Human Resource Management

Theories,Techniques and Applications By Williamq

Chapter 1 The Strategic Role of Human Resource Management

Behavioral Objectives When you finish studying this chapter, you should be able to: Answer the question, What is Human Resource Management? Discuss the components of the changing environment of Human Resource Management. Present examples of the new management practices that are changing Human Resource management. Give examples of human Resource managements role as a strategic business partner.

Chapter Outline
Human Resource Management at Work

The Changing Environment of Human

Resource Management Tomorrows HR Today Strategic Management The Plan of This Book Planning and HR

Key Words :
management process The five basic functions of planning, organizing, staffing, leading, and controlling. human resource management The policies and practices one needs to carry out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

Key Words :
authority The right to make decisions, direct others work, and give orders. ling manager A manager who is authorized to direct the work of subordinates and responsible for accomplishing the organizations goals. staff manager A manager who assists and advises line managers.

Key Words :
line authority The authority exerted by a personnel manager by directing the activities of the people in his or her own department and in service areas (like the plant cafeteria). implied authority The authority exerted by a personnel manager by virtue of others knowledge that he or she has access to top management (in areas like testing and affirmative action).

Key Words :
functional control The authority exerted by an HR manager as coordinator of personnel activities. employee advocacy HR must take responsibility for clearly defining how management should be treating employees, make sure employees have the mechanisms required to contest unfair practices, and represent the interests of employees within the framework of its primary obligation to senior management.

Key Words :
globalization The tendency of firms to extend their sales or manufacturing to new markets abroad.
competitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share.

Key Words :
cost leadership The enterprise aims to become the lowcost leader in an industry. differentiation A firm seeks to be unique in its industry along dimensions that are widely valued by buyers.

The Strategic Roles of HRM 1. What is human resource management? 2. Functions and divisions of human resource management. 3. Evolution of human resource management in the west.

4. Human resource management in China.

1. What is human resource management?

Definition of HRM: Human resource management is to make the most productive use of human resource to the greatest benefits of the organization and individuals. Organization: profits and social commitments. Individuals: development and achievement.

The importance of HRM

(1) People is the key factor of production. (2) Productivity is the key to measure a nations economic growth potential, and labor quality is the key to improving productivity. (3) Competition today is the competition for talents. (4) Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management of people.

Organization and individual

(1) Organization needs: Profits, productivity and markets. (2) Individual needs: Maslows Need Hierarchy

Physiological needs, security, belonging, selfrespect and self-actualization. (3) Coordinating organization and individual needs: goal of HRM.

People and productivity

(1) Productivity: the measurement of economic growth potential. (2) Productivity formula: input : output (3) Measurement of productivity: a. Productivity of worker is the output per hour. b. Productivity of equipment is the output per every dollar invested. c. Productivity of energy is the output per every unit of energy consumed.

Employee quality and productivity

(1) Employee skill determines productivity. Man and tools. (1) Employee motivation affects productivity. Willingness to perform. (1) Employee creativity and initiatives improve productivity. innovation is the key to improvement.

6. Functions and divisions of HRM

(1) Management process

a. Planning. b. Organizing. c. Staffing. d. Leading. e. Controlling.

(2) Functions of HRM

a. b. c. d. e. f. g. h. Conducting job analysis. Planning future needs and supplies. Recruiting and selecting employees. Orienting and training employees. Managing wages and benefits. Performance appraisal. Communicating (discipline and services). Building employee commitment (incentives).

(3) Line managers HRM responsibilities a. b. c. d. e. f. g. Job placing. Orienting new employees. On-job training of employees. Interpreting company policies and procedures. Conducting job appraisals. Controlling labor costs. Labor protection and disciplines.

(4) Staff managers HRM responsibilities a. A line function: directing and managing people in the HRM department. b. A coordinating function: coordinating HRM activities across the organization. c. Staff functions: Same as the HRM functions plus labor relations and collective bargaining with the trade unions.

3. Evolution of HRM in the west (1) Industrial Revolution: a. Adam Smith: specialization and division of labor. b. Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment of employees)

(2) Scientific management

Frederic Taylor: Father of scientific management a. Definition: Systematic analysis and breakdown of work into the smallest mechanical components and rearranging them into the most efficient combination. b. Steps: Job analysisselectiontrainingrewards.

(3) Industrial psychology a. Hneri Fayols management functions: Planning, organizing, communicating, coordinating and controlling. b. F. & L. Gilbreths principles of work simplification (time and motion studies). c. Henry Gantts principles of work scheduling. d. Continuation of scientific management.

(4) Human behavior and relations a. The Hawthorne Studies by Westing House The happy workers are the most productive workers. (The Pet Milk theory) b. Max Weber: the Ideal Bureaucracy. c. Chris Argyris: Individual and organization mutual adjustment. d. Affected by the theories of behavioral science and system theory.

(5) Three stages of growth of HRM a. File Management (1900-1964):collecting and storing data of each employee. b. Government Accountability (1964-1980): Compliance to government regulations. c. Human Resource Management: Treating human resource as an asset. Emphasizing joint responsibilities of line managers and staff managers.

5. HRM in China (1) Administration: a. Ministry of Labor b. Ministry of Organization of the Central Committee. (2) Worker participation in China: a. Worker Innovation and Workers Congress. b. Stock sharing and voluntary grouping. (3) Trade Union and its functions. (4) Types of organizations and their HRM activities