Human Resource Management
Session 1
STRATEGIC HUMAN
RESOURCE MANAGEMENT:
AN OVERVIEW
1
HR Branding
• Firm’s corporate image or culture
• Embodies values and standards that guide
peoples’ behavior
• People know what the firm stands for, the
people it hires, fit between jobs and people,
and results it recognizes and rewards
• Important in getting highest quality applicants
to join firm
2
Human Resource Management – 5 Functions
(4) Safety and
Health
Hu
De man
ve
lop R e s
me our
nt ce
ensa
tion
and
oyee ns
mpl
io
(5) E r Relat
o
Lab
Human
Resource
1
Management
(2
)
(3) C
omp
(1)
ing
f
f
Sta
3
(1) Staffing
Staffing - Process through which organization ensures it
always has proper number of employees with
appropriate skills in right jobs at right time to achieve
organizational objectives
• Job Analysis
• Human Resource Planning
• Recruitment
• Selection
4
Staffing (Cont.)
• Job analysis - Systematic process of determining
skills, duties, and knowledge required for
performing jobs in organization
• Human resource planning - Systematic process of
matching the internal and external supply of
people with job openings anticipated in the
organization over a specified period of time .
5
Staffing (Cont.)
• Recruitment - Process of attracting individuals on a
timely basis, in sufficient numbers, and with appropriate
qualifications, to apply for jobs with an organization
• Selection - Process of choosing from a group of
applicants the individual best suited for a particular
position and the organization
6
(2) Human Resource Development
• Training
• Development
• Career Planning
• Career Development
• Organizational Development
• Performance Management
• Performance Appraisal
7
Human Resource Development (Cont.)
• Training - Designed to provide learners with knowledge
and skills needed for their present jobs
• Development - Involves learning that goes beyond
today's job; it has more long-term focus
• Career planning - Ongoing process whereby individual
sets career goals and identifies means to achieve them
• Career development - Formal approach used by
organization to ensure that people with proper
qualifications and experiences are available when needed
8
Human Resource Development (Cont.)
• Organization development - Planned process of
improving organization by developing its structures,
systems, and processes to improve effectiveness and
achieving desired goals
• Performance management - Goal-oriented process
directed toward ensuring organizational processes are
in place to maximize productivity of employees, teams,
and ultimately, the organization
• Performance appraisal - Formal system of review and
evaluation of individual or team task performance
9
(3) Compensation
Compensation and Benefits:
1. Pay
2. Benefits
3. Non-financial Rewards
10
Compensation
• Direct Financial Compensation - Pay that person
receives in form of wages, salaries, bonuses, and
commissions.
• Indirect Financial Compensation (Benefits) - All
financial rewards not included in direct compensation
such as paid vacations, sick leave, holidays, and
medical insurance.
• Nonfinancial Compensation - Satisfaction that person
receives from job itself or from psychological and/or
physical environment in which person works.
11
(4) Safety and Health
Safety and Health:
1. Safety
2. Health
12
Human Resource Research
• Human resource
research is not separate
function.
• It pervades all HR
functional areas.
13
Inter-relationships of HRM
Functions
• All HRM functions are
interrelated
• Each function affects
other areas
14
Environment of Human Resource Management
Customers
Hu
m
De an
ve Res
lop ou
me rce
nt
ensa
Competition
Com
p
Safety and
Health
Other
Functional
Areas
Labor Market
Shareholders
Finance
Human
Resource
1
Management
Operations
tion
ng
i
f
f
Sta
Society
Unanticipated Events
Legal Considerations
Marketing
bor
d La
e an s
loye
n
Emp Relatio
Economy
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Technology
Unions
15
Cyberwork
• Possibility of never-ending workday
• BlackBerrys, cell phones, text
messaging, and e-mail create endless
possibilities for communication
• Some workers believe their
employer wants them available 24/7
16
HR’s Changing Role:
Questions That Are Being Asked
• Can some HR tasks be performed more efficiently by
line managers or outside vendors?
• Can some HR tasks be centralized or eliminated
altogether?
• Can technology perform tasks that were previously
done by HR personnel?
• Many HR departments continue to get smaller
17
HR Outsourcing
• Transfers
responsibility to an
external provider
• Market for HR
outsourcing is
growing dramatically
18
Ways HR Outsourcing is Done
• Discrete services
• Multi-process services
• Total HR outsourcing
19
Multi-process Services
• Complete outsourcing of one
or more human resource
processes
• Example: Procter & Gamble
outsourced entire training
operations
20
HR Shared Service Centers (SSCS)
Takes routine,
transaction-based
activities that are
dispersed and
consolidates them in
one location
21
Professional Employer Organization
(PEO - Employee Leasing)
Company that leases
employees to other
businesses.
22
Line Managers Performing
HR Tasks
• Involved with human resources
by nature of their jobs
• Line managers are now
performing some duties
typically done by HR
23
HR as a Strategic Partner
• HR executives must
understand complex
organizational design
• Sharp deviation from
what has traditionally
been an administrative
type role for HR
24
Human Capital Metrics
Measures of HR
performance
25