After reading chapter 2, you should be able to: Describe trends in the labor force composition and how they affect human resource management; summarize areas in which human resource management can support the goal of creating a high-performance work system; define employee empowerment, and explain its role in the modern organization; identify ways HR professionals can support organizational strategies for quality, growth, and efficiency.
Fundamentals of Human Resource Management 11e Chapter Fundamentals of Strategic HRM Importance of HRM HRM has a dual nature: supports the organization’s strategy represents and advocates for the employees Strategic HRM provides a clear connection between the organization’s goals and the activities of employees Fundamentals of Human HR and Organizational Strategy Strategy Type What It Looks Like Implications for HR Cost differentiation: Provide great value and low cost Emphasize acquiring low cost materials, streamlining processes, reducing waste, maximizing efficiencies (e.g., WalMart, Hyundai) Structure jobs, departments to maximize cross training, knowledge sharing Design compensation programs to reward efficiency, cost savings Select employees with versatile skill sets Product differentiation: Deliver product/service that is similar to competitors but incorporates a feature(s) that differentiates it Emphasize creativity and innovation Consumers faced with multiple choices; identify those features that make the product/service stand out (e.g., Apple, Netflix, Aveda) Design compensation systems to reward creativity, innovation Educate employees about product/service differentiating features Create marketing campaign to promote special product features Customer Intimacy Strong personal relationship between provider of product or service and customer Emphasize relationship between consumers, point person Personalized service differentiates the product/service from competitors (e.g., local hair salon, Pandora, Nordstrom) Recruit and select job candidates with strong customer service and customer relations skills to help fortify the provider/consumer relationship Focus reward strategies on customer attraction, satisfaction and retention Customer/Market Focus Unique target market characteristics Emphasize the needs of a specific target market, like generational or lifestyle (e.g., Abercrombie & Fitch HarleyDavidson, Urban Outfitters) Use strong market research to drive recruitment and selection so employees have a strong understanding of the target market Emphasize versatility and adaptability as products and services are subject to rapid change Fundamentals of Human The HRM Functions HRM has four basic functions: staffing training and development motivation maintenance In other words, hiring people, preparing them, stimulating them, and keeping them FundamentalsofHumanResource TheHRMFunctions Đ Strategichumanresource planning Đ Recruiting § Match prospects’ skills to the company’s strategy needs Use accurate job descriptions to obtain an appropriate pool of applicants Selection • Thin out pool of applicants to find the best choice FundamentalsofHuman staffing TheHRMFunctions trainingand development Đ Orientation Đ Employeetraining • § The goal is to have competent, well adapted employees Prepareemployeeforfutureposition(s)inthecompany Organizationaldevelopment Đ Helpemployeesacquirebetterskillsforthejob Employeedevelopment Đ Teachtherules,regulations,goals,andcultureofthecompany Helpemployeesadapttothecompanyschangingstrategicdirections Careerdevelopment Providenecessaryinformationandassessmentinhelpingemployeesrealizecareergoals FundamentalsofHuman TheHRMFunctions motivation Theoriesandjobdesign: Đ Environmentandwellưconstructedjobsfactorheavily inemployeeperformance Đ Performanceappraisals: Đ Rewardsandcompensation: Đ Standardsforeachemployee;mustprovidefeedback Mustbelinkbetweencompensationandperformance Employeebenefits: Shouldcoordinatewithapayưforưperformanceplan FundamentalsofHuman TheHRMFunctions maintenance Safetyandhealth: Đ Caringforemployeeswellưbeing hasabigeffectontheircommitment § Communications and employee relations: • Keep employees wellinformed of company doings, and provide a means of venting frustrations Job loyalty has declined over the past decade Fundamentals of Human Resource Management 11e External Influences on HRM dynamic environment management thought HRM laws and regulations labor unions External influences affect HRM functions Fundamentals of Human Dynamic Environment HR Professionals need to keep current with classes, workshops and seminars Fundamentals of Human External Influences on HRM laws and regulations § § § Legislation has an enormous effect on HRM Laws protect employee rights to union representation, fair wages, family medical leave, and freedom from discrimination based on conditions unrelated to job performance The U.S. Equal Employment Opportunity Commission www.eeoc.gov enforces federal laws on civil rights at work Fundamentals of Human External Influences on HRM labor unions § § § Assist workers in dealing with company management Negotiate wages, hours, and other terms of employment Promote and foster a grievance procedure between workers and management When a union is present, employers can not fire workers for unjustified reasons Fundamentals of Human External Influences on HRM management thought § § § § Frederick Taylor developed principles to enhance worker productivity Hugo Munsterberg devised improvements to worker testing, training, evaluations, and efficiency Mary Parker Follet advocated peopleoriented organizations Elton Mayo’s Hawthorne Studies: dynamics of informal work groups have a bigger effect on worker performance than do wage incentives The Hawthorne Studies gave rise to the human relations movement: benefits, healthy work conditions, concern for employee well-being Fundamentals of Human Structure of the HR Department Fundamentals of Human Careers in HR HR positions include: Interpersonal communication skills and ambition are two factors that HR professionals say advance their careers Fundamentals of Human Resource HR Certification § Human Resource Certification Institute has established these certifications for HR Professionals: • • • • • PHR SPHR GPHR PHRCA/SPHR CA To learn more about the requirements, go to HRCI.org Fundamentals of Human Careers in HR § § Organizations that spend money for quality HR programs perform better than those that don’t. (HCI study) Quality programs: • • • • reward productive work offer a flexible, workfriendly environment properly recruit and retain quality employees provide effective communications Make sure HR services match the overall organizational strategy FundamentalsofHuman Exhibit2ư6 FundamentalsofHuman HRTrendsandOpportunities Đ Outsourcing Đ ProfessionalEmployerOrganizations(PEO) § Help small to mediumsize companies attract stronger candidates and handle new laws in HR Shared Services • § More than half of all companies outsource all or some parts of their HR functions Allow organizations with several divisions or locations to consolidatesomeHRfunctionsintoonecentrallocation whileretainingcertainfunctionsindivisionallocations FundamentalsofHuman Entrepreneurial,Global,Ethical HR Đ SmallbusinessHR Đ Managersinsmallbusinessesperformthesame functions of those in larger businesses, but on a smaller scale Global HRM • • Growing area of HR Complex environment Fundamentals of Human Entrepreneurial, Global, Ethical HR Đ Ethics SarbanesưOxleyact(sox)enactedinresponseto ethicalfailuresinseverallargecompanies Seekstoholdtopmanagementresponsiblefor ethical practices HR is responsible for much employee ethics training HR communicates employee legal rights Fundamentals of Human Match the Fours Four major HR positions staffing, training, motivation, maintenance Four HR department areas environment, laws, labor unions, management thought Four quality programs employment, training, compensation, employee relations Four HRM functions Four external influences on HRM Fundamentals of Human Resource assistants, generalists, specialists, executives reward productive work offer a flexible, work-friendly environment properly recruit and retain quality employees provide effective communications ... well-being Fundamentals of Human Structure of the HR Department Fundamentals of Human Careers in HR HR positions include: Interpersonal communication skills and ambition are two factors that HR professionals say advance their careers... relations: Keepemployeeswellưinformedofcompany doings,andprovideameansofventing frustrations Job loyalty has declined over the past decade Fundamentals of Human Resource Management 11e External Influences on HRM... factors that HR professionals say advance their careers Fundamentals of Human Resource HRCertification Đ HumanResourceCertificationInstitutehas establishedthesecertificationsforHRProfessionals: PHR SPHR GPHR PHRCA/SPHR CA