relations.
Classes will consist of some combination of: lectures, discussions, skill-building exercises, and case analyses. Individual and team approaches will be utilized.
The material and activities are designed to encourage: critical thinking, multicultural understanding, effective communication, and ethical decision-making.
Course Objectives:
By the end of the course, a successful student will be able to:
I. Identify the current challenges in the business environment which influence HR practices;
2. Understand the role of the HR manager in an organization;
3. Possess a working vocabulary of common HR terms and an understanding of the major HR functions;
4. Apply several approaches associated with these functions;
5. Solve a variety of organizational problems associated with HRM;
6. Understand critical legislation, and explain its impact on the activities of HR managers.
Grading:
Tests 100 points (1x100)
Tests will be multiple choice in nature. The test is not comprehensive.
Class activities ？ Students will participate in a variety of problem-solving activities in class. The focus of these will be on applications of the concepts discussed in the assigned readings.
Assignments ？ Students will be required to submit 4 typed assignments during the course. These will require some research and/or analysis of HR issues.
Participation ？ Students are expected to attend all classes, to read assigned material prior to class, and to be actively involved in class discussions and activities.
Class Environment- This class is designed to introduce you to a specialized field of management and to the managerial role. To foster a professional environment, hats should not be worn in class and cell phones should be turned off. All right?
Chapter 1 Introduction
Management & The Human Resource Management Process
The Strategic Role of Human Resource Management
Outline of Introduction
• Introduction
• What is Management?
• What is Human Capital and Human Resource Management?
Human capital defined by skills and qualifications, and to a lesser extent personal capital, defined in terms of behavioral characteristics, are considered to be key determinants in gaining employment or progressing in the workplace.
Stakeholder Involvement Improves Educational Attainment and its Relevance Family, Community and the State Influence Educational Culture Social Capital Cannot Substitute for Financing of Education. Education as a Source of Social Capital.Downside of Social Capital in Education
Education as a Source of Social Capital. Recent research indicates that social capital is not only a critical input for education but also one of its valuable byproducts (Heyneman 1998). In addition to strengthening the human capital needed for economic development, social development and state accountability, education fosters social capital-rich networks. Social capital is produced through education in three fundamental ways:
(1) students practice social capital skills, such as participation and reciprocity;
(2) schools provide forums for community activity;
(3) through civil education students learn how to participate responsibly in their society.
How does HRM relate to the functions of management? And ,What is the HRM process?
To understand what human resource management is ,we should first review what managers do.
Most experts agree that there are five basic functions(management process ) all managers perform: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process. Some of the specific activities involved in each function include:
Planning :establishing goals and standards; developing rules and procedures; developing plans and forecasting ？predicting or projecting some future occurrence.
Organizing: give each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates.
Staffing: deciding what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees.
Leading: getting others to get the job done; maintaining morale; motivating subordinates.
Controlling: setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed.
Human resource management refers to the practices and policies you need to carry out the people or personnel aspects of your management job.
These include:
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries(how to compensate employees)
Providing incentives and benefits
Appraising performance
Communicating(interviewing, counseling, disciplining)
Training and developing
Building employee commitment
And what a manager should know about:
Equal opportunity and affirmative action
Employee health and safety
Grievances and labor relations
Outline of Chapter 1
• The Manager’s Human Resource Management Jobs
Why is HR Management Important to All Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An Example
Outline (cont’)
Strategic Planning and Strategic Trends
• HR’s Strategic Role
HR’s Evolving Role
Strategic Human Resource Management
HR’s Role as a Strategic Partner
Management
Management
the process of coordinating work activities so that they are completed efficiently and effectively with and through other people
elements of definition
Process - represents ongoing functions or primary activities engaged in by managers
Coordinating - distinguishes a managerial position from a non-managerial one
Management Process
Planning
Goals and standards
Rules and procedures
Plans and forecasting.
Organizing
Tasks
Departments
Delegating
Authority and communication
Coordinating
Management Process
Staffing
Hiring
Recruiting
Selecting
Performance standards
Compensation
Evaluating performance
Counseling
Training and developing
Management Process
Leading
Getting the job done
Morale
Motivation
Controlling
Setting standards
Comparing actual performance to standards
Corrective action
Management Functions
Human Resource Management
The term management refers to the process of getting activities completed efficiently and effectively with and trough other people.
The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling.
Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less inputs, you also have increased efficiency. Efficiency is often referred to as “doing things right”.
However, it’s not enough simply to be efficient. Management is also concerned with getting activities completed; that is, it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things.”so efficiency is concerned with means and effectiveness with ends.(goal attainment)
HRM Function
Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.
HRM People Functions Include:
Job analyses
Labor needs
Recruit
Select candidates
Orient and train
Wages and salaries
Incentives and benefits
Performance
Communicate
Train and develop
Employee commitment
Equal opportunity
Health and safety
Grievances/labor relations
HRM is Important to all Managers.
Don’t Let These Happen to You!
to hire the wrong person for the job
to experience High turnover
to find your people not doing their best (Poor results)
To waste time with Useless interviews
To have your company cited taken to court because of your discriminatory actions
To have your company cited under federal occupational safety laws for unsafe practices
To have some of your employees think their Salaries are unfair and inequitable relative to others in the organization
To allow a lack of training to undermine your department’s effectiveness
To commit any Unfair labor practices
HRM ？ It’s All About Results
“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck for production. I don’t know of any major project backed by good ideas, vigor, and enthusiasm that has been stopped by a shortage of cash. I do can’t maintain an efficient and enthusiastic labor force, and I think this will hold true even more in the future….” F. K. Foulkes
Line and Staff Aspects of HRM
All managers are, in a sense, HR managers, since they all get involved in activities like recruiting, interviewing, selecting, and training. Yet most firms also have a human resource department with its own human resource manager. How do the duties of this HR manager and his or her staff relate to “line” managers’ human resource duties? Let’s answer this question, starting with a short definition of line versus staff authority.
Authority is the right to make decisions, to direct the work of others, and to give orders. In management, we usually distinguish between line authority and staff authority.
Making decisions ,Directing work, Giving orders are authorities’ characterrestics.
Line Managers are authorized to direct the work of subordinates---they’re always someone’s boss. In addition, line managers are in charge of accomplishing the organization’s basic goals. for example,hotel managers and the managers for production and sales)
Accomplishing goals and direct the work of subordinates
Staff Managers ,on the other hand, are authorized to assist and advise line managers in accomplishing these basic goals. HR managers are generally staff managers. They are responsible for advising line managers(like those for production and sales)in areas like recruiting, hiring, and compensation.(Assisting and advising line managers )
Line Manager’s HRM responsibilities
According to one expert, “The direct handling of people is, and always has been, an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor.”
1.Placing the right person on the right job
2. starting new employees in the 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 company’s policies and procedures
7.Controlling labor costs
8.Developing the abilities of each person
9.Creating and maintaining departmental morale
10.Protecting employees’ health and physical condition
In small organizations, line managers may carry out all these personnel duties unassisted. But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff.
Cooperative Line & Staff HR
Example
Exactly which HR management activities are carried out by line managers & by staff managers?
Implied authority
The authority exerted by a personnel manager by virtue of others’ knowledge that he or she has access to top management (in areas like testing and affirmative action)
Functional control
The authority exerted by an HR manager as coordinator of personnel activities.
Staff (service) function
The function of an HR manager in assisting and advising line management.
There is no single division of responsibility applied to all organizations
Example in the recruiting & hiring of employees:
Usually the line manager specifies the qualifications needed to fill specific positions.
Then the HR manager develops sources of qualified candidates, conduct initial screening (tests) and send those filtered to line manager
Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants
Cooperative Line & Staff HR
Some activities tend to be HR alone:
60% of firms assign HR pre-employment testing
75% college recruiting
86% benefits administration
84% exit interviews
88% personnel record keeping
Changing Environment of HR Management
Globalization
The tendency of firms to extend their sales or manufacturing to new markets abroad.
Technological Advances
Technological change will continue to shift employment from some occupations to others while contributing to a rise in productivity.
Labor-intensive blue-collar and clerical jobs will decrease while technical, managerial, and professional jobs will increase.
Technology will also force firms to become more competitive.
Information technology has also hastened what experts call the “fall of hierarchy;”in other words, managers depend less
Exporting Jobs
The Nature of Work
Workforce Diversity
Globalization
Technological Advances and the Nature of Work
Technology mandates and enables companies to be more competitive
Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Exporting Jobs
Competitive pressures and the search for greater efficiencies are prompting more employers to export jobs abroad.
Technology has facilitated the move of jobs offshore.
Call centers in India allow for: 24 hours, cheaper labor, standardized, efficient service
The Workforce Itself is Diverse
The Workforce Itself is Diverse
Consequences of these basic trends
HR’s evolving role
HR’s evolving role as strategic partner
The New HR Manager
Technology can be the Human Resources engine of change
HR and technology
Basic HR systems demand paperwork
70% of HR’s employees time = paperwork
Off the shelf forms from Office Depot/Officemax
Online forms
Human Resource Information Systems (HRIS)
HR on the Internet
HR portals
The Plan for the courses
Chapter 1: Strategic Human Resource Management
Chapter 2: Job Analysis
Chapter 3:
（1）Personnel Planning and Recruiting
（2）Employee Testing and Selection
Plan (cont’d)
Chapter 4: Training
Chapter 5: Appraising Performance
Chapter 6: Compensation and benefits
Strategic Human Resource Management and the HR Scorecard Management
Top manager vs HRMer
Strategic Management
The set of managerial decisions
and actions that determines
the long-run performance
of an organization.
The Strategic Management Process
Step 1: Identifying the organization’s current vision, mission, objectives, and strategies
Mission: the firm’s reason for being
Goals: the foundation for further planning
Where we are now? What business we want to be in, wrt our strengths and weaknesses?
Step 2: Conducting an external analysis
The environmental scanning of specific and general environments
Focuses on identifying opportunities and threats
Components of a Mission Statement
Strategic Management Process (cont’d)
Step 3: Conducting an internal analysis
Assessing organizational resources, capabilities, activities, and culture:
Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm.
Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage.
Steps 2 and 3 combined are called a SWOT analysis. (Strengths, Weaknesses, Opportunities, and Threats)
Identifying the Organization’s Opportunities
Strategic Management Process (cont’d)
Step 4: Formulating strategies
Strategy is a course of action presenting how the organization can move from its current business to the one it wants to be in?
Develop and evaluate strategic alternatives
Select appropriate strategies for all levels in the organization that provide relative advantage over competitors
Match organizational strengths to environmental opportunities
Correct weaknesses and guard against threats
Strategic Management Process (cont’d)
Step 5: Implementing strategies
Implementation: effectively fitting organizational structure and activities to the environment
The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements.
Step 6: Evaluating Results
How effective have strategies been?
What adjustments, if any, are necessary?
Types of Organizational Strategies
Corporate-Level Strategies
Identifies the portfolio of businesses that comprise the company and the ways these businesses relate to each other.
Examples: diversification, integration
Types of Corporate Strategies
Growth: expansion into new products and markets
Stability: maintenance of the status quo
Renewal: redirection of the firm into new markets
Levels of Organizational Strategy
Strategic Planning
Business-Level Strategy
Business-Level Strategy
A strategy that seeks to determine how an organization should compete
Companies try to achieve competitive advantage for each business they are in.
Competitive advantage is any factor that allows an organization to differentiate its products or services from those of its competitors.
HR and Competitive Advantage
Today, most companies have easy access to the same technologies, so technology itself is rarely enough to set a firm apart. Its usually the people & the management system that make the difference.
Strategic Human Resource Management
HR strategies refers to the specific human resource management courses of action the company pursues to achieve its aims.
Strategic Human Resource Management means formulating and executing HR systems (HR policies & activities) that produce the employee competencies and behaviors the company needs to achieve its strategic aims
HR’s Strategic Roles
Today’s HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulation
Strategy execution (traditional role): top management formulates the company’s corporate strategies and HR develops systems that support or align with the corporate strategy.
Strategy formulation (today’s role): a partner in the setting of the corporate strategy and its execution.
HR Scorecard Approach
HR Scorecard: Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.
Steps in the HR Scorecard Approach
The Value Chain Approach
HR Scorecard Approach
Summary
1. there are basic function s all managers perform: planning, organizing, staffing, leading, and controlling. These represent what is often called the management process.
2. staffing, personnel management, or human resource management is the function focused on in this book. It includes activities like recruiting, selecting, training, compensating, appraising, and developing.
3. HR management is very much a part of every line manager’s responsibilities. These HR responsibilities include placing the right person in the right job, orienting, training, and compensating to improve his or her job performance.
4. the HR manager and his or her department carry out three main functions. First, the manager exerts line authority in his or her unit and implied authority elsewhere in the organization. He or she exerts a coordinative function to ensure that the organization’s HR objectives and policies are coordinated and implemented. And he or she provides various staff services to line management; for example, the HR manager or department assists in the hiring, training, evaluating, rewarding, promoting, and disciplining of employees at all levels.
5. changes in the environment of HR management are requiring HR to play a more major role in organizations. These trends include growing work fore diversity, rapid technological change, globalization, and changes in the nature of work such as the movement toward a service society and a growing emphasis on education and human capital.
6. Trends like globalization and technological innovation are changing the way firms are managed. For example, the traditional pyramid-shaped organization is giving way to new organizational forms; employees are being empowered to make more decisions; flatter organizations are the norms; work is increasingly organized around teams and processes; the bases of power are changing; managers in the future will not “manage”; and managers today must build commitment. Changes like these mean that organizations must depend more on self-disciplined and highly committed employees.
7. one consequence is that HR management must be involved in both the formulation and the implementation of a company’s strategies, given the need for the firm to galvanize employees into a competitive advantage.
8.We defined strategic human resource management as “…the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility…”We view HR as a strategic partner in that in that HRM works with other top manages to formulate the company’s strategy as well as to execute it.
Discussion Questions and Exercises
1. Explain what HR management is and how it relates to the management process.
2. Compare and contrast the work of line and staff managers; give examples of each.
3. Why is it important for a company to make its human resources into a competitive advantage? How can HR contribute to doing so?
OVERVIEW
For some time, managers have acknowledged that the human resource is the most important resource of an organisation. The advent of the knowledge era, however, has served to accentuate this fact as organisations strive to remain competitive in an environment in which creativity and innovation have emerged as critical success factors.
In all of this, the demands on management styles and function have increased as organisations strive to attract, develop, and retain key personnel to ensure sustainability in the dynamic marketplace.
Strategic Human Resource Planning is designed to help executives understand the strategic role of the Human Resource function and how it can be used to create organisational value and improve financial result
This course provides the student with a contemporary view of human resource management. Emphasis is placed on the basic functions of HR management, i.e. planning, recruitment, selection, training, performance appraisal, and compensation. Other topics covered include: the strategic importance of HRM, diversity management and EEO legislation, ethics and fair treatment, safety and health, and labor relations.
Classes will consist of some combination of: lectures, discussions, skill-building exercises, and case analyses. Individual and team approaches will be utilized.
The material and activities are designed to encourage: critical thinking, multicultural understanding, effective communication, and ethical decision-making.
Course Objectives:
By the end of the course, a successful student will be able to:
I. Identify the current challenges in the business environment which influence HR practices;
2. Understand the role of the HR manager in an organization;
3. Possess a working vocabulary of common HR terms and an understanding of the major HR functions;
4. Apply several approaches associated with these functions;
5. Solve a variety of organizational problems associated with HRM;
6. Understand critical legislation, and explain its impact on the activities of HR managers.
Grading:
Tests 100 points (1x100)
Tests will be multiple choice in nature. The test is not comprehensive.
Class activities ？ Students will participate in a variety of problem-solving activities in class. The focus of these will be on applications of the concepts discussed in the assigned readings.
Assignments ？ Students will be required to submit 4 typed assignments during the course. These will require some research and/or analysis of HR issues.
Participation ？ Students are expected to attend all classes, to read assigned material prior to class, and to be actively involved in class discussions and activities.
Class Environment- This class is designed to introduce you to a specialized field of management and to the managerial role. To foster a professional environment, hats should not be worn in class and cell phones should be turned off. All right?
Chapter 1 Introduction
Management & The Human Resource Management Process
The Strategic Role of Human Resource Management
Outline of Introduction
• Introduction
• What is Management?
• What is Human Capital and Human Resource Management?
Human capital defined by skills and qualifications, and to a lesser extent personal capital, defined in terms of behavioral characteristics, are considered to be key determinants in gaining employment or progressing in the workplace.
Stakeholder Involvement Improves Educational Attainment and its Relevance Family, Community and the State Influence Educational Culture Social Capital Cannot Substitute for Financing of Education. Education as a Source of Social Capital.Downside of Social Capital in Education
Education as a Source of Social Capital. Recent research indicates that social capital is not only a critical input for education but also one of its valuable byproducts (Heyneman 1998). In addition to strengthening the human capital needed for economic development, social development and state accountability, education fosters social capital-rich networks. Social capital is produced through education in three fundamental ways:
(1) students practice social capital skills, such as participation and reciprocity;
(2) schools provide forums for community activity;
(3) through civil education students learn how to participate responsibly in their society.
How does HRM relate to the functions of management? And ,What is the HRM process?
To understand what human resource management is ,we should first review what managers do.
Most experts agree that there are five basic functions(management process ) all managers perform: planning, organizing, staffing, leading, and controlling. In total, these functions represent the management process. Some of the specific activities involved in each function include:
Planning :establishing goals and standards; developing rules and procedures; developing plans and forecasting ？predicting or projecting some future occurrence.
Organizing: give each subordinate a specific task; establishing departments; delegating authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates.
Staffing: deciding what type of people should be hired; recruiting prospective employees; selecting employees; setting performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees.
Leading: getting others to get the job done; maintaining morale; motivating subordinates.
Controlling: setting standards such as sales quotas, quality standards, or production levels; checking to see how actual performance compares with these standards; taking corrective action as needed.
Human resource management refers to the practices and policies you need to carry out the people or personnel aspects of your management job.
These include:
Conducting job analyses
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries(how to compensate employees)
Providing incentives and benefits
Appraising performance
Communicating(interviewing, counseling, disciplining)
Training and developing
Building employee commitment
And what a manager should know about:
Equal opportunity and affirmative action
Employee health and safety
Grievances and labor relations
Outline of Chapter 1
• The Manager’s Human Resource Management Jobs
Why is HR Management Important to All Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An Example
Outline (cont’)
Strategic Planning and Strategic Trends
• HR’s Strategic Role
HR’s Evolving Role
Strategic Human Resource Management
HR’s Role as a Strategic Partner
Management
Management
the process of coordinating work activities so that they are completed efficiently and effectively with and through other people
elements of definition
Process - represents ongoing functions or primary activities engaged in by managers
Coordinating - distinguishes a managerial position from a non-managerial one
Management Process
Planning
Goals and standards
Rules and procedures
Plans and forecasting.
Organizing
Tasks
Departments
Delegating
Authority and communication
Coordinating
Management Process
Staffing
Hiring
Recruiting
Selecting
Performance standards
Compensation
Evaluating performance
Counseling
Training and developing
Management Process
Leading
Getting the job done
Morale
Motivation
Controlling
Setting standards
Comparing actual performance to standards
Corrective action
Management Functions
Human Resource Management
The term management refers to the process of getting activities completed efficiently and effectively with and trough other people.
The process represents the functions or primary activities engaged in by managers. These functions are typically labeled planning, organizing, leading, and controlling.
Efficiency is a vital part of management. It refers to the relationship between inputs and outputs. If you can get more output from the given inputs, you have increased efficiency. Similarly, if you can get the same output from less inputs, you also have increased efficiency. Efficiency is often referred to as “doing things right”.
However, it’s not enough simply to be efficient. Management is also concerned with getting activities completed; that is, it seeks effectiveness. When managers achieve their organization’s goals, we say they are effective. Effectiveness can be described as “doing the right things.”so efficiency is concerned with means and effectiveness with ends.(goal attainment)
HRM Function
Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.
HRM People Functions Include:
Job analyses
Labor needs
Recruit
Select candidates
Orient and train
Wages and salaries
Incentives and benefits
Performance
Communicate
Train and develop
Employee commitment
Equal opportunity
Health and safety
Grievances/labor relations
HRM is Important to all Managers.
Don’t Let These Happen to You!
to hire the wrong person for the job
to experience High turnover
to find your people not doing their best (Poor results)
To waste time with Useless interviews
To have your company cited taken to court because of your discriminatory actions
To have your company cited under federal occupational safety laws for unsafe practices
To have some of your employees think their Salaries are unfair and inequitable relative to others in the organization
To allow a lack of training to undermine your department’s effectiveness
To commit any Unfair labor practices
HRM ？ It’s All About Results
“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck for production. I don’t know of any major project backed by good ideas, vigor, and enthusiasm that has been stopped by a shortage of cash. I do can’t maintain an efficient and enthusiastic labor force, and I think this will hold true even more in the future….” F. K. Foulkes
Line and Staff Aspects of HRM
All managers are, in a sense, HR managers, since they all get involved in activities like recruiting, interviewing, selecting, and training. Yet most firms also have a human resource department with its own human resource manager. How do the duties of this HR manager and his or her staff relate to “line” managers’ human resource duties? Let’s answer this question, starting with a short definition of line versus staff authority.
Authority is the right to make decisions, to direct the work of others, and to give orders. In management, we usually distinguish between line authority and staff authority.
Making decisions ,Directing work, Giving orders are authorities’ characterrestics.
Line Managers are authorized to direct the work of subordinates---they’re always someone’s boss. In addition, line managers are in charge of accomplishing the organization’s basic goals. for example,hotel managers and the managers for production and sales)
Accomplishing goals and direct the work of subordinates
Staff Managers ,on the other hand, are authorized to assist and advise line managers in accomplishing these basic goals. HR managers are generally staff managers. They are responsible for advising line managers(like those for production and sales)in areas like recruiting, hiring, and compensation.(Assisting and advising line managers )
Line Manager’s HRM responsibilities
According to one expert, “The direct handling of people is, and always has been, an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor.”
1.Placing the right person on the right job
2. starting new employees in the 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 company’s policies and procedures
7.Controlling labor costs
8.Developing the abilities of each person
9.Creating and maintaining departmental morale
10.Protecting employees’ health and physical condition
In small organizations, line managers may carry out all these personnel duties unassisted. But as the organization grows, they need the assistance, specialized knowledge, and advice of a separate human resource staff.
Cooperative Line & Staff HR
Example
Exactly which HR management activities are carried out by line managers & by staff managers?
Implied authority
The authority exerted by a personnel manager by virtue of others’ knowledge that he or she has access to top management (in areas like testing and affirmative action)
Functional control
The authority exerted by an HR manager as coordinator of personnel activities.
Staff (service) function
The function of an HR manager in assisting and advising line management.
There is no single division of responsibility applied to all organizations
Example in the recruiting & hiring of employees:
Usually the line manager specifies the qualifications needed to fill specific positions.
Then the HR manager develops sources of qualified candidates, conduct initial screening (tests) and send those filtered to line manager
Line manager conducts the final technical screening tests and selects the one to hire or requests new applicants
Cooperative Line & Staff HR
Some activities tend to be HR alone:
60% of firms assign HR pre-employment testing
75% college recruiting
86% benefits administration
84% exit interviews
88% personnel record keeping
Changing Environment of HR Management
Globalization
The tendency of firms to extend their sales or manufacturing to new markets abroad.
Technological Advances
Technological change will continue to shift employment from some occupations to others while contributing to a rise in productivity.
Labor-intensive blue-collar and clerical jobs will decrease while technical, managerial, and professional jobs will increase.
Technology will also force firms to become more competitive.
Information technology has also hastened what experts call the “fall of hierarchy;”in other words, managers depend less
Exporting Jobs
The Nature of Work
Workforce Diversity
Globalization
Technological Advances and the Nature of Work
Technology mandates and enables companies to be more competitive
Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Exporting Jobs
Competitive pressures and the search for greater efficiencies are prompting more employers to export jobs abroad.
Technology has facilitated the move of jobs offshore.
Call centers in India allow for: 24 hours, cheaper labor, standardized, efficient service
The Workforce Itself is Diverse
The Workforce Itself is Diverse
Consequences of these basic trends
HR’s evolving role
HR’s evolving role as strategic partner
The New HR Manager
Technology can be the Human Resources engine of change
HR and technology
Basic HR systems demand paperwork
70% of HR’s employees time = paperwork
Off the shelf forms from Office Depot/Officemax
Online forms
Human Resource Information Systems (HRIS)
HR on the Internet
HR portals
The Plan for the courses
Chapter 1: Strategic Human Resource Management
Chapter 2: Job Analysis
Chapter 3:
（1）Personnel Planning and Recruiting
（2）Employee Testing and Selection
Plan (cont’d)
Chapter 4: Training
Chapter 5: Appraising Performance
Chapter 6: Compensation and benefits
Strategic Human Resource Management and the HR Scorecard Management
Top manager vs HRMer
Strategic Management
The set of managerial decisions
and actions that determines
the long-run performance
of an organization.
The Strategic Management Process
Step 1: Identifying the organization’s current vision, mission, objectives, and strategies
Mission: the firm’s reason for being
Goals: the foundation for further planning
Where we are now? What business we want to be in, wrt our strengths and weaknesses?
Step 2: Conducting an external analysis
The environmental scanning of specific and general environments
Focuses on identifying opportunities and threats
Components of a Mission Statement
Strategic Management Process (cont’d)
Step 3: Conducting an internal analysis
Assessing organizational resources, capabilities, activities, and culture:
Strengths (core competencies) create value for the customer and strengthen the competitive position of the firm.
Weaknesses (things done poorly or not at all) can place the firm at a competitive disadvantage.
Steps 2 and 3 combined are called a SWOT analysis. (Strengths, Weaknesses, Opportunities, and Threats)
Identifying the Organization’s Opportunities
Strategic Management Process (cont’d)
Step 4: Formulating strategies
Strategy is a course of action presenting how the organization can move from its current business to the one it wants to be in?
Develop and evaluate strategic alternatives
Select appropriate strategies for all levels in the organization that provide relative advantage over competitors
Match organizational strengths to environmental opportunities
Correct weaknesses and guard against threats
Strategic Management Process (cont’d)
Step 5: Implementing strategies
Implementation: effectively fitting organizational structure and activities to the environment
The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements.
Step 6: Evaluating Results
How effective have strategies been?
What adjustments, if any, are necessary?
Types of Organizational Strategies
Corporate-Level Strategies
Identifies the portfolio of businesses that comprise the company and the ways these businesses relate to each other.
Examples: diversification, integration
Types of Corporate Strategies
Growth: expansion into new products and markets
Stability: maintenance of the status quo
Renewal: redirection of the firm into new markets
Levels of Organizational Strategy
Strategic Planning
Business-Level Strategy
Business-Level Strategy
A strategy that seeks to determine how an organization should compete
Companies try to achieve competitive advantage for each business they are in.
Competitive advantage is any factor that allows an organization to differentiate its products or services from those of its competitors.
HR and Competitive Advantage
Today, most companies have easy access to the same technologies, so technology itself is rarely enough to set a firm apart. Its usually the people & the management system that make the difference.
Strategic Human Resource Management
HR strategies refers to the specific human resource management courses of action the company pursues to achieve its aims.
Strategic Human Resource Management means formulating and executing HR systems (HR policies & activities) that produce the employee competencies and behaviors the company needs to achieve its strategic aims
HR’s Strategic Roles
Today’s HR managers fulfill two basic strategic planning roles: strategy execution and strategy formulation
Strategy execution (traditional role): top management formulates the company’s corporate strategies and HR develops systems that support or align with the corporate strategy.
Strategy formulation (today’s role): a partner in the setting of the corporate strategy and its execution.
HR Scorecard Approach
HR Scorecard: Measures the HR function’s effectiveness and efficiency in producing employee behaviors needed to achieve the company’s strategic goals.
Steps in the HR Scorecard Approach
The Value Chain Approach
HR Scorecard Approach
Summary
1. there are basic function s all managers perform: planning, organizing, staffing, leading, and controlling. These represent what is often called the management process.
2. staffing, personnel management, or human resource management is the function focused on in this book. It includes activities like recruiting, selecting, training, compensating, appraising, and developing.
3. HR management is very much a part of every line manager’s responsibilities. These HR responsibilities include placing the right person in the right job, orienting, training, and compensating to improve his or her job performance.
4. the HR manager and his or her department carry out three main functions. First, the manager exerts line authority in his or her unit and implied authority elsewhere in the organization. He or she exerts a coordinative function to ensure that the organization’s HR objectives and policies are coordinated and implemented. And he or she provides various staff services to line management; for example, the HR manager or department assists in the hiring, training, evaluating, rewarding, promoting, and disciplining of employees at all levels.
5. changes in the environment of HR management are requiring HR to play a more major role in organizations. These trends include growing work fore diversity, rapid technological change, globalization, and changes in the nature of work such as the movement toward a service society and a growing emphasis on education and human capital.
6. Trends like globalization and technological innovation are changing the way firms are managed. For example, the traditional pyramid-shaped organization is giving way to new organizational forms; employees are being empowered to make more decisions; flatter organizations are the norms; work is increasingly organized around teams and processes; the bases of power are changing; managers in the future will not “manage”; and managers today must build commitment. Changes like these mean that organizations must depend more on self-disciplined and highly committed employees.
7. one consequence is that HR management must be involved in both the formulation and the implementation of a company’s strategies, given the need for the firm to galvanize employees into a competitive advantage.
8.We defined strategic human resource management as “…the linking of HRM with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility…”We view HR as a strategic partner in that in that HRM works with other top manages to formulate the company’s strategy as well as to execute it.
Discussion Questions and Exercises
1. Explain what HR management is and how it relates to the management process.
2. Compare and contrast the work of line and staff managers; give examples of each.
3. Why is it important for a company to make its human resources into a competitive advantage? How can HR contribute to doing so?
tonghb
2005-07-05 15:30:05
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