The Importance and Context of Human Resource Management

chapter 1
The Importance and Context

of Human Resource
Management
2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or
2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives
1. Describe why HRM is important to a

companys performance.
2. List the six primary HRM functions.
3. Describe why it is important to align the
HRM functions in support of common
goals and objectives.
4. Explain why HRM is important for
smaller as well as larger organizations.
5. Explain why HRM is important to every
managers career.
2014
2014Cengage
CengageLearning.
Learning.AllAllRights
RightsReserved.
Reserved.May
Maynotnotbebescanned,
scanned,copied
copiedororduplicated,
duplicated,ororposted
postedtotoa apublicly
publiclyaccessible
accessiblewebsite,
website,in inwhole
wholeororin2inpart.
part.
What Is HRM?
Human resource management is
the organizational function
responsible for attracting, hiring,
developing, rewarding, and
retaining talent.
Understanding HRM and
developing HRM skills can help
you succeed both personally and
professionally.
Table 11
How HRM Influences

Organizational Performance
What Employees Should Do

Factors including organizational strategy,
the competitive environment, and legal
requirements all influence what an
organizations employees should do.
HR planning is an important HRM activity
that involves designing work for
optimum efficiency and performance as
well as identifying the amount and types
of talents the company will need to
execute the business strategy.
What Employees Can Do

The HRM function of training and
development influences the
capabilities of an organizations
employees by developing employees
skills to meet changing business
needs.
Staffing and development activities
are responsible for the organizations
skills base; they are the foundation of
effective HRM.
What Employees Will Do

By setting clear goals aligned with the
business strategy, giving employees
feedback on their performance toward those
goals, and rewarding them for good
performance, performance management and
compensation influence employee
motivation, effort, and persistence.
People do what theyre rewarded for doing,
making it essential that rewards be aligned
with desired behaviors and outcomes.
Rewards include compensation (pay) but
also praise, recognition, time off, or anything
valued by the employee.
Figur
e 1-1
HRM Functions
HRM creates
the system
that acquires,
motivates,
develops, and
retains talent
and is a key
source of
competitive
advantage.
Staffing
Staffing is the process of planning,
acquiring, deploying, and retaining
employees that enables the organization
to meet its talent needs and to execute
its business strategy.
Recruiting focuses on attracting people to
apply, retaining qualified applicants in
the candidate pool while they are
evaluated, and finally on enticing the
chosen candidates to ultimately accept
job offers.
Training and Development

Employee capabilities are developed through
both formal and informal activities. The
training and development function is also
responsible for career planning, organizational
development, and legal compliance as well.
Training is essential for preparing employees
to be and stay effective in their jobs and to
become organizational leaders. Performance
management and rewards must be aligned
with training goals.
10
Performance Management
Aligning individual employees goals
and behaviors with organizational
goals and strategies, appraising and
evaluating past and current behaviors
and performance, and providing
suggestions for improvement
Providing performance goals so that
employees know what aspects of their
jobs to focus on or the performance
levels expected of them
11
Rewards and Benefits

Compensation and benefits perceived as
both adequate and equitable that reward
employees for their contributions to
organizational goal attainment are
important to employee motivation,
performance, and retention.
Total rewards include direct (salary),
indirect (health insurance), and
nonfinancial (feeling appreciated). The
total rewards package is important to
consider, not just the salary.
12
Health and Safety

Workplace health and safety includes
topics ranging from wellness, fire and
food safety, ergonomics, injury
management, disaster preparedness,
industrial hygiene, and even bullying and
workplace violence.
Workplace safety involves protecting
employees from work-related toxins,
accidents, and injuries. Workplace health
refers to employees physical and mental
health.
13
EmployeeManagement Relations
Employeemanagement relations
ultimately determine the employment
rights of both employers and
employees. Labor participation
programs, employee surveys, and
other tools are used in managing
employeemanagement relations.
Employment relations (or industrial
relations) focuses on unionized
employment situations.
14
How Does HRM Influence

Organizational Performance?
Effective HRM systems increase an organizations

ability to meet its goals, enhance its ability to grow
and manage change, and increase employee
engagement, effort, and performance.
Managing HR helps organizations with strategic
risk, operational risk, financial risk, and compliance
risk.
The most effective HRM systems are based on solid
research, identifying and implementing best
practices, and aligning the HRM system with
organizational goals and environmental realities.
15
Table
1-2
What Effective HRM Systems

Do
Table 1-2
16
Role of HRM in
Executing Business Strategy
A companys business strategy defines how the firm

will compete in its marketplace. A business strategy
should reflect what the organizations customers want,
what the firm wants, and what the firm can costeffectively deliver.
How a company positions itself to compete in the
marketplace determines the competitive advantage it
needs to create and the HRM strategies it needs to
pursue to acquire, develop, motivate, and retain the
appropriate talent.
A firms HR strategy links the entire HR function with
the firms business strategy.
17
Global Issues in HRM

People from different cultures have different
expectations and traditions, are often motivated
by different things, and communicate in different
ways.
Organizations must tailor their HRM efforts to the
different values and needs of its people to attract,
hire, motivate, and retain the best employees
globally.
Motivating employees in a multinational
organization can be particularly challenging and
requires flexibility.
18
Who Is Responsible for HRM?

HRM activities are performed by:
HRM professionals
Managers
Individual employees
Shared service centers
Outside vendors
Professional employer organizations
19
Why Is HRM Important to Your

Career?
Knowing how to design
maximally productive and
mutually rewarding work
relationships with employees is
important to every managers
success.
20

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chapter 1

The Importance and Context

1. Describe why HRM is important to a

How HRM Influences

What Employees Should Do

What Employees Can Do

What Employees Will Do

Training and Development

Rewards and Benefits

Health and Safety

How Does HRM Influence

Effective HRM systems increase an organizations

What Effective HRM Systems

A companys business strategy defines how the firm

Global Issues in HRM

Who Is Responsible for HRM?

Why Is HRM Important to Your

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