Fundamentals of Human

Resource Management
Ninth Edition

DeCenzo and Robbins

Chapter 2
Fundamentals of HRM

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
 The role of human resource managers has
changed. HRM jobs today require a new level of
sophistication.
 Federal and state employment legislation has placed new
requirements on employers.
 Jobs have become more technical and skilled.
 Traditional job boundaries have become blurred with the
advent of such things as project teams and telecommuting.
 Global competition has increased demands for productivity.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
 The Strategic Nature – HRM must be
 a strategic business partner and represent
employees.
 forward-thinking, support the business strategy,
and assist the organization in maintaining
competitive advantage.
 concerned with the total cost of its function and
for determining value added to the organization.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
 HRM is the part of the organization
concerned with the “people” dimension.
 HRM is both a staff, or support function that
assists line employees, and a function of
every manager’s job.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
 HRM Certification
 Colleges and universities offer HR programs.
 The Society for Human Resource Management
and Human Resource Certification Institute
offer professional certification.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Why is HRM Important to an
Organization?
Four basic
functions:
 Staffing

 Training and
Development
 Motivation

 Maintenance

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 How External Influences Affect
HRM

 Strategic Environment
 Governmental Legislation
 Labor Unions
 Management Thought
Fundamentals of Human Resource Management 9e, DeCenzo and Robbins
 How External Influences Affect
HRM
 HRM Strategic Environment includes:
 Globalization
 Technology
 Work force diversity
 Changing skill requirements
 Continuous improvement
 Work process engineering
 Decentralized work sites
 Teams
 Employee involvement
 Ethics

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 How External Influences Affect
HRM
 Governmental Legislation
 Laws supporting employer and employee actions
 Labor Unions
 Act on behalf of their members by negotiating
contracts with management
 Exist to assist workers
 Constrain managers
 Affect non unionized workforce

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 How External Influences Affect
HRM
 Management Thought
 Management principles, such as those from
scientific management or based on the
Hawthorne studies influence the practice of
HRM.

 More recently, continuous improvement programs

have had a significant influence on HRM
activities.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Staffing Function Activities
 Employment planning
 ensures that staffing will contribute to the
organization’s mission and strategy
 Job analysis
 determining the specific skills, knowledge and
abilities needed to be successful in a particular
job
 defining the essential functions of the job

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Staffing Function Activities
 Recruitment
 the process of attracting a pool of qualified
applicants that is representative of all groups in
the labor market
 Selection
 the process of assessing who will be successful
on the job, and
 the communication of information to assist job
candidates in their decision to accept an offer

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Goals of the Training and
Development Function
 Activities in HRM concerned with assisting
employees to develop up-to-date skills,
knowledge, and abilities
 Orientation and socialization help employees to
adapt
 Four phases of training and development
 Employee training
 Employee development
 Organization development
 Career development

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 The Motivation Function
 Activities in HRM concerned with helping employees
exert at high energy levels.
 Implications are:
 Individual
 Managerial
 Organizational
 Function of two factors:
 Ability
 Willingness
 Respect
Fundamentals of Human Resource Management 9e, DeCenzo and Robbins
 The Motivation Function
 Managing motivation includes:
 Job design
 Setting performance standards
 Establishing effective compensation and benefits
programs
 Understanding motivational theories

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 The Motivation Function
 Classic Motivation Theories
 Hierarchy of Needs –Maslow
 Theory X – Theory Y –McGregor
 Motivation – Hygiene – Herzberg
 Achievement, Affiliation, and Power Motives –
McClelland
 Equity Theory – Adams
 Expectancy Theory - Vroom

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 How Important is the
Maintenance Function
 Activities in HRM concerned with maintaining
employees’ commitment and loyalty to the
organization.
 Health
 Safety
 Communications
 Employee assistance programs
 Effective communications programs provide for 2-
way communication to ensure that employees are
well informed and that their voices are heard.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Four Functions:
 Employment
 Training and development
 Compensation/benefits
 Employee relations

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Employment - Employment specialists:
 coordinate the staffing function
 advertising vacancies
 perform initial screening
 interview
 make job offers
 do paperwork related to hiring
 Training and Development –
 help employees to maximize their potential
 serve as internal change agents to the organization
 provide counseling and career development

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Compensation and Benefits –
 establish objective and equitable pay systems
 design cost-effective benefits packages that help
attract and retain high-quality enployees.
 help employees to effectively utilize their benefits,
such as by providing information on retirement
planning.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Employee Relations – involves:
 communications
 fair application of policies and procedures
 data documentation
 coordination of activities and services that
enhance employee commitment and loyalty
 Employee relations should not be confused with
labor relations, which refers to HRM in a
unionized environment.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Purpose and Elements of HRM
Communications
 Keep employees informed of what is happening
and knowledgeable of policies and procedures.
 Convey that the organization values employees.
 Build trust and openness, and reinforce company
goals.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Translating HRM Functions
into Practice
 Effective Communication programs involve:
 Top Management Commitment
 Effective Upward Communication
 Determining What to Communicate
 Allowing for Feedback
 Information Sources

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 Does HRM Really Matter?
 Research has shown that a fully functioning HR
department does make a difference.
 Organizations that spend money to have quality HR
programs perform better than those who don’t.
 Practices that are part of superior HR services
include:
 rewarding productive work
 creating a flexible work-friendly environment
 properly recruiting and retaining quality workers
 effective communications

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 HRM in an Entrepreneurial
Enterprise
 General managers may perform HRM
functions, HRM activities may be outsourced,
or a single generalist may handle all the HRM
functions.
 Benefits include
 freedom from many government regulations
 an absence of bureaucracy
 an opportunity to share in the success of the
business

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 HRM in a Global Village
 HRM functions are more complex when
employees are located around the world.
 Consideration must be given to such things
as foreign language training, relocation and
orientation processes, etc.
 HRM also involves considering the needs of
employees’ families when they are sent
overseas.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 HR and Corporate Ethics
 HRM must:
 Make sure employees know about corporate
ethics policies
 Train employees and supervisors on how to act
ethically

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

 HR and Corporate Ethics
 The Sarbanes-Oxley Act passed in 2002,
establishes procedures for public companies
regarding how they handle and report their
financial status.
 Establishes penalties for noncompliance.
 Provides protection for employees who report
executive wrongdoing.
 Requires that companies have mechanisms in place
where complaints can be received and investigated.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins