2. What is Human Resource
Management?
• Human resource management refers to the
practices and policies you need to carry out the
personnel aspects of you management job.
• The practices and policies include, for instance:
conducting job analysis, planning labor needs
and recruiting job candidates, selecting job
candidates, orienting and training new
employees, managing wages and salaries,
providing incentives and benefits, appraising
performance, communicating, training and
developing, building employee commitment.
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3. What a Manager Should Know
about?
• Equal opportunity, ethics, and affirmative
action.
• Employee health and safety and ethical
treatment.
• Grievances and labor relations.
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4. Why is HR Management is
important to All Managers?
HR Management is important to all managers
because no manager wants to:
. Hire the wrong person for the job
. Experience high turnover
. Find employees not doing their best
. Have his/her company taken to court
. Have his/her company cited under federal
occupational safety laws for unsafe practices
. Allow a lack of training to undermine his/her
department’s effectiveness
. Commit any unfair labor practices
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5. Line and Staff Aspects of HRM
• All managers are, in a sense, HR
managers, because they all get involved in
activities such as recruiting, interviewing,
selecting, and training.
• However, most firms also have a separate
human resource department with its own
human resource manager.
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6. Line vs. Staff Authority
• Line managers are authorized to give orders and
are in charge of accomplishing the
organization’s basic goals.
• Staff managers, on the other hand , assist and
advise line managers in accomplishing these
goals.
• HR managers are generally staff managers.
They have the authority and responsibility for
advising line managers in areas such as
recruiting, hiring, and compensation.
• HR and line managers generally share
responsibility for most HR activities.
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7. Line Managers’ HRM
Responsibilities
• As one expert says, “The direct handling of
people is and always has been, an integral part
of every line manager’s responsibility, from
president down to lowest-level supervisor.”
• In small organizations, line managers carry out
all the personnel duties unassisted. But as the
organization grows, line managers need the
assistance, specialized knowledge, and advice
of a separate human resource staff.
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9. The Changing Environment and
Duties of HR Management
• The metamorphosis of personnel into human
resource management.
• Highly trained and committed employees, not
machines, are often firm’s main real sustainable
competitive advantage.
• Successful organisazations do use many HR
practices like leadership training, technical
training, mentoring programs, and career
workshops to help employees become more
productive.
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10. A Changing Environment
• Globalization: more globalization means
more competition, and more competition
means more pressure to be “world
class”—to lower costs, to make
employees more productive, to do things
better and less expensively.
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11. • Technological Advances: many of these
“world-class” improvements involve
technology.
• Carrier Corporation—the time required to
get an order entered and confirmed has
gone from six days to six minutes.
• HR faces challenge to quickly applying
technology to the task of improving its own
operations.
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12. • The Nature of Work: Technology is also
changing the nature of work.
• Even factory works are more technologically
demanding.
• Knowledge-intensive high tech manufacturing in
such industries as aerospace, computers,
telecommunications, home electronics,
pharmaceuticals, and medical instruments are
replacing factory jobs in steel, auto, rubber, and
textiles.
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13. • As Bill Gates puts it: “In the new
organization the worker is no longer a cog
in a machine but is an intelligent part of
the overall process.
• Welders at some steel plant now have to
know algebra and geometry to figure weld
angles from computer-generated designs.
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14. • Technology is not the only trend driving this
change from “brawn to brains”
• Today over two-thirds of U.S. workforce is
employed in producing and delivering services,
not products.
• This all means a growing emphasis on
“knowledge workers” and human capital.
• Human capital refers to the knowledge,
education, training, skills, and expertise of a
firm’s workers.
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15. • Today, “the center of gravity in employment is
moving fast from manual and clerical workers to
knowledge workers, who resist the command
and control model that business took from the
military 100 years age.”
• In this environment, managers need new world-
class HR management systems and skills, to
select, train, and motivate these employees and
to get them to work more like committed
partners.
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16. • The Workforce: At the same time, workforce
demographics are changing.
• More notably, workforce is becoming more
diverse.
• Creating unanimity and “human capital” from a
diverse workforce is not easy.
• Most managers say they encourage diversity,
but most management systems will not allow
diversity, only similarity.
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17. • Establishing HR management programs
that turn a diverse workforce into highly
skilled knowledge workers can thus be a
challenge.
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18. Exercise
• Working individually or in groups, develop
several lists showing how trends like work
force diversity, technological trends,
globalization, and changes in the nature of
work have affected the college or university
you are now attending. Present in class. The
list might include items such as the growth of
adult (non-traditional aged) students, the use of
computer and communications technology,
diversity issues, and others.
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19. The Changing Role of HRM
• Human resource manager’s job has grown
broader and more strategic.
• Today, globalization, technological, and
nature of work trends mean that human
resource managers have taken on several
new responsibilities.
• The first is that employees expect their
human resource functions to be more
strategic.
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20. Strategic Human Resource
Management
• Strategic human resource management is
part of strategic planning.
• A strategic plan is the company’s plan for
how it will match its internal strengths and
weaknesses with external opportunities
and threats in order to maintain a
competitive advantage.
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21. • Strategic human resource management means
formulating and executing human resource
policies and practices that produce the
employee competencies and behaviors the
company needs to achieve its strategic aims.
• Top management wants to see, precisely, how
the human resource manager’s plans will make
the company more viable, for instance by
boosting factory skill levels, and, thereby,
improving performance.
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22. Creating High-Performance Work
Systems
• The emphasis on strategic human
resource management is one change in
what human resource managers do.
• A focus on productivity and performance is
another.
• Most human resource professionals
recognize the need to focus on
performance.
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23. High-Performance Work System
• A growing body of evidence shows that
the best-performing companies in a wide
range of industries perform of well in part
because of their high-performance work
systems.
• A high-performance work system is an
integrated set of human resource
management policies and practices that
together produce superior performance.
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24. A high-performance work system
includes…..
• Employment security
• Selective hiring
• Extensive training
• Self-managed teams and decentralized decision making
• Reduced status distinctions between managers and
workers
• Information sharing
• Contingent rewards
• Transformational leadership
• Measurement of management practices
• Emphasis on high-quality work
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25. Measuring the Human Resource
Management Team’s Performance
• In today’s performance-based environment
employers naturally expect their human resource
management teams to provide measurable
evidence of their efficiency and effectiveness,
and for that of their proposed programs.
• The fundamental requirement for such
measurability is that the human resource
manager needs numbers.
• Specifically, he or she needs quantitative
performance measures (metrics) to assess their
operations.
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26. Managing with the HR Scorecard
Process
• Managers can link such metrics or
measurements together to provide a more
meaningful picture.
• For example, (for Signicast): testing 100%
applicants using new selection test>>>improved
average employee performance on automated
machines>>>higher plant
productivity>>>Signicast achieving its strategic
goals.
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27. • For most human resource management
activities, one can similarly map out the
cause –and-effect links, from the human
resource activity, to the employee
behavior, to the company performance.
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