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Human Resource Management, 12 th Edition. By Leonard & Hilgert. Chapter 1. The Nature of Human Resources. Human Resource Management. The function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals.

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Human resource management 12 th edition
Human Resource Management, 12th Edition

By Leonard & Hilgert

Chapter 1

Chapter 1

The Nature of Human Resources

Human resource management
Human Resource Management

  • The function performed in organizations that facilitates the most effective use of people (employees) to achieve organizational and individual goals.

Chapter 1

Human resource activities 1
Human Resource Activities (1)

  • Strategic HR Management

    • HR Planning, HR Measurement, HR Technology

  • Equal Employment Opportunity (EEO) Compliance

  • Staffing

    • Job analysis, recruiting & selection

Chapter 1

Human resource activities 2
Human Resource Activities (2)

  • Training, Development & Evaluation

  • Compensation

    • Wages, incentives, Benefits

  • Safety, Health, and Wellness

  • Labor Relations

    • Rights, policies & Union relations

Chapter 1

External forces
External Forces

  • Global

  • Environmental

  • Cultural/geographic

  • Political

  • Social

  • Legal

  • Economic

  • Technological

Chapter 1

Hrm practice is
HRM Practice is:

  • People oriented

  • Action oriented

  • Globally oriented

  • Future oriented

Chapter 1

Key concepts of hrm
Key Concepts of HRM

  • Analyzing and solving problems

  • Assessing and interpreting costs or benefits of HRM

  • Using planning models

  • Preparing reports on HRM solutions

  • Training the HR staff

Chapter 1

Hrm contributions to organizational effectiveness 1
HRM Contributions to Organizational Effectiveness (1)

  • Help organization reach goals

  • Use skills and abilities of employees efficiently

  • Provide well-trained and well-motivated employees

Chapter 1

Hrm contributions to organizational effectiveness 2
HRM Contributions to Organizational Effectiveness (2)

  • Increase job satisfaction and self-actualization

  • Communicate HRM policies

  • Maintain ethical policies and socially responsible behavior

  • Manage the increasing pace of change

Chapter 1

Quality of work life qwl
Quality of Work Life (QWL)

  • A general concept referring to several aspects of the job experience, including:

    • Management and Supervisory Style

    • Freedom and Autonomy to Make Decisions

    • Satisfactory Physical Surroundings

    • Job Safety

    • Satisfactory Working Hours

    • Meaningful Tasks

Chapter 1

Fastest growing jobs in u s 2010
Fastest Growing Jobs in U.S. 2010

Source: U.S. Bureau of Labor Statistics,

Chapter 1

Ethics and hr management
Ethics and HR Management

  • Firms with High Ethical Standards

    • Are more likely to reach strategic goals.

    • Are viewed more positively by stakeholders

    • Are better able to attract and retain human resources.

Chapter 1

Hr s role in organizational ethics
HR’s Role in Organizational Ethics

  • HR management plays a key role as the “keeper and voice” of organizational ethics.

Chapter 1

What is ethical behavior
What is Ethical Behavior?

  • What “ought” to be done – What is “right”.

  • Dimensions of decisions about ethical issues in management:

    • Extended consequences

    • Multiple alternatives

    • Mixed outcomes

    • Uncertain consequences

    • Personal effects

Chapter 1

Responses to ethical situations
Responses to Ethical Situations

  • Are 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?

Chapter 1

Ethical behavior organizational culture
Ethical Behavior & Organizational Culture

  • Organizational Culture

    • The shared values and beliefs in an organization

    • Common forms of unethical conduct:

      • Lying to supervisors

      • Employee drug use or alcohol abuse

      • Falsification of records

Chapter 1

Fostering ethical behavior
Fostering Ethical Behavior

  • Have a written code of ethics and standards of conduct

  • Provide Training on ethical behavior for all employees

  • A means for employees to obtain ethical advice

  • Confidential reporting systems for ethical misconduct

Chapter 1

Core competencies
Core Competencies

  • Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

Chapter 1

Competitive advantage through people
Competitive Advantage through People

  • Sustained competitive advantage through people is achieved if these human resources:

    • Have value.

    • Are rare and unavailable to competitors.

    • Are difficult to imitate.

    • Are organized for synergy.

Chapter 1

Competitive challenges and hrm
Competitive Challenges and HRM

  • The most pressing competitive issues facing firms:

    • Going global

    • Embracing technology

    • Managing change

    • Developing human capital

    • Responding to the market

    • Containing costs

Chapter 1

Going global 1
Going Global (1)

  • Globalization

    • The trend toward opening up foreign markets to international trade and investment.

  • Impact of Globalization

    • Partnerships with foreign firms

    • “Anything, anywhere, anytime” markets

    • Lower trade and tariff barriers

Chapter 1

Going global 2
Going Global (2)

  • NAFTA, EU, APEC trade agreements

  • WTO and GATT

Chapter 1

Going global 3
Going Global (3)

  • Impact on HRM

    • Different geographies, cultures, laws, and business practices

    • Issues:

      • Identifying capable expatriate managers.

      • Developing foreign culture and work practice training programs.

      • Adjusting compensation plans for overseas work.

Chapter 1

Ethics and global differences
Ethics and Global Differences

  • Different legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers.

  • Foreign Corrupt Practices Act (FCPA)

    • Prohibits U.S. firms from engaging in bribery and other practices in other countries.

Chapter 1

Managing change
Managing Change

  • Types of Change

    • Reactive change

      • Change that occurs after external forces have already affected performance

    • Proactive change

      • Change initiated to take advantage of targeted opportunities

Chapter 1

Managing change1
Managing Change

  • Formal change management programs help to keep employees focused on the success of the business.

Chapter 1

Why change efforts fail 1
Why Change Efforts Fail (1)

  • Not establishing a sense of urgency.

  • Not creating a powerful coalition to guide the effort.

  • Lacking leaders who have a vision.

  • Lacking leaders who communicate the vision.

Chapter 1

Why change efforts fail 2
Why Change Efforts Fail (2)

  • Not removing obstacles to the new vision.

  • Not systematically planning for and creating short-term “wins.”

  • Declaring victory too soon.

  • Not anchoring changes in the corporate culture.

Chapter 1

Human capital
Human Capital

  • The knowledge, skills, and capabilities of individuals that have economic value to an organization.

  • Valuable because capital:

    • Is based on company-specific skills.

    • Is gained through long-term experience.

    • Can be expanded through development.

Chapter 1

Responding to the market 1
Responding to the Market (1)

  • Total Quality Management (TQM)

    • A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvement.

  • Six Sigma

    • A process used to translate customer needs into a set of optimal tasks that are performed in concert with one another.

Chapter 1

Responding to the market 2
Responding to the Market (2)

  • Reengineering

    • Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

    • Requires that managers create an environment for change.

    • Depends on effective leadership and communication processes.

    • Requires that administrative systems be reviewed and modified.

Chapter 1

Containing costs 1
Containing Costs (1)

  • Downsizing

    • The planned elimination of jobs (“head count”).

  • Outsourcing

    • Contracting outside the organization to have work done that formerly was done by internal employees.

Chapter 1

Containing costs 2
Containing Costs (2)

  • Employee Leasing

    • The process of dismissing employees who are then hired by a leasing company (which handles all HR-related activities) and contracting with that company to lease back the employees.

Chapter 1