Introduction to Human Resource Management

• Chapter 1 – Overview, Trends, and Modern Practices

• [Figure Placeholder: HRM-related graphic]
 Learning Objectives

• By the end of this chapter, you should be able to:

• - Explain what human resource management (HRM) is and how it connects to the management process.
• - Discuss key trends influencing HRM, including demographic, economic, technological, and globalization
factors.
• - Describe the concept of 'distributed HR' and its impact on modern organizations.
• - Identify essential competencies of HR managers today.
• - Outline the plan and structure for HRM in this course.
 Introduction to HRM

• - HRM Defined: The process of acquiring, training, appraising, and compensating employees, and
addressing their labor relations, safety, and fairness concerns.
• - Why It Matters: HRM is not just an HR department’s job; all managers play a role in managing people
effectively.
• - Dual Role:
• * HRM as a managerial responsibility – Every manager must hire, train, motivate, and retain talent.
• * HRM as a specialized function – Managed by HR departments with expertise in employee-related
processes.
• [Figure Placeholder: Strategic Goals → HR Policies → Employee Skills/Behaviors]
 The Management Process and HRM

• Five Basic Functions of Management:

• 1. Planning – Setting goals, developing procedures, forecasting workforce needs.
• 2. Organizing – Defining roles, structuring departments, establishing communication.
• 3. Staffing – Recruiting, selecting, training, and compensating employees.
• 4. Leading – Motivating and guiding individuals and teams to achieve goals.
• 5. Controlling – Monitoring performance, comparing against standards, making adjustments.
• HRM’s Focus: Primarily on Staffing but connected to all five functions.
 Core HRM Activities

• - Job Analysis: Identifying duties, responsibilities, and required skills for each position.
• - Workforce Planning: Determining labor needs and forecasting future requirements.
• - Recruitment & Selection: Attracting and choosing suitable candidates.
• - Onboarding & Training: Integrating new employees and upgrading skills.
• - Compensation & Benefits: Ensuring fair pay, incentives, and perks.
• - Performance Appraisal: Reviewing and improving employee performance.
• - Employee Relations: Maintaining morale, handling grievances, and fostering engagement.
 Why HRM Matters to All Managers

• - Avoiding Mistakes: Poor HR practices can lead to hiring the wrong person, high turnover, low morale, or
legal issues.
• - Driving Performance: Even with perfect plans and resources, failure to hire, motivate, and retain the right
people can sink an organization.
• - Key Insight: Effective HRM ensures the workforce is skilled, engaged, and aligned with company goals.
 Common Personnel Mistakes

• - Hiring unsuitable candidates for the role.

• - Experiencing high employee turnover rates.
• - Facing lawsuits from discriminatory practices.
• - Being cited for unsafe work conditions.
• - Allowing poor training to harm productivity.
• - Violating labor laws or fairness standards.
 HRM’s Impact on Performance

• Example – Ball Corp.:

• - Trained supervisors to set and communicate daily goals.
• - Used team scorecards to track performance.
• - Provided employee skill development.
• - Result: +84 million cans produced, complaints down 50%, ROI up $3M.
• Key Takeaway: HR practices can directly increase productivity and profitability.
 HR in Small Businesses

• - Over half the U.S. workforce is employed by small firms.

• - Most small businesses don’t have a dedicated HR department.
• - Owners and managers handle hiring, payroll, and employee issues themselves.
• - HRM skills are crucial for running a small business effectively.
 Line vs Staff Authority

• - Line Authority: The right to issue orders and expect them to be followed.
• - Staff Authority: The right to advise or support.
• - HR Managers are typically staff managers, supporting line managers in people-related decisions.
 Line Managers’ HR Responsibilities

• 1. Placing the right person in the right job.

• 2. Starting new employees effectively.
• 3. Training for new or changing roles.
• 4. Improving individual performance.
• 5. Fostering cooperation and teamwork.
• 6. Explaining company policies.
• 7. Controlling labor costs.
• 8. Developing employee abilities.
• 9. Maintaining departmental morale.
• 10. Ensuring health and safety standards.
 The HR Department

• - Roles & Functions:

• * Recruiters
• * EEO Officers
• * Job Analysts
• * Compensation Managers
• * Training Specialists
• * Labor Relations Specialists
• [Figure Placeholder: HR Department Org Chart]
 New Approaches to Organizing HR

• - Shared Services: Centralized HR teams support all departments.

• - Embedded HR: HR generalists assigned to specific business units.
• - Centers of Expertise: Internal consulting groups for specialized HR issues.
 Trends Shaping HRM – Overview

• - Workforce Demographics: Aging population, increased diversity.

• - Work Patterns: Growth of gig economy, more flexible work.
• - Globalization: International operations, cultural diversity.
• - Economic Changes: Slower growth, skill mismatches.
• - Technology: Digital recruitment, analytics, automation.
 Workforce Demographics & Diversity

• - Aging Workforce: Baby boomers retiring, fewer young workers.

• - Increasing Diversity: More women, minorities, and foreign-born workers.
• - Nontraditional Work Arrangements: Freelancers, part-timers, job shares.
• [Figure Placeholder: Workforce Demographic Trends Table]
 How People Work – Service Economy & Gig Work

• - Shift to Services: Over two-thirds of U.S. workers now in service industries.

• - Gig & On-Demand Work: Platforms like Uber, Airbnb, TaskRabbit.
• - HR Implications: Need policies for freelancers/contractors.
• - Pros & Cons: Flexibility vs. insecurity and lack of benefits.
 Human Capital

• - Definition: Skills, education, knowledge, and experience employees bring.

• - Increased Importance: Even manufacturing jobs need advanced tech skills.
• - Managerial Challenge: Select, train, and reward employees for innovation.
• - Example: Bank improved profits by pairing new software with staff training.
 Globalization Trends

• - Definition: Expanding operations into foreign markets.

• - Drivers: Trade agreements, reduced tariffs, new markets.
• - HR Challenges: Managing diverse workforces, adapting policies to local laws.
• - Offshoring: Moving jobs overseas for cost savings and skills.
 Economic Trends

• - Great Recession: GNP and housing prices fell, unemployment rose.

• - Slower Labor Force Growth: Aging population.
• - Unbalanced Labor Market: Shortages in tech, underemployment elsewhere.
• - HR Focus: Talent management is a priority.
 Technology Trends

• - Digital Recruitment: Social media replaces job ads.

• - Mobile Applications: Payroll, attendance, self-service.
• - Gamification: Interactive training.
• - Talent Analytics: Predict turnover, improve hiring.
 History of HRM

• - Early Stage: Began in late 1800s to handle labor issues.

• - Evolution: From welfare and hiring offices to payroll and union relations.
• - Modern Shift: Strategic HRM with tech and talent focus.
 Distributed HR

• - Definition: HR tasks shared with managers and employees.

• - Example – Hilton: Shifted routine HR to employees.
• - Impact: Managers more involved in HR decisions.
• [Figure Placeholder: Distributed HR Workflow]
 Digital & Social Media in HR

• - Transparency: Sites like Glassdoor share pay and culture.

• - Recruitment: LinkedIn, Gild for skills.
• - Retention: Analytics flag at-risk employees.
• - Training: Data-driven course selection.
 HR and Strategy

• - Align HR policies to strategic goals.

• - Model: 1) Set aims → 2) Identify behaviors → 3) Develop HR practices.
• - Example – [Link]: Hires sociable, outdoorsy staff, keeps jobs local.
• [Figure Placeholder: HR–Strategy Link Model]
 HR and Performance

• - Efficiency Lever: Faster, cheaper HR services.

• - Cost Lever: Manage pay, incentives, staffing.
• - Strategic Lever: Build workforce capabilities.
 Evidence-Based HRM

• - Definition: Using data and facts for HR decisions.

• - Sources: Surveys, metrics, ROI, research.
• - Goal: Prove HR programs improve performance.
 HR and Sustainability

• - Triple Bottom Line: Financial, social, environmental.

• - Example – PepsiCo: 'Performance with Purpose.'
• - HR Role: Policies supporting environmental and talent sustainability.
 Employee Engagement

• - Definition: Psychological connection to work.

• - Why It Matters: Higher productivity, lower turnover.
• - Example – Kia Motors UK: Leadership training, recognition, communication.
 Competencies of the Modern HR Manager

• - Leadership & Navigation

• - Ethical Practice
• - Business Acumen
• - Relationship Management
• - Critical Evaluation
• - Global & Cultural Effectiveness
• - Communication
• [Figure Placeholder: SHRM Competency Model Diagram]
 Functional Knowledge Areas

• - Talent Acquisition & Retention

• - Employee Engagement
• - Learning & Development
• - Total Rewards
• - HR Structure & Effectiveness
• - Workforce Management
• - Organizational Development