CHAPTER 1
Human Resource Management in Organizations
Chapter Objectives
Define human capital and identify the seven categories of HR activities.
Discuss how organizational culture and HR are related and identify four areas that are part of these relationships.
Explain how organizational ethical issues affect HR management.
Provide an overview of six challenges facing HR today.
Describe how the major roles of HR management are being transformed.
Explain the key competencies needed by HR professionals and why certification is important.
Nature of Human Resource Management
Human Resource (HR) Management
Designing management systems to ensure that human talent is used effectively and efficiently to
accomplish organizational goals.
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.
Types of Organizational Assets
Human Core
Capital Compete
As The A unique
collective ncy
capability
se
Phy Fin Inta Hu value of that
sica anc
ts ngib man the creates
l ial le capabilitie high value
s, and
knowledge differentia
Human Capital in Organizations , skills, life tes an
experience organizatio
s, and n from its
motivation competitio
of an n.
organizatio
nal
workforce.
Core Competencies in Possible HR Areas
(Figure 1-1)
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HR Management: Interlinked Functions Organizational Culture and HR
1. Strategic HR Management Organizational Culture
2. Equal Employment Opportunity Is the shared values and beliefs in an organization.
3. Staffing Is the internal “climate” of the organization that
4. Talent Management and Development employees, managers, customers, and others
5. Total Rewards: Compensation and Benefits experience.
6. Risk Management and Worker Protection Positively affects service and quality, productivity, and
7. Employee and Labor Relations financial results when aligned with HR values and
organizational goals.
Is affected by differences in cultural dimensions from
country to country and even within countries.
HR Management Functions (Figure 1-2)
Hofstede’s Dimensions of Culture
2
Indivi Producti Unit
Ineq duali
ualit sm/ vity
A measure A Labor
measure
y Grou
of the Cost
of HR
of p
Powe Orien quantity productivi
Long-
termr Cul tatio and ty
/ tur nMasc quality of computed
ulinit
Short work by
-
e y/
term
Unce Femi done, dividing
rtain ninit
Orien ty
considerin the
y
tatio Avoi g the cost average
n danc of cost of
e the workers
resources by their
used. average
Organizational Productivity
levels of
output.
Human
Resource
Manageme
Social nt
Custo
Respo mer Qual
nsibili Servi ity
ty ce
Customer Service and Quality Linked to HR
Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness.
Approaches to Improving Organizational Productivity (Figure 1-3)
3
Restructuring the
Organization Re-Designing Work
Revising organizational Changing workloads and
structure combining jobs
Reducing staff Reshaping jobs due to
Aiding in mergers and technology changes
acquisitions
Goals
Increase
organizational
productivity
Reduce unit
labor costs
Aligning HR Activities
Attracting and retaining Outsourcing
employees Using domestic
Training, developing, and vendors/contractors instead
evaluating employees of employees
Compensating employees and Outsourcing operations
other internationally
HR activities
4
Social Responsibilities and HR
HR Advantages and Social Responsibilities
Attracting and retaining employees
Achieving sustainability in dealing with economic challenges
Creating a “green culture”
Global Social Responsibility and HR
Results in higher organizational images globally, better employee morale and loyalty, and more
competitive advantages with consumers
Employee Engagement and HR Culture
Employee Engagement
Is the extent to which individuals feel linked to organizational success and how the organization
performs positively.
Social Networking
Involves communicating to other employees, nonwork friends, community contacts, and others.
Has evolved from personal contacts and oral communications to include:
E-mail and text messages; Twitters; Blogs
Business Ethics and HR Management Consequences Figure (1-4)
Ethical Behavior and Organizational Culture
5
Legal Ethical
HR’s Role in Organizational Ethics
Ethics
Progr Question Question
am Does the Does the
Wri Em
ElemeAdv Con behavior behavior
tten plo nts ice fid
cod yee to ent or result or result
e of trai em ial meet all meet
ethi nin ploy rep
cs g ees orti applicabl both
and on on ng e laws, organizat
stan eth ethi of
dar ical cal eth regulatio ional
ds be situ ical
of hav atio pro
ns, and standards
con iors ns ble governm and
duc ms
t ent professio
codes? nal
Examples of HR-Related Ethical Misconduct Activities (Figure 1-5) standards
of ethical
behavior?
HR Ethics and Sarbanes-Oxley (SOX)
Reduce the likelihood of illegal and unethical behaviors by:
Having a written code of ethics and conduct standards
Providing ethical behavior training and advice
6
Establishing confidential reporting systems for ethical misconduct
Providing whistle-blower protection
Supporting HR’s role as “keeper and voice” of organizational ethics
Current HR Management Challenges
Organizationa Economics
l Cost and
Pressures and Job
Restructuring Changes
Human
Resource
Manageme
nt
Globalizatio Workforce
n of Demographics
Organizatio and Diversity
ns
and HR
Economics and Job Changes
Futur
e
Job
Chan
ge
Conc Growt
Workforc
erns Talent h in
Occup e
Contin
ational Availabili Manag
gent
Shifts ty and ement
Workf
Quality
orce
7
Fastest Growth in Job Changes to 2016 (Figure 1-6)
Hourly Compensation Costs for Manufacturing
Production Workers (Figure 1-7)
HR Technology
Human Resource Management System (HRMS)
An integrated system providing information used by HR management in decision making.
Purposes of HRMS Data Collection
Administrative and operational efficiency in : Automation of payroll and benefit activities;
EEO/affirmative action tracking; Web-based communication with employees
Availability of data for HR strategic planning
Uses of a Web-Based HRMS
8
HR Smaller Organizations and HR Management
MS
on HR
Bul Da the Em Ext
leti ta Int plo en Issu
Incr es
n Ac ern ye de
Bo ce e d Shor Gov
Risi
ard ss
et Sel Lin
tage easi
ng
ern
of ng men
s f- kag Tax
Qual Cos t
Ser e es
ified ts Reg
vic Wor of ulati
e kers Ben on
efit Com
s plia
nce
HR Cooperation with Operating and Line Managers
HR Unit Managers
Develops legal, effective interviewing techniques Advise HR of job openings
Trains managers in conducting selection interviews Decide whether to do own final interviewing
Conducts interviews and testing Receive interview training from HR unit
Sends top three applicants to managers for final review Do final interviewing and hiring where appropriate
Checks references Review reference information
Does final interviewing and hiring for certain job Provide feedback to HR unit on hiring/rejection
classifications decisions
Typical Division of HR Responsibilities: Recruiting (Figure 1-8)
9
HR Management
Roles
Operatio
Administ Strategic
nal and
rative
Employe
e
Advocate
HR Management Competencies and Careers
Strategic
Contribution
Business
Knowledge HR
HR Delivery
Competencies
HR Technology
Personal
Credibility
HR Management as a Career Field
10
A person
A person
who has
who has
in-depth
responsib
HR HR
knowled
ility for
Genera Special
ge and
performin
list ist
expertis
ga
e in a
variety
limited
of HR
area of
activities.
HR.
HR Certifications at a Glance (Figure 1-10)
* In addition to meeting the exam eligibility requirements, successful exam candidates usually have the above
work experience.
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