Chapter 1

1. Chapter 1 The Strategic Role of Human Resource Management

2. Outline of Chapter 1 • 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

3. Outline of Chapter 1 • Strategic Planning and Strategic Trends The Basics of Strategic Planning The Strategic Planning Process Basic Strategic Trends Managerial Consequences of the Basic Trends

4. Outline of Chapter 1 • HR’s Strategic Role HR’s Evolving Role Strategic Human Resource Management HR’s Role as a Strategic Partner HR and Technology HR and Employee Performance and Commitment Is there a “One Best HR Way?” Research Insight

5. 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.

6. The Management Process • Planning • Organizing • Staffing • Leading • Controlling

7. Management Process • Planning • Goals and standards • Rules and procedures • Plans and forecasting. • Organizing • Tasks • Departments • Delegating • Authority and communication • Coordinating

8. Management Process • Staffing • Hiring • Recruiting • Selecting • Performance standards • Compensation • Evaluating performance • Counseling • Training and developing

9. Management Process • Leading • Getting the job done • Morale • Motivation • Controlling • Setting standards • Comparing actual performance to standards • Corrective action

10. HRM Function Definition 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.

11. 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 HRM People Functions Include:

12. The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices HRM is Important to all Managers.Don’t Let These Happen to You!

13. 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

14. Line and Staff Aspects of HRM Definition • Authority • Making decisions • Directing work • Giving orders • Line Managers • Accomplishing goals • Staff Managers • Assisting and advising line managers

15. The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labor costs Development Morale Protecting Line Manager’s HRM Jobs

16. Staff Manager’s HRM Jobs • Line authority • Implied authority • Functional control • Employee advocacy

17. HR Department Organizational Chart

18. Strategic Planning and Trends Definition • 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.

19. Strategic Planning 101 There are three levels of strategic planning as shown below Corporate Strategy Business Strategy Business Strategy Business Strategy Business Strategy Functional Strategies

20. 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

21. Globalization

22. 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

23. The Workforce Itself is Diverse US Department of Labor website

24. Consequences of these basic trends Global expansion Companies must be Fast, Responsive, and Cost-effective Uncertainty, Turbulence, Rapid Change, Changing power bases Technology Strengths and Weaknesses Improved competition

25. HR’s evolving role Protector and Screener Change Agent Strategic Partner

26. Strategic HRM Definition Clarify the business strategy • Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility. Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine

27. HR’s evolving role as strategic partner Corporate strategy Corporate strategy HR operations HR operations Corporate strategy Corporate strategy HR programs HR programs Corporate strategy HR programs FedEx

28. How HR helps strategy execution • Functional strategies should support competitive strategies • Value chain analysis • Outsourcing • Strategy Formulation

29. 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

30. The Value Chain Approach

31. Technology can be the Human Resources engine of change

32. 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

33. HR portals Employees can answer their own questions HR moves from reactive to proactive

34. 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

35. A Case Study Dell’s dual HR roles OPERATIONS MANAGEMENT Deals with management - education - recruitment - planning - training - personnel needs Deals with staff - benefits - compensation - call center

36. 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

37. 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

38. 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

39. 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

40. 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

41. Plan for the Rest of the Book • Part V: Employee Security and Safety • Chapter 14: Labor Relations and Collective Bargaining • Chapter 15: Employee Safety and Health • Part VI: International HRM • Chapter 16: Managing Human Resources in an International Business.