Transcript STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW

1-1
Human Resources Management
Chapter 1
STRATEGIC HUMAN RESOURCE
MANAGEMENT: AN OVERVIEW
Human Resource Management
1-2



Utilization of individuals to achieve organizational
objectives
All managers at every level must concern themselves
with human resource management
Five functions
1-3
HUMAN RESOURCE
MANAGEMENT FUNCTIONS
Human Resource Management Functions
1-4
Human
Resource
1
Management
Safety and
Health
Staffing




Job Analysis
Human Resource Planning
Recruitment
Selection
1-5
Human Resource Development
1-9







Training
Development
Career Planning
Career Development
Organizational Development
Performance Management
Performance Appraisal
Compensation
Compensation - All
rewards that
individuals receive as
a result of their
employment
1-13
Compensation
1-14



Direct Financial Compensation - Pay that person
receives in form of wages, salaries, bonuses, and
commissions
Indirect Financial Compensation (Benefits) - All
financial rewards not included in direct compensation
such as paid vacations, sick leave, holidays, and
medical insurance
Nonfinancial Compensation - Satisfaction that person
receives from job itself or from psychological and/or
physical environment in which person works
Safety and Health
Employees who work in safe
environment and enjoy
good health are more likely
to be productive and yield
long-term benefits to
organization.
1-15
Legal Considerations
Federal, state and
local legislation
 Court decisions
 Presidential
executive orders

1-17
HR’s Changing Role: Questions That Are
Being Asked
1-18




Can some HR tasks be performed more efficiently by
line managers or outside vendors?
Can some HR tasks be centralized or eliminated
altogether?
Can technology perform tasks that were previously
done by HR personnel?
Many HR departments continue to get smaller.
HR’s Changing Role: Who Performs Human
Resource Management Tasks?
1-19





Human Resource Managers
HR Outsourcing
HR Shared Service Centers
Professional Employer Organization (Employee
Leasing)
Line Managers
Copyright © 2010 Pearson Education, Inc. publishing as Prentice Hall
Human Resource Manager
1-20




Historically, the human resource manager was
responsible for each of the five HR functions
Acts in advisory or staff capacity
Works with other managers to help them deal
with human resource matters
Today HR departments continue to get smaller
because others are accomplishing certain
functions
Copyright © 2010 Pearson Education, Inc. publishing as Prentice
Hall
HR Outsourcing


Transfers responsibility to
an external provider
Market for HR outsourcing is
growing dramatically
1-21
1-22
HUMAN RESOURCE AS A
STRATEGIC PARTNER
HR as a Strategic Partner
HR executives must
understand complex
organizational design
 Sharp deviation from what
has traditionally been an
administrative-type role for
HR

1-23
Strategic Activities CEOs Want from HR
1-24





Make workforce strategies integral to company
strategies and goals
Leverage HR’s role in major change initiatives
Earn the right to a seat at the corporate table
Understand finance and profits
Help line managers achieve their goals
Strategic Activities CEOs Want from HR
(Cont.)
1-25



HR professionals must integrate goals of HR with
goals of the organization
Must focus on expanding its strategic and high-level
corporate participation with an emphasis on adding
value
HR must demonstrate that it can produce a return on
investment for its programs
Questions to Be Answered to Determine if
HR Is Involved Strategically
1-26




Is HR present at mergers and acquisitions planning
meetings, strategy reviews, and restructuring
discussions?
Does HR provide an annual report on its ROI?
Does HR lead the people strategy?
Has it developed performance indicators for the
success of that strategy?
Questions to Be Answered to Determine if
HR Is Involved Strategically (Cont.)
1-27




Is HR rated by its customers?
Does the organization conduct strategic versus
entitlement employee surveys?
Are employee and other survey initiatives linked to
customer and financial metrics?
Is there an ROI process to evaluate HR initiatives
connected to the business strategy?
Human Capital Metrics
Measures of HR
performance
1-28
Examples of HR Metrics
1-29






Time to fill open positions
HR headcount ratios
Administrative cost per employee
Turnover cost
Training return on investment
Quality of hire
1-30
HUMAN RESOURCE
DESIGNATIONS
Characteristics of an HR Executive
1-31

Performs one or more HR functions

A top-level manager

Reports directly to CEO or head of major division
Characteristics of an HR Generalist
1-32


Performs tasks in various HR-related areas
Involved in several, or all, of the five HRM
functions
Characteristics of an HR Specialist
1-33

May be an HR executive, manager, or nonmanager

Typically concerned with only one of the five
functional areas
1-34
EVOLUTION OF HUMAN
RESOURCE MANAGEMENT
Traditional Human Resource Function in
Large Firm
1-35




Separate sections were often created
Placed under an HR Manager
Each HR function may have a supervisor & staff
HR Manager works closely with top management
in formulating policy
Traditional Human Resource Functions
1-36
President
and CEO
Vice President,
Marketing
Manager,
Training and
Development
Vice President,
Operations
Manager,
Compensation
Vice President,
Finance
Manager,
Staffing
Vice President,
Human
Resources
Manager,
Safety and
Health
Manager,
Labor
Relations
A Possible Evolving HR Organization
Example
1-37
President
and CEO
Vice
President,
Operations
Vice
President,
Strategic
Human
Resources
Training &
Development
(Outsourced)
Vice
President,
Finance
Compensation
(Shared Service
Centers)
Vice
President,
Marketing
Staffing (Line
Managers, Use of
Applicant Tracking
Systems)
Director
of Safety
and
Health
Next
1-38
PART II. HR ETHICAL, LEGAL, AND SOCIAL
CONSIDERATIONS
Chapter 3: Workforce Diversity, Equal
Employment Opportunity, and Affirmative Action