Dessler Fund5 01

Fundamentals of Human Resource
Management
Fifth Edition
Chapter 1
Managing Human
Resources Today
Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved
Announcement
I did not receive all the tests yet, so I will be
returning them tomorrow
For the ePortfolio marks, I will be emailing them
during lunchtime, to make sure that everyone has
time to check that they’ve submitted everything
For this course: same as Office Procedures
▪ Assignment this coming Monday, group
presentation 2 weeks from now, and final test
Learning Objectives (1 of 2)
1. Answer the questions, “What is human resource
management?” and “Why is knowing HR
management concepts and techniques important
to any supervisor or manager?”
2. Describe with examples what trends are
influencing human resource management.
Learning Objectives (2 of 2)
3. Discuss at least five consequences such trends
have for human resource management today.
4. Explain what sorts of competencies, knowledge,
and skills characterize today’s new human
resource manager.
5. Outline the plan of this book.
Managing: Five Basic Functions (p. 2)
Management Process:
• Planning – goals, standards, rules, plans
• Organizing – tasks, departments, authority
• Staffing – hiring, recruiting, compensating, training
• Leading – motivating and maintaining morale
• Controlling – setting standards as sales quotas,
quality, actual performance & corrective actions
What is Human Resource
Management?
The process of acquiring, training, appraising, and
compensating employees, and of attending to
their labour relations, health and safety, and
fairness concerns
The Personnel Aspects of Management (1 of 2)
• Conducting job analyses
• Planning labor needs and recruiting job
candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
The Personnel Aspects of Management (2 of 2)
• Providing incentives and benefits

• Appraising performance
• Communicating
• Training employees and developing managers
• Building employee relations and engagement
Why is human resource management
important to all managers?
Personnel Mistakes to Avoid
• Employees not doing their best
• Hiring the wrong person for the job
• Experience high turnover
• Legal ramifications from discriminatory actions
• Unsafe company practices
• Lack of training undermining performance
• Unfair labor practices
Improving Profits and Performance
• More importantly, Human Resource Management
helps make sure that the business gets results
• A manager can prepare all they want, but if they
do not know how to hire the right people, or
motivate them, the business can still fail
• Any company can be successful when they hire
the right people for the right jobs, and then
motivate, appraise and develop them properly
Why Study HRM?
You May Become an HR Manager
One third of U.S. businesses surveyed appointed
non-HR managers to become their HR managers
One half of people working in the United States
work for small firms where managers sometimes
need to perform their own HR-related activities
Most people graduating from college in the next few
years either will work for small businesses or will
create new small businesses of their own
Line and Staff Aspects of HRM
• Recruiting
• Interviewing
• Selecting
• Training
Line – authorized to direct the work to subordinates
Staff – assists and advises line managers
Human Resource Managers = Staff Managers
Line versus Staff Authority
• Line authority: Gives managers the right to issue
orders to other managers or employees.
• Staff authority: Gives managers the right to
advise other managers or employees.
Line Managers’
HRM Responsibilities (1 of 2)
• Placing the right person in the right job
• Starting new employees in the organization
• Training employees for new jobs
• Improving job performance for each employee
• Gaining cooperation and developing smooth
relationships
Line Managers’
HRM Responsibilities (2 of 2)
• Interpreting the company’s policies and
procedures
• Controlling labor costs
• Developing the abilities of each person
• Creating and maintaining departmental morale
• Protecting employees’ health and physical
conditions
The Human Resources Department
• Recruiters
• Equal employment opportunity (EEO)
representatives
• Job analysts
• Compensation managers
• Training specialists
• Labor relations specialists
New Approaches to Organizing HR
• Corporate HR teams – assist top management in
top-level issues; e.g., policy making meetings
• Embedded HR teams – assigned HR managers to
functional departments; e.g., sales and production
• Centers of expertise – are similar to specialized
HR consulting firms within the company; e.g., one
centre might provide specialized advice in
organizational change to all the company’s units
Trends Influencing HRM
Workforce Diversity Trends
TABLE 1.1 Demographic Groups as a Percent of the Workforce, 1992–2024
Age, Race,
and Ethnicity 1992 2002 2012 2022
Age: 16–24 16.9% 15.4% 13.7% 11.3%
25–54 71.4 70.2 65.3 63.9
55+ 11.8 14.3 20.9 24.8
White 85.0 82.8 79.8 77.0
Black 11.1 11.4 11.9 12.7
Asian 4.0 4.6 5.3 6.6
Hispanic origin 8.9 12.4 15.7 19.8
Source: U.S. Bureau of Labor Statistics Economic News Release,
www.bls.gov/news.release/ecopro.t01.htm, accessed December 19, 2013, and
www.bls.gov/news.release/ecopro.t01.htm, accessed April 16, 2017
Trends in How People Work
• Service Jobs
• “Gig” Workers –
the large and
growing workforce
of contract, temp,
freelance,
independent
contractor, “on-
demand” workers
Globalization and Competition Trade
Sum of US imports and exports through
globalization:
• Today: $5 Trillion
• 1980: $562 Billion
• 1960: $47 Billion
• Reason: all countries would gain; and economies
around the world did grow very quickly
Globalization and Competition Trade
Downsides
• More globalization means more competition, and
more competition means more pressure to be
“world class” (more culturally diverse, more
culturally aware, more readily available to anyone)
• Must provide lower costs, make employees more
productive and do things better but also less
expensively
Economic and Workforce Projections
• Unemployment rate due to offshore (exporting
jobs to lower-cost locations abroad)
• Slow-growing labor force: the “labor force
participation” is declining because of the
difference in generations
• Aging population: Baby Boomers will soon retire
from work, and Millenials cannot cover the work
they’ve done these many years
Technology Trends
• Talent Analytics:
using statistics to
solve problems
• Human Capital:
depending on
workers’
knowledge,
education, training,
skills and expertise
Technology Trends
• Misconception: hiring
managers typically look at a
potential employee’s schools
attended, grades (or
transcript) and references
• More factual: grammatically
correct resumes, never quit
school, and successful
initiative from previous jobs
Consequences for Today’s HRM
• Distributed HR
• HR and Performance
• HR and Evidence-Based Management
• HR and Employee Engagement
• HR and Strategy & Sustainability
• HR and Ethics
Distributed HR
• More HRM tasks are being redistributed from a
central HR dept. to the company’s employees and
line managers, due to digital tools like mobile
phones and social media
• For example: Google allows the use of
“crowdsourcing,” which involves current Google
employees to mentor new recruits based on their
similarities
HR and Performance
• There are 3 main levers:
– HR dept. lever: making sure that HRM function
is delivering its services efficiently; e.g.,
outsourcing certain HR activities
– Employee costs lever: e.g., the HR manager
takes a prominent role in advising top
management on company’s compensation,
incentives and benefits policies
– Strategic results lever: making policies to
produce and develop employee skill
HR and Evidence-Based Management
• What does Evidence-based Management mean?
– Use of data, facts, analytics, scientific rigor,
critical evaluation, and critically evaluated
research/case studies to support HRM
proposals, decision, practices, and conclusions
• Actual measurements: asks how did the trainees
like this program?
• Existing data: asks what happened to the
company profits after we started the program?
HR and Evidence-Based Management
• Research studies: asks what does the research
literature conclude about the best way to ensure
that trainees remember what they learn?
• High-performance work systems: sets of HRM
practices that together produce superior employee
performance; i.e., research trains workers into
management leaders
• We will explore more of this in Chapter 3
HR and Employee Engagement
• What is Employee Engagement?
– Refers to being psychologically involved in,
connected to, and committed to getting one’s
jobs done
• Engaged employees experience a high level of
connectivity with their work tasks, and therefore
work hard to accomplish their task-related goals
• Unfortunately, only around 21-30% are engaged
HR and Strategy & Sustainability
• Strategic HRM: formulating and executing human
resource policies and practices that produce
employee competencies and behaviours the
company needs to achieve its strategic aims
• Most companies do not just want to make profit,
but also show their involvement in sustainability;
i.e., the companies’ environmental and social
involvement
• For example: PepsiCo is involved in sustainability
– Human sustainability: providing clear nutrition
information on their products
– Environmental sustainability: protecting and
conserving global water supplies
– Talent sustainability: respecting workplace human
rights and creating a safe and healthy workplace
HR and Ethics
• Ethics: the principles of conduct governing an
individual or a group; specifically, the standards
you use to decide what your conduct should be
• There are a lot of ethical issues, even nowadays,
when it comes to fairness at the workplace:
– Sweatshops
– Child labour
– Unfair wages
– Inconsiderable policies and programs
The New Human Resource Manager
• HR and HR Competencies (p. 18)
– Leadership and navigation
– Ethical practice
– Business acumen (cleverness)
– Relationship management
– Consultation
– Critical evaluation
– Global & cultural effectiveness
– Communication
Plan of This Book
I. Introduction
II. Staffing: Workforce Planning and Employment
III. Training and HR Development
IV. Compensation and Total Rewards
V. Employee and Labor Relations
VI. Special Issues in HRM
• Discussion questions: 1.1, 1.4 - 1-7
1.1: Define human resource management
1.4: Give examples of how the HR manager can
support a company’s sustainability goals
1.5: List 4 important issues influencing HR
management today
1.6: Explain HR management’s role in relation to
the firm’s line management
1.7: Compare the authority of line and staff
managers
Bonus Mark for Group Presentation
• Group Presentations will be during the 3rd week of
Human Resource Management course
• Specifically on Thursday, Oct. 25, so topics and
group-forming will be completed next week on
Thursday, Oct. 18
• For you to get a bonus mark for your group (same
as last course), complete this week’s writing
activities (today’s, tomorrow’s and this Thursday’s)
• These will not go toward ePortfolio for this course
• Individual and Group Activity (p. 24): 1-13
1-13: List the trends that have affected HRM.
• Application Exercises (p. 24 and 25):
– Jack Nelson’s Problem – 1-19 and 1-20
– Carter Cleaning Company – 1-21 and 1-22
• Send answers to mariakasuncion@gmail.com
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Fundamentals of Human Resource

• Providing incentives and benefits

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