1 The Nature of Human Resource Management Copyright

1 The Nature of Human Resource Management Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

LEARNING OUTCOMES 1 Describe contemporary human resource perspectives 2 Trace the evolution of the human resource functions in organizations 3 Identify and discuss the goals of human resource management 4 Discuss the setting for human resource management 5 Describe the job of human resource managers from the perspectives of professionalism and careers Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 2

Contemporary Human Resource Management Perspectives • HRM practices and policies affect the ability to formulate and implement strategy in any area • Outsourcing: Process of hiring external firms to handle basic HRM functions Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 3

Evolution of the Human Resource Function • First study of management practice • Scientific management: Concerned with structuring individual jobs to maximize efficiency and productivity • Origins of the human resource function • Hawthrone studies: Instigated the human resources era - Human relations era: Supplanted scientific management as the dominant approach to management during the 1930 s Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 4

Scientific Management (Taylorism) https: //www. mindtools. com/pages/article/new. TMM_Taylor. htm Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 5

Hawthorne Studies The Hawthorne studies, which were conducted by Elton Mayo and Fritz Roethlisberger in the 1920 s with the workers at the Hawthorne plant of the Western Electric Company, were part of an emphasis on socio-psychological aspects of human behavior in organizations. https: //en. wikipedia. org/wiki/Hawthorne_effect Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 6

Evolution of the Human Resource Function • Hierarchy of human needs: Developed during the human relations era • Theory X and Theory Y: Framework grew from the human relations movement Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 7

Abraham Maslow’s Hierarchy of Needs https: //en. wikipedia. org/wiki/Abraham_Maslow http: //www. simplypsychology. org/maslow. html Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 8

Douglas Mc. Gregor https: //en. wikipedia. org/wiki/Douglas_Mc. Gregor Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 9

Mc. Gregor’s Theory X & Theory Y Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 10

Evolution of the Human Resource Function • Personnel management: New type of management function that grew from the recognition that human resources needed to be managed • Personnel departments: Specialized organizational units for hiring and administering human resources - Became popular during 1930 s and 1940 s Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 11

Evolution of the Human Resource Function • Human resource management in the electronic age • Knowledge workers: Employees whose jobs are concerned with the acquisition and application of knowledge - Contribute to an organization through what employees know and how they apply what they know Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 12

Goals of Human Resource Management • • Facilitating organizational competitiveness Enhancing productivity and quality Complying with legal and social obligations Promoting individual growth and development • Psychological contract: Overall set of expectations held by: - The employee with regard to what they have contributed to the organization - The organization with regard to what it will provide to the individual in return Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 13

The Setting for Human Resource Management • Line managers: Directly responsible for creating goods and services • Staff managers: Responsible for an indirect or support function that would have costs • Bottom-line contributions were less direct Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 14

The Setting for Human Resource Management • The human resource management in smaller versus larger organizations • Smaller organizations require line managers to handle their basic HR functions • When firms grow beyond a certain size, a separate HR unit becomes necessity - Issues involved become much more complicated Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 15

The Setting for Human Resource Management • Human resource management: Integrated and interrelated approach to managing human resources • Recognizes interdependence among the various tasks and functions that must be performed • Utility analysis: Attempt to measure the impact and effectiveness of HRM practices in terms of metrics such as firm’s financial performance Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 16

Human Resource Managers • Contemporary HR executives must possess general management abilities that reflect conceptual, diagnostic, and analytical skills • Recognizing human resource management as the firm’s most critical source of information is important for everyone in the organization Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 17

Figure 1. 4 Human Resource Management as a Center for Expertise Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 18

Human Resource Managers • Human resource departments are viewed as cost centers • Goal - Providing clear and measuring financial benefits to the organization • Society for human resource management (SHRM) - Largest professional HR association • Publishes professional journals covering current developments in the field • Sponsors workshops and conferences Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 19

Human Resource Managers • Human resource certification institute (HRCI) • Professional in human resources (PHR) • Senior professional in human resources (SPHR) • Global professional in human resources (GPHR) • Careers in human resource management • Degree in human resource management will provide an entry-level employment opportunity as an HR manager • Line management can be used as a route to HRM Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 20

SUMMARY • Latest trend - To outsource HR firms to handle payroll, insurance, recruitment and other benefits • Human resource departments are viewed as cost centers • Certification is required to progress in HR career Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 21

KEY TERMS • Hawthorne studies • Hierarchy of human needs • Human relations era • Human resource management (HRM) • Human resource management system • Human resources • Knowledge workers • Line managers • Outsourcing • Personnel departments • Personnel management • Personnel manager • Productivity • Psychological contract Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 22

KEY TERMS • Quality • Scientific management • Staff managers • Theory X and Theory Y • Utility analysis Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 23

Copyright © 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM 3 | CH 3 24