Human Resource Management
13th Edition
Chapter 1
STRATEGIC HUMAN RESOURCE
MANAGEMENT:
AN OVERVIEW
Copyright [2014] Pearson Education 4-1
Learning Objectives
Describe employer branding and define human
resource management.
Identify the human resource management functions.
Identify the external environmental factors that affect
human resource management and describe the trend
for increased mobility of tasks performed by HR
professionals.
Explain why corporate culture is a major internal
environmental factor.
Explain who performs human resource management
tasks.
Copyright [2014] Pearson Education 1-2
Learning Objectives (Cont.)
Describe how human resource management activities
may be different for small businesses.
Describe the various human resource classifications
including executives, generalists, and specialists.
Describe the evolution of human resource
management and explain the evolving HR
organization.
Describe the professionalization of human resource
management.
Explain the possible hurdles of managing human
resources across different cultures.
Copyright [2014] Pearson Education 1-3
Corporate Culture
Corporate culture: System of shared
values, beliefs, and habits within an
organization that interacts with the formal
structure to produce behavioral norms
Throughout the text, the importance of
various topics related to corporate culture
will be described beginning with Employer
Branding
Copyright [2014] Pearson Education 1-4
HRM in Action: Corporate Culture
and Employer Branding
Employer branding: Firms
corporate image or culture created
to attract and retain the type of
employees the firm is seeking
Companies want a brand that will
entice individuals to join and remain
with the firm
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Human Resource Management (HRM)
Utilization of individuals to achieve
organizational objectives
Concern of all managers at every
level
Face a multitude of challenges
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HRM Functions
Human
Resource
1
Management
Safety and
Health
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Staffing
Process of ensuring the organization
always has:
Required number of employees
Employees with appropriate skills
Employees in the right jobs at the right time
Constant job analysis, human resource
planning, recruitment, and selection
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Job Analysis
Systematic process of determining
skills, duties, and knowledge required
for performing jobs in an organization
Impacts virtually every aspect of HRM
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Human Resource Planning
Matching internal and external supply
of people with anticipated job
openings over a specified period of
time
Sets the stage for recruitment and
other HR actions
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Recruitment and Selection
Recruitment: Attracting individuals
to apply for jobs
Must be timely
Applicants need appropriate qualifications
Need sufficient number of applicants
Selection: Choosing individual best suited
for a particular position and the organization
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Human Resource Development
Major HRM functions include:
Training
Development
Career planning
Career development
Organization development
Performance management
Performance appraisal
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Training and Development
Training: Providing learners with
knowledge and skills needed for their
present jobs
Development: Offering learning that
goes beyond present job
Long-term focus
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Career Planning and Development
Career planning: Ongoing process.
Individual sets career goals
Identifies means to achieve them
Career development: Formal
approach used by the organization.
Ensures a pipeline of people with proper
qualifications and experiences
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Organization Development
Planned and systematic attempt to:
Make the organization more
effective
Create positive behavioral
environment
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Performance Management
Goal-oriented process to ensure
organizational processes are in
place to maximize productivity
Applies to employees, teams, and
ultimately, the organization
Copyright [2014] Pearson Education 1-16
Performance Appraisal
Formal system of review and evaluation
Individual
Team
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Compensation
All rewards that individuals receive as
a result of their employment
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Financial Compensation
Direct: Pay employee receives in form
of wages, salaries, bonuses, or
commissions
Indirect: Benefits employee receives
Paid vacations, sick leave, holidays,
medical insurance
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Nonfinancial Compensation
Satisfaction that employees receive
from:
Job itself
Psychological and/or physical
environment
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Safety and Health
Safety: Protecting employees from injuries
caused by work-related accidents
Health: Employees' freedom from illness and
their general physical and mental well-being
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Labor Unions and Collective
Bargaining
Businesses are required by law to
recognize a union and bargain with it
in good faith if firms employees want
a union to represent them
Human resource activity with a union
is often referred to as industrial
relations
Copyright [2014] Pearson Education 1-22
Internal Employee Relations
HRM activities associated with the
movement of employees within the
organization. Examples:
Promotions
Demotions
Terminations
Resignations
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Interrelationships of HRM
Functions
All HRM functions are interrelated so
that each function affects the others
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Environment of Human Resource Management
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Legal Considerations
Federal, state, and local legislation
Court decisions
Presidential executive orders
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Labor Market
Potential employees located within
certain geographic area
Always changing
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Society
Firm must accomplish its purpose while
complying with societal norms
Ethics: Deals with what is good and bad,
or right and wrong, and with moral duty
and obligation
Corporate social responsibility:
Implied, enforced, or felt obligation of
managers to serve or protect interests of
groups other than themselves
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Unions
Group of employees who have joined
together to collectively bargain with their
employer
Become a third party when dealing with the
company
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Shareholders
Owners of a corporation
Have invested money in the firm
May at times challenge programs
considered by management to be
beneficial to organization
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Competition
In product or service and labor markets
Firms must maintain a supply of
competent employees
Bidding war often results
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Customers
People who actually use firms goods
and services
Employment practices should not
antagonize members of the market that
the firm serves
Workforce should be capable of
providing top-quality goods and
services
Copyright [2014] Pearson Education 1-32
Trends & Innovations: Mobile HR -
Is the Cloud the Limit?
Trend: Increased mobility of tasks
performed by HR professionals
Mobile applications are available for
many HR functions
Cloud computing: Means of providing
software and data via the Internet
Copyright [2014] Pearson Education 1-33
HR Technology
Rapid technological changes provide:
Increased sophistication
Ability to design more useful human
resource information systems (HRIS)
Copyright [2014] Pearson Education 1-34
HRIS
An organized approach for obtaining
information on which to base HR
decisions
An umbrella for merging the various
subsystems
Mainstay HR responsibilities need an
HRIS
Copyright [2014] Pearson Education 1-35
Economy
When economy is booming, it is often
more difficult to recruit qualified
workers
In economic downturn, more
applicants are typically available
Copyright [2014] Pearson Education 1-36
Unanticipated Events
Unforeseen occurrences in external
environment
Require a tremendous amount of
adjustment with regard to HRM
Copyright [2014] Pearson Education 1-37
Corporate culture as a Major Internal
Environment Factor
Gives people a sense of how to
behave and what they ought to
be doing
Topics related to corporate
culture are presented throughout
this text
Copyright [2014] Pearson Education 1-38
HRs Changing Role: Questions
Can some HR tasks be performed more
efficiently by line managers or outside
vendors?
Can some HR tasks be centralized or
eliminated?
Can technology perform tasks that were
previously done by HR personnel?
Copyright [2014] Pearson Education 1-39
Who Performs Human
Resource Management Tasks?
Human resource managers
HR outsourcing
HR shared service centers
Professional employer organization
(employee leasing)
Line managers
Copyright [2014] Pearson Education 1-40
Human Resource Manager
Historically, the HR 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
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HR Outsourcing
Transfers responsibility to an
external provider
Discrete services
Business process outsourcing (BPO)
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Discrete Services
Single set of high-volume repetitive
functions is outsourced to a third
party
Typically transactional HR activities
Example: 401(k) administration
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Business Process Outsourcing
(BPO)
Majority of HR services are
transferred to third party
Largest HR outsourcer is IBM
Kraft Foods Inc. and IBM signed
a multi-year BPO agreement
Copyright [2014] Pearson Education 1-44
Recruitment Process Outsourcing
(RPO)
As recession slowed and firms began
to hire, some companies realized that
they had lost their recruiting skills
Many had not kept up with the rapidly
changing technology
RPO companies are stepping in to fill
the void in recruitment skills
Copyright [2014] Pearson Education 1-45
HR Shared Service Centers
(SSCs)
Takes routine, transaction-based
activities that are dispersed and
consolidates them in one location
Provide an alternative to HR
outsourcing
Copyright [2014] Pearson Education 1-46
Professional Employer
Organization (Employee Leasing)
Company that leases employees to other
businesses
Advantages:
Economies of scale
Greater job mobility for workers
Job security through leasing company
PEO can handle compliance requirements
of programs
Copyright [2014] Pearson Education 1-47
Line Managers Performing
HR Tasks
Line managers: Individuals directly
overseeing the accomplishment of the
organizations primary goals
Involved with human resources by nature
of their jobs
Now performing some duties typically
done by HR
Copyright [2014] Pearson Education 1-48
Human Resource Management in
Small Businesses
Many college graduates obtain jobs in
small businesses
Same HR functions must be
accomplished
Manner in which they are
accomplished may be altered
Copyright [2014] Pearson Education 1-49
Human Resource Executives,
Generalists, and Specialists
Copyright [2014] Pearson Education 1-50
Evolution Of Human Resource
Management
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Traditional Human Resource
Function in Large Firm
Included separate sections
Sections were placed under an HR
manager
Each HR function had a supervisor
and staff
HR manager worked closely with top
management in formulating policy
Copyright [2014] Pearson Education 1-52
The Evolving HR Organization
HR outsourcing
HR shared service centers
Professional employer organization
Line manager
HR becoming more strategic
Copyright [2014] Pearson Education 1-53
A Possible Evolving HR
Organization Example
President
and CEO
Vice
Director
Vice President, Vice Vice
of Safety
President, Strategic President, President,
and
Operations Human Finance Marketing
Health
Resources
Training & Compensation Staffing (Line Managers, use of
Development (Shared Service Applicant Tracking Systems)
(Outsourced) Centers)
Copyright [2014] Pearson Education 1-54
Professionalization of Human
Resource Management
Profession: A vocation characterized
by a:
Common body of knowledge
Procedure for certifying members of
profession
Copyright [2014] Pearson Education 2-55
Society for Human Resource
Management (SHRM)
Largest national professional organization
for HR management individuals
Basic goals of the society:
Defining, maintaining, and improving
standards of excellence in the practice of
human resource management
Publishes HRMagazine
Copyright [2014] Pearson Education 2-56
Human Resource Certification
Institute (HRCI)
Recognizes HR professionals through
certification program
Offers three certifications for HR
professionals:
PHR (Professional in Human Resources)
SPHR (Senior Professional in Human
Resources)
GPHR (Global Professional in Human
Resources)
Copyright [2014] Pearson Education 2-57
American Society for Training and
Development (ASTD)
Worlds largest association dedicated
to workplace learning and
performance professionals
ASTD Certification Institute has the
Certified Professional in Learning and
Performance (CPLP) credential
Copyright [2014] Pearson Education 2-58
WorldatWork
Focused on compensation, benefits,
worklife effectiveness, and integrated
total rewards
Certification of professionals
Strategies to attract, motivate, and retain
an engaged and productive workforce
Copyright [2014] Pearson Education 2-59
A Global Perspective: Country Culture
as a Possible Barrier to Global
Business
Countrys culture: Set of values,
symbols, beliefs, languages, and
norms that guide human behavior
within the country
Cultural differences between
countries are a major factor
influencing global business
Cultural misunderstandings are
common
Copyright [2014] Pearson Education 1-60
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