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What is Human Resource Management?
Organization-people with formally assigned roles who work together to achieve the
organization’s goals
Manager-the person responsible for accomplishing the organization’s goals and who
does so by managing (planning, organizing, staffing, leading and controlling) the efforts
of the organization’s people
Management Process:
1. Planning-establishing goals and standards, developing rules and procedures,
developing plans and forecasting
2. Organizing-giving each subordinate a specific task, establishing departments,
delegating authority to subordinates, establishing channels of authority and
communication, coordinating subordinate’s work
3. Staffing-determining what type of people you should hire, recruiting prospective
employees, selecting employees, training and developing employees, setting
performance standards, evaluating performance, counselling employees, compensating
4. Leading-getting others to get the job done, ,maintaining morale, motivating
5. Controlling-setting standards such as sales quotas, quality standards, production
levels checking to see how actual performance compares with these standards, taking
corrective action as needed
Why is Human Resource Management Important to All Managers?
1. Avoid Personnel Mistakes
*Hire the wrong person for the job
* Experience high turnover
* Have your people not doing their best
* Waste time with useless interviews
* Have your company taken to court because of your discriminatory actions
* Have your company cited under federal occupational safety laws for unsafe
* Have some employees think their salaries are unfair relative to others in the
* Allow a lack of training to undermine your department s effectiveness
* Commit any unfair labor practices
2. Improve Profits and Performance
3. You Too May Spend Some Time As An HR Manager
4. HR For Entrepreneurs
Human Resource Management-the process of acquiring, training, appraising and
compensating employees and of attending to their labor relations, health and safety and
fairness concerns
Line and Staff Aspects of Human Resource Management
Authority-the right to make decisions, direct others’ work and give orders
Line authority-The authority exerted by an HR manager by directing the activities of the
people in his or her own department and in service areas (like the plant cafeteria)
-traditionally gives managers the right to issue others to other managers or employees
-creates a superior (order giver)-subordinate (order receiver) relationship
Staff authority-Staff authority gives the manager the right (authority) to advise other
managers or employees
-creates advisory relationship
Line Manager-A manager who is authorized to direct the work of subordinates and is
responsible for accomplishing the organization s tasks
Staff Manager-A manager who assists and advises line managers
*Human resource managers are usually staff managers
Line Managers’ Human Resource Duties
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
Human Resource Manager’s Duties
1. Line Function
2. Coordinative Function/Functional Control/ Functional Authority
- The authority exerted by an HR manager as coordinator of personnel
3. Staff (assist and advise) Function
-advises, innovator, employee advocacy, implied authority
Examples of Human Resource Management Specialties:
1. Recruiters-Search for qualified job applicants.
2. Equal employment opportunity (EEO) coordinators- Investigate and resolve EEO
grievances; examine organizational practices for potential violations; and compile and
submit EEO reports.
3. Job analysts-Collect and examine information about jobs to prepare job descriptions.
4. Compensation managers- Develop compensation plans and handle the employee
benefits program.
5. Training specialists- Plan, organize, and direct training activities.
6. Labor relations specialists- Advise management on all aspects of union management
New Approaches to Organizing HR
1. The transactional HR group uses centralized call centers and outsourcing
arrangements (such as with benefits advisors) to provide support for day-to-day
transactional activities (such as changing benefits plans and employee assistance and
counseling). In one survey, about 75% of respondents said their firms were providing
transactional, administrative human resource services through such arrangements.10
2. The corporate HR group focuses on assisting top management in top level big picture
issues such as developing and explaining the personnel aspects of the company s long-
term strategic plan.
3. The embedded HR unit assigns HR generalists (also known as relationship
managers or HR business partners) directly to departments like sales and production.
They provide the localized human resource management assistance the departments
4. The centers of expertise are like specialized HR consulting firms within the company
for instance, they provide specialized assistance in areas such as organizational
*getting results through people
The Trends Shaping Human Resource Management
1. Globalization and Competition Trends
Globalization-The tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad
Reasons for globalization
1. sales expansion
2. new foreign products
3. cut labor costs
4. forming partnerships
5. job offshoring
2. Indebtedness (“Leverage”) and Deregulation
3. Technological trends
4. Trends in the Nature of Work
1. High-Tech Jobs
2. Service Jobs
3. Knowledge Work and Human Capital
*the best jobs that remain require more education and more skills
-just in time manufacturing, automation
human capital-The knowledge, education, training, skills, and expertise of a
firms workers.
5. Workforce and Demographic Trends
1. Demographic Trends (e.g. non-Hispanic)
2. Generation Y/Millenials
- been pampered, nurtured, and programmed with a slew of activities
since they were toddlers, meaning they are both high-performance and
Dual-centric/family centric
1. They want fair and direct supervisors who are highly engaged in
their professional development.
2. They seek out creative challenges and view colleagues as vast
resources from whom to gain knowledge.
3. They want to make an important impact on Day 1.
4. They want small goals with tight deadlines so they can build up
ownership of tasks.
5. They aim to work faster and better than other workers
3. Retirees-“the aging workforce”
*there aren’t enough younger workers to replace the projected number of
baby boom era older-worker retirees
4. Nontraditional Workers
-who hold multiple jobs, contingent, part-time workers, working in alternative
work arrangements
5. Workers from abroad

6. Economic Challenges and Trends

Important Trends in Human Resource Management

1. The New Human Resource Managers
a. They Focus More on Big Picture Issues
-internal consultants, strategies
*HR managers are shifting their focus from providing transactional
services to providing top management with decisions that “inform and
b. They Find New Ways to Provide Transactional Services
-outsource, technology, centralized call centers
c. They Have New Proficiencies
-business knowledge and proficiencies, needs to be familiar with strategic
planning, marketing, production and finance
d. They Take an Integrated, “Talent Management” Approach to Managing
Human Resources
Talent Management- the goal-oriented and integrated process of
planning, recruiting, developing, managing, and compensating
- It involves instituting a coordinated process for identifying, recruiting,
hiring, and developing high-potential employees.
e. They Manage Employee Engagement
f. They Manage Ethics
g. They Measure HR Performance and Results
h. They Add Value
-Adding value means helping the firm and its employees gain in a
measurable way from the human resource manager s actions. (ex. high
performance work system)
i. They Have New Competencies
· Talent Managers/Organization Designers, with a mastery of
traditional human resource management tasks such as acquiring,
training, and compensating employees.
· Culture and Change Stewards, able to create human resource
practices that support the firms cultural values.
· Strategy Architects, with the skills to help establish the company
s overall strategic plan, and to put in place the human resource
practices required to support accomplishing that plan.
· Operational Executors, able to anticipate, draft, and implement
the human resource practices (for instance in testing and
appraising) the company needs to implement its strategy.
· Business Allies, competent to apply business knowledge (for
instance in finance, sales, and production) that enable them to
help functional and general managers to achieve their
departmental goals.
· Credible Activists, with the leadership and other competencies
that make them both credible (respected, admired, listened to)
and active (offers a point of view,takes a position, challenges
2. Strategic Human Resource Management
Strategic Human Resource Management-formulating and executing human resource
policies and practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims
3. High-Performance Work Systems
-a set of HRM policies and practices that together produce superior employer
-productivity and performance improvement

4. Evidence-Based Human Resource Management

-the use of data, facts, analytics, scientific rigor, critical evaluation and critically
evaluated research/case studies to support human resource management proposals,
decisions, practices and conclusions
-the deliberate use of the best-available evidence in making decisions about the human
resource management practices you are focusing on
-actual measurements, existing data, research studiess
5. Managing Ethics
Ethics-the standards someone uses to decide what his or her conduct should be
6. HR Certification
*Human Resource management is the responsibility of every manager