Chapter 2: Fundamentals of HRM

1. Chapter 2: Fundamentals of HRM

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.

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

4. Why is HRM Important to an Organization? • The role of HR 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.

5. Why is HRM Important to an Organization? • 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.

6. Why is HRM Important to an Organization? • 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.

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

8. Why is HRM Important (The 4 Functions)

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

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

11. How External Influences Affect HRM • 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

12. How External Influences Affect HRM • 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.

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

14. Staffing Function Activities • 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

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

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

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

19. The Motivation Function • 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

20. 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.

22. Translating HRM Functions into Practice • Four Functions: • Employment • Training and development • Compensation/benefits • Employee relations

23. Translating HRM Functions into Practice • Four Functions

24. Translating HRM Functions into Practice • 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

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

26. Translating HRM Functions into Practice • 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.

27. Translating HRM Functions into Practice • 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.

28. Translating HRM Functions into Practice • Effective Communication programs involve: • Top Management Commitment • Effective Upward Communication • Determining What to Communicate • Allowing for Feedback • Information Sources

29. 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

30. 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

31. 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.

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

33. 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.