Fundamentals of Human

Resource Management
Chapter 2
Fundamentals of HRM

Management Essentials
Management involves setting goals and
allocating scarce resources to achieve
them.
Management is the process of efficiently
achieving the objectives of the
organization with and through people.

Management Essentials
Primary Functions of Management
Planning establishing goals
Organizing determining what activities need
to be done
Leading assuring the right people are on the
job and motivated
Controlling monitoring activities to be sure
goals are met

Why is HRM Important to an

Organization?
The role of human resource managers has
changed. HRM jobs today require a new level of
sophistication.
Federal and state employment legislation has placed
new requirements on employers.
Jobs have become more technical and skilled.
Traditional job boundaries have become blurred with
the advent of such things as project teams and
telecommuting.
Global competition has increased demands for
productivity.

Why is HRM Important to an

Organization?
The Strategic Nature HRM must be
a strategic business partner and represent
employees.
forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
concerned with the total cost of its function
and for determining value added to the
organization.

Why is HRM Important to an

Organization?
HRM is the part of the organization
concerned with the people dimension.
HRM is both a staff, or support function
that assists line employees, and a function
of every managers job.

Why is HRM Important to an

Organization?
HRM Certification
Colleges and universities offer HR programs.
The Society for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.

Why is HRM Important to an

Organization?
Four basic
functions:
Staffing
Training and
Development
Motivation
Maintenance

How External Influences Affect HRM

Strategic Environment
Governmental Legislation
Labor Unions
Management Thought

How External Influences Affect HRM

HRM Strategic Environment includes:

Globalization
Technology
Work force diversity
Changing skill requirements
Continuous improvement
Work process engineering
Decentralized work sites
Teams
Employee involvement
Ethics

How External Influences Affect HRM

Governmental Legislation
Laws supporting employer and employee
actions

Labor Unions
Act on behalf of their members by negotiating
contracts with management
Exist to assist workers
Constrain managers
Affect non unionized workforce

How External Influences Affect HRM

Management Thought
Management principles, such as those from
scientific management or based on the
Hawthorne studies influence the practice of
HRM.
More recently, continuous improvement
programs have had a significant influence on
HRM activities.

Staffing Function Activities

Employment planning
ensures that staffing will contribute to the
organizations mission and strategy

Job analysis
determining the specific skills, knowledge and
abilities needed to be successful in a
particular job
defining the essential functions of the job

Staffing Function Activities

Recruitment
the process of attracting a pool of qualified
applicants that is representative of all groups
in the labor market

Selection
the process of assessing who will be
successful on the job, and
the communication of information to assist job
candidates in their decision to accept an offer

Goals of the Training and Development

Function
Activities in HRM concerned with
assisting employees to develop up-todate skills, knowledge, and abilities
Orientation and socialization help
employees to adapt
Four phases of training and development

Employee training
Employee development
Organization development
Career development

The Motivation Function

Activities in HRM concerned with helping
employees exert at high energy levels.
Implications are:
Individual
Managerial
Organizational

Function of two factors:

Ability
Willingness

Respect

The Motivation Function

Managing motivation includes:
Job design
Setting performance standards
Establishing effective compensation and
benefits programs
Understanding motivational theories

The Motivation Function

Classic Motivation Theories

Hierarchy of Needs Maslow

Theory X Theory Y McGregor
Motivation Hygiene Herzberg
Achievement, Affiliation, and Power
Motives McClelland
Equity Theory Adams
Expectancy Theory - Vroom

How Important is the Maintenance

Function
Activities in HRM concerned with maintaining
employees commitment and loyalty to the
organization.

Health
Safety
Communications
Employee assistance programs

Effective communications programs provide for

2-way communication to ensure that employees
are well informed and that their voices are heard.

Translating HRM Functions into Practice

Four Functions:
Employment
Training and development
Compensation/benefits
Employee relations

Translating HRM Functions into Practice

Employment - Employment specialists:

coordinate the staffing function

advertising vacancies
perform initial screening
interview
make job offers
do paperwork related to hiring

Training and Development

help employees to maximize their potential
serve as internal change agents to the organization
provide counseling and career development

Translating HRM Functions into Practice

Compensation and Benefits
establish objective and equitable pay systems
design cost-effective benefits packages that
help attract and retain high-quality enployees.
help employees to effectively utilize their
benefits, such as by providing information on
retirement planning.

Translating HRM Functions into Practice

Employee Relations involves:
communications
fair application of policies and procedures
data documentation
coordination of activities and services that
enhance employee commitment and loyalty
Employee relations should not be confused
with labor relations, which refers to HRM in a
unionized environment.

Translating HRM Functions into Practice

Purpose and Elements of HRM
Communications
Keep employees informed of what is
happening and knowledgeable of policies and
procedures.
Convey that the organization values
employees.
Build trust and openness, and reinforce
company goals.

Translating HRM Functions into Practice

Effective Communication programs
involve:
Top Management Commitment
Effective Upward Communication
Determining What to Communicate
Allowing for Feedback
Information Sources

Does HRM Really Matter?

Research has shown that a fully functioning HR
department does make a difference.
Organizations that spend money to have quality
HR programs perform better than those who dont.
Practices that are part of superior HR services
include:

rewarding productive work

creating a flexible work-friendly environment
properly recruiting and retaining quality workers
effective communications

HRM in an Entrepreneurial Enterprise

General managers may perform HRM
functions, HRM activities may be
outsourced, or a single generalist may
handle all the HRM functions.
Benefits include
freedom from many government regulations
an absence of bureaucracy
an opportunity to share in the success of
the business

HRM in a Global Village

HRM functions are more complex when
employees are located around the world.
Consideration must be given to such
things as foreign language training,
relocation and orientation processes, etc.
HRM also involves considering the needs
of employees families when they are sent
overseas.

HR and Corporate Ethics

HRM must:
Make sure employees know about corporate
ethics policies
Train employees and supervisors on how to
act ethically

HR and Corporate Ethics

The Sarbanes-Oxley Act passed in 2002,
establishes procedures for public companies
regarding how they handle and report their
financial status.
Establishes penalties for noncompliance.
Provides protection for employees who report
executive wrongdoing.
Requires that companies have mechanisms in
place where complaints can be received and
investigated.