Chapter 1: Nature of Human Resource Management

1. Chapter 1: Nature of Human Resource Management • Introduction • HR is not always respected because the focus is on activities rather than results • HR can add real value by bringing itself to the realm of business strategy • HR needs to treat people as part of the capital assets

2. Chapter 1: Nature of Human Resource Management • Human Capital in Organizations • Four types of assets in organizations: Physical, financial, intangible, and human • Human capital is the collective value of an organizational workforce’s capabilities, skills, knowledge, experiences, and motivation • One measure of human capital: Pre-tax profit divided by compensation and benefits costs • Core competency refers to any unique HR capability that creates high value and differentiates an organization from its competition

3. Chapter 1: Nature of Human Resource Management • HR Activities • Strategic HR Management • Legal Framework and Practices • Staffing • Talent Management and Development • Total Rewards • Risk Management and Worker Protection • Employee and Labor Relations

4. Chapter 1: Nature of Human Resource Management • Managing Human Resources in Organizations

5. Chapter 1: Nature of Human Resource Management • Managing Human Resources in Organizations (Contd.) • Line managers and the HR unit complement each other in managing human resources • 3MK (money, market, management, and knowhow) are the four major concerns facing small local organizations • All these concerns must be handled by competent people • Cooperation between HR staff and line managers is necessary for HR efforts to succeed

6. Chapter 1: Nature of Human Resource Management • HR Management Roles

7. Chapter 1: Nature of Human Resource Management • HR Management Roles (Contd.) • The role of HR is transforming from a predominantly administrative one to a predominantly strategic one • Driving forces for the change: cost-reduction pressures, business restructuring, broadscale downsizing/layoffs, and the globalization of business

8. Chapter 1: Nature of Human Resource Management • HR Management Roles (Contd.) • Visible trends: Increasing use of web-based technology in HR activities and outsourcing of HR administrative functions • Not all HR outsourcing experiences are positive • HR’s employee advocate role helps organizations ensure fair and equitable treatment for employees and avoid legal and regulatory complaints

9. Chapter 1: Nature of Human Resource Management • HR Management Roles (Contd.)

10. Chapter 1: Nature of Human Resource Management • HR Management Roles (Contd.) • Differences between the operational and strategic roles of HR exist, as shown in Figure 1-4. • HR is a business partner that can contribute at the table (i.e., HR is involved in devising strategy in addition to implementing strategy).

11. Chapter 1: Nature of Human Resource Management • HR Management Roles (Contd.) • Examples where HR can play a strategic role: mergers and acquisitions; workforce expansion in line with strategic plans; succession planning as the workforce matures; staffing new facilities; improving HR efficiency and reducing HR staff headcounts; developing a new compensation plan for a new product or service.

12. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge • Globalization of Business • Outsourcing • Contract out activities • Off-shoring • Shifting activities to a foreign country • In-shoring • Shifting activities from a foreign country • Terrorism

13. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge (Contd.)

14. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge (Contd.) • Economic and Technological Changes • Occupational shift from manufacturing and construction to services • Workforce availability and quality concerns: Influx of foreign workers and foreign talents (skilled employees) while a sizable portion of the local workforce remains unskilled/low-skilled

15. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge (Contd.) • Economic and Technological Changes (Contd.) • Growth in contingent workforce: part-time, temporary, and contract (short-term of about 1 year) employees are entitled to legal protection but many are not aware of it • Technological shifts and the Internet: Employees can get work done anytime due to the availability of electronic devices such as mobile phone and email. This may increase stress and blur the line between work and rest

16. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge (Contd.) • Workforce Demographics and Diversity • Significant diversity has been found in several realms • Racial/Ethnic Diversity • Women in the Workforce • Ageing Workforce

17. Chapter 1: Nature of Human Resource Management • Current HR Management Challenge (Contd.) • Organizational Cost Pressures and Restructuring • Trends in rightsizing • Globalizing trends intensify cost-based competition

18. Chapter 1: Nature of Human Resource Management • HR Technology • Purposes of an HRMS • Improve administrative and operational efficiency • Strategic HR planning based on facts • Anyone can start an HR wiki anytime anywhere • Other Uses of HR Technology • Bulletin boards • Data access • Employee self-service • Extended linkage

19. Chapter 1: Nature of Human Resource Management • Ethics and HR Management • Organizations with high ethical standards are more likely to meet long-term strategic objectives and profit goals • Ethics and Global Differences: What is legal in one country may be illegal in another • Ethical Behavior and Organizational Culture: HR plays a key role in shaping an organization’s shared values and beliefs in what is ethical and acceptable • HR’s Role in Organizational Ethics: Some common ethical misconducts are displayed in Figure 1-7

20. Chapter 1: Nature of Human Resource Management • Ethics and HR Management (Contd.)

21. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers • HR Competencies • Strategic Contribution • Business Knowledge • HR Delivery • HR Technology • Personal Credibility of HR Professionals

22. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers (Contd.) • HR Management as a Career Field

23. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers (Contd.) • HR Management as a Career Field (Contd.) • Two broad types of career in HR and both enable the professionals to earn a decent living. • HR generalists • HR specialists

24. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers (Contd.) • HR Professionalism and Certification

25. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers (Contd.) • National Professional Accreditation Framework • Accreditation Status • Human Resource Associate • Human Resource Professional • Senior Human Resource Professional • The Competency Framework • Core attributes • Strategic business partner • Managerial and people management • Functional/technical skills

26. Chapter 1: Nature of Human Resource Management • HR Management Competencies and Careers (Contd.) • National Professional Accreditation Framework (Contd.) • The Benefits of Accreditation • Pursuing higher standards • Gaining respect • Self-examining • Enhanced employability