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HUMAN RESOURCE MANAGEMENT

12th Edition

Chapter 1
Introduction
to Human
Resource
Management
GARY DESSLER

Johnasse Sebastian C.
Naval, RN

The purpose of this chapter is to explain what human resource


management is, and why its important to all managers.
Well see that HRM activities such as hiring, training, appraising,
compensating, and developing employees are part of every
managers job. And well see that HRM is also a separate function,
usually with its own human resource or HR manager.
The main topics well cover include the meaning of human resource
management; why HRM is important to all managers; global and
competitive trends; HRM trends; and the plan of this book. The
framework (which introduces each chapter) makes this point: That
to formulate and apply HR practices like testing and training you
should understand the strategic and legal context in which youre
managing.

Copyright 2011 Pearson Education

13

Human Resource Management


What
at
Work
Is Human Resource Management
(HRM)?

The effective use of people to achieve both

organizational and individual goals


The process of acquiring, training, appraising,
and compensating employees, and of
attending to their labor relations, health and
safety, and fairness concerns.

Why care about HRM?


Impact on you
Impact on you

as employees
as managers
Potential future roles as HR professionals
Impact of HRM on organizations
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Human Resource Management


at
Work
Organization
People with formally assigned roles who

work together to achieve the organizations


goals.

Manager
The person responsible for accomplishing

the organizations goals, and who does so


by managing the efforts of the
organizations people.

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The Management Process


Planning

Controlling

Leading

Organizing

Staffing

16

Human Resource Management


Processes
Recruitme
nt

Training

Fairness

Health and
Safety
Labor
Relations

Human
Resource
Managem
ent (HRM)

Appraisal

Compensat
ion
17

Personnel Aspects of a
Conducting job Job
analyses
Managers
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 managers
Building employee commitment
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Why HRM Important to all


Hire the wrong person for the job.
Managers
Experience high turnover.
Have your people not doing their best.
Waste time with useless interviews.

Have your firm in court because of discriminatory


actions.
Have your firm cited by Occupational Safety Laws for
unsafe practices and accidents.
Have some employees think their salaries are unfair
and inequitable relative to others in the organization.
Allow a lack of training to undermine your
departments effectiveness.
Commit any unfair labor practices.
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Basic HR Concepts
The bottom line of managing:

Getting results
HR creates value by engaging in activities
that produce the employee behaviors that
the organization needs to achieve its
strategic goals.
Looking ahead: Using evidence-based HRM
to measure the value of HR activities in
achieving those goals.

*Hiring the right people for the right jobs and motivating,
appraising, and developing them will likely get the
results you are seeking. Remember that success

comes through people

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Line and Staff Aspects of HRM


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.

Staff Authority
Staff Authority gives the manager right (authority)

to advise other managers or employees.

Functional Authority
The authority exerted by and HR Manager as

coordinator of personnel activities.

111
111

Line and Staff Aspects of HRM


Line Manager
Is authorized (has line authority) to

direct the work of subordinates and is


responsible for accomplishing the
organizations tasks.

Staff Manager
Assists and advises line managers.
Has functional authority to

coordinate personnel activities


and enforce organization policies.

112

***Line managers manage operational functions that are crucial


for the companys survival. Staff managers run departments that are
advisory or supportive, like purchasing, HRM, and quality control.
Human resource managers are usually staff managers. They
assist and advise line managers with recruiting, hiring, and
compensation. However, line managers still have human resource
duties. In an organization, there are three types of authority.
Line Authority is given to line managers for achieving the
objectives of the organization.
Staff Authority is given to staff managers for giving advice and
service to the line managers.
Functional Authority is given to a line or staff manager to do a
specific job. When the job is completed, the authority is taken back.

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113

Functional Authority is different from Line Authority because line


authority is given only for one particular department. For e.g. A
Production manager is given line authority only for the production
department. However, Functional Authority may be given for a
particular department or for the full organization. For e.g. In the first
example, the Marketing manager is given functional authority to
conduct a new year party for the full organization. So, Functional
Authority is not restricted to a particular department.
Functional authority is also different from staff authority. This is
because the manager that has staff authority cannot do anything.
He can only give advice and service. However, the manager that
has functional authority can do something. Here, functional authority
is similar to line authority. In fact, it is a type of limited line authority.

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114

Most organization use functional authority only when


necessary. This is because too much use of functional
authority will have a bad effect on the Line authority.
Functional authority is used only to perform specialized
functions, which cannot be performed by line managers. In
these cases, staff managers or outside experts are given
functional authority to perform these functions.
Every manager must know what type of authority he has. If
the manager has a line authority, then he has to decide
and execute. If he has a staff authority, then he has to only
advice and help others. If he has a functional authority,
then he has to perform only the specific function which is
assigned to him.
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115

For e.g. The normal job of the Marketing manager is to


sell the products of the company. The Managing Director
(MD) may give him authority to conduct a New Year Party
for the full company. This authority is called Functional
Authority. So, functional authority is given to a manager to
do a specific job. This job is not his normal job. When he
is doing this new job, he may or may not do his normal
job. The manager already has a line or staff authority to
do his normal job. Thus, Functional authority is an
additional authority given to him to do the new job. When
this new job is completed, the functional authority is taken
away, and he has to go back to his normal job.

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116

Features of Functional Authority


The characteristics or features of functional authority
are: Functional authority is given to a manager to perform a
specific function.
The manager may be a line manager or a staff manager.
But mostly functional authority is given to a staff manager.
It is not limited to a particular department. It may even
cover the full organization.
It is an additional authority. It is given to a manager in
addition to his normal (line or staff) authority.
It is removed when the work is completed.
Copyright 2011 Pearson Education

117

Line Managers HRM


1. Placing the right person on the right job
Responsibilities

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 creative cooperation and developing
smooth working relationships
6. Interpreting the firms 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
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Human Resource Managers


Duties
Functions of
HR
Managers
Line Function
Line Authority

Coordinative
Function
Functional
Authority

Staff
Functions

Staff Authority
Assist &
Advise

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Functions of the HR Manager


A Line Function

The HR manager directs the activities of the people in his or her


own department and in related service areas. While they
generally can not wield line authority outside, they hold Implied
authority (the authority exerted by an HR manager by virtue of
others knowledge that he or she has access to top
management).

A Coordinative Function

HR managers also coordinate personnel activities, a duty often


referred to as functional control.

Staff (assist and advise) Functions

Assisting and advising line managers is the heart of the HR

managers job. It plays an employee advocacy role by:

120

Clearly defining how management should be treating employees.

Making sure employees have the mechanisms required to contest unfair


practices.

Represent the interests of employees within the framework of its


primary obligation to senior management.

FIGURE 12 - Human Resources Organization Chart for a Small Company

121

Human Resource Specialties


Recruiter
Labor
relations
specialist
Training
specialist

Human
Resource
Specialtie
s

Compensat
ion
manager

EEO
coordinator

Job analyst

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*****

Recruiters search for qualified job applicants.

Equal employment opportunity (EEO) coordinators
investigate and resolve EEO grievances; examine
organizational practices for potential violations; and
compile and submit EEO reports.

Job analysts collect and examine information about
jobs to prepare job descriptions.

Compensation managers develop compensation
plans and handle the employee benefits program.

Training specialists plan, organize, and direct
training activities.

Labor relations specialists advise management on
all aspects of unionmanagement relations.
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123

New Approaches to Organizing


HR
New HR Services
Groups

Transaction
al HR
group

Corporate
HR group

Embedded
HR unit

Centers of
Expertise

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New Approaches to Organizing


HR
Transactional HR
Transactional HR

Departmental activities such as payroll,


benefits administration and records keeping
are easily outsourced or digitized (or should
be) with significant cost savings.

Corporate HR

HR may be at plant level or may be


restricted/ responsible at particular location
only. Corporate HR is the person who is
working at corporate level & handling
centralized HR activity and assist top
management in developing long-term
strategic plans.
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New Approaches to Organizing


HR

Embedded HR

To assign HR generalist directly to departments

like sales and production, to provide the


localized human resource management
assistance and department needs.

The Centers of Expertise


The Centers of Expertise are like specialized HR

consulting firms within the company, providing


specialized assistance.

126

Trends Shaping Human


Resource Management
Globalization
and
Competition
Trends
Indebtedness
(Leverage)
and
Deregulation
Trends in the
Nature of
Work

Trends in
HR
Managem
ent

Economic
Challenges
and Trends

Technological
Trends

Workforce and
Demographic
Trends

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Trends in the Nature of Work


Changes in How We
Work

High-Tech
Jobs

Service
Jobs

Knowledge
Work and
Human
Capital

128

Workforce and Demographic


Trends
Demographic Trends

Trends
Affecting
Human
Resources

Generation Y
Retirees
Nontraditional
Workers

129

Workforce and Demographic


Trends
Demographic trends are making finding, hiring,

and

supervising employees more challenging.


Generation Y
Born in the mid-1980's and later, Generation Y legal
professionals are in their 20s and are just entering the
workforce. With numbers estimated as high as 70
million, Generation Y (also known as the Millennials) is
the fastest growing segment of todays workforce. As law
firms compete for available talent, employers cannot
ignore the needs, desires and attitudes of this vast
generation.

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130

Workforce and Demographic


Trends
Below are a few common traits that define Generation Y.
Tech-Savvy: Generation Y grew up with technology and rely on it to
perform their jobs better. Armed with BlackBerrys, laptops,
cellphones and other gadgets, Generation Y is plugged-in 24 hours
a day, 7 days a week. This generation prefers to communicate
through e-mail and text messaging rather than face-to-face contact
and prefers webinars and online technology to traditional lecturebased presentations.
Family-Centric: The fast-track has lost much of its appeal for
Generation Y who is willing to trade high pay for fewer billable
hours, flexible schedules and a better work/life balance. While older
generations may view this attitude as narcissistic or lacking
commitment, discipline and drive, Generation Y legal professionals
have a different vision of workplace expectations and prioritize
family over work.

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131

Workforce and Demographic


Trends
Achievement-Oriented: Nurtured and pampered

by
parents who did not want to make the mistakes of the
previous generation , Generation Y is confident, ambitious
and achievement-oriented. They have high expectations
of their employers, seek out new challenges and are not
afraid to question authority. Generation Y wants
meaningful work and a solid learning curve.
Team-Oriented: As children, Generation Y participated
in team sports, play groups and other group activities.
They value teamwork and seek the input and affirmation
of others. Part of a no-person-left-behind generation,
Generation Y is loyal, committed and wants to be
included and involved.

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132

Workforce and Demographic


Trends
Attention-Craving: Generation Y craves attention in the
forms of feedback and guidance. They appreciate being
kept in the loop and seek frequent praise and
reassurance. Generation Y may benefit greatly from
mentors who can help guide and develop their young
careers.

Copyright 2011 Pearson Education

133

Important Trends in HRM


The New HR
Managers
Strategic
HRM

EvidenceBased HRM

Human
Resource
Manageme
nt Trends

HighPerformance
Work
Systems
Managing
Ethics

HR
Certification
134

Meeting Todays HRM


Challenges
The New Human
Resource Managers
Focus more on
big picture
(strategic
issues)

Find new ways


to provide
transactional
services

Acquire
broader
business
knowledge
and new HRM
proficiencies
strategic
planning

****HR managers can play big roles in


and management by helping the top managers in devising
functional and departmental plans that support the
organizations overall strategic plan, and then assisting in
execution of the plans.

135

High-Performance Work
Systems
Increase productivity and
performance by:

Recruiting, screening and hiring

more effectively
Providing more and better training
Paying higher wages
Providing a safer work environment
Linking pay to performance

137

Evidence-Based HRM
Providing Evidence
for HRM Decision
Making

Actual
measureme
nts

Existing
data

Research
studies

Evidence-based HRM is the deliberate use of


the best-available evidence in making decisions
about the human resource management practices
you are focusing on.
138

Managing Ethics
Ethics
Standards that someone uses

to decide what his or her


conduct should be

HRM-related Ethical Issues


Workplace safety
Security of employee records
Employee theft
Affirmative action
Comparable work
Employee privacy rights
139

HR Certification
HR is becoming more professionalized.
Society for Human Resource
Management (SHRM)
SHRMs Human Resource Certification

Institute (HRCI)

SPHR (Senior Professional in HR)


certificate

GPHR (Global Professional in HR)


certificate

PHR (Professional in HR) certificate


140

The Plan of This Book: Basic


HRM is the responsibility of every
Themes
manager.

The workforce is becoming increasingly


diverse.
Current economic challenges require that
HR managers develop new and better
skills to effectively and efficiently deliver
and manage HR services.
The intensely competitive nature of
business today means human resource
managers must defend their plans and
contributions in measurable terms.
141