CHAPTER Human Resource Management in Organizations SECTION Environment for Human Resource Management © © 2011 2011 Cengage Cengage Learning Learning All All rights rights reserved reserved May May not not be be scanned, scanned, copied copied or or duplicated, duplicated, or or posted posted to to aa publicly publicly accessible accessible Web Web site, site, in in whole whole or or in in part part PowerPoint PowerPoint Presentation Presentation by by Charlie Charlie Cook Cook The The University University of of West West Alabama Alabama Chapter Objectives After you have read this chapter, you should be able to: • Define human capital and identify the seven categories of HR activities • Discuss how organizational culture and HR are related and identify four areas that are part of these relationships • • • Explain how organizational ethical issues affect HR management Provide an overview of six challenges facing HR today Describe how the major roles of HR management are being transformed • Explain the key competencies needed by HR professionals and why certification is important © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–2 Nature of Human Resource Management • Human Resource (HR) Management Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals • Who Is an HR Manager? In the course carrying out their duties, every operating manager is, in essence, an HR manager HR specialists design processes and systems that operating managers help implement © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–3 Types of Organizational Assets Assets Physical Financial Intangible Human © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–4 FIGURE 1–1 Core Competencies in Possible HR Areas © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–5 Human Capital in Organizations Human Capital Core Competency The collective value of the capabilities, knowledge, A unique capability that creates high value and skills, life experiences, and motivation of an differentiates an organization from its competition organizational workforce © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–6 FIGURE 1–2 HR Management Functions © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–7 HR Management: Interlinked Functions Strategic HR Management Equal Employment Opportunity Staffing Talent Management and Development Total Rewards: Compensation and Benefits Risk Management and Worker Protection Employee and Labor Relations © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–8 Organizational Culture and HR • Organizational Culture Is the shared values and beliefs in an organization Is the internal “climate” of the organization that employees, managers, customers, and others experience Positively affects service and quality, productivity, and financial results when aligned with HR values and organizational goals Is affected by differences in cultural dimensions from country to country and even within countries © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–9 Hofstede’s Dimensions of Culture Individualism/ Inequality Group of Power Orientation Culture Long-term/ Masculinity/ Short-term Orientation Femininity Uncertainty Avoidance © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–10 HR Ethics and Sarbanes-Oxley (SOX) • Reduce the likelihood of illegal and unethical behaviors by: Having a written code of ethics and conduct standards Providing ethical behavior training and advice Establishing confidential reporting systems for ethical misconduct Providing whistle-blower protection Supporting HR’s role as “keeper and voice” of organizational ethics © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–20 Current HR Management Challenges Organizational Cost Pressures and Economics Restructuring and Job Changes Human Resource Management Globalization of Organizations Workforce Demographics and Diversity and HR © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–21 Economics and Job Changes Future Job Change Concerns Occupational Shifts Workforce Availability and Quality Growth in Contingent Talent Management Workforce © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–22 FIGURE 1–6 Fastest Growth in Job Changes to 2016 Source: U.S Bureau of Labor Statistics, www.bls.gov © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–23 FIGURE 1–7 Hourly Compensation Costs for Manufacturing Production Workers Source: U.S Bureau of Labor Statistics, www.bls.gov © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–24 HR Technology • Human Resource Management System (HRMS) An integrated system providing information used by HR management in decision making • Purposes of HRMS Data Collection Administrative and operational efficiency in : Automation of payroll and benefit activities EEO/affirmative action tracking Web-based communication with employees Availability of data for HR strategic planning © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–25 Uses of a Web-Based HRMS HRMS on the Internet Bulletin Boards Data Access Employee Self- Extended Linkage Service © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–26 Smaller Organizations and HR Management HR Issues Shortage of Qualified Increasing Costs of Workers Benefits Government Regulation Rising Taxes Compliance © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–27 HR Cooperation with Operating and Line Managers • HR Unit • Managers Develops legal, effective interviewing techniques Advise HR of job openings Trains managers in conducting selection Decide whether to own final interviewing interviews Conducts interviews and testing Sends top three applicants to managers for final review Checks references Does final interviewing and hiring for certain job Receive interview training from HR unit Do final interviewing and hiring where appropriate Review reference information Provide feedback to HR unit on hiring/rejection decisions classifications © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–28 FIGURE 1–8 Typical Division of HR Responsibilities: Recruiting © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–29 HR Management Roles HR Management Roles Operational and Employee Administrative Advocate Strategic © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–30 FIGURE 1–9 Roles of HR Management © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–31 HR Management Competencies and Careers Strategic Contribution Business Knowledge HR HR Delivery Competencies HR Technology Personal Credibility © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–32 HR Management as a Career Field HR Generalist A person who has responsibility for performing a variety of HR activities HR Specialist A person who has in-depth knowledge and expertise in a limited area of HR © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–33 FIGURE 1–10 HR Certifications at a Glance * In addition to meeting the exam eligibility requirements, successful exam candidates usually have the above work experience © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–34 [...]... organizational ethics © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–20 Current HR Management Challenges Organizational Cost Pressures and Economics Restructuring and Job Changes Human Resource Management Globalization of Organizations Workforce Demographics and Diversity and HR © 2011 Cengage Learning... consumers © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–13 Customer Service and Quality Linked to HR • Linking HR to social responsibility, customer service, and quality significantly affects organizational effectiveness Human Resource Management Social Responsibility Quality Customer Service © 2011 Cengage... Workforce Availability and Quality Growth in Contingent Talent Management Workforce © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–22 FIGURE 1–6 Fastest Growth in Job Changes to 2016 Source: U.S Bureau of Labor Statistics, www.bls.gov © 2011 Cengage Learning All rights reserved May not be scanned,... Production Workers Source: U.S Bureau of Labor Statistics, www.bls.gov © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–24 HR Technology • Human Resource Management System (HRMS) An integrated system providing information used by HR management in decision making • Purposes of HRMS Data Collection Administrative... © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–28 FIGURE 1–8 Typical Division of HR Responsibilities: Recruiting © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–29 HR Management Roles HR Management. .. Administrative Advocate Strategic © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–30 FIGURE 1–9 Roles of HR Management © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–31 HR Management Competencies and... contacts and oral communications to include: E-mail and text messages Twitters Blogs © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–15 FIGURE 1–4 Business Ethics and HR Management Consequences © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to... Personal Credibility © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–32 HR Management as a Career Field HR Generalist A person who has responsibility for performing a variety of HR activities HR Specialist A person who has in-depth knowledge and expertise in a limited area of HR © 2011 Cengage Learning... organizational standards and professional government codes? standards of ethical behavior? © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–18 FIGURE 1–5 Examples of HR-Related Ethical Misconduct Activities © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted... with employees Availability of data for HR strategic planning © 2011 Cengage Learning All rights reserved May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part 1–25 Uses of a Web-Based HRMS HRMS on the Internet Bulletin Boards Data Access Employee Self- Extended Linkage Service © 2011 Cengage Learning All rights reserved May not be scanned, copied