Human Resource Management in Organizations CHAPTER 1 Robert

Human Resource Management in Organizations CHAPTER 1 Robert L. Mathis | John H. Jackson | Sean R. Valentine 14 e © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Learning Objectives Define human capital Identify where employees can be used as a core competency Show the seven categories of HR functions Provide an overview of four challenges facing HR today © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Learning Objectives Explain how organizational ethical issues affect HR management Explain the key competencies needed by HR professionals and why certification is important © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Human Resource (HR) Management Design of formal systems in an organization to manage human talent for accomplishing organizational goals © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 1 - Typical Division of HR Responsibilities: Selection Interviewing © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Types of Organizational Assets © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Human Capital Collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce Called intellectual capital to reflect following contributions of employees Thinking Knowledge Creativity Decision making © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Smaller Organizations and HR Management © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Views of HR Department Positive • Deal with the huge number of government regulations • Protects corporate assets against the many legal issues Negative • Too bureaucratic, detailoriented, and costly and are comprised of naysayers • More concerned about activities than results • Efforts are seen as seldom linking employee, managerial, and business performance © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Core Competency Unique capability that creates high value in which an organization excels Differentiates Is an organization from its competitors a key determinant of competitive advantage HR department focus on using people as a core competency © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 2 - Where Employees Can be a Core Competency © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Organizational Productivity © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 3 - HR Approaches to Improving Productivity © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Customer Service and Quality Linked to HR Affects organizational effectiveness Human Resource Management Customer Service Quality © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Organizational Culture Shared Evolves values and beliefs in an organization over a period of time Provides Is employees with rules for behavior constant and enduring Constitutes organizational climate Affects service and quality, organizational productivity, and financial results © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

HR Management Functions Influenced by following forces of external environment Global Environmental Geographic Political, social, and legal Economic, and technological © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

HR Management Functions HR strategy and planning Equal employment opportunity Staffing Talent management Rewards Risk management and worker protection Employee and labor relations © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 5 - Mix of Roles for HR Departments © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Roles of HR Management Administrative • Clerical administration, recordkeeping, legal paperwork and policy implementation • Major shifts - Use of technology and outsourcing Operational and Employee Advocate • Cooperate with managers and supervisors • Identify and implement needed programs and policies in the organization Strategic • Address business realities • Focus on future business needs • Fit between human capital and business plans and needs © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Current HR Management Challenges © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Competition, Cost Pressures, and Restructuring Job Shifts • Caused to reduce the number of existing employees attract and retain employees with different capabilities Skill Shortages • Inadequate supply of workers with the skills needed to perform the emerging new jobs © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Globalization Integration of global operations, management, and strategic alliances Types of global workers Expatriate: Citizen of one country working in a second country and employed by an organization headquartered in the first country Host-country national: Citizen of one country working in that country and employed by an organization headquartered in a second country Third-country national: Citizen of one country working in a second country and employed by an organization headquartered in a third country © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Globalization - Legal and Political Factors Many nations function under turbulent and varied legal and political systems Role of HR professionals Conducting comprehensive reviews of the political environment and employment laws before beginning operations in a country © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Globalization - Challenges For Global Human Resource Strategy People Complexity Risk © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Changing Workforce Racial/Ethnic Diversity Gender in the Workforce Aging Workforce Growth in Contingent Workforce © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Advantages of Technology Improves the efficiency of the administrative HR functions and reduces costs Helps in strategic HR planning Supports recruitment, selection and training Contributes to organizational performance through collection and analysis of HR-related data © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 8 - HR and Organizational Ethics © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Ethical Behavior and Organizational Culture © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Ethics and Global Differences in legal, political, and cultural values and practices in different countries Global employers must comply with both their home-country laws and the laws of other countries © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

HR’s Role in Organizational Ethics © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 9 - Examples of HR-Related Ethical Misconduct © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Sarbanes-Oxley (SOX)Act Reduces likelihood of illegal and unethical behaviors HR issues - Major concerns are linked to executive compensation and benefits Requires companies to: Establish Develop ethics codes employee complaint systems Have antiretaliation policies for employees who act as whistle blowers to identify wrongful actions © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

HR Management Competencies and Careers © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

HR Management as a Career Field © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Human Resource Professionalism and Certification HR professionals need knowledge in following areas Employment regulations Finance Tax law Statistics Information systems © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.

Figure 1. 10 - HR Certifications at a Glance © 2014 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.