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Chapter 1
The Strategic Role of Human Resource Management
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Outline of Chapter 1
I. The Manager’s Human Resource Management Jobs
Why is HR Management Important to All Managers?
Line and Staff Aspects of HRM
Cooperative Line and Staff HR Management: An Example
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Outline of Chapter 1
II. Strategic Planning and Strategic Trends
The Basics of Strategic Planning
The Strategic Planning Process
Basic Strategic Trends
Managerial Consequences of the Basic Trends
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Outline of Chapter 1
III. HR’s Strategic RoleHR’s Evolving RoleStrategic Human Resource ManagementHR’s Role as a Strategic PartnerHR and TechnologyHR and Employee Performance and CommitmentIs there a “One Best HR Way?”Research Insight
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After Studying This Chapter,You Should Be Able To:
Explain what human resource management (HR)is and how it relates to the management process.
Give at least eight examples of how HR management concepts and techniques can be of use to all managers.
Illustrate the HR management responsibilities of line managers and staff (HR) managers.
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The Management Process
Planning Organizing Staffing Leading Controlling
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Management Process
Planning Goals and standards Rules and procedures Plans and forecasting.
Organizing Tasks Departments Delegating Authority and communication Coordinating
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Management Process
Staffing Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing
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Management Process
Leading Getting the job done Morale Motivation
Controlling Setting standards Comparing actual performance to standards Corrective action
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HRM Function
Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.
Definition
Definition
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HRM People Functions Include:
Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and
benefits
Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor
relations
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HRM is Important to all Managers.Don’t Let These Happen to You!
The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices
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HRM – It’s All About Results
“For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck….” F. K. Foulkes
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Line and Staff Aspects of HRM
Authority Making decisions Directing work Giving orders
Line Managers Accomplishing goals
Staff Managers Assisting and advising line managers
Definition
Definition
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Line Manager’s HRM Jobs
The right person Orientation Training Performance Creativity Working
relationships
Policies and procedures
Labor costs Development Morale Protecting
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Staff Manager’s HRM Jobs
Line authority Implied authority Functional control Employee advocacy
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Strategic Planning and Trends
Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.
Definition
Definition
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Strategic Planning 101
There are three levels of strategic planning as shown below
Corporate Strategy
BusinessStrategy
BusinessStrategy
BusinessStrategy
BusinessStrategy
FunctionalStrategies
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The Strategic Planning Process
SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats
Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces
Basic strategic trends Globalization Technological advances The nature of work The workforce
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Globalization
0
10
20
30
40
50
60
70
80
1920 1950 1970 2000
% fortune 500 with aglobal presence
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Technological Advances and the Nature of Work
Technology mandates and enables companies to be more competitive
Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Carrier
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The Workforce Itself is Diverse
AsianBlackHispanicMenWomen
US Department of Labor website
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Consequences of these basic trends
Technology
Global expansion
Strengths and Weaknesses
Uncertainty, Turbulence, Rapid Change, Changing power bases
Companies must be Fast,Responsive, andCost-effective
Improved competition
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HR’s evolving role
Protector and Screener
Strategic Partner
Change Agent
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Strategic HRM
Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.
Definition
Definition
Clarify the businessstrategy
Realign the HR functions and keypeople practices
Create needed competenciesand behaviors
Realization of businessstrategies and results
Evaluate and refine
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HR’s evolving role as strategic partner
HR operations
Corporate strategy
Corporate strategy
HR programsCorporate strategy
HR programs
Corporate strategyCorporate strategy
HR operationsHR operations
Corporate strategyCorporate strategy
HR programsHR programs
FedEx
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How HR helps strategy execution
Functional strategies should support competitive strategies
Value chain analysis Outsourcing Strategy Formulation
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How HR helps form strategy
Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses
Environmental scanning
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HR and technology
Basic HR systems demand paperwork
70% of HR’s employees time = paperwork
Off the shelf forms from Office Depot/Officemax
Online forms
Human Resource Information Systems (HRIS)
HR on the Internet
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HR portals
Employees can answer their own questions
HR moves from reactive to proactive
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HR means performance
Can HR have a measurable impact on a company’s bottom line?
Better HRM translates into improved employee attitudes and motivation (e.g., working at home)
Well run HR programs drive employee commitment TOYOTA
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A Case Study
Dell’s dual HR roles
Deals with staff - benefits - compensation - call center
Deals with management - education - recruitment - planning - training - personnel needs
OPERATIONS MANAGEMENT
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Is There a “One Best HR Way”?
Follow a company’s operating and strategic initiatives
All companies can benefit from Profit sharing programs Results oriented appraisals Employment security Foster informal relationships- promote worldwide
communications Develop global executives
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Things to Remember as We Move into Chapter 2
HR management: the responsibility of every manager
HR practices today must address several basic issues including Improving competitiveness Globalizing Technology and internet-based
advances Contributing to strategic success
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Plan for the Rest of the Book
Chapter 2: Equal Opportunity and the Law.
Part II: Recruitment and Placement Chapter 3: Job Analysis Chapter 4: Personnel Planning and
Recruiting Chapter 5: Employee Testing and Selection Chapter 6: Interviewing Job Candidates
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Plan for the Rest of the Book
Part III: Training and Development Chapter 7: Training and Development Chapter 8: Managing Organizational
Renewal Chapter 9: Appraising Performance Chapter 10: Managing Careers and Fair
Treatment
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Plan for the Rest of the Book
Part IV: Compensation Chapter 11: Establishing Pay Plans Chapter 12: Pay-for-Performance and
Financial Incentives Chapter 13: Benefits and Services