Chapter 1 Power Point Slides Ch01

Human Resource Management: An Asian Perspective
(Second Edition) Chapter 1
Introduction to Human Resource Management

Gary Dessler and Chwee Huat Tan
2009 Pearson Education South Asia Pte Ltd. All rights reserved.
After studying this chapter, you should be able to:
1. Explain what HRM is and how it relates to

the management process.
2. Discuss how managers can use HR

concepts.
3. Compare the HR responsibilities of line

and staff managers.
4. Explain the changing role of HR

managers.
2009 Pearson Education South Asia. All rights reserved. 12
After studying this chapter, you should be able to:

5. Discuss the changing environment of HRM. 6. Discuss HRM as a profession. 7. Explain how HR practices are influenced by
cultural and religious values.
8. Know the plan of this book.
2009 Pearson Education South Asia. All rights reserved.
13
The Manager s Human Resource Management Jobs

Management process
The five basic functions of planning, organizing, staffing, leading, and controlling.
14
The Manager s Human Resource Management Jobs

Human resource management (HRM)
The policies and practices involved in carrying out the people or human resource aspects of a management position, including recruiting, training, appraising and rewarding.
15
HR Aspects Of A Manager s Job

Conducting job analyses (determining the nature of each employees job) Planning manpower needs and recruiting job candidates Selecting job candidates Orienting and training new employees
16

Managing wages and salaries (compensating employees) Providing incentives and benefits Appraising performance Communicating (interviewing, counseling, disciplining) Building employee commitment
17

Understanding employment laws Knowing employee health and safety issues Handle grievances and employment relations
18
Basic HR Concepts
Getting results
The bottom line of managing
HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.
19
Line and Staff Aspects of HRM

Authority
The right to make decisions, direct others work, and give orders.
Staff authority (Advisory)

The authority gives right to the HR manager to advise other managers or employees.
Line authority (Superior-Subordinate)

The authority of managers to direct people in his or her own department.
110
Line and Staff Aspects of HRM

Line manager (Line Authority)
A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization s tasks.
Staff manager (Staff Authority)

A manager who assists and advises line managers.
111
Line Managers HRM Responsibilities

1. Place the right person on the right job 2. Orientate new employees 3. Train employees for jobs new to them 4. Improve the job performance of each person 5. Gain creative cooperation and developing smooth working relationships
112
Line Managers HRM Responsibilities

6. Interpret the companys policies and procedures 7. Control costs 8. Develop the abilities of each person 9. Maintain morale 10. Protect employees health and physical condition
113
Functions of the HR Manager

Carries out 3 distinct functions:1. Line function 2. Coordination function 3. Staff function
114

A line function
The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria).
115

A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional control.
116

Staff (assist and advise) functions
Assisting and advising line managers is the heart of the HR manager s job.
117
Size of HR Department
Depends on company size
Small Company:
Only a few personnel Full range of HR specialist for each different function
Large Company:
118
Example of HR department in a small company:
119
Example of HR department in a large company:
120
Duties of HR Specialists
Training Specialist
Plan, organize and direct training Advise managers on training
Job Analyst
Collect information about jobs Prepare job description
121
Recruiter
Collect information about jobs Interview and recommend suitable candidates
EEO (Equal Employment Opportunity) Coordinator

Investigate EEO grievances Examine HR practices for potential violations
Compensation Manager
Develop compensation plans Handle employee benefits program
Employment relations specialist

Advise managers on ER issues Negotiate with unions
123
The Changing Environment Of HR Management

HR managers must be able to respond to changes that are happening every day Major changes or trends as follows:
Globalization Technological advances Changes in nature of work Changes in workforce demographics
124

Globalization
Tendency of companies to extend sales, ownership, or production to other countries More competition more pressure to be world class Lower costs and to increase productivity of employees E.g. Toyota produces cars in China, Thailand and many other countries.
125

Technological Advances
Use of internet and information communication technology (ICT) to increase competitiveness in business Enabled businesses to outsource their non-core activities to other countries where costs are lower Causes changes in nature of work
126

Changes in nature of work
Caused by technological advances as well From manufacturing jobs to service jobs Usage of non-traditional workers staff holding multiple jobs, or part-time staff
127

Changes in workforce demographics
Diversified workforce staff employed are of different race, religion, nationality, gender, age and culture Challenge for HR managers E.g. Workers from Bangladesh, China, India, Indonesia, Pakistan and Thailand in Singapore s construction sector
128
The Changing Role Of HR Management

Changes in environment HR managers to take on new responsibilities HR functions more strategic
129

Strategic HRM
Formulating HR policies and introducing practices that produce staff competencies and behaviors that the company needs to achieve its strategic goals.
130

Strategic HRM
HR managers today are more involved in partnering with their top managers in both designing and implementing their companies strategies Top management wants to see, precisely, how the HR manager s plans will make the company more valuable.
131

High Performance Work Systems (HPWS)
Integrated set of HRM policies and practices that together produce superior staff performance Need to focus on performance No fixed rule of items that comprises HPWS but should include:
Employment security
132

No fixed rule of items that comprises HPWS but should include (cont):
Selective hiring Extensive training Self managed teams and decentralized decision making
133

No fixed rule of items that comprises HPWS but should include (cont):
Reduced status distinctions among managers and workers Information sharing among managers Pay-for-performance rewards Emphasis on high quality work
134

Benefits of HPWS
Generate more job applicants Screen candidates more effectively Provide more and better training Link pay more explicitly to performance Provide a safer work environment
135

Benefits of HPWS (cont)
Produce more qualified applicants per position More employees are hired based on validated selection tests Provide more hours of training for new employees Higher percentages of employees receiving regular performance appraisals.
136

Measuring HRM Teams Performance
Employees expect HR teams to provide measurable proof of the effectiveness of their programs Require quantitative measures Metrics and HR Scorecard are used
137

Metrics
A set of quantitative performance measures that HR managers use to assess their operations E.g. of HR Metrics
Absence Rate
[(Number of days absent in month) (Average number of employees during mo.) (number of workdays)] 100
138

Metrics
E.g. of HR Metrics (cont)
Cost per Hire

(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) Number of Hires
139

Metrics
E.g. of HR Metrics (cont)
Health Care Costs per Employee
Total cost of health care Total Employees

HR Expense Factor
HR expense Total operating expense

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13 20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
140

HR Scorecard
Measures the HR functions effectiveness and efficiency in producing employee behaviors needed to achieve the companys strategic goals Concise and simple measurement system
141

HR Scorecard
Use to measure: HR activities (testing, training, compensation and safety) Employee behaviors resulting from such activities Organizational outcomes of those employee behaviors (higher performance, and company profit)
142
The New HR Manager

New Proficiencies
HR proficiency Business proficiency Leadership proficiency Learning proficiency
143
The New HR Manager
144
HRM and Professionalism

HR Certification
HR is becoming more professionalized. Professional institutes
Certification Upgrading skills and expertise Exchange views Contribute to community
145
HRM and Professionalism

Professional Institutes
Training and education Up-to-date knowledge and information Maintain links with similar organizations in other countries Active in regional associations International conferences Authority to specify qualification of members
146
HR and Cultural Values

Confucianism
Harmonious relationship Mutual obligations Hierarchy Social order
Sun Tzus Art of War

Explains theories of organization, planning, leadership and strategies Importance of training, discipline and loyalty

Han Fei Tzu: Reward and Punishment
A leader should:
Find talented subordinates Set up a system of rules Explain these rules to subordinates Appropriate time and place to deal with problems Strictly administer reward and punishment
148

Han Fei Tzu: Reward and Punishment
Role of a leader (summarized)
149

Other approaches
Thailand: Buddhist approach Malaysian cultural values National Values:
Indonesia: Pancasila Malaysia: Rukunegara Singapore: National Shared Values
150
151
The Plan of This Book: Basic Themes

HR management is the responsibility of every managernot just those in the HR department. HR managers must be ready to defend their plans and contributions in measurable terms. An HR departments performance is measured relative to achieving the companys strategic aims. HR managers increasingly rely on IT to help support the companys strategic aims. Virtually every HR-related decision managers make has legal implications. Globalization and diversity are important HR issues today.
Strategy and the Basic HR Process
153

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Human Resource Management: An Asian Perspective

(Second Edition) Chapter 1

Introduction to Human Resource Management

After studying this chapter, you should be able to:

1. Explain what HRM is and how it relates to

2. Discuss how managers can use HR

3. Compare the HR responsibilities of line

4. Explain the changing role of HR

After studying this chapter, you should be able to:

8. Know the plan of this book.

2009 Pearson Education South Asia. All rights reserved.

The Manager s Human Resource Management Jobs

2009 Pearson Education South Asia. All rights reserved.

The Manager s Human Resource Management Jobs

2009 Pearson Education South Asia. All rights reserved.

HR Aspects Of A Manager s Job

2009 Pearson Education South Asia. All rights reserved.

HR Aspects Of A Manager s Job

2009 Pearson Education South Asia. All rights reserved.

HR Aspects Of A Manager s Job

2009 Pearson Education South Asia. All rights reserved.

2009 Pearson Education South Asia. All rights reserved.

Line and Staff Aspects of HRM

 Staff authority (Advisory)

 Line authority (Superior-Subordinate)

2009 Pearson Education South Asia. All rights reserved.

Line and Staff Aspects of HRM

 Staff manager (Staff Authority)

2009 Pearson Education South Asia. All rights reserved.

Line Managers HRM Responsibilities

2009 Pearson Education South Asia. All rights reserved.

Line Managers HRM Responsibilities

2009 Pearson Education South Asia. All rights reserved.

Functions of the HR Manager

2009 Pearson Education South Asia. All rights reserved.

Functions of the HR Manager

2009 Pearson Education South Asia. All rights reserved.

Functions of the HR Manager

2009 Pearson Education South Asia. All rights reserved.

Functions of the HR Manager

2009 Pearson Education South Asia. All rights reserved.

2009 Pearson Education South Asia. All rights reserved.

2009 Pearson Education South Asia. All rights reserved.

2009 Pearson Education South Asia. All rights reserved.

2009 Pearson Education South Asia. All rights reserved.

 EEO (Equal Employment Opportunity) Coordinator

 Employment relations specialist

2009 Pearson Education South Asia. All rights reserved.

The Changing Environment Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Environment Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Environment Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Environment Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Environment Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Role Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Role Of HR Management

2009 Pearson Education South Asia. All rights reserved.

The Changing Role Of HR Management

Staff authority (Advisory)

Line authority (Superior-Subordinate)

Staff manager (Staff Authority)

EEO (Equal Employment Opportunity) Coordinator

Employment relations specialist

Sun Tzus Art of War