2003 Prentice Hall Inc 1 1 Chapter 1

© 2003 Prentice Hall, Inc. 1 -1 Chapter 1 The Strategic Role of Human Resource Management Instructor presentation questions: docwin@tampabay. rr. com

1 -2 © 2003 Prentice Hall, Inc. Outline of Chapter 1 I. The Manager’s Human Resource Management Jobs Why is HR Management Important to All Managers? Line and Staff Aspects of HRM Cooperative Line and Staff HR Management: An Example

1 -3 © 2003 Prentice Hall, Inc. Outline of Chapter 1 II. Strategic Planning and Strategic Trends The Basics of Strategic Planning The Strategic Planning Process Basic Strategic Trends Managerial Consequences of the Basic Trends

1 -4 © 2003 Prentice Hall, Inc. Outline of Chapter 1 III. HR’s Strategic Role HR’s Evolving Role Strategic Human Resource Management HR’s Role as a Strategic Partner HR and Technology HR and Employee Performance and Commitment Is there a “One Best HR Way? ” Research Insight

1 -5 © 2003 Prentice Hall, Inc. After Studying This Chapter, You Should Be Able To: w Explain what human resource management (HR)is and how it relates to the management process. w Give at least eight examples of how HR management concepts and techniques can be of use to all managers. w Illustrate the HR management responsibilities of line managers and staff (HR) managers.

1 -6 © 2003 Prentice Hall, Inc. The Management Process w w w Planning Organizing Staffing Leading Controlling

1 -7 © 2003 Prentice Hall, Inc. Management Process w Planning n n n Goals and standards Rules and procedures Plans and forecasting. w Organizing n n n Tasks Departments Delegating Authority and communication Coordinating

1 -8 © 2003 Prentice Hall, Inc. Management Process w Staffing n n n n Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

1 -9 © 2003 Prentice Hall, Inc. Management Process w Leading n n n Getting the job done Morale Motivation w Controlling n n n Setting standards Comparing actual performance to standards Corrective action

De fi n i ti on 1 -10 © 2003 Prentice Hall, Inc. HRM Function Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.

1 -11 © 2003 Prentice Hall, Inc. HRM People Functions Include: w w w w Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits w w w w Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations

1 -12 © 2003 Prentice Hall, Inc. HRM is Important to all Managers. Don’t Let These Happen to You! w w w w w The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices

1 -13 © 2003 Prentice Hall, Inc. HRM – It’s All About Results “For many years it has been said that capital is the bottleneck for a developing industry. I don’t think this any longer holds true. I think it’s the work force and a company’s inability to recruit and maintain a good work force that does constitute the bottleneck…. ” F. K. Foulkes

1 -14 De f in iti on © 2003 Prentice Hall, Inc. Line and Staff Aspects of HRM w Authority n n n Making decisions Directing work Giving orders w Line Managers n Accomplishing goals w Staff Managers n Assisting and advising line managers

1 -15 © 2003 Prentice Hall, Inc. Line Manager’s HRM Jobs w w w The right person Orientation Training Performance Creativity Working relationships w Policies and procedures w Labor costs w Development w Morale w Protecting

1 -16 © 2003 Prentice Hall, Inc. Staff Manager’s HRM Jobs w Line authority w Implied authority w Functional control w Employee advocacy

1 -17 HR Department Organizational Chart © 2003 Prentice Hall, Inc.

De fin iti on 1 -18 © 2003 Prentice Hall, Inc. Strategic Planning and Trends w Strategy is the company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

1 -19 © 2003 Prentice Hall, Inc. Strategic Planning 101 There are three levels of strategic planning as shown below Corporate Strategy Business Strategy Functional Strategies Business Strategy

1 -20 © 2003 Prentice Hall, Inc. The Strategic Planning Process w SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats w Best strategic plans balance a company’s Strengths and Weaknesses with the Opportunities and Threats the firm faces w Basic strategic trends n Globalization n Technological advances n The nature of work n The workforce

1 -21 © 2003 Prentice Hall, Inc. Globalization

1 -22 © 2003 Prentice Hall, Inc. Technological Advances and the Nature of Work w Technology mandates and enables companies to be more competitive w Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles Carrier

1 -23 © 2003 Prentice Hall, Inc. The Workforce Itself is Diverse US Department of Labor website

1 -24 © 2003 Prentice Hall, Inc. Consequences of these basic trends Global expansion Technology Strengths and Weaknesses Improved competition Uncertainty, Turbulence, Rapid Change, Changing power bases Companies must be Fast, Responsive, and Costeffective

1 -25 © 2003 Prentice Hall, Inc. HR’s evolving role Protector and Screener Change Agent Strategic Partner

De fi n iti on 1 -26 © 2003 Prentice Hall, Inc. Strategic HRM w Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility. Clarify the business strategy Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine

1 -27 © 2003 Prentice Hall, Inc. HR’s evolving role as strategic partner Corporatestrategy HR HRoperations Corporatestrategy HR HRprograms Fed. Ex Corporate strategy HR programs

1 -28 © 2003 Prentice Hall, Inc. How HR helps strategy execution w Functional strategies should support competitive strategies w Value chain analysis w Outsourcing w Strategy Formulation

1 -29 © 2003 Prentice Hall, Inc. How HR helps form strategy w Formation of a company’s strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses w Environmental scanning

1 -30 © 2003 Prentice Hall, Inc. The Value Chain Approach

1 -31 © 2003 Prentice Hall, Inc. Technology can be the Human Resources engine of change

1 -32 © 2003 Prentice Hall, Inc. HR and technology w Basic HR systems demand paperwork n 70% of HR’s employees time = paperwork n Off the shelf forms from Office Depot/Officemax n Online forms w Human Resource Information Systems (HRIS) w HR on the Internet

1 -33 © 2003 Prentice Hall, Inc. HR portals Employees can answer their own questions HR moves from reactive to proactive

1 -34 © 2003 Prentice Hall, Inc. HR means performance w Can HR have a measurable impact on a company’s bottom line? w Better HRM translates into improved employee attitudes and motivation (e. g. , working at home) w Well run HR programs drive employee commitment TOYOTA

1 -35 © 2003 Prentice Hall, Inc. A Case Study Dell’s dual HR roles OPERATIONS Deals with staff - benefits - compensation - call center MANAGEMENT Deals with management - education - recruitment - planning - training - personnel needs

1 -36 © 2003 Prentice Hall, Inc. Is There a “One Best HR Way”? w Follow a company’s operating and strategic initiatives w All companies can benefit from n n n Profit sharing programs Results oriented appraisals Employment security Foster informal relationships- promote worldwide communications Develop global executives

1 -37 © 2003 Prentice Hall, Inc. Things to Remember as We Move into Chapter 2 w HR management: the responsibility of every manager w HR practices today must address several basic issues including n n Improving competitiveness Globalizing Technology and internet-based advances Contributing to strategic success

1 -38 © 2003 Prentice Hall, Inc. Plan for the Rest of the Book w Chapter 2: Equal Opportunity and the Law. w Part II: Recruitment and Placement n n Chapter 3: Job Analysis Chapter 4: Personnel Planning and Recruiting Chapter 5: Employee Testing and Selection Chapter 6: Interviewing Job Candidates

1 -39 © 2003 Prentice Hall, Inc. Plan for the Rest of the Book w Part III: Training and Development n n Chapter 7: Training and Development Chapter 8: Managing Organizational Renewal Chapter 9: Appraising Performance Chapter 10: Managing Careers and Fair Treatment

1 -40 © 2003 Prentice Hall, Inc. Plan for the Rest of the Book w Part IV: Compensation n Chapter 11: Establishing Pay Plans Chapter 12: Pay-for-Performance and Financial Incentives Chapter 13: Benefits and Services

1 -41 © 2003 Prentice Hall, Inc. Plan for the Rest of the Book w Part V: Employee Security and Safety n n Chapter 14: Labor Relations and Collective Bargaining Chapter 15: Employee Safety and Health w Part VI: International HRM n Chapter 16: Managing Human Resources in an International Business.