Chapter 1 The Nature of Human Resource Management

Chapter 1 The Nature of Human Resource Management Power. Point Program Prepared by Joseph Mosca, Monmouth University Copyright © 2012 by Cengage Learning. All rights reserved. Copy right Cengage Learning Prepared by Joseph B. Mosca Monmouth University 1

Learning Objectives 1. 2. 3. 4. 5. Describe contemporary human resource management perspectives. Trace the evolution of the human resource function in organizations. Identify and discuss the fundamental goals of human resource management. Describe the job of human resource managers from the perspectives of professionalism and careers. Discuss the setting for human resource management. Copyright © 2012 by Cengage Learning. All rights reserved. 2

Human Resources (HR) l Human resources are the people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards. Copyright © 2012 by Cengage Learning. All rights reserved. 3

What Is Human Resource Management (HRM) ? l The comprehensive set of managerial activities and tasks concerned with developing and maintaining a qualified workforce - human resources – in ways at contribute to organizational effectiveness. Copyright © 2012 by Cengage Learning. All rights reserved. 4

Contemporary Human Resource Management Perspectives In most organizations today, the role of human resource management has become quite important. This results partly from a growing realization of the importance of people as a source of competitive advantage, but there are more practical reasons, such as: l Passage of Title VII of the Civil Rights Act made it clear that organizations had to find ways to hire, reward, and manage people effectively within the limits of the law. l Copyright © 2012 by Cengage Learning. All rights reserved. 5

Evolution of the Human Resource Function Scientific management, one of the earliest approaches to management, was concerned with how to structure individual jobs to maximize efficiency and productivity. The 1964 Civil Rights Act, as well as other legal regulations, made the process of hiring and promoting employees more complex, creating a need for HR specialists Copyright © 2012 by Cengage Learning. All rights reserved. The human relations era was marked by an emphasis on finding ways to keep workers happy, since it was assumed that “happy workers were productive workers. ” As organizations grew, they created specialized units— personnel departments— to work with employees. This new type of management function was called personnel management. 6

Human Resource Management in the Electronic Age l Electronic technology has not drastically affected the basic approach to how we manage human resources, but certainly had an effect on how HRM systems are delivered. Copyright © 2012 by Cengage Learning. All rights reserved. 7

Emerging Human Resource Challenges l HR managers face an array of new challenges including: ¡ financial crises ¡ how stress is becoming a major factor in people’s lives l Knowledge workers: employees whose jobs are primarily concerned with the acquisition of knowledge, and HR managers play a role in applying that knowledge. Copyright © 2012 by Cengage Learning. All rights reserved. 8

Promoting Individual Growth & Development l Another goal for HR managers is promoting the personal growth and development of its employees by offering: ¡ Education ¡ Skills training ¡ Career development Copyright © 2012 by Cengage Learning. All rights reserved. 9

HR Management as a Staff Versus Line Function l Line managers: those directly responsible for creating goods and services. l Staff managers: those responsible for supporting line management’s efforts to achieve organizational roles and objectives. l Many organizations have blurred this distinction. Copyright © 2012 by Cengage Learning. All rights reserved. 10

Human Resource Management in Smaller Organizations l Small organizations still use operating managers to handle their basic human resource functions. l Small independent businesses are generally operated in the same way as small organizations. l Very small organizations are exempt from many legal regulations. Copyright © 2012 by Cengage Learning. All rights reserved. 11

Human Resource Management in Larger Organizations l As the organization grows a separate human resource unit becomes a necessity. l When an organization reaches 200 to 250 employees, it generally establishes a selfcontained human resource department. l As the organization continues to grow the human resource department grow as well into specialized departments. Copyright © 2012 by Cengage Learning. All rights reserved. 12

A Systems-Based Perspective l The human resource management subsystem both affects and is affected by other functional subsystems throughout the organization. l Utility analysis is the attempt to measure, in more objective terms, the impact and effectiveness of human resource management practices in terms of metrics such as a firm’s financial performance. Copyright © 2012 by Cengage Learning. All rights reserved. 13

Careers in Human Resource Management l Careers in HR continue to grow and are expected to do so. l How to enter the HR field: ¡ Earn a degree, seek and entry level job, and becoming a line manager. ¡ Some universities offer a master of science or MBA in HR. Copyright © 2012 by Cengage Learning. All rights reserved. 14