Fundamentals of HRM

1
Fundamentals of Human Resource Management Ninth
Edition DeCenzo and Robbins
Chapter 2 Fundamentals of HRM
2
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.

3
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.

4
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
  managers job.

5
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.

6
Why is HRM Important to an Organization?

• Four basic functions
• Staffing
• Training and Development
• Motivation
• Maintenance

7
How External Influences Affect HRM

• Strategic Environment
• Governmental Legislation
• Labor Unions
• Management Thought

8
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

9
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

10
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.

11
Staffing Function Activities

• Employment planning
• ensures that staffing will contribute to the
  organizations 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

12
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

13
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

14
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

15
The Motivation Function

• Managing motivation includes
• Job design
• Setting performance standards
• Establishing effective compensation and benefits
  programs
• Understanding motivational theories

16
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

17
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.

18
Translating HRM Functions into Practice

• Four Functions
• Employment
• Training and development
• Compensation/benefits
• Employee relations

19
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

20
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 enployees.
• help employees to effectively utilize their
  benefits, such as by providing information on
  retirement planning.

21
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.

22
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.

23
Translating HRM Functions into Practice

• Effective Communication programs involve
• Top Management Commitment
• Effective Upward Communication
• Determining What to Communicate
• Allowing for Feedback
• Information Sources

24
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 dont.
• 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

25
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

26
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.

27
HR and Corporate Ethics

• HRM must
• Make sure employees know about corporate ethics
  policies
• Train employees and supervisors on how to act
  ethically

28
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.