Chapter 2 Fundamentals of HRM

1. Fundamentals of Human Resource Management Eighth Edition DeCenzo and Robbins Chapter 2 Fundamentals of HRM www.AssignmentPoint.com

2. Management Essentials • Management involves setting goals and allocating scarce resources to achieve them. • Management is the process of efficiently achieving the objectives of the organization with and through people. www.AssignmentPoint.com

3. Management Essentials • Primary Functions of Management • Planning – establishing goals • Organizing – determining what activities need to be done • Leading – assuring the right people are on the job and motivated • Controlling – monitoring activities to be sure goals are met www.AssignmentPoint.com

4. Why is HRM Important to an Organization? • The role of human resource managers has changed. HRM jobs today require a new level of sophistication. • Federal and state employment legislation has placed new requirements on employers. • Jobs have become more technical and skilled. • Traditional job boundaries have become blurred with the advent of such things as project teams and telecommuting. • Global competition has increased demands for productivity. www.AssignmentPoint.com

5. Why is HRM Important to an Organization? ( Cont..) • The Strategic Nature – HRM must be • a strategic business partner and represent employees. • forward-thinking, support the business strategy, and assist the organization in maintaining competitive advantage. • concerned with the total cost of its function and for determining value added to the organization. www.AssignmentPoint.com

6. Why is HRM Important to an Organization? ( Cont..) • HRM is the part of the organization concerned with the “people” dimension. • HRM is both a staff, or support function that assists line employees, and a function of every manager’s job. www.AssignmentPoint.com

7. Why is HRM Important to an Organization? ( Cont..) • HRM Certification • Colleges and universities offer HR programs. • The Society for Human Resource Management and Human Resource Certification Institute offer professional certification. www.AssignmentPoint.com

8. Why is HRM Important to an Organization? ( Cont..) Four basic functions: • Staffing5 • Training and Development • Motivation • Maintenance www.AssignmentPoint.com

9. How External Influences Affect HRM • Strategic Environment • Governmental Legislation • Labor Unions • Management Thought www.AssignmentPoint.com

10. How External Influences Affect HRM( Cont..) • HRM Strategic Environment includes: • Globalization • Technology • Work force diversity • Changing skill requirements • Continuous improvement • Work process engineering • Decentralized work sites • Teams • Employee involvement • Ethics www.AssignmentPoint.com

11. How External Influences Affect HRM( Cont..) • Governmental Legislation • Laws supporting employer and employee actions • Labor Unions • Act on behalf of their members by negotiating contracts with management • Exist to assist workers • Constrain managers • Affect non unionized workforce www.AssignmentPoint.com

12. How External Influences Affect HRM( Cont..) • Management Thought • Management principles, such as those from scientific management or based on the Hawthorne studies influence the practice of HRM. • More recently, continuous improvement programs have had a significant influence on HRM activities. www.AssignmentPoint.com

13. Staffing Function Activities • Employment planning • ensures that staffing will contribute to the organization’s mission and strategy • Job analysis • determining the specific skills, knowledge and abilities needed to be successful in a particular job • defining the essential functions of the job www.AssignmentPoint.com

14. Staffing Function Activities ( Cont..) • Recruitment • the process of attracting a pool of qualified applicants that is representative of all groups in the labor market • Selection • the process of assessing who will be successful on the job, and • the communication of information to assist job candidates in their decision to accept an offer www.AssignmentPoint.com

15. Goals of the Training and Development Function • Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities • Orientation and socialization help employees to adapt • Four phases of training and development • Employee training • Employee development • Organization development • Career development www.AssignmentPoint.com

16. The Motivation Function • Activities in HRM concerned with helping employees exert at high energy levels. • Implications are: • Individual • Managerial • Organizational • Function of two factors: • Ability • Willingness • Respect www.AssignmentPoint.com

17. The Motivation Function • Managing motivation includes: • Job design • Setting performance standards • Establishing effective compensation and benefits programs • Understanding motivational theories www.AssignmentPoint.com

18. The Motivation Function ( Cont..) • Classic Motivation Theories • Hierarchy of Needs –Maslow • Theory X – Theory Y –McGregor • Motivation – Hygiene – Herzberg • Achievement, Affiliation, and Power Motives – McClelland • Equity Theory – Adams • Expectancy Theory - Vroom www.AssignmentPoint.com

19. How Important is the Maintenance Function • Activities in HRM concerned with maintaining employees’ commitment and loyalty to the organization. • Health • Safety • Communications • Employee assistance programs • Effective communications programs provide for 2-way communication to ensure that employees are well informed and that their voices are heard. www.AssignmentPoint.com

20. Translating HRM Functions into Practice • Four Functions: • Employment • Training and development • Compensation/benefits • Employee relations www.AssignmentPoint.com

21. Translating HRM Functions into Practice ( Cont..) • Employment - Employment specialists: • coordinate the staffing function • advertising vacancies • perform initial screening • interview • make job offers • do paperwork related to hiring • Training and Development – • help employees to maximize their potential • serve as internal change agents to the organization • provide counseling and career development www.AssignmentPoint.com

22. Translating HRM Functions into Practice ( Cont..) • Compensation and Benefits – • establish objective and equitable pay systems • design cost-effective benefits packages that help attract and retain high-quality enployees. • help employees to effectively utilize their benefits, such as by providing information on retirement planning. www.AssignmentPoint.com

23. Translating HRM Functions into Practice ( Cont..) • Employee Relations – involves: • communications • fair application of policies and procedures • data documentation • coordination of activities and services that enhance employee commitment and loyalty • Employee relations should not be confused with labor relations, which refers to HRM in a unionized environment. www.AssignmentPoint.com

24. Translating HRM Functions into Practice ( Cont..) • Purpose and Elements of HRM Communications • Keep employees informed of what is happening and knowledgeable of policies and procedures. • Convey that the organization values employees. • Build trust and openness, and reinforce company goals. www.AssignmentPoint.com

25. Translating HRM Functions into Practice ( Cont..) • Effective Communication programs involve: • Top Management Commitment • Effective Upward Communication • Determining What to Communicate • Allowing for Feedback • Information Sources www.AssignmentPoint.com

26. Does HRM Really Matter? • Research has shown that a fully functioning HR department does make a difference. • Organizations that spend money to have quality HR programs perform better than those who don’t. • Practices that are part of superior HR services include: • rewarding productive work • creating a flexible work-friendly environment • properly recruiting and retaining quality workers • effective communications www.AssignmentPoint.com

27. HRM in an Entrepreneurial Enterprise • General managers may perform HRM functions, HRM activities may be outsourced, or a single generalist may handle all the HRM functions. • Benefits include • freedom from many government regulations • an absence of bureaucracy • an opportunity to share in the success of the business www.AssignmentPoint.com

28. HRM in a Global Village • HRM functions are more complex when employees are located around the world. • Consideration must be given to such things as foreign language training, relocation and orientation processes, etc. • HRM also involves considering the needs of employees’ families when they are sent overseas. www.AssignmentPoint.com

29. HR and Corporate Ethics • HRM must: • Make sure employees know about corporate ethics policies • Train employees and supervisors on how to act ethically www.AssignmentPoint.com

30. HR and Corporate Ethics • The Sarbanes-Oxley Act passed in 2002, establishes procedures for public companies regarding how they handle and report their financial status. • Establishes penalties for noncompliance. • Provides protection for employees who report executive wrongdoing. • Requires that companies have mechanisms in place where complaints can be received and investigated. www.AssignmentPoint.com