CHAPTER 1: MANAGING HUMAN RESOURCES
LEARNING OBJECTIVES:
LO1-1 Discuss the roles and activities of a company’s human resource management function.
LO1-2 Discuss the implications of the economy, the makeup of the labor force, and ethics for company sustainability.
LO1-3 Discuss how human resource management affects a company’s balanced scorecard.
LO1-4 Discuss what companies should do to compete in the global marketplace.
LO1-5 Identify how social networking, artificial intelligence, and robotics is influencing human resource management.
LO1-6 Discuss human resource management practices that support high performance
work systems.
LO1-7 Provide a brief description of human resource management practices.
CHAPTER OUTLINE
1. Introduction
2. Responsibilities and
Roles of HR Department
3. Strategic role of
the HRM Function
4. Competitive
challenges influencing HRM
1. INTRODUCTION
Human Resource
Management
• plays a role in a
company’s survival, effectiveness, and competitiveness
• refers to the policies,
practices, and systems that influence employees’ behavior, attitudes, and performance
2. RESPONSIBILITIES AND
ROLES OF HR DEPARTMENTS
HRM is a means to
contribute to
• profitability
• quality
•
other business goals
Click for more details: Managing Human Resources
High-Impact HR
functions
• more integrated with
the business
• more skilled at
attracting and retaining employees
• can adapt quickly
• identify and promote
talent from within
• identify what
motivates employees
• continuously building
talent and skills
3. STRATEGIC ROLE OF THE HRM FUNCTION
HRM Role
Time spent on
administrative tasks is decreasing, roles as a strategic business partner,
change agent and employee advocate are increasing.
Shared service model
includes:
• centers of expertise
or excellence (expert in staffing and training)
• central place for
administrative and transactional tasks
• business partners (HR
staff working with business unit managers on strategic issues)
Technology
Reducing HRM role in administrative
tasks, maintaining records, and providing self-service to employees
• Shift to self-service
gives employees access to many HR issues
• HR managers have more
time to work on employee issues
Outsourcing
Most commonly
outsourced activities
• Benefits
administration (e.g., flexible spending accounts, health plan eligibility
status)
• Relocation
• Payroll
Most common reason for
outsourcing
• Cost savings
• Increased ability to
recruit and manage talent
• Improved HR service
quality
• Protection of the company
from potential lawsuits by standardizing processes such as selection and
recruitment
Strategic Role
• Lead efforts focused
on talent management and performance management
• Take the lead in
helping companies attract, develop, and retain talent in order to create global
workforces
• Use and analyze data
to make a business case for ideas and problem solutions
Demonstrating the
Strategic Value of HRM: HR
Analytics and
Evidenced-Based HR
• HR can engage in
evidence-based HR
• Requires the use of
HR or Workforce Analytics
• Big data
• Information merged
from HR databases, corporate financial statements, employee surveys, and other
data sources
• Result in
evidence-based HR decisions
• Show that HR
practices influence the organization’s bottom line, including profits and costs
Demonstrating the
Strategic Value of HRM: HR
Analytics and
Evidenced-Based HR
• Google created
equations to identify potential successful candidates and review rejected
applications.
• Mattress Firms create
a benchmarking of strong performing employees and compare to applicants and
hire new employees.
• Credit Suisse used
workforce data to identify who is likely to leave and suggest solution to
prevent.
The HRM Profession:
Positions and Jobs
• Primary activities
involve performing the HR generalist role
• Fewer HR
professionals are involved in the HR function at the executive level of the
company, training and development, HR consulting, and administrative activities
Education and
Experience
Four-year college or
graduate HR degree
Senior HR role
• Developing and
supporting the company culture,
• Employee recruitment,
retention and engagement
• Succession planning
• Designing the
company’s overall HR strategy
Competencies and
Behaviors
Most HRM professionals
are generalists, expertise in benefits, compensation, labor relations, employee
engagement and company culture
Require business acumen
Need nine competencies
developed by SHRM
1. HR Technical
Expertise and Practice
Apply the principles of
HRM to contribute to the success of the business
2. Business Acumen
Understand business
functions and metrics within the organization and industry
3. Critical Evaluation
Interpret information
to determine return on
investment and
organizational impact in making recommendations and business decisions
4. Ethical Practice
Integrate core values,
integrity, and accountability throughout all organizational and business practices
5. Global and Cultural
Effectiveness
Manage HR both within
and across boundaries
6. Communications
Effectively exchange
and create a free flow of information with and among various stakeholders at
all levels of the organization to produce meaningful outcomes
7. Organizational
Leadership and Navigation
Direct initiatives and
processes within the organization and gain buy-in from stakeholders
8. Consultation
Provide guidance to
stakeholders such as employees and leaders seeking expert advice on a variety
of circumstances and situations
9. Relationship
Management
Manage interactions
with and between others with the specific goal of providing service and organizational
success
4. COMPETITIVE
CHALLENGES INFLUENCING HRM
Competing Through
Sustainability
Sustainability relates
to social responsibility. Also refers to the company’s ability to meet its
needs without sacrificing the ability of future generations to meet their needs
• Company must meet the
needs of stakeholders
Sustainability includes
the ability to
·
Deal with economic and social changes
·
Practice environmental responsibility
·
Engage in responsible and ethical
business practices
·
Provide high-quality products and
services
·
Put in place methods to determine if the
company is meeting stakeholders’ needs
Deal with the Workforce
and Employment Implications of the Economy
• Skill demands for
jobs have changed
• Remaining competitive
in a global economy requires demanding work hours and changes in traditional employment
patterns
HR practices that
enhance labor productivity
·
Improving the design of work and the use
of technology
·
Upskilling employees through training
·
Managing performance and compensation to
incentivize and motivate workers to work smarter and harder
·
Raising pay and focus on learning
Labor Force and
Employment Characteristics
• Population is the
most important factor in determining the size and composition of the labor
force
• Growth is slowing
• Labor force is aging
• Diversity is
increasing
• Service sector is
growing
• Education is
important to meet job requirements
• Shortage of qualified
candidates
Understand and Enhance
the Value Placed on
Intangible Assets and
Human Capital
Three types of assets
• Financial assets
(cash and securities)
• Physical assets
(property, plant, equipment)
• Intangible assets
Understand and Enhance
the Value Placed on
Intangible Assets and
Human Capital continued
Knowledge workers
• Contribute specialized
knowledge
• Share knowledge and
collaborate on solutions
• In demand because
companies need their skills and jobs requiring them are growing
Emphasize Empowerment
and Continuous Learning
·
Give employees responsibility and
authority
·
Hold them accountable
·
Employees share in the rewards and
losses
·
Learning organization
Maximize Employee
Engagement
·
Passionate about his or her work
·
Committed to the company and its mission
·
Works hard to contribute
·
Measured with attitude or opinion
surveys
Provide Flexibility to Help
Employees Meet Work and
Life Demands
• 46% of employees work
more than 45 hours per week
• Only half of
employees in the U.S. believe they have the flexibility they need to successfully
manage their work and personal or family lives
• Solution: flexible
work schedules, work-at-home arrangements, protecting employees’ free time, and
more productively using employees’ work time
Meet the Needs of
Stakeholders, Shareholders,
Customers, Employees,
and Community
Demonstrate performance
to stakeholders: the balanced scorecard (indication of the performance of a
company based on the degree to which stakeholder needs are satisfied)
• Being
customer-focused
• Improving quality
• Emphasizing teamwork
• Reducing new product
and service development times
• Managing for the long
term
Demonstrate Social Responsibility
• Helps boost a company’s
image with customers, gain access to new markets, and help attract and retain talented
employees.
• Companies try to meet
shareholder and general public demands that they be more socially, ethically
and environmentally responsible.
• Helping to protect
the planet can also save money.
• Sustainability is an
important part of many companies’ business strategy.
Recognize and
capitalize on the demographics and diversity of the workforce
Internal labor force
External labor market
• Average age of
workforce will increase
• Increased workforce
diversity
• Immigration will
affect size and diversity
• Generational
difference with five generations
• Gender and racial
composition of the workforce
A Workforce of Mixed Gender, Race and Nationality
• Diversity of
workforce increasing
• Immigration is
contributing
• The percentage of
highly skilled immigrants now exceeds the percentage of low-skilled immigrants
• Legal vs. illegal
immigration
• Managing a diverse
workforce
Legal Issues
·
Employment laws and regulations
·
Eliminating discrimination and
harassment
·
Health care coverage
·
Immigration
·
Data security practices and protecting
intellectual property
Ethical Issues
Human resource managers
must satisfy three basic standards for their practices to be considered ethical
• HRM practices must
result in the greatest good for the largest number of people
• Employment practices
must respect basic human rights of privacy, due process, consent, and free
speech
• Managers must treat
employees and customers equitably and fairly
Competing Through
Globalization continued
• Entering
International Markets
• Exporting products
overseas
• Building
manufacturing facilities or service centers in other countries
• Entering into
alliances with foreign companies
• Engaging in
e-commerce
• Offshoring (exporting
of jobs from developed countries to countries where labor and other cost are
low) and Reshoring (the returns of jobs to developed countries)
Competing Through
Technology
• Consider applications
of social networking, artificial intelligence, and robotics
• Use HRIS, Mobile devices,
cloud computing, and HR dashboards
• Consider high-performance
work systems and virtual teams
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