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PowerPoint Presentation by Charlie Cook Copyright 2004 South-Western. All rights reserved. Copyright 2004 South-Western. All rights reserved. 12 1). A Brief History of Human Resource Management The Craft System Master craftsman and apprentice Industrial Revolution Move to factory system and move to machines Division of labor Scientific Management Taylor Conducted scientific experiments to improve efficiency Theory X Human Relations Hawthorne experiments The Hawthorn effect led researchers to associate social factors with work Theory Y Copyright 2004 South-Western. All rights reserved. Workers inherently dislike work Workers must be coerced, controlled, directed, threatened with punishment to get them to accomplish work objectives Talent is narrowly distributed Workers will do as little work as they are required to do Motivated by money Need for formal, well established lines of authority Clearly defined jobs Workers like work, cooperative, friendly Work is widely distributed throughout the workforce Workers can be motivated to work independently Managers who accepted Y, would not structure, control, or closely supervise the work environment Encourage self-control, motivate by providing satisfying work (e.g., challenging work) Theory X Theory Y Douglas McGregors Management Styles Managers could organize, lead, control, and motivate people in different ways Copyright 2004 South-Western. All rights reserved. 14 Nature of Human Resource Management Human Resource Management The design of formal systems in an organization to ensure effective and efficient use of human talent to accomplish organizational goals. All management decisions and practices that directly affect or influence people - planning, acquiring, retaining (controlling turnover), developing or training, performance appraisal, compensation, safety and health, family and work life. HRM has wide range of functions and areas of responsibility. Copyright 2004 South-Western. All rights reserved. 15 Nature of Human Resource Management Who Is an HR Manager? In the course carrying out their duties, every operating manager is, in essence, an HR manager. HR specialists design processes and systems that operating managers help implement. Copyright 2004 South-Western. All rights reserved. 16 Typical Division of HR Responsibilities HR Unit Develops legal, effective interviewing techniques Trains managers in conducting selection interviews Conducts interviews and testing Sends top three applicants to managers for final review Checks references Does final interviewing and hiring for certain job classifications Managers Advise HR of job openings Decide whether to do own final interviewing Receive interview training from HR unit Do final interviewing and hiring where appropriate Review reference information Provide feedback to HR unit on hiring/rejection decisions Figure 11 Copyright 2004 South-Western. All rights reserved. 17 HR Management Competencies and Careers HR Generalist A person with responsibility for performing a variety of HR activities. HR Specialist A person with in-depth knowledge and expertise in a limited area of HR. Important HR Capabilities: Knowledge of business and organization Influence and change management Specific HR knowledge and expertise Copyright 2004 South-Western. All rights reserved. 18 Qualities of Human Resources Managers Responsibilities Advice and counsel Service Policy formulation and implementation Employee advocacy Competencies Business mastery HR mastery Change mastery Personal credibility Copyright 2004 South-Western. All rights reserved. 19 HR Activities HR Planning and Analysis Equal Employment Opportunity Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor/Management Relations Copyright 2004 South-Western. All rights reserved. 110 Human Resource Competency Model Source: Arthur Yeung, Wayne Brockbank, and Dave Ulrich, Lower Cost, Higher Value: Human Resource Function in Transformation. Reprinted with permission from Human Resource Planning, Vol. 17, No. 3 (1994). Copyright 1994 by The Human Resource Planning Society, 317 Madison Avenue, Suite 1509, New York, NY 10017, Phone: (212) 490-6387, Fax: (212) 682-6851. Figure 1.9 Presentation Slide 14 Business Mastery Business acumen Customer orientation External Relations HR Mastery Staffing Performance appraisal Rewards system Communication Organization design Change Mastery Interpersonal skills and influence Problem-solving skills Rewards system Innovation and creativity Personal Credibility Trust Personal relationships Lived values Courage Copyright 2004 South-Western. All rights reserved. 111 HR Management Activities Copyright 2004 South-Western. All rights reserved. 112 Traditional and Strategic Views of HRM (a) Personnel-The Traditional View The Organization Personnel Staffing Pay Training Research and Development Finance Marketing Production What is Strategic Human Resource Management (SHRM)? Copyright 2004 South-Western. All rights reserved. 113 Developing Human Capital 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. Copyright 2004 South-Western. All rights reserved. 114 2). Strategy Strategic management: set of decisions and subsequent actions used to formulate and implement strategies that will optimize the fit between the organization and its environment in an effort to achieve organizational objectives. Competitive advantage: when a firm is implementing a value creating strategy not simultaneously being implemented by any current or potential competitor. Sustained competitive advantage: exists only after efforts to replicate that advantage have ceased. Copyright 2004 South-Western. All rights reserved. 115 Strategy Cont. Strategic plan: the overall blueprint that defines how an organization will deploy its capital resources, such as budgetary and human resources, in pursuit of its goals How do you develop a strategic plan? Articulate values and mission statement SWOT Analysis Establish realistic goals and objectives based on the foregoing steps Formulate Strategies Implement Strategies Copyright 2004 South-Western. All rights reserved. 116 CORPORATE STRATEGY How companies choose their mixtures of different businesses Contrasts with business level strategy Diversification related unrelated Copyright 2004 South-Western. All rights reserved. 117 Types of Business Strategies Cost leadership: A firm pursuing a cost leadership strategy aggressively seeks efficiencies in production and uses tight controls to gain an edge on competitors. Differentiation strategy: involves an attempt to set a companys products or services apart from those of its competitors. Copyright 2004 South-Western. All rights reserved. 118 Linkage of Organizational and HR Strategies Figure 24 Copyright 2004 South-Western. All rights reserved. 119 Strategic Goals Human Resource Management Finance Research and Development Marketing Production Traditional and Strategic Views of HRM (b) HRM - The Strategic View Copyright 2004 South-Western. All rights reserved. 120 Table 2.1 Theoretical Perspectives on SHRM Universalistic There is one best way to manage human resources. Strategic HRM is the process of transforming traditionalHR practices into a limited set of correct HR procedures and policies. Strategic Fit Strategic HRM involves matching specific HR practices to the firms overall business strategy. HR as internal Strategic HRM involves HR professionals providing HR service provider services to business units within the firm. The HR goal is to enhance the effectiveness and efficiency of the operations of their business unit customers. Perspective Description What is Strategic Human Resource Management (SHRM)? (Continued) Copyright 2004 South-Western. All rights reserved. 121 Table 2.1 Theoretical Perspectives on SHRM Configurational There are various configurations or bundles of HR practices that go together and, collectively, can improve business performance. Certain bundles are effective in certain industries and/or in certain business conditions, whereas other bundles should be used in other industries or under different business Circumstances Resource/Competency SHRM engenders organizational success by enhancing a firms ability to acquire, develop, use, and retain employees with high competence levels relevant to firm activities. Perspective Description What is Strategic Human Resource Management (SHRM)? (Continued) Copyright 2004 South-Western. All rights reserved. 122 Competitive Advantage through People Core Competencies Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. 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. Copyright 2004 South-Western. All rights reserved. 123 - It involves designing and implementing a set of internally consistent policies and practices that ensure a firms human capital contribute to the achievement of its business objectives. - This includes both vertical (linking HRM practices with strategic management process) and horizontal (the integration of the various HRM practices) integration as well. - Additionally, linking the people of the firm (in terms of their skills and actions) to the strategic needs of the firm. SHRM Defined Copyright 2004 South-Western. All rights reserved. 124 Different Roles for HR Management Figure 15 Copyright 2004 South-Western. All rights reserved. 125 HR Management Roles Administrative Role Clerical and administrative support operations (e.g., payroll and benefits work) Employee Advocate Role Champion for employee concerns Employee crisis management Responding to employee complaints Operational Role Identification and implementation of HR programs and policiesEEO, hiring, training, and other activities that support the organization. Copyright 2004 South-Western. All rights reserved. 126 How HR Spends Its Time Figure 16 Source: Adapted from How Much Time Should Your HR staff Spend on Recruiting? Human Resources Department Management Report, June 2000, p. 6. Copyright 2004 South-Western. All rights reserved. 127 Strategic Role for HR HR becomes a strategic business partner by: Focusing on developing HR programs that enhance organizational performance . Involving HR in strategic planning at the onset. Participating in decision making on mergers, acquisitions, and downsizing. Redesigning organizations and work processes Accounting and documenting the financial results of HR activities. Copyright 2004 South-Western. All rights reserved. 128 Overview of HR Management Roles Figure 17 Copyright 2004 South-Western. All rights reserved. 129 HR Management Challenges Organizational Restructuring, Mergers, and Acquisitions Right-sizingeliminating of layers of management, closing facilities, merging with other organizations, 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 managers must work toward ensuring cultural compatibility in mergers. Copyright 2004 South-Western. All rights reserved. 130 3). HR Management Challenges Economic and Technological Changes Shift in jobs for manufacturing and agriculture to service industries and telecommunications. Pressures of global competition causing firms to adapt by lowering costs and increasing productivity. Growth of information technology (Internet). Copyright 2004 South-Western. All rights reserved. 131 Jobs of the Future Figure 13 Source: U.S. Department of Labor, Bureau of Labor Statistics, 2001. Copyright 2004 South-Western. All rights reserved. 132 HR Management Challenges Workforce Availability and Quality Inadequate supply of workers with needed skills for knowledge jobs Education of workers in basic skills Growth in Contingent Workforce Increases in temporary workers, independent contractors, leased employees, and part-timers caused by: Need for flexibility in staffing levels Increased difficulty in firing regular employees. Reduced legal liability from contract employees Copyright 2004 South-Western. All rights reserved. 133 HR Management Challenges Demographics and Diversity Issues More diversity of race, gender, age, and ethnicity in the U.S. workforce Balancing Work and Family Dual-career couples Single-parent households Decline in the traditional family Working mothers and family/childcare Single employee backlash against family-oriented programs. Copyright 2004 South-Western. All rights reserved. 134 New Moms in the Workforce Figure 14 Source: U.S. Census Bureau, 2000. Copyright 2004 South-Western. All rights reserved. 135 Ethics and HR What is Ethical Behavior? What ought to be done. Dimensions of decisions about ethical issues in management: Extended consequences Multiple alternatives Mixed outcomes Uncertain consequences Personal effects Copyright 2004 South-Western. All rights reserved. 136 Ethics and HR (contd) 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? Copyright 2004 South-Western. All rights reserved. 137 Ethical Issues in Management Most Common Forms of Unethical Conduct Lying to supervisors Employee drug use or alcohol abuse Falsification of records International Ethical Issues Gift giving and bribery Discrimination in hiring and treatment Addressing Ethical Issues Code of ethics Training managers and employees Copyright 2004 South-Western. All rights reserved. 138 Code of Ethics As a member of the Society for Human Resource Management, I pledge to: Maintain the highest standards of professional and personal conduct. Strive for personal growth in the field of HRM. Support the Societys goals and objectives for developing the human resource management profession. Encourage my employer to make the fair and equitable treatment of all employees a primary concern. Strive to make my employer profitable both in monetary terms and through the support and encouragement of effective employment practices. Copyright 2004 South-Western. All rights reserved. 139 Code of Ethics Cont. Instill in employees and the public a sense of confidence about the conduct and intentions of my employer. Maintain loyalty to my employer and pursue its objectives in ways that are consistent with the public interest. Uphold all laws and regulations relating to my employers activities. Refrain from using my official positions, either regular or volunteer, to secure special privilege, gain or benefit for myself. Maintain the confidentiality of privileged information. Improve public understanding of the role of human resource management. Copyright 2004 South-Western. All rights reserved. 140 Overall Framework for Human Resource Management Presentation Slide 11 COMPETITIVE CHALLENGES Globalization Technology Managing change Human capital Responsiveness Cost containment HUMAN RESOURCES Planning Recruitment Staffing Job design Training/development Appraisal Communications Compensation Benefits Labor relations EMPLOYEE CONCERNS Background diversity Age distribution Gender issues Educational levels Employee rights Privacy issues Work attitudes Family concerns Figure 1.1 Copyright 2004 South-Western. All rights reserved. 141 Competitive Challenges and Human Resources Management The most pressing competitive issues facing firms: Going global Embracing technology Managing change Developing human capital Responding to the market Containing costs Copyright 2004 South-Western. All rights reserved. 142 Going Global 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 NAFTA, EU, APEC trade agreements WTO and GATT Copyright 2004 South-Western. All rights reserved. 143 Going Global (contd) 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. Copyright 2004 South-Western. All rights reserved. 144 Embracing New Technology Knowledge Workers Workers whose responsibilities extend beyond the physical execution of work to include planning, decision making, and problem solving. The Spread of E-commerce The Rise of Virtual Workers Copyright 2004 South-Western. All rights reserved. 145 Influence of Technology in HRM Human Resources Information System (HRIS) Computerized system that provi
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