CHAPTER Changing Nature of Human Resource Management © 2008 Thomson/South-Western All rights reserved PowerPoint Presentation by Charlie Cook The University of West Alabama Chapter Chapter Objectives Objectives After you have read this chapter, you should be able to: ■ Define human capital and explain its importance ■ Identify the seven categories of HR activities ■ Describe how the major roles of HR management are being transformed ■ Discuss four challenges facing HR today ■ Identify the purposes and uses of HR technology ■ Discuss why ethical issues affect HR management ■ Explain the key competencies needed by HR professionals and why certification is important © 2008 Thomson/South- 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 © 2008 Thomson/South- 1–3 Types of Organizational Assets Assets Physical Financial © 2008 Thomson/South- Intangible Human 1–4 Human Capital in Organizations Human Capital Core Competency The collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce A unique capability that creates high value and differentiates an organization from its competition © 2008 Thomson/South- 1–5 Categories of HR Activities Strategic HR Management Equal Employment Opportunity Staffing HR Development Compensation and Benefits Health, Safety, and Security Employee and Labor Relations © 2008 Thomson/South- 1–6 FIGURE 1-1 HR Management Activities © 2008 Thomson/South- 1–7 Smaller Organizations and HR Management Issues Shortage of Qualified Workers Increasing Costs of Benefits © 2008 Thomson/South- Rising Taxes Government Regulation Compliance 1–8 HR Cooperation with Operating Managers • HR Unit • Managers Develops legal, effective Advise HR of job openings interviewing techniques Decide whether to own Trains managers in conducting selection interviews Conducts interviews and testing Sends top three applicants to managers for final review Checks references Does final interviewing and final interviewing 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 hiring for certain job classifications © 2008 Thomson/South- 1–9 FIGURE 1-2 Typical Division of HR Responsibilities: Training © 2008 Thomson/South- 1–10 HR Management Roles HR Management Roles Administrative Operational and Employee Advocate © 2008 Thomson/South- Strategic 1–11 FIGURE 1-3 Changing Roles of HR Management Note: Example percentages are based on various surveys © 2008 Thomson/South- 1–12 FIGURE 1-4 Performance Management Linkage © 2008 Thomson/South- 1–13 FIGURE 1-5 Fastest Growing Jobs to 2014 Source: U.S Bureau of Labor Statistics, www.bls.gov © 2008 Thomson/South- 1–14 Current HR Management Challenges Economic and Technological Changes Globalization of Business Human Resource Management Workforce Demographics and Diversity © 2008 Thomson/South- Organizational Cost Pressures and Restructuring 1–15 FIGURE 1-6 Family-Friendly Benefit Offerings Source: Adapted from Benefits Survey Report (Alexandria, VA: Society for Human Resource Management, 2006) © 2008 Thomson/South- 1–16 HR Technology • Human Resource Management System (HRMS) An integrated system providing information used by HR management in decision making Purposes and Benefits of HRMS Administrative Availability and operational efficiency of data for HR strategic planning Automation of payroll and benefit activities EEO/affirmative Cost action tracking reductions for HR workflows © 2008 Thomson/South- 1–17 Uses of a Web-Based HRMS HRMS on the Internet Bulletin Boards Data Access © 2008 Thomson/South- Employee Self-Service Extended Linkage 1–18 Ethical Behavior and Organizational Culture • Organizational Culture The shared values and beliefs in an organization • Fostering Ethical Behavior (Sarbanes-Oxley) Have a written code of ethics and conduct standards Provide ethical behavior training and advice Establish confidential reporting systems for ethical misconduct Provide whistle-blower protection Support HR’s role as “keeper and voice” of organizational ethics © 2008 Thomson/South- 1–19 FIGURE 1-7 Examples of Ethical Misconduct in HR Activities Types of Misconduct Examples of Employee, Supervisor, and Managerial Behavior Compensation • • • • Employee Relations • Employees lying to supervisors • Executives/managers providing false information to public, customers, and vendors • Personal gains/gifts from vendors • Misusing/stealing organizational assets and supplies • Intentionally violating safety/health regulations Staffing and Equal Employment • Favoritism in hiring and promotion • Sexual harassment • Sex, race, and age discrimination in hiring, discipline, and termination Misrepresenting hours and time worked Falsifying expense reports Personal bias in performance appraisals and pay increases Inappropriate overtime classifications © 2008 Thomson/South- 1–20 HR Management Competencies and Careers Strategic Contribution Business Knowledge HR Delivery HR Competencies HR Technology Personal Credibility © 2008 Thomson/South- 1–21 HR Management as a Career Field HR Generalist A person who has responsibility for performing a variety of HR activities © 2008 Thomson/South- HR Specialist A person who has in-depth knowledge and expertise in a limited area of HR 1–22 FIGURE 1-8 HR Specialists Source: HR Department Benchmarks and Analysis 2007 (Washington, DC: Bureau of National Affairs, 2007), 131 To purchase this publication and find out more about BNA HR solutions, visit http://hrcenter.bna.com or call 800-3721033 Used with permission © 2008 Thomson/South- 1–23 FIGURE 1-9 HR Certification The Human Resource Certification Institute offers three types of professional certifications for HR generalists Details on these certifications are available from the Human Resources Certification Institute, www.hrci.org © 2008 Thomson/South- 1–24 [...]... Thomson/South- 1–14 Current HR Management Challenges Economic and Technological Changes Globalization of Business Human Resource Management Workforce Demographics and Diversity © 2008 Thomson/South- Organizational Cost Pressures and Restructuring 1–15 FIGURE 1-6 Family-Friendly Benefit Offerings Source: Adapted from Benefits Survey Report (Alexandria, VA: Society for Human Resource Management, 2006) © 2008...HR Management Roles HR Management Roles Administrative Operational and Employee Advocate © 2008 Thomson/South- Strategic 1–11 FIGURE 1-3 Changing Roles of HR Management Note: Example percentages are based on various surveys © 2008 Thomson/South- 1–12 FIGURE 1-4 Performance Management Linkage © 2008 Thomson/South- 1–13 FIGURE 1-5 Fastest... Offerings Source: Adapted from Benefits Survey Report (Alexandria, VA: Society for Human Resource Management, 2006) © 2008 Thomson/South- 1–16 HR Technology • Human Resource Management System (HRMS) An integrated system providing information used by HR management in decision making Purposes and Benefits of HRMS Administrative Availability and operational efficiency of data for HR strategic planning... bias in performance appraisals and pay increases Inappropriate overtime classifications © 2008 Thomson/South- 1–20 HR Management Competencies and Careers Strategic Contribution Business Knowledge HR Delivery HR Competencies HR Technology Personal Credibility © 2008 Thomson/South- 1–21 HR Management as a Career Field HR Generalist A person who has responsibility for performing a variety of HR activities... http://hrcenter.bna.com or call 800-3721033 Used with permission © 2008 Thomson/South- 1–23 FIGURE 1-9 HR Certification The Human Resource Certification Institute offers three types of professional certifications for HR generalists Details on these certifications are available from the Human Resources Certification Institute, www.hrci.org © 2008 Thomson/South- 1–24