Human Resource Management, 12 th Edition

1. Human Resource Management, 12th Edition By Leonard & Hilgert

2. Chapter 1 The Nature of Human Resources

3. Human Resource Management • The function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals. Chapter 1

4. Human Resource Activities (1) • Strategic HR Management • HR Planning, HR Measurement, HR Technology • Equal Employment Opportunity (EEO) Compliance • Staffing • Job analysis, recruiting & selection Chapter 1

5. Human Resource Activities (2) • Training, Development & Evaluation • Compensation • Wages, incentives, Benefits • Safety, Health, and Wellness • Labor Relations • Rights, policies & Union relations Chapter 1

6. External Forces • Global • Environmental • Cultural/geographic • Political • Social • Legal • Economic • Technological Chapter 1

7. HRM Practice is: • People oriented • Action oriented • Globally oriented • Future oriented Chapter 1

8. Key Concepts of HRM • Analyzing and solving problems • Assessing and interpreting costs or benefits of HRM • Using planning models • Preparing reports on HRM solutions • Training the HR staff Chapter 1

9. HRM Contributions to Organizational Effectiveness (1) • Help organization reach goals • Use skills and abilities of employees efficiently • Provide well-trained and well-motivated employees Chapter 1

10. HRM Contributions to Organizational Effectiveness (2) • Increase job satisfaction and self-actualization • Communicate HRM policies • Maintain ethical policies and socially responsible behavior • Manage the increasing pace of change Chapter 1

11. Quality of Work Life (QWL) • A general concept referring to several aspects of the job experience, including: • Management and Supervisory Style • Freedom and Autonomy to Make Decisions • Satisfactory Physical Surroundings • Job Safety • Satisfactory Working Hours • Meaningful Tasks Chapter 1

12. Fastest Growing Jobs in U.S. 2010 Source: U.S. Bureau of Labor Statistics, www.bls.gov. Chapter 1

13. Ethics and HR Management • Firms with High Ethical Standards • Are more likely to reach strategic goals. • Are viewed more positively by stakeholders • Are better able to attract and retain human resources. Chapter 1

14. HR’s Role in Organizational Ethics • HR management plays a key role as the “keeper and voice” of organizational ethics. Chapter 1

15. What is Ethical Behavior? • What “ought” to be done – What is “right”. • Dimensions of decisions about ethical issues in management: • Extended consequences • Multiple alternatives • Mixed outcomes • Uncertain consequences • Personal effects Chapter 1

16. Responses to Ethical Situations • Are 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? Chapter 1

17. Examples of Ethical Misconduct Chapter 1

18. Ethical Behavior & Organizational Culture • Organizational Culture • The shared values and beliefs in an organization • Common forms of unethical conduct: • Lying to supervisors • Employee drug use or alcohol abuse • Falsification of records Chapter 1

19. Fostering Ethical Behavior • Have a written code of ethics and standards of conduct • Provide Training on ethical behavior for all employees • A means for employees to obtain ethical advice • Confidential reporting systems for ethical misconduct Chapter 1

20. Core Competencies • Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. Chapter 1

21. Competitive Advantage through People • Sustained competitive advantage through people is achieved if these human resources: • Have value. • Are rare and unavailable to competitors. • Are difficult to imitate. • Are organized for synergy. Chapter 1

22. Competitive Challenges and HRM • The most pressing competitive issues facing firms: • Going global • Embracing technology • Managing change • Developing human capital • Responding to the market • Containing costs Chapter 1

23. Going Global (1) • Globalization • The trend toward opening up foreign markets to international trade and investment. • Impact of Globalization • Partnerships with foreign firms • “Anything, anywhere, anytime” markets • Lower trade and tariff barriers Chapter 1

24. Going Global (2) • NAFTA, EU, APEC trade agreements • WTO and GATT Chapter 1

25. Going Global (3) • Impact on HRM • Different geographies, cultures, laws, and business practices • Issues: • Identifying capable expatriate managers. • Developing foreign culture and work practice training programs. • Adjusting compensation plans for overseas work. Chapter 1

26. Ethics and Global Differences • Different legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers. • Foreign Corrupt Practices Act (FCPA) • Prohibits U.S. firms from engaging in bribery and other practices in other countries. Chapter 1

27. Managing Change • Types of Change • Reactive change • Change that occurs after external forces have already affected performance • Proactive change • Change initiated to take advantage of targeted opportunities Chapter 1

28. Managing Change • Formal change management programs help to keep employees focused on the success of the business. Chapter 1

29. Why Change Efforts Fail (1) • Not establishing a sense of urgency. • Not creating a powerful coalition to guide the effort. • Lacking leaders who have a vision. • Lacking leaders who communicate the vision. Chapter 1

30. Why Change Efforts Fail (2) • Not removing obstacles to the new vision. • Not systematically planning for and creating short-term “wins.” • Declaring victory too soon. • Not anchoring changes in the corporate culture. Chapter 1

31. Human Capital • The knowledge, skills, and capabilities of individuals that have economic value to an organization. • Valuable because capital: • Is based on company-specific skills. • Is gained through long-term experience. • Can be expanded through development. Chapter 1

32. Responding to the Market (1) • Total Quality Management (TQM) • A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement. • Six Sigma • A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another. Chapter 1

33. Responding to the Market (2) • Reengineering • Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. • Requires that managers create an environment for change. • Depends on effective leadership and communication processes. • Requires that administrative systems be reviewed and modified. Chapter 1

34. Containing Costs (1) • Downsizing • The planned elimination of jobs (“head count”). • Outsourcing • Contracting outside the organization to have work done that formerly was done by internal employees. Chapter 1

35. Containing Costs (2) • Employee Leasing • The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees. Chapter 1