Human Resource Management Chapter 1: Introduction To Human Resource Management

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2003 Prentice Hall, Inc.
Human Resource Management

Chapter 1: Introduction to
Ass. Prof. Ipek Kalemci TUZUN
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Personnel Management Approach
Human Resource
Management Approach
Manpower centered
Pragmatic
Job oriented
Resource centered
Strategic
Staff oriented
Employee-organization relations
by HRM approach
HRM is a term for what historically was referred as personnel administration
or personnel management. In todays arena, HR managers are sometimes

called people managers and employees are refereed as our associates.
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The Management Process

Planning
Organizing
Staffing
Leading
Controlling
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The evolution of HRM

Decade
Major Business Ideas
Common
HR titles
No HR people
Pre-1900s
Small business and

workers guilds
1900s
Large-scale enterprise Labor relations,

growth
personnel
1920s
Depression, first labor

legislation
Industrial
relations,
personnel
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Decade
Common
HR titles
1940s
WW II, growth of large

diversified enterprises
1960s
Civil rights and compliance Personnel
1980s
Growing impact of
Personnel,
globalization and
Human
technology; human capital; Resources
emergency of the
knowledge/service
economy
Personnel
administration
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Decade
2000s
Modern organizations,
organization effectiveness,
strategic HR planning
Common
HR titles
Human
Resource
Management
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Management Process
Planning
Goals and standards
Rules and procedures
Plans and forecasting.
Organizing
Tasks
Departments
Delegating
Authority and communication
Coordinating
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Management Process
Staffing
Hiring
Recruiting
Selecting
Performance standards
Compensation
Evaluating performance
Counseling
Training and developing
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Management Process
Leading
Getting the job done
Morale
Motivation
Controlling
Setting standards
Comparing actual performance to standards
Corrective action
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Human Resource Management is the process of acquiring, training,
appraising, and compensating employees and attending to their labor
relations, health and safety, and fairness concerns.
Human Resource Management can be defined as the implementation of the

strategies, plans and programs required to attract, motivate, develop,
reward and retain the best people to meet the organizational goals and
operational objectives of the organization.
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HRM Functions Include:

Conducting job analyses
(determining the nature of each

employees job)
Planning labor needs and
recruiting job candidates
Selecting job candidates
Orienting and training new
employees
Managing wages and salaries
(compensating employees)
Providing incentives and
benefits
Appraising performance
Communicating (interviewing,
counseling, disciplining)
Training and developing
managers
Building employee commitment
Building loyalty
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HHRM is Important to all Managers.

** In order to decrease turnover
The wrong person, High
turnover(**)
**(turnover rate; number of replacement * 100
average number of employee
Low effectiveness and
efficiencies
Useless interviews
Poor training
Unfair labor practices
rate;
Better advancement
opportunities
More training
Flexible schedules
mproved benefits
Greater employee
involvement in operations
Recognition programs
Good communication of
rules and regulations
Resolving employee
complaints
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So,
Human Resources are the people in the organization
Human Resource Management is a series of activities and
decisions carried out by all line managers that help employees

get the job done and achieve their objectives
Human Resource Department consist of specially trained
professionals who help managers carry out human resource

management responsinsibilities
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Line and Staff Aspects of HRM

Authority is the right to make decisions, to direct the work
of others, and to give orders

Line Managers are authorized to direct the work of
subordinates. They are always someones boss. In general

they are in charge of accomplishing of the groups goals
Staff Managers
are authorized to assist and advise line managers

in their goals. They aid line managers in areas like
recruiting, hiring and compensation
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Line Managers HRM Jobs

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 companys
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
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FIGURE 13 Employment and RecruitingWho Handles It?

(Percentage of All Employers)
Note: Length of bars represents prevalence of activity among all surveyed employers.
Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002.
Reproduced with permission via Copyright Clearance Center.
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As a company grows, line

managers need the assistance as
well as the specialized
knowledge and advice of a
separate HR staff
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HRM DEPARTMENT
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 authorityThe 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).
Functional controlThe authority exerted by an HR manager as coordinator of personnel activities.
Employee advocacyHR 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.
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Human Resource Managers

Duties
Coordinative
Function
Line Function
Line Authority
Implied Authority
Functional Authority
Functions of
HR Managers
Staff Functions
Staff Authority
Innovator
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Human Resource Specialties

Recruiters
Labor Relations
Specialists
Training
Specialists
Human
Resource
Specialties
EEO
Coordinators
Job Analysts
Compensation
Managers
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Typical HR Positions
Recruiters; maintain contact with community and search for
qualified job applicants.

Job analysts; Collect and examine information about jobs to
prepare job descriptions and job specifications
Compensation managers; Develop compensation plans and
handle the employee benefits program.
Training specialists; Plan, organize, and direct training
activities.
Labor relations specialists. Advise management on all
aspects of unionmanagement relations.
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FIGURE 11
HR Organization Chart
for a Large Organization
Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007.
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FIGURE 12 HR Organizational Chart (Small Company)
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The changing role of HR

Effective HRM selection, training, pay and employee
fairness practices are crucial to capitalizing on

technology and remaining competitive
HR departments must move away from a
housekeeping focus to strategic maneuvering HRM

must evolve to remain dynamic
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The new HR manager

Provides efficient operational services including
outsourcing service when necessary

Supports top managements strategic planning efforts
Acts as the companys internal consultant for
identifying and institutionalizing changes that

enhance employees skills allowing them to
contribute to the companys success
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The Changing Environment of

Human Resource
Management
Globalization Trends
Changes and Trends

in Human Resource
Management
Technological Trends
Trends in the Nature of Work,

Human Capital
Workforce Demographic Trends
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The Changing Environment of Human

Resource Management
Globalization; tendency of firms to extend their sales and
manufacturing to new markets abroad

Technological advances; technology has been forcing and
enabling firms to become more competitive (skilled employee,
empowerment)
The nature of work; Human capital(knowledge, education,
training, skills and expertise of a firms worker) provides
competitive advantage
The workforce diversity; increased diversity provide
challenges for HR management: Older, more multi-ethnic
workforce,Nontraditional workers,
Generation Y,Retirees
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The Changing Role of

Strategic Human
Resource
Management
Managing with the

HR Scorecard
Process
New
Responsibilities
for HR Managers
Creating HighPerformance Work

Systems
Measuring the HRM

Teams Performance
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Important HRM issues

Strategic human resource management
HRs use of technology

Managing ethics
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What is strategic HRM?

A strategy is a companys plan for matching internal
strengths and weakness with external opportunities

and threats
Strategic HRM is the formulation and execution of HR
policies and practices that produce competent

employees with the behaviors needed to achieve the
companys strategic goals
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FIGURE 18 Strategy and the Basic Human Resource

Management Process
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HR and technology
Self-service
Call centers
Productivity
improvement
Outsourcing
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Some Ways HR Managers Use Technology
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Issues related to HR ethics

Workplace safety
Security of employee records

Employee theft
Affirmative action
Comparable work
Employee privacy rights
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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
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Benefits of a High-Performance
Work System (HPWS)
Generate more job applicants
Screen candidates more effectively
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
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FIGURE 15 Five Sample HR Metrics

HR Metric*
Absence rate
How to Calculate It
# of days absent in month
Average # of employees during month # of workdays
Cost per hire
100
Advertising + agency fees + employee referrals + travel cost of

applicants and staff + relocation costs + recruiter pay and benefits
Number of hires
HR expense
factor
Time to fill
HR expense
Total operating expense
Total days elapsed to fill job requisitions
Number hired
Turnover rate
Number of separations during month

Average number of employees during month
100
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics,
Compensation and Benefits Review, January/February 2000, pp. 1320; Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using
Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;]
SHRM/BNA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research 2006 Strategic HR Management Survey Report, Society for Human Resource Management..
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Measuring HRs Contribution

The HR Scorecard
Shows the quantitative

standards, or metrics the firm
uses to measure HR activities.
Measures the employee

behaviors resulting from these
activities.
Measures the strategically

relevant organizational
outcomes of those employee
behaviors.
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The Human Resource Managers

Proficiencies
New Proficiencies
HR proficiencies
Business proficiencies
Leadership proficiencies
Learning proficiencies
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2003 Prentice Hall, Inc.