NOTES 2 - HUMAN RESOURCE MANAGEMENT

Human Resource Management
Reading Notes

What is Human Resource Management?
•Five basic functions (the Management Process)
oPlanning
oOrganizing
oStaffing
oLeading
oControlling
•HRM: the policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising
oThe process of acquiring, training, appraising, and compensating employees and of attending to their labor relations, health and safety, and fairness concerns

Why is Human Resource Management Important to all Managers?
•If you make mistakes you will pay in the effectiveness of your business, its reputation, how it does financially
•A business can be successful by hiring the right people for the right jobs and motivating, appraising, and developing them
•The bottom line is GETTING RESULTS

Line and Staff Aspects of Human Resource Management:
•Authority: the right to make decisions, direct others’ work, and give orders
•Line authority: the right to issue orders to other managers or employees
oLine manager: authorized to direct the work of subordinates
Duties of a line manager
•Right person for the job
•Orientation
•Training
•Improving job performance
•Staff authority: give the manager the right to advise other managers or employees
oStaff manager: assists and advises line managers

Human Resource Manager’s Duties:
•A line function: issues orders
•A coordinative function: coordinate personnel activities, “right arm of the top executive”
•Staff (assist and advice and innovate): also plays an employee advocacy role

Human Resource Management Specialties
•Recruiters
•Equal employment opportunity coordinators
•Job analysts
•Compensation managers
•Training specialists
•Labor relations specialist

The Changing Environment of HRM
•Globalization: the tendency of firms to extend their sales, ownership and/pr manufacturing to new markets abroad.
•Companies expand for several reasons
oSales expansion
oCut labor costs
oNew foreign products
oForming partnerships
•Impacts of globalization
oMore competition
oMore pressure to lower costs, to make employees more productive and to things better and less expensively
•For consumer’s globalizations means…
oLower prices
oHigher quality
oWorking hard, less secure jobs
oCompanies outsourcing
•Both companies and workers have to work harder and smarter than they did without globalization

Trends in the Nature of Work
•High tech jobs
oMore and more traditional factory jobs are going high tech
•Service jobs
oWith global competition more manufacturing jobs are shifting to low-wage countries
oMore manufacturers are partnering with their suppliers to create integrated supply chains
oEffect is that manufactures have been squeezing slack and inefficiencies out of the entire production systems
•Knowledge work and human capital
oThe best jobs that remain require more education and more skills
oHuman Capital: the knowledge, education, training, skills, and expertise of a firms workers
•Nature of Work: Implications for HR
oBecause it is the HR that traditionally recruits, selects, trains and compensates employees, changes like these make employers highly reliant on effective HRM

Workforce Demographic Trends
•Labor forces growth is not expected to keep pace with job growth
•Employers are particularly focusing on the aging for the workforce

The Changing Role of Human Resource Management
•Strategic HRM
oStrategic plan: the company’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage
oWhere are we, where do we want to be, how are we going to get there?
oStrategic HRM: formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims
oHRM’s strategic role
In partnering with their top managers in both designing and executing their companies strategies
Express their departmental plans an accomplishments in measureable terms
•Creating High-Performance Work Systems
oA focus on productivity and performance
oHRM can improve performance
Through use of technology
Through effective HR practices (testing and training)
Instituting high-performance work systems
•Managing with Technology
oImprove HR’s performance in four ways
Self-services
Call centers
Productivity improvement
Outsourcing
•High-Performance Work Systems: An integrated set of human resource management policies and practices that together produce superior employee performance
oWhat comprises HPWS
Employment security
Selective hiring
Extensive training
Self-managed teams and decentralized decision making
Reduce status distinction between managers and worker
Information sharing
Contingent rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work
•Measuring the HRM Team’s performance
oEmployers expect their HRM to provide measureable evidence to their efficiency and effectiveness
oHR Metrics
Absence rate
Cost per hire
HR expense factor
Time to fill
Turnover rate

The Human Resource Manager’s Proficiencies
•HR proficiencies: employee selection, training, and compensation
•Business proficiencies: HR professionals’ strategic role
•Leadership proficiencies: lead management groups and drive the changes required
•Learning proficiencies: staying abreast of and applying new technologies and practices affecting the profession

Laws
•Equal employment
•Occupational safety and health
•Labor laws

Managing Ethics
•Ethics: the standards someone uses to decide what his or her construct should be
•Involves morality