HRM Functions and Strategy

Philippine Christian University
Graduate School of Business and Management
HRM Functions and Strategy
Importance of HRM
 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.
The HRM Functions
 Staffing
o strategic human resource planning: match prospects’ skills to the company’s strategy
needs
o recruiting: use accurate job descriptions to obtain an appropriate pool of applicants
o selection: thin out pool of applicants to find the best choice
Staffing has fostered the most change in HR departments during the past 30 years.
 training and development

o orientation: teach the rules, regulations, goals, and culture of the company
o employee training: help employees acquire better skills for the job
o employee development: prepare employee for future position(s) in the company
o organizational development: help employees adapt to the company’s changing strategic
directions
o career development: provide necessary information and assessment in helping
employees realize career goals
The goal is to have competent, adapted employees.
 Motivation
o theories and job design: environment and well-constructed jobs factor heavily in
employee performance
o performance appraisals: standards for each employee; must provide feedback
o rewards and compensation: must be link between compensation and performance
o employee benefits: should coordinate with a pay-for-performance plan
 maintenance
o safety and health: caring for employees’ well-being has a big effect on their
commitment
o communications and employee relations: keep employees well-informed of company
doings, and provide a means of venting frustrations
Job loyalty has declined over the past decade.

In other words, hiring people, preparing them, stimulating them, and keeping them.
External Influences on HRM
 Dynamic environment
o Globalization
o workforce diversity
o teams
o changing skill requirements
o decentralized work sites
o technology
o employee involvement
o ethics
o continuous improvement
“The only constant in life is change.”
 laws and regulations

o legislation has an enormous effect on HRM
o laws protect employee rights to union representation, fair wages, family medical leave,
and freedom from discrimination based on conditions unrelated to job performance
o The U.S. Equal Employment Opportunity Commission enforces federal laws on civil
rights at work.
 labor unions
o assist workers in dealing with company management
o negotiate wages, hours, and other terms of employment
o promote and foster a grievance procedure between workers and management
When a union is present, employers cannot fire workers for unjustified reasons.
 Management thought
o Frederick Taylor developed principles to enhance worker productivity
o Hugo Munsterberg devised improvements to worker testing, training, evaluations, and
efficiency
o Mary Parker Follet advocated people-oriented organizations
o 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.
Structure of the HR Department
There are four areas in a typical nonunion HR department:
 Employment
o promotes staffing activities, recruits new employees, but does not make hiring decision
 compensation / benefits
o pays employees and administers their benefits package
 training and development
o helps workers adapt to change in the company’s external and internal environments
 employee relations
o ensures open communication within the company by fostering top management
commitment, upward and accurate communication, feedback, and effective information
sources
Many HR departments also offer services such as operating the company’s credit union, making
child-care arrangements, providing security, or running in-house medical or food services.
Careers in HR
HR positions include:
 assistants who support other HR professionals

 generalists who provide service in all four HR functions
 specialists who work in one of the four HR functions
 executives who report to top management and coordinate HR functions to organizational
strategy
Interpersonal communication skills and ambition are two factors that HR professionals say advance their
careers.
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, work-friendly environment
 properly recruit and retain quality employees
 provide effective communications
Make sure HR services match the overall organizational strategy.

HR Trends and Opportunities
 more than half of all companies outsource all or some parts of their HR functions
 professional employer organizations (PEO) help small- to medium-size companies attract
stronger candidates and handle new laws in HR
 shared services allow organizations with several divisions or locations to consolidate some HR
functions into one central location while retaining certain functions in divisional locations
Entrepreneurial, Global, Ethical HR
 HR managers in small businesses perform the same functions of those in larger businesses, but
on a smaller scale
 international HRM is very involved and costly
 recent corporate scandals and resulting legislation (SOX) have spurred the “corporate ethicist /
ombuds” position

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Philippine Christian University

Graduate School of Business and Management

HRM Functions and Strategy

 supports the organization’s strategy

The HRM Functions

 training and development

The goal is to have competent, adapted employees.

Job loyalty has declined over the past decade.

External Influences on HRM

“The only constant in life is change.”

 laws and regulations

Structure of the HR Department

There are four areas in a typical nonunion HR department:

 assistants who support other HR professionals

 reward productive work

Make sure HR services match the overall organizational strategy.

HR Trends and Opportunities

Entrepreneurial, Global, Ethical HR

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