HUMAN RESOURCE

1. 11
HUMAN RESOURCE
MANAGEMENT:
AN OVERVIEW

2. 22
Chapter Objectives
 Explain human capital management.
 Define human resource management.
 Identify the human resource management
functions.
 Identify the external environmental factors
that affect human resource management.
 Explain who performs the human resource
management tasks.

3. 33
Chapter Objectives (Continued)
 Explain the need for human resources to
be a strategic partner.
 Describe the various human resource
classifications including executives,
generalists, and specialists.
 Describe the changes that occur in theDescribe the changes that occur in the
human resource function as a firm growshuman resource function as a firm grows
larger and more complex and the evolvinglarger and more complex and the evolving
HR organization.HR organization.

4. 44
Human Resource Management
 Utilization of individuals to achieve
organizational objectives
 All managers at every level must
concern themselves with human
resource management.
 Five functions

5. 55
1
Human
Resource
Managemen
t
Hum
an
Resource
Developm
ent
Compensation
andBenefits
Staffing
Employeeand
LaborRelations
Safety and
Health
The Human Resource Management
Functions

6. 66
Staffing
 Job Analysis
 Human Resource Planning
(HRP)
 Recruitment
 Selection

7. 77
Staffing (Continued)
 Staffing - Process through which an
organization ensures that it always has
proper number of employees with
appropriate skills in right jobs at right
time to achieve organization’s objectives
 Job analysis - Systematic process of
determining skills, duties, and
knowledge required for performing jobs
in an organization

8. 88
Staffing (Continued)
 Human resource planning - Process of
systematically reviewing human
resource requirements to ensure that
required numbers of employees, with
required skills, are available when
needed.
 Recruitment - Process of attracting
qualified individuals and encouraging
them to apply for work with organization

9. 99
Staffing (Continued)
 Selection - Process through which
organization chooses, from a group of
applicants, those individuals best suited
both for open positions and for the
company

10. 1010
Human Resource Development
 Training
 Development
 Career Planning
 Career Development
 Organizational Development

11. 1111
Human Resource
Development (Continued)
 TrainingTraining - Designed to provide- Designed to provide
learners with the knowledge andlearners with the knowledge and
skills needed for their present jobs.skills needed for their present jobs.
 DevelopmentDevelopment - Involves learning- Involves learning
that goes beyond today's job; it hasthat goes beyond today's job; it has
a more long-term focusa more long-term focus

12. 1212
Human Resource
Development (Continued)
 Career planningCareer planning - An ongoing process- An ongoing process
whereby individual sets career goals andwhereby individual sets career goals and
identifies means to achieve themidentifies means to achieve them
 Career developmentCareer development - Formal approach- Formal approach
used by organization to ensure that peopleused by organization to ensure that people
with proper qualifications and experienceswith proper qualifications and experiences
are available when neededare available when needed

13. 1313
Human Resource
Development (Continued)
 Organization developmentOrganization development – Organization– Organization
wide application of behavioral science towide application of behavioral science to
planned development and support ofplanned development and support of
strategies, structures and processes forstrategies, structures and processes for
improving firm’s effectivenessimproving firm’s effectiveness

14. 1414
Compensation and Benefits
CompensationCompensation --
All rewards thatAll rewards that
individuals receiveindividuals receive
as a result of theiras a result of their
employmentemployment

15. 1515
Compensation & Benefits
Pay - Money that a person receives for
performing a job
Benefits - Additional financial rewards,
other than base pay such as sick leave,
vacations, holidays and medical insurance
Nonfinancial Rewards
 The Job
 Pleasant working environment

16. 1616
Safety and Health
 Employees whoEmployees who
work in a safework in a safe
environment andenvironment and
enjoy good healthenjoy good health
are more likely toare more likely to
be productive andbe productive and
yield long-termyield long-term
benefits to thebenefits to the
organization.organization.

17. 1717
Safety and Health
 Safety - Involves protecting employees
from injuries caused by work-related
accidents
 Health - Refers to the employees'
freedom from illness and their general
physical and mental well being

18. 1818
Employee and Labor Relations
Business required byBusiness required by
law to recognizelaw to recognize
union and bargainunion and bargain
with it in good faith ifwith it in good faith if
firm’s employeesfirm’s employees
want unionwant union
representation.representation.

19. 1919
Human Resource Research
 Human resource
research is not a
separate function.
 It pervades all HR
functional areas.

20. 2020
Interrelationships of HRM
Functions
 All HRM functions
are interrelated.
 Each function
affects other areas.

21. 2121
The Dynamic Human
Resource
Management
Environment

22. 2222
Environment of Human Resource Management
EXTERNAL ENVIRONMENTEXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENTINTERNAL ENVIRONMENT
1
Human
Resource
Managemen
t
Other
Functiona
l Areas
OperationsMarketing
Finance
LegalConsiderationsTheEconomy
Technology
Society
Shareholders
Unions
Customers Competition Labor Force
Hum
an
Resource
Developm
ent
Compensation
andBenefits
Staffing
Employeeand
LaborRelations
Safety and
Health

23. 2323
Labor Force
Pool of individualsPool of individuals
external to firmexternal to firm
from whichfrom which
organizationorganization
obtains its workersobtains its workers

24. 2424
Legal Considerations
 Federal, stateFederal, state
and localand local
legislationlegislation
 Court decisionsCourt decisions
 PresidentialPresidential
executive ordersexecutive orders

25. 2525
Society
 Social responsibilitySocial responsibility – Implied, enforced– Implied, enforced
or felt obligation of managers to serve oror felt obligation of managers to serve or
protect interests of groups other thanprotect interests of groups other than
themselvesthemselves
 EthicsEthics –– Discipline dealing with what isDiscipline dealing with what is
good and bad, or right and wrong, or withgood and bad, or right and wrong, or with
moral duty and obligationmoral duty and obligation

26. 2626
Ethics and HR
Management
Discipline dealingDiscipline dealing
with what is:with what is:
good & bad right & wronggood & bad right & wrong
moral duty & obligationmoral duty & obligation

27. 2727
Unions
Group of employeesGroup of employees
who have joinedwho have joined
together for purposetogether for purpose
of dealingof dealing
collectively with theircollectively with their
employeremployer

28. 2828
Shareholders
 Owners of a corporationOwners of a corporation
 Because they haveBecause they have
invested money in a firm,invested money in a firm,
they may at timesthey may at times
challenge programschallenge programs
considered byconsidered by
management to bemanagement to be
beneficial to thebeneficial to the
organizationorganization

29. 2929
Customers
Because sales criticalBecause sales critical
to firm’s survival,to firm’s survival,
management mustmanagement must
ensure employmentensure employment
practices do notpractices do not
antagonize theantagonize the
customers they servecustomers they serve

30. 3030
Competition
In order toIn order to
succeed, grow andsucceed, grow and
prosper, a firmprosper, a firm
must be able tomust be able to
maintain a supplymaintain a supply
of competentof competent
employees.employees.

31. 3131
Technology
As technology changes:As technology changes:
 Certain skills no longer requiredCertain skills no longer required
 New skills neededNew skills needed
Necessitates some retraining of currentNecessitates some retraining of current
workforceworkforce

32. 3232
The Economy
In general, whenIn general, when
economy is booming,economy is booming,
it is often more difficultit is often more difficult
to recruit qualifiedto recruit qualified
workers.workers.

33. 3333
HR’s Changing Role:
Who Performs Human
Resource Management Tasks?
 Human Resource Managers
 Shared Service Centers
 Outsourcing Firms
 Line Managers

34. 3434
Human Resource Manager
 Acts in advisory or staff
capacity
 Works with other managers to
help them deal with human
resource matters

35. 3535
Shared Service Centers
(SSCS)
Takes routine,
transaction-based
activities that are
dispersed and
consolidates them in
one location.

36. 3636
Shared Service Centers (SSCS)
Performing HR Tasks
Fewer HR Personnel
Needed
HR Managers Assume
a More Strategic RoleImproves Quality

37. 3737
Outsourcing Firms
Transfers
responsibility to
an external
provider

38. 3838
Outsourcing
Reduces:
• Cost
• Transaction Time
Improves Quality

39. 3939
Line Managers Performing
HR Tasks
Involved with humanInvolved with human
resources by nature of theirresources by nature of their
jobsjobs

40. 4040
HR as a Strategic Partner
 HR executives mustHR executives must
understand complexunderstand complex
organizational design.organizational design.
 Must be able toMust be able to
determine capabilitiesdetermine capabilities
of company'sof company's
workforce, today andworkforce, today and
in the futurein the future

41. 4141
Human Resource
Designations

42. 4242
Human Resource Executives,
Generalists, and Specialists
Vice President,
Human
Resources
Vice President,
Industrial
Relations
Manager,
Compensation
and Benefits
Manager,
Staffing
Manager,
Training and
Development
Benefits
Analyst
Executive:
Generalist:
Specialist:

43. 4343
Characteristics of an HR
Executive
 Performs one or more HR functions
 A top-level manager
 Reports directly to the corporation's CEO or
head of major division

44. 4444
Characteristics of an HR
Generalist
 Often an executive
 Performs tasks in various HR related
areas
 Involved in several, or all, of the five
HRM functions

45. 4545
Characteristics of an HR
Specialist
 May be an HR executive, manager, or
non-manager
 Typically concerned with only one of the
five functional areas

46. 4646
The Human Resource
Function In
Organizations Of
Various Sizes

47. 4747
HR in Small Businesses
 Seldom have a formal HR unit
 Focuses on hiring & retaining capable
employees
 Some aspects of HR function may be
more significant in smaller firms than in
larger ones.

48. 4848
The Human Resource Function in a
Small Business
Manager/Owner
Sales Operations Finance

49. 4949
HR in a Medium-sized Firm
 Little specialization
 HR manager is essentially the
entire department.

50. 5050
The Human Resource Function in a
Medium-Sized Business
Sales
Manager
President
Operations
Manager
Finance
Manager
Human
Resource
Manager

51. 5151
Traditional Human Resource
Functions in a Large Firm
 Separate sections are often created
 Placed under an HR Manager
 Each HR function may have a supervisor
& staff
 HR Manager works closely with top
management in formulating policy

52. 5252
The Human Resource Function in a
Large Firm
President
and CEO
Vice President,
Marketing
Vice President,
Operations
Vice President,
Finance
Vice President,
Human
Resources
Manager,
Training and
Development
Manager,
Compensation
and Benefits
Manager,
Staffing
Manager,
Safety and
Health
Manager,
Labor
Relations

53. 5353
A New and Evolving HR Organization for
Large-Sized Firms
OutsourceOutsource
Shared ServiceShared Service
CentersCenters
Evolve to makeEvolve to make
HR moreHR more
strategicstrategic

54. 5454
An Evolving Human Resource
Organization Example
President
and CEO
Vice President,
Operations
Vice President,
Human
Resources
Vice President,
Other Major
Functions
Director of
Safety and
Health
Executive
Development
Manager,
Training
Manager,
Other HRM
Functions
Employee
Benefits
Shared
Service
Center
Outsourced

55. 5555