Jack Welch- Winning

Elevate HR to a position of power and primacy in

the organization, and make sure HR people have
the special qualities to help managers build leaders
and careers. In fact, the best HR types are pastors
and parents in the same package.
The head of human resources at any company
should be at least as important as the CFO.

Today
HR Activities- what do HR people do?
HR Management Challenges- what external

and internal factors influence what HR people

do?
HR Roles- how do HR people do their jobs?

Nature of Human Resource

Management
Human Resource (HR) Management
The design of formal systems in an organization

to ensure effective and efficient use of human

talent to accomplish organizational goals.

Nature of Human Resource

Management cont
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.

Basic HR Concepts
The bottom line of managing:

Getting results
HR creates value by engaging in activities

that produce the employee behaviors that the

company needs to achieve
its strategic goals.

Objectives:
Maximize the return on investment

from the organization's human capital

and minimize financial risk.
To align the capabilities and
behaviors of employees with the
short-term and long-term goals of the
retail firm.

Why HRM Important to All Managers

So that you dont.........
i. Hire the wrong person for the job
ii. Experience high turnover
iii.Have your people not doing their best
iv.Waste time with useless interviews
v. Have your employees thing Company is unfair and

unethical
vi.Allow lack of training
vii.Not manage performance and reward in proper
way.

Distinguishing Between HRM

and PM

Guests Model of HRM

Linked to the strategic management of an

organisation.
Seeks commitment to organisational
goals
Focuses on the individual needs rather
than the collective workforce.
Enables organisations to devolve power
and become more flexible
Emphasises people as an asset to be
positively utilised by the organisation.

Storeys Definition of
HRM
'Human capability and commitment'. Storey argues

that this is what differentiates organisations.

Strategic importance of HRM. It needs to be
implemented into the organisational strategy and
needs to be considered at the highest
management level.
The long term importance of HRM. It needs to be
integrated into the management functions and is
seen to have importance consequences on the
ability of the organisation to achieve its goals.
The key functions of HRM which are seen to
encourage commitment rather than compliance.

Points of Difference between

Personnel and IR Practices
and HRM Practices
Dimension

Personnel/IR

HRM

Beliefs and assumptions

1. Contract

Careful delineation of written

contracts

Aim to go 'beyond contract'

2. Rules

Importance of devising clear

rules/mutuality

'Can-do' outlook; impatience

with 'rule'

3. Guide to management
action

Procedures

'Business need'

4. Behaviour referent

Norms/custom and practice

Values/mission

Managerial task
vis a vis labour

Monitoring

Nurturing

6. Nature of relations

Pluralist

Unitarist

7. Conflict

Institutionalised

De-emphasised

Strategic aspects
Personnel /IR
HRM
8. Key relations

Labour
management

Customer

9. Initiatives

Piecemeal

Integrated

10.Corporate plan

Marginal to

Central to

11. Speed of
decision

Slow

Fast

Key Levers
Personnel / IR
HRM
17. Selection

Separate, marginal task

Integrated, key task

18. Pay

Job evaluation (fixed

grades)

Performance related

19. Conditions

Separately negotiated

Harmonisation

20. Labour management

Collective bargaining
contracts

Towards individual
contracts

21. Thrust of relations

with stewards

Regularised through
facilities and training

Marginalised (with
exception of some
bargaining for
change models)

22. Job categories and

grades

Many

Few

23. Communication

Restricted flow

Increased flow

24. Job design

Division of labour

Teamwork

25. Conflict handling

Reach temporary truces

Manage climate and

culture

26. Training and

development

Controlled access to
courses

Learning companies

27. Foci of attention for

Personnel procedures

Wide ranging cultural,

A Model of the Shift to

HRM

Hard HRM
The 'hard' approach rooted in the manpower

planning approach is concerned with aligning

human resource strategy with business
strategy

Soft HRM
The 'soft' approach is rooted in the human

relations school, with concern for workers'

outcomes and encourages commitment to the
organisation by focussing on workers'
concerns.

The Human Resource

System

The Harvard Model of Human

Resource Management

Guests Model of HRM

Line and Staff Aspects of

HRM
Line manager
A manager who is authorized to direct the work

of subordinates and is responsible for

accomplishing the organizations tasks.

Staff manager
A manager who assists and advises line
managers.

Line Managers HRM

Responsibilities
1. Placing the right person on the right job

2. Starting new employees in the organization (orientation)

3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working

relationships
6. Interpreting the firms policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees health and physical condition

High-Performance Work
System
Practices
Employment security
Selective hiring
Extensive training
Self-managed teams/decentralized decision making
Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work

Benefits of a HighPerformance
Generate more job applicants
Screen candidates more effectively
Work
System (HPWS)
Provide more and better training

Link pay more explicitly to performance

Provide a safer work environment
Produce more qualified applicants per position
Hiring based on validated selection tests
Provide more hours of training for new employees
Conduct more performance appraisals

Source: HR Department Benchmarks and Analysis Survey 2004

(Washington, DC: Bureau of National Affairs, 2004), 21. To purchase
this publication and find out more about other BNA HR solutions visit
http://hrcenter.bna.com or call 800-372-1033. Used with permission.

HR Activities
Strategic HR

Management
What is Strategic?
Metrics
Environmental

Scanning/Anticipation
High Performance Work
Practices
Leveraging Core
Competencies

HR Activities Continued
Equal Employment Opportunity
Compliance Multicultural Organizations
Diversity
Affirmative Action
Global Impacts: Resources, Markets, Employees
EEOC and the OFCCP

HR Activities Continued
Staffing
AttractionSelectionAttrition Model
Job Description
Job Analysis Qualifications
Recruiting, Interviewing
HR Development
Orientation
Socialization
Job Training
Leadership Development
Performance Management

HR Activities Continued
Compensation and Benefits
Base Pay
Merit Pay/Incentives
Gainsharing
Employee Ownership
Management of Health and Dental Costs
Cafeteria Plans
Employee Rewards

HR Activities Continued
Health, Safety, and Security
OSHA (1970)who has the responsibility for
healthy employees?
Safety in the workplace
Security post 9-11
EAPs
Health Promotion
Employee and Labor Relations
Unionization
Policies and Procedures
Communication (Justice Theory)

Small Businesses
Large piece of economic sector
Larger piece of job creation in U.S.

When do we need an HR person?

(80-100 employees)

Compliance
Compliancewith
with
Government
Government
Regulations
Regulations

Shortage
Shortageof
of
Qualified
Qualified
Workers
Workers

Issues
Issuesof
of
Greatest
Greatest
Concern
Concern

Rising
RisingTaxes
Taxes

Increasing
Increasing
Costs
Costsof
of
Benefits
Benefits

Management of Human Capital

In Organizations
Physical, Financial, Intangible and
Human Capital
The collective value of the capabilities, knowledge,
skills, life experiences, and motivation of an
organizational workforce.
Also known as intellectual capital.
How to measure the strategic value of human
assets?

Core Competency
A unique capability that creates high value and
differentiates an organization from its competition.

HR competencies: a source of competitive advantage.

HR Management
Challenges
Globalization of Business
Outsourcing and increased competition
Stockholder, employee, manager concerns?
Is this socially responsible?
Should the U.S. pass legislation protecting these
jobs? Why/Why not?
What about the perspective that this is good for the
long run as it lowers the costs of goods and
services? Do you agree? Why/Why not?

HR Management
Challenges
Globalization of Business
The threat of terrorism- How does this impact what
we do? OSHA?
Economic and Technological Changes
Occupational shifts from manufacturing and

agriculture to service industries and

telecommunications.
Pressures of global competition causing firms to
adapt by lowering costs and increasing productivity.

Technological Shifts and the Internet

Growth of information technology.

Source: U.S. Bureau of Labor Statistics, www.bls.gov.

HR Management
Challenges
Workforce Availability and Quality Concerns
Inadequate supply of workers with needed skills for

knowledge jobs

80% of manufacturing jobs report shortage of qualified workers

Education of workers in basic skills

Not enough specific skills, not enough technology skills

Growth in Contingent Workforce

Represents 20% of the workforce
Increases in temporary workers, independent contractors,

leased employees, and part-timers caused by:

Need for flexibility in staffing levels

Increased difficulty in firing regular employees.
Reduced legal liability from contract employees
Boeing Strategy- manage employment cycles in suppliers and
partners

HR Management
Challenges
Workforce Demographics

and Diversity

Increasing Racial/Ethnic

Diversity

From the Melting Pot to

the Salad Bowl

More Women in the

Workforce

Single-parent households
Dual-career couples
Domestic partners
Working mothers and
family/childcare

Significantly Aging

Workforce

Age discrimination

HR Management
Challenges
Organizational Cost Pressures and Restructuring
Mergers and Acquisitions
Right-sizingeliminating of layers of
management, closing facilities, merging with
other organizations, and outplacing workers
Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
Costs are survivor mentality, loss of employee
loyalty, and turnover of valuable employees.

HR managers must work toward ensuring cultural

compatibility in mergers.

HR Management Roles
Administrative Role
Clerical and administrative support operations
(e.g., payroll and benefits work)
Technology is transforming how HR services are
delivered.
Outsourcing HR services to reduce HR staffing costs

Operational and Employee Advocate Role

Champion for employee concerns
Employee crisis management
Responding to employee complaints

Note: Example percentages are based on various surveys.

Strategic Role for

Administrative Role
HR Role
Operational
Employee Advocate Role
Strategic Role
Contributing at the Table to organizational results
HR becomes a strategic business partner by:

Focusing on developing HR programs that enhance

organizational performance.
Involving HR in strategic planning at the onset.
Participating in decision making on mergers, acquisitions, and
downsizing.
Redesigning organizations and work processes
Accounting and documenting the financial results of HR
activities.

Some HR people get this, some dontCEOs want

those that do and oust those that dont

HR Technology
Human Resource Management System (HRMS)
An integrated system providing information used
by HR management in decision making.
Purposes (Benefits) of HRMS
Administrative and operational efficiency in compiling
HR data
Availability of data for effective HR strategic planning

Uses of HRMS
Automation of payroll and benefit activities
EEO/affirmative action tracking
HR Workflow: increased access to HR information
Employee self-service reduces HR costs.

Uses of an HRMS
HRMS
Bulletin boards

What information will be available and what is

information needed?

Data access
To what uses will the information be put?
Employee self-service

Who will be allowed to access to what information?

Web-based services and access

Extended linkage
When, where, and how often will the information be
needed?

Ethics and HR
Management
Firms with High Ethical Standards
Are more likely to reach strategic goals.
Are viewed more positively by stakeholders
Are better able to attract and retain human
resources.
Ethics and Global Differences
Different legal, political, and cultural factors in
other countries can lead to ethical conflicts for
global managers.
Foreign Corrupt Practices Act (FCPA)

Prohibits U.S. firms from engaging in bribery and other

practices in other countries.

Leaders are Readers

The Smartest Guys in the Room (2004)
McLean and Elkind
The tale of Enron is a story of human

weakness, of hubris and greed and rampant

self-delusion; of ambition run amok; of a
grand experiment in the deregulated world; of
a business model that didnt work; and of
smart people who believed their next gamble
could cover up their last disasterand who
couldnt admit they were wrong.

HRs Role in Organizational

Ethics
HR management plays a key role as the

keeper and voice of organizational ethics.

What is Ethical Behavior?
What ought to be done.
Dimensions of decisions about ethical issues in

management:

Extended consequences
Multiple alternatives
Mixed outcomes
Uncertain consequences
Personal effects

HRs Role in Organizational

Ethics (contd)
Responses to Ethical Situations
Are guided by values and personal behavior
codes that include:
Does

response meet all applicable laws, regulations,

and government codes?
Does response comply with all organizational
standards of ethical behavior?
Does response pass the test of professional
standards for ethical behavior?

The newspaper test

Ethical Behavior and

Organizational Culture
Organizational Culture
The shared values and beliefs in an organization
Common forms of unethical conduct:
Lying to supervisors
Employee drug use or alcohol abuse
Falsification of records

Fostering Ethical Behavior

A written code of ethics and standards of conduct
Training on ethical behavior for all employees
A means for employees to obtain ethical advice
Confidential reporting systems for ethical
misconduct

Ethical Behavior and

Organizational Culture
Classic Management Article
The perpetuation of unethical practices in
organizations
Socialization
Attrition
Justification from small to large

HR Management Competencies
and Careers

Important HR Competencies
Strategic contribution to organizational success
Business knowledge of organization and its
strategies
Effective and effective delivery of HR services
Familiarity with HRMS technology
Personal credibility
SPEAK THE LANGUAGE OF THE BUSINESS

HR Management as a Career
Field

HR Generalist

A person with responsibility for performing a

variety of HR activities.

HR Specialist
A person with in-depth knowledge and
expertise in a limited area of HR.
HR Manager
A person who is a line manager for HR

Generalists and Specialists

Source: HR Department Benchmarks and Analysis 2004 (Washington, DC: Bureau of National
Affairs, 2004), 119. To purchase this publication and find out more about other BNA HR
solutions visit http://hrcenter.bna.com or call 800-372-1033. Used with permission.

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.

Other HR Certifications
Certified Compensation Professional (CCP), sponsored by the World at

Work Association
Certified Employee Benefits Specialist (CEBS), sponsored by the

International Foundation of Employee Benefits Plans

Certified Benefits Professional (CBP), sponsored by the WorldatWork

Association
Certified Performance Technologist (CPT), co- sponsored by the

American Society for Training & Development and the International Society
for Performance Improvement
Certified Safety Professional (CSP), sponsored by the Board of Certified

Safety Professionals
Occupational Health and Safety Technologist (OHST), given by the

American Board of Industrial Hygiene and the Board of Certified Safety

Professionals
Certified Professional Outsourcing, provided by New York University

and the Human Resource Outsourcing Association