SECTION 1 Nature of Human Resource Management. Human Resource Management Eleventh Edition. Robert L. Mathis John H. Jackson. Chapter 1. Changing Nature of Human Resource Management. PowerPoint Presentation by Dr. Zahi Yaseen. Changing Nature of Human Resource Management.
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SECTION 1Nature ofHuman ResourceManagement Human ResourceManagementEleventh Edition Robert L. Mathis John H. Jackson Chapter 1 Changing Nature of Human Resource Management PowerPoint Presentation by Dr. Zahi Yaseen
Changing Nature of Human Resource Management After you have read this chapter, you should be able to: • Define HR management and explain why managers and HR staff must work together. • List and define the seven categories of HR activities. • Identify three challenges facing HR today. • Describe the four roles of HR management. • Discuss why ethical issues affect HR management.
HR Management Activities
HRM Activities Human resource activities support organizational efforts focusing on Productivity, Service, and quality That requires changes in corporate culture, leadership styles, and HR policies. 1- HR planning and analyses 2- Equal employment opportunity 3- Staffing 4- HR development 5- Compensation and Benefits 6- Health, safety, and security 7- Employee and Labor relations
Human Resource Management • Is the direction of organizational systems to ensure effective and efficient use of human talent to accomplish organizational goals. • HR in Organization • Every manager in an organization is an HR manager, however, it’s unrealistic to expect all operation managers like sales managers, nursing supervisor to know about employment regulations, union contracts….etc. • Corporation of HR with operating managers: • HR specialists design processes and systems that operating managers help implement.
Management of Human Capital in Org; Organization must manage four types of assets: 1- Physical : building, land, furniture, vehicles… 2- Financial: cash, stocks, securities….. 3- Intangible: brand name, researches….. 4- Human: talents employees, experience, professionals, capabilities….. All these assets are crucial in varying degrees. However, the human assets are the ‘glue” that holds all other assets together and guides their use to achieve organizational goals.
Management of Human Capital in Org; Human Capital: Is the collective value of the capabilities, knowledge, skills, life-experiences, and motivation of the workforce. Human capital is not the people in the company- It’s what those people bring and contribute in the success of that company. HR as a Core competency: HR should be part of organizational strength. Because those strengths are the foundation for creating a competitive advantage, core competency is a unique capability that creates high value and differentiates an organization from its competitors.
HR Management Challenges • Globalization of Business • Economic and technological changes • Workforce demographics and diversity • Organizational cost pressures & restructuring
HR Management Challenges • Globalization of Business - Global companies across nations. Pepsi, Microsoft, Hp, GE, Sony, Toyota, Nokia, McDonalds….. - Shift from investment to operate, and produce products and services across the boards and the effect of security. • Economic and Technological Changes • Shift in jobs for manufacturing and agriculture to service industries and telecommunications. • Workforce availability and quality concerns: Lack of skilled employees. • Growth in contingent workforce: contractors, part time… • Growth of information technology (Internet).
HR Management Challenges • Workforce demographics and diversity • More diversity of race, gender, and ethnicity. People from different background, women in the workplace, and growing of minorities. • Organizational cost pressures & restructuring • “Right-sizing", eliminating of layers of management, closing facilities, merging, 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 Management Roles • Administrative Role • The administrative support operations (e.g., payroll and benefits work) shifted to technology ( internet) and outsourcing. The reasons are to save money, time, and to focus on strategic plans. • Operational and Employee Advocate Role • Traditionally HR is the “Champion” for employee concerns, and respond to employees complaints and crises. (figure 1) • Strategic Role • - Long-term implications, ethics bookkeeping, and provide competitive advantage.
HRM shifts from operational to strategic Emerging HR practice • Proactive • Measuring HR with metrics • Setting strategic HR goals and objectives • Developing and revising policies and procedures • Evaluating benefits strategically • Identifying training needs • HR planning and linking with external staffing needs • Developing compensation plans Traditional HR Function • Reactive • Collecting HR data • Responding to goals and objectives set by executives • Complying with laws, policies, and procedures • Administering employees benefits programs • Designing training programs • Staffing • Applying compensation plans
Strategic Role for HR • HR becomes a strategic business partner by: • Evaluating mergers and acquisitions for staffing needs • Conducting workforce planning : from employees retirements to workforce expansion • Leading site selection efforts for new facilities, and for international outsourcing. • Applying new HR systems to reduce time and staff • Working with executives to develop compensating plans • Collaborative HR: when group of companies from different industries establish HR hop to share information and benefit for their experiences.
HR Technology • Firms have developed and implemented information systems to simplify use of the vast amounts of HR data • Human resource management system( HRMS) • Is an integrated system providing information used by HR management in decision making. • Purpose of HRMS: • 1- administrative and operational efficiency • 2- strategic and HR planning • ( see attached example)
Ethics and HR • Organizations with high ethical standards are more likely to meet long –term strategic objectives and profit goals. • Ethics and global differences: Different laws, politics, cultural values usually raises ethical issues for global employers.( what is prohibited here is allowed there) • HR’s role in organizational ethics • HR management plays a key role as the “ keeper and voice” of organizational ethics. • Ethical issues like: misrepresenting hours and time worked, employee lying to managers, hiring and promoting the favoritism.
Ethics and HR • Responding to Ethical Situations • 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?
Job satisfaction leads to Productivity and quality How can we increase Productivity? Competition advantage through Human capital Job satisfaction Individual abilities/skills The Key Employee Retention How can we manage our costs? Management support/technology Culture/ motivation Job performance • HR Strategic • Vision/Mission,\/Goals • Plan for people • Revising Rules • Comply with Labor Law • Design Policies/procedures • Design jobs • Recruiting /Selecting • Employee retention We should value Our customers and Our employees What can we do to Survive in the Market place? Demands for Productivity/ quality/ service Increasing competition • HR Traditional View • -Responding to goals and objectives set by executives • Complying with laws, • policies, and procedures • Administering employees benefits programs • Staffing • Applying compensation plans HR Tree
Staffing • Job analysis • Recruiting • Selecting • Talent Manage • Orientation • Training • Career planning • HR Development • Performance • Labor Relation • Labor Law • Workers –Rights • Unions HR Tree Equal Employment Fairness Diversity Leadership Supervisory • Total Rewards • Compensation • Incentives • Benefits • Risk Manage • Safety • Health • Security Employee Retention Global HRM Employment law Survey -Satisfaction Exit Interviews Job Performance HR Planning HR Strategic