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A Framework for Human Resource Management, 5th ed.

Gary Dessler

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Managing Human Resources Today


Ch 1

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When you finish studying this chapter, you should be able to:

Answer the question, What is human resource management? Discuss the components of the changing environment of human resource management. Describe the nature of strategic planning. Give examples of human resource managements role as a strategic partner.

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What is Human Resource Management?


Human resource (HR) management
- refers to the practices and policies you need to carry out the personnel aspects of your management job

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Human Resource Management


Conducting job analyses Planning labor needs and recruiting job candidates Selecting job candidates Orienting and training new employees Managing wages and salaries
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Human Resource Management (cont.)


Providing incentives and benefits Appraising performance Communicating Training and developing Building employee commitment

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What a Manager Should Know About


Equal opportunity, ethics, and affirmative action Employee health and safety, and ethical treatment Grievance and labor relations

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Why Is HR Management Important to All Managers?


Personnel mistakes you dont want to make: Having your employees not performing at peak capacity Hiring the wrong person for the job Experiencing high turnover Finding employees not doing their best Having your company taken to court because of your discriminatory actions
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Why Is HR Management Important to All Managers? (cont.)


Personnel mistakes you dont want to make: Having your company cited under federal occupational safety laws for unsafe practices Allowing a lack of training to undermine your departments effectiveness Committing any unfair labor practices
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Line Versus Staff Authority


Authority
- the right to make decisions, to direct the work of others, and to give orders

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Line Versus Staff Authority (cont.)


Line managers
- authorized to give orders

Line managers are associated with managing functions (like sales or production) that the company needs to exist

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Line Versus Staff Authority (cont.)


Staff managers
- assist and advise line managers in accomplishing these goals

Staff managers generally run departments that are advisory or supportive, like purchasing, human resource management, and quality control
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Line Managers HR Responsibilities


Placing the right person in the right job Starting new employees in the organization Training employees for jobs that are new to them Improving the job performance of each person Gaining creative cooperation and developing smooth working relationships
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Line Managers HR Responsibilities (cont.)


Interpreting the companys policies and procedures Controlling labor costs Developing the abilities of each person Creating and maintaining departmental morale Protecting employees health and physical conditions
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Human Resource Departments Management Responsibilities


Compensation and benefits Recruiting Training and development Job analysis Equal employment opportunity Labor relations

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Insert figure 1.1

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HR in Small Business
Small firms generally don't have the critical mass required for a full-time human resource manager.

Their human resource management tends to be ad hoc and informal.

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HRs Changing Role


The metamorphosis of personnel into human resource management reflects the fact that in todays business environment, highly trained and committed employees are often a firms main real sustainable competitive advantage.

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HRs Changing Environment


Globalization
- refers to firms tendency to extend their sales, ownership, and/or manufacturing to new markets abroad

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HRs Changing Environment


Technological advances Nature of work
- service jobs - outsourcing - human capital

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Workforce Trends

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HRs Changing Environment


Growing emphasis on knowledge workers and human capital Human capital
- refers to the knowledge, education, training, skills, and expertise of a firms workers

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Demographic and Workforce Trends


Labor force growth is not expected to keep pace with job growth Labor force is getting older Shift to nontraditional workers

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Gen Y
May be the most high maintenance workforce in the history of the world Their capacity for using information technology will also make them the most high-performing

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The Strategic Role of Human Resource Management


Main responsibility facing human resource managers is to institute policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic goals

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The Strategic Role of Human Resource Management (cont.)


Strategy
- the companys plan for how it will balance its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage

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HRs Role in Executing Strategy


Study found that mergers and/or acquisitions in which the human resource teams had been involved were more likely to have been successful

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Strategy and HR Albertsons


Albertsons human resource management team chose a computer system from Unicru of Portland, Oregon that collects and analyzes the information entered by applicants online. It ranks applicants based on the extent to which they exhibit the customer-focused traits that predict success in retail jobs and helps track candidates throughout the screening process.

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Two Strategic Human Resource Challenges


1. Focus on boosting competitiveness, reducing costs, and improving employee performance 2. Be more involved in both formulating and implementing company strategy

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Corporate Strategy

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Basics of Strategic Planning


Corporate-level strategy
- identifies the portfolio of businesses that comprise the company and the ways in which these businesses relate to each other

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Basics of Strategic Planning


Business-level/competitive strategy
- identifies how to build and strengthen the businesss long-term competitive position in the marketplace

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HR and Competitive Advantage


Competitive advantage
- any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share

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Basics of Strategic Planning


Functional strategies
- identify the basic courses of action that each of the businesss departments will pursue in order to help the business attain its competitive goals

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Strategic Human Resource Management


Strategic human resource management
- formulating and executing HR systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims

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Linking Corporate and HR Strategies

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HRs Role in Formulating Strategy


HR participates by supplying information regarding the companys internal human strengths and weaknesses

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High-Performance Work System


High-performance work system
- an integrated set of human resource management policies and practices that together produce superior employee performance

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Measuring HR Performance
Employers expect their human resource management teams to provide measurable evidence of their effectiveness.

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Sample Metrics - IBM


Human resource managers need access to the performance measures (or metrics), as well as to comparable, benchmark-able figures from similar firms. For example, median HR expenses as a proportion of companies total operating costs average about 0.8%. There tends to be between 0.9 and 1.0 human resource staff persons per 100 employees.
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The HR Scorecard
HR scorecard
- shows the quantitative standards, or metrics, the firm uses to measure HR activities, and to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee behaviors

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HR and Technology
Self-service Call centers Productivity improvement Outsourcing

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HRIS
HR portals provide employees with a single gateway to all HR information Streamline the HR process and enable HR managers to focus more on strategic issues

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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