Human ResourceManagement

Eleventh Edition

Changing Nature of Changing Nature of Human Resource Human Resource ManagementManagement

Changing Nature of Changing Nature of Human Resource Human Resource ManagementManagement

Chapter 1Chapter 1

Robert L. Mathis Robert L. Mathis John H. Jackson John H. Jackson

PowerPoint Presentation

by Dr. Zahi Yaseen

PowerPoint Presentation

by Dr. Zahi Yaseen

SECTION 1Nature of

Human Resource

Management

SECTION 1Nature of

Human Resource

Management

Changing Nature of Human Resource Changing Nature of Human Resource

ManagementManagement After you have read this chapter, you should be able to:

–Define HR management and explain why managers and HR staff must work together.

–List and define the seven categories of HR activities.

– Identify three challenges facing HR today.–Describe the four roles of HR management.–Discuss why ethical issues affect HR

management.

HRManagement

Activities

HRM Activities

Human resource activities support organizational efforts focusing on Productivity, Service, and quality

That requires changes in corporate culture, leadership styles, and HR policies.

1- HR planning and analyses2- Equal employment opportunity3- Staffing4- HR development5- Compensation and Benefits6- Health, safety, and security7- Employee and Labor relations

•Human Resource Management– Is the direction of organizational systems to ensure

effective and efficient use of human talent to accomplish organizational goals.

•HR in Organization– Every manager in an organization is an HR manager,

however, it’s unrealistic to expect all operation managers like sales managers, nursing supervisor to know about employment regulations, union contracts….etc.

•Corporation of HR with operating managers:– HR specialists design processes and systems that

operating managers help implement.

•Management of Human Capital in Org;

Organization must manage four types of assets:

1- Physical : building, land, furniture, vehicles…

2- Financial: cash, stocks, securities…..

3- Intangible: brand name, researches…..

4- Human: talents employees, experience,

professionals, capabilities…..All these assets are crucial in varying degrees. However, the human assets are the ‘glue” that holds all other assets together and guides their

use to achieve organizational goals.

•Management of Human Capital in Org;

Human CapitalHuman Capital: Is the collective value of the capabilities, knowledge, skills, life-experiences, and motivation of the workforce. Human capital is not the people in the company- It’s what those people bring and contribute in the success of that company.

HR as a Core competencyHR as a Core competency: HR should be part of organizational strength. Because those strengths are the foundation for creating a competitive advantage, core competency is a unique capability that creates high value and differentiates an organization from its competitors.

HR Management Challenges

•Globalization of Business•Economic and technological changes•Workforce demographics and diversity

•Organizational cost pressures & restructuring

HR Management Challenges

•Globalization of Business - Global companies across nations. Pepsi, Microsoft, Hp,

GE, Sony, Toyota, Nokia, McDonalds….. - Shift from investment to operate, and produce products

and services across the boards and the effect of security.

•Economic and Technological Changes– Shift in jobs for manufacturing and agriculture to service

industries and telecommunications.– Workforce availability and quality concerns: Lack of

skilled employees.– Growth in contingent workforce: contractors, part time…– Growth of information technology (Internet).

HR Management Challenges

• Workforce demographics and diversity– More diversity of race, gender, and ethnicity. People

from different background, women in the workplace, and growing of minorities.

• Organizational cost pressures & restructuring

“Right-sizing", eliminating of layers of management, closing facilities, merging, and outplacing workers.

• Intended results are flatter organizations, increases in productivity, quality, service and lower costs.

• Costs are survivor mentality, loss of employee loyalty, and turnover of valuable employees

HR Management Roles

• Administrative RoleThe administrative support operations (e.g., payroll and benefits

work) shifted to technology ( internet) and outsourcing. The reasons are to save money, time, and to focus on strategic plans.

• Operational and Employee Advocate Role– Traditionally HR is the “Champion” for employee concerns, and

respond to employees complaints and crises. (figure 1)

• Strategic Role - Long-term implications, ethics bookkeeping, and

provide competitive advantage.

Traditional HR Function• Reactive• Collecting HR data• Responding to goals and

objectives set by executives• Complying with laws,

policies, and procedures• Administering employees

benefits programs• Designing training programs• Staffing

• Applying compensation plans

Emerging HR practice• Proactive• Measuring HR with metrics• Setting strategic HR goals

and objectives• Developing and revising

policies and procedures• Evaluating benefits

strategically• Identifying training needs• HR planning and linking with

external staffing needs• Developing compensation

plans

HRM shifts from operational to strategic

Strategic Role for HR

• HR becomes a strategic business partner by:

- Evaluating mergers and acquisitions for staffing needs

- Conducting workforce planning : from employees retirements to workforce expansion

- Leading site selection efforts for new facilities, and for international outsourcing.

- Applying new HR systems to reduce time and staff

- Working with executives to develop compensating plans

• Collaborative HR: when group of companies from different industries establish HR hop to share information and benefit for their experiences.

HR Technology Firms have developed and implemented information

systems to simplify use of the vast amounts of HR data

• Human resource management system( HRMS)

Is an integrated system providing information used by HR management in decision making.

• Purpose of HRMS: 1- administrative and operational efficiency

2- strategic and HR planning( see attached example)

Ethics and HR Organizations with high ethical standards are more likely to

meet long –term strategic objectives and profit goals.

• Ethics and global differences: Different laws, politics, cultural values usually raises ethical issues for global employers.( what is prohibited here is allowed there)

• HR’s role in organizational ethics HR management plays a key role as the “ keeper

and voice” of organizational ethics.

Ethical issues like: misrepresenting hours and time worked, employee lying to managers, hiring and promoting the favoritism.

Ethics and HR

Responding to Ethical Situations – Guided by values and personal behavior “codes” that

include:• Does response meet all applicable laws, regulations, and

government codes?

• Does response comply with all organizational standards of ethical behavior?

• Does response pass the test of professional standards for ethical behavior?

We should valueOur customers and

Our employees

What can we do toSurvive in the Market place?

Management support/technologyCulture/ motivation

How can we manage our

costs?

Increasing competition

Demands for Productivity/ quality/

service

HR Traditional View•-Responding to goals and objectives set by executives•Complying with laws, •policies, and procedures•Administering employees benefits programs•Staffing•Applying compensation plans

HR Strategic•Vision/Mission,\/Goals•Plan for people•Revising Rules •Comply with Labor Law•Design Policies/procedures•Design jobs•Recruiting /Selecting•Employee retention

How can we increase Productivity?

Job satisfaction leads toProductivity and quality

Employee Retention

Competition advantage through Human capital

Job performance

Job satisfaction Individual abilities/skillsThe Key

HRTree

Job Performance

HR Planning

HR Strategic

Survey-Satisfaction

Exit Interviews

HRTree