© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied orduplicated, or posted to a publicly accessible website, in whole or in part.
chapter 1
The Importance and Contextof Human ResourceManagement
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
1.Describe why HRM is important to acompany’s performance.
2.List the six primary HRM functions.
3.Describe why it is important to align theHRM functions in support of commongoals and objectives.
4.Explain why HRM is important forsmaller as well as larger organizations.
5.Explain why HRM is important to everymanager’s career.
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Is HRM?
●Human resource management is theorganizational function responsible forattracting, hiring, developing, rewarding,and retaining talent.
●Understanding HRM and developing HRMskills can help you succeed bothpersonally and professionally.
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How HRM InfluencesOrganizational Performance
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Table 1-1
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What Employees Should Do
●Factors including organizational strategy, thecompetitive environment, and legalrequirements all influence what anorganization’s employees should do.
●HR planning is an important HRM activitythat involves designing work for optimumefficiency and performance as well asidentifying the amount and types of talentsthe company will need to execute thebusiness strategy.
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What Employees Can Do
●The HRM function of training anddevelopment influences the capabilitiesof an organization’s employees bydeveloping employees’ skills to meetchanging business needs.
●Staffing and development activities areresponsible for the organization’s skillsbase; they are the foundation of effectiveHRM.
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What Employees Will Do
●By setting clear goals aligned with the business strategy,giving employees feedback on their performancetoward those goals, and rewarding them for goodperformance, performance management andcompensation influence employee motivation, effort,and persistence.
●People do what they’re rewarded for doing, making itessential that rewards be aligned with desiredbehaviors and outcomes. Rewards includecompensation (pay) but also praise, recognition, timeoff, or anything valued by the employee.
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HRM Functions
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Figure1-1
HRM createsthe system thatacquires,motivates,develops, andretains talentand is a keysource ofcompetitiveadvantage.
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Staffing
●Staffing is the process of planning, acquiring,deploying, and retaining employees thatenables the organization to meet its talentneeds and to execute its business strategy.
●Recruiting focuses on attracting people toapply, retaining qualified applicants in thecandidate pool while they are evaluated,and finally on enticing the chosencandidates to ultimately accept job offers.
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Training and Development
●Employee capabilities are developed throughboth formal and informal activities. The trainingand development function is also responsible forcareer planning, organizational development, andlegal compliance as well.
●Training is essential for preparing employees tobe and stay effective in their jobs and to becomeorganizational leaders. Performancemanagement and rewards must be aligned withtraining goals.
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Performance Management
●Aligning individual employee’s goals andbehaviors with organizational goals andstrategies, appraising and evaluating pastand current behaviors and performance, andproviding suggestions for improvement
●Providing performance goals so thatemployees know what aspects of their jobsto focus on or the performance levelsexpected of them
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Rewards and Benefits
●Compensation and benefits perceived asboth adequate and equitable that rewardemployees for their contributions toorganizational goal attainment areimportant to employee motivation,performance, and retention.
●Total rewards include direct (salary), indirect(health insurance), and nonfinancial (feelingappreciated). The total rewards package isimportant to consider, not just the salary.
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Health and Safety
●Workplace health and safety includes topicsranging from wellness, fire and food safety,ergonomics, injury management, disasterpreparedness, industrial hygiene, and evenbullying and workplace violence.
●Workplace safety involves protectingemployees from work-related toxins,accidents, and injuries. Workplace healthrefers to employees’ physical and mentalhealth.
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Employee–Management Relations
●Employee–management relations ultimatelydetermine the employment rights of bothemployers and employees. Laborparticipation programs, employee surveys,and other tools are used in managingemployee–management relations.
●Employment relations (or industrialrelations) focuses on unionized employmentsituations.
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How Does HRM InfluenceOrganizational Performance?
●Effective HRM systems increase an organization’sability to meet its goals, enhance its ability to growand manage change, and increase employeeengagement, effort, and performance.
●Managing HR helps organizations with strategic risk,operational risk, financial risk, and compliance risk.
●The most effective HRM systems are based on solidresearch, identifying and implementing bestpractices, and aligning the HRM system withorganizational goals and environmental realities.
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What Effective HRM Systems Do
Table 1-2
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Table1-2
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Role of HRM inExecuting Business Strategy
●A company’s business strategy defines how the firm willcompete in its marketplace. A business strategy shouldreflect what the organization’s customers want, what thefirm wants, and what the firm can cost-effectively deliver.
●How a company positions itself to compete in themarketplace determines the competitive advantage it needsto create and the HRM strategies it needs to pursue toacquire, develop, motivate, and retain the appropriatetalent.
●A firm’s HR strategy links the entire HR function with thefirm’s business strategy.
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Issues in HRM
●People from different cultures have differentexpectations and traditions, are often motivated bydifferent things, and communicate in different ways.
●Organizations must tailor their HRM efforts to thedifferent values and needs of its people to attract,hire, motivate, and retain the best employeesglobally.
●Motivating employees in a multinational organizationcan be particularly challenging and requires flexibility.
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Who Is Responsible for HRM?
●HRM activities are performed by:
● HRM professionals
●Managers
●Individual employees
●Shared service centers
●Outside vendors
●Professional employer organizations
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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why Is HRM Important to Your Career?
●Knowing how to design maximallyproductive and mutually rewarding workrelationships with employees isimportant to every manager’s success.
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