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Human Resource Management


Oliver Fenianos AUL

Human Resource Management 12th Edition Global Edition Chapter 1 STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW

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Human Resource Management (HRM)


Utilization of individuals to achieve organizational objectives Concern of all managers at every level

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HRM Functions
ing aff St
Hu m De an ve Re lop so m urc en e t

Safety and Health


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Com

pens

Process of ensuring the organizaBon always has: Proper number of employees Employees with appropriate skills Employees in the right jobs at the right Bme
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Systematic process of determining skills, duties, and knowledge required for performing jobs in organization Impacts virtually every aspect of HRM

d e an s loye on Emp r Relati o Lab


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Human Resource 1 Management

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Staffing

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Job Analysis

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Human Resource Planning


Matching internal and external supply of people with anticipated job openings over specified period of time Sets the stage for recruitment or other HR actions

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Recruitment and Selection


Recruitment: AKracBng individuals to apply for jobs
Must be Bmely Applicants need appropriate qualicaBons Need sucient number of applicants

Selec.on: Choosing individual best suited for a parBcular posiBon and the organizaBon
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Human Resource Development


Major HRM function; includes:
Training Development Career planning Career development Organization development Performance management Performance appraisal
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Training and Development


Training: Providing learners with knowledge and skills needed for their present jobs Development: Oering learning that goes beyond present job Long-term focus
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Career Planning and Development


Planning is an ongoing process.
Individual sets career goals IdenBes means to achieve them

Development is a formal approach used by the organizaBon.


Ensures a pipeline of people with proper qualicaBons and experiences

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Organization Development
Planned and systemaBc aKempt to:
Make the organizaBon more eecBve Create posiBve behavioral environment

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Performance Management
Goal-oriented process to ensure organizaBonal processes are in place to maximize producBvity Applies to employees, teams, and ulBmately, the organizaBon

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Performance Appraisal
Formal system of review and evaluation
Individual Team

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Compensation
All rewards that individuals receive as a result of their employment

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Financial Compensation
Direct: Pay employee receives in form of wages, salaries, bonuses, or commissions Indirect: Benets employee receives Paid vacaBons, sick leave, holidays, medical insurance

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Nonfinancial Compensation
Satisfaction that person receives from:

Job itself Psychological and/or physical environment

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Safety and Health


Safety: Protecting employees from injuries caused by work-related accidents Health: Employees' freedom from illness and their general physical and mental well-being
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Labor Unions and Collective Bargaining


Businesses are required by law to recognize a union and bargain with it in good faith if the firms employees want the union to represent them. Human resource activity with a union is often referred to as industrial relations.

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Internal Employee Relations


HRM activities associated with the movement of employees within the organization
Promotions Demotions Terminations Resignations
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Interrelationships of HRM Functions


All HRM functions are interrelated Each function affects the others

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DYNAMIC HUMAN RESOURCE MANAGEMENT ENVIRONMENT

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Environment of Human Resource Management

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Legal Considerations
Federal, state, and local legislation Court decisions Presidential executive orders

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Labor Market
Potential employees located within certain geographic area Always changing

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Society
Ethics: Deals with what is good and bad, or right and wrong, and with moral duty and obligation Corporate social responsibility: Implied, enforced, or felt obligation of managers to serve or protect interests of groups other than themselves

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Unions
Group of employees who have joined together to collectively bargain with their employer Become a third party when dealing with the company

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Shareholders
Owners of corporation Have invested money in firm May at times challenge programs considered by management to be beneficial to organization

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Competition
In product or service and labor markets Firms must maintain a supply of competent employees Bidding war often results

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Customers
People who actually use firms goods and services. Employment practices should not antagonize members of the market the firm serves. Workforce should be capable of providing topquality goods and services.
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Trends and Innovations: The Many Uses of Social Networking


Virtual community of people using the Internet to communicate Encompasses wikis, blogs, LinkedIn, Facebook, and Twitter Facilitates interactions among people who cannot easily meet in person

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HR Technology
Rapid technological changes provide: Increased sophisBcaBon Ability to design more useful human resource informaBon systems (HRIS)

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HRIS
An organized approach for obtaining information on which to base HR decisions An umbrella for merging the various subsystems Mainstay HR responsibilities need an HRIS

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Economy
When economy is booming, it is ocen more dicult to recruit qualied workers. In economic downturn, more applicants are typically available.

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Unanticipated Events
Unforeseen occurrences in external environment Require a tremendous amount of adjustment with regard to HRM

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HRS CHANGING STRATEGIC ROLE

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HRs Changing Role: Questions


Can some HR tasks be performed more eciently by line managers or outside vendors? Can some HR tasks be centralized or eliminated? Can technology perform tasks that were previously done by HR personnel?
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Who Performs Human Resource Management Tasks?


Human resource managers HR outsourcing HR shared service centers Professional employer organization (employee leasing) Line managers
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Human Resource Manager


Historically, the HR manager was responsible for each of the ve HR funcBons. Acts in advisory or sta capacity. Works with other managers to help them deal with human resource maKers. Today, HR departments conBnue to get smaller.
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HR Outsourcing
Transfers responsibility to an external provider
Discrete services Multi-process services Business process outsourcing (BPO)

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Discrete Services
Single set of high-volume repetitive functions is outsourced to a third party Typically transactional HR activities Example: 401(k) administration

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Multi-Process Services
Complete outsourcing of one or more human resource processes. Example: Procter & Gamble outsourced training operations.

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Business Process Outsourcing (BPO)


Majority of HR services are transferred to third party. Example: Whirlpool Corporation signed 10-year deal to outsource HR business. Kraft Foods Inc. and IBM signed a multiyear BPO agreement.

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HR Shared Service Centers (SSCs)


Takes routine, transaction-based activities that are dispersed and consolidates them in one location
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Professional Employer Organization (Employee Leasing)


Company that leases employees to other businesses Advantages:
Economies of scale Greater job mobility for workers Job security through leasing company PEO can handle compliance requirements of programs
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Line Managers Performing HR Tasks

Involved with human resources by nature of their jobs Now performing some duties typically done by HR

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EVOLUTION OF HUMAN RESOURCE MANAGEMENT

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Human Resource Executives, Generalists, and Specialists

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Traditional Human Resource Function in Large Firm


Included separate sections. Sections are placed under an HR manager. Each HR function may have a supervisor and staff. HR manager works closely with top management in formulating policy.
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The Evolving HR Organization


HR outsourcing HR shared service centers Professional employer organizaBon Line manager HR becoming more strategic
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A Possible Evolving HR Organization Example


President and CEO
Vice President, OperaBons Vice President, Strategic Human Resources Vice President, Finance Vice President, MarkeBng Director of Safety and Health

Training & Development (Outsourced)


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CompensaBon (Shared Service Centers)


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Stang (Line Managers, use of Applicant Tracking Systems)


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Managing Human Capital in a Borderless World


Throughout this text, cultural differences among countries will be identified as a major factor influencing global business. Borderless world adds dramatically to the difficulty of managing human capital. A countrys culture is the set of values, symbols, beliefs, languages, and norms that guide human behavior within the country.
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