Human Resource Management 1
Lecture Slides
Monica Blaga (BLAM) I Email: I Phone: (050)-595-2337
Chapters covered: 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 17
CHAPTER 1: Introduction to Human Resource Management
What is HRM?
The process of acquiring, training, appraising, and compensating employees, and of attending to
their labour relations, health and safety and fairness concerns.
Frederick Taylor (1856-1915)
Systematic approach to human efficiency at the beginning of the 20th century
“Scientific management”
Workers should get rest breaks to recover from fatigue
Workers who are forced to perform repetitive tasks tend to work at the slowest rate that do
not get punished, also known as “soldiering” or “loafing”
Elton Mayo (1880-1949)
Known for the human relations movement: importance of workers’ psychology and fit with
companies
The Hawthorne studies (1924-1932) showed that stimuli in the environment (simple
awareness of being observed), unrelated to financial compensations and working conditions,
led to increased worker productivity
HR as an Institution
The fundamental shift in seeing employees as assets rather than as “cogs in a machine”
1913: ‘Welfare Workers’ Association was founded in England; the oldest known professional
HR association
1945: The School of Industrial and Labour Relations at Cornell University; the oldest
institution of higher education dedicated to workplace studies
1948: The Society of Human Resource Management; the largest professional HR association
was founded
The Management Process
Planning Acquiring talented employees
Organizing Training new hires and existing managers
Staffing and employees
Leading Creating and administering effective
Controlling performance appraisals
Properly compensating employees
Attending to concerns about labour
relations, health, safety, and fairness
Why is HRM important to all Managers?
Waste time with useless interviews, or hire the wrong person
Have high turnover
Have your company taken to court because of discriminatory actions
, Have your company cited for unsafe practices
Have some employees think their salaries are unfair relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labour practices
Line Managers
Line managers: authorized to direct the work of subordinates and are responsible for accomplishing
the organization’s task.
Line managers have line authority
Line authority: gives them the right to issue orders
o Job placement
o Orientation & Training
o Performance
o Cooperation
o Labour costs
o Development
If you are a line manager, your duties and responsibilities concern how well you can successfully
orient and integrate new hires into your unit, maintain their health and safety, supervise and
motivate them, and effectively manage department costs.
Staff Managers
Staff managers: assist and advise line managers
Staff managers have staff authority
Staff (assist and advise) authority: gives them the right to advise others in the organization
o Line function inside of HR department
o Coordination
o Assist and advise
Line managers require support to perform their jobs properly. If you are a line manager, you will
have the help of the people in your HR department. HR professionals ensure adherence to company
policies, provide training, advice on motivating your employees, and other support as needed.
Trends in HR
Technology
o Technology has contributed to widespread and rapid distribution of information
between employees and employers. Sites such as Facebook and LinkedIn contribute
to the new ways potential employees get jobs and share information about
companies.
Globalization
o The shifting role of workers worldwide is connected to the ways in which countries
operate, produce, and distribute the goods and services they provide. The world
economy is becoming more interdependent and interrelated.
Demographic and workforce trends
o Trends in demographics indicate a growing proportion of Hispanic, Asian, African-
American, and non-traditional workers in the workforce (see Table 1). A large jump in
older workers is expected by 2018. The differences in style and values of such a
changing workforce will challenge the role of HR.
o Aging workforce
Trends in the nature of work
, o More knowledge work: There are more high-tech and service jobs available, and
more focus on the knowledge, skills and experience people bring to the workplace.
Economic challenges and trends
o After World War II, the U.S. manufactured and sold almost all durable goods
(automobiles, washers, dryers, etc.) but has now become an information and service-
based society. U.S. citizens are now becoming knowledge workers. Meanwhile,
countries such as Japan, China, and others have assumed global manufacturing roles.
o Economic downturn: The recent and continuing economic troubles in the U.S. also
have impacted the ways in which workers are hired and employed by companies.
Fewer available jobs may mean broader responsibilities for the workers within a
given firm.
o Slower economic growth
Indebtedness and deregulation
o Deregulation: The deregulation of banks and other financial institutions have
contributed to individuals spending more than they make. Lending and borrowing
practices have helped move the U.S. into a “debtor nation” status.
Finally, the challenging times mean that for the foreseeable future—and even well after things turn
positive—employers will be more frugal and creative in managing their human resources than
perhaps they’ve been in the past.
The New HR Manager
Focuses more on strategy
Focuses on improving performance
Measures HR performance and results
Uses evidence-based human resource management
Adds value by boosting profit & performance
Uses new ways to provide HR services
Takes a talent management approach
Manages employee engagement
Manages ethics
Understands human resource philosophy
Has new competencies
Tasks like formulating strategic plans and making data-based decisions require new human resource
manager skills. HR managers can’t just be good at traditional personnel tasks like hiring and training.
Instead, they must “speak the CFO’s language” by defending human resource plans in measurable
terms (such as return on investment).
To create strategic plans, the human resource manager must understand strategic planning,
marketing, production, and finance. (Perhaps this is why about one third of top HR managers in
Fortune 100 companies moved there from other functional areas.) He or she must be able to
formulate and implement large-scale organizational changes, design organizational structures and
work processes, and understand how to compete in and succeed in the marketplace.
The bottom line is that today’s employers want their HR managers to add value by boosting profits
and performance. “Adding value” means helping the firm and its employees improve in a
measurable way as a result of the human resource manager’s actions.
HR will use new technology to free up time for their new strategic duties and to provide HR services
cost effectively.
, Improved performance requires engaged employees. The Institute for Corporate Productivity defines
engaged employees “as those who are mentally and emotionally invested in their work and in
contributing to an employer’s success.” Unfortunately, studies suggest that less than one-third of the
U.S. workforce is engaged. Today’s human resource managers need skills to manage employee
engagement.
CHAPTER 3: HRM Strategy and Analysis
It’s all about strategy – the strategic management process
Strategy
A course of action the organization intends to pursue in order to achieve its strategic aims.
Strategic Plan
How an organization intends to match its internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive advantage over the long term.
Strategic Management
The process of identifying and executing the organization’s strategic
plan, by matching the company’s capabilities with the demands
of the environment.
Blue= Done by Management
Green + Orange = Done by HR
Strategic Planning – The process
1. Define the business and develop a mission
o What products do we sell?
2. Perform external and internal audits
o The SWOT analysis – often it is a case of “change or die”
3. Formulate a new direction
o Vision statement (what do we want to become?)
o Mission statement (what business are we in?)
4. Translate the mission into strategic goals
5. Formulate strategies to achieve the strategic goals
Lecture Slides
Monica Blaga (BLAM) I Email: I Phone: (050)-595-2337
Chapters covered: 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, and 17
CHAPTER 1: Introduction to Human Resource Management
What is HRM?
The process of acquiring, training, appraising, and compensating employees, and of attending to
their labour relations, health and safety and fairness concerns.
Frederick Taylor (1856-1915)
Systematic approach to human efficiency at the beginning of the 20th century
“Scientific management”
Workers should get rest breaks to recover from fatigue
Workers who are forced to perform repetitive tasks tend to work at the slowest rate that do
not get punished, also known as “soldiering” or “loafing”
Elton Mayo (1880-1949)
Known for the human relations movement: importance of workers’ psychology and fit with
companies
The Hawthorne studies (1924-1932) showed that stimuli in the environment (simple
awareness of being observed), unrelated to financial compensations and working conditions,
led to increased worker productivity
HR as an Institution
The fundamental shift in seeing employees as assets rather than as “cogs in a machine”
1913: ‘Welfare Workers’ Association was founded in England; the oldest known professional
HR association
1945: The School of Industrial and Labour Relations at Cornell University; the oldest
institution of higher education dedicated to workplace studies
1948: The Society of Human Resource Management; the largest professional HR association
was founded
The Management Process
Planning Acquiring talented employees
Organizing Training new hires and existing managers
Staffing and employees
Leading Creating and administering effective
Controlling performance appraisals
Properly compensating employees
Attending to concerns about labour
relations, health, safety, and fairness
Why is HRM important to all Managers?
Waste time with useless interviews, or hire the wrong person
Have high turnover
Have your company taken to court because of discriminatory actions
, Have your company cited for unsafe practices
Have some employees think their salaries are unfair relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labour practices
Line Managers
Line managers: authorized to direct the work of subordinates and are responsible for accomplishing
the organization’s task.
Line managers have line authority
Line authority: gives them the right to issue orders
o Job placement
o Orientation & Training
o Performance
o Cooperation
o Labour costs
o Development
If you are a line manager, your duties and responsibilities concern how well you can successfully
orient and integrate new hires into your unit, maintain their health and safety, supervise and
motivate them, and effectively manage department costs.
Staff Managers
Staff managers: assist and advise line managers
Staff managers have staff authority
Staff (assist and advise) authority: gives them the right to advise others in the organization
o Line function inside of HR department
o Coordination
o Assist and advise
Line managers require support to perform their jobs properly. If you are a line manager, you will
have the help of the people in your HR department. HR professionals ensure adherence to company
policies, provide training, advice on motivating your employees, and other support as needed.
Trends in HR
Technology
o Technology has contributed to widespread and rapid distribution of information
between employees and employers. Sites such as Facebook and LinkedIn contribute
to the new ways potential employees get jobs and share information about
companies.
Globalization
o The shifting role of workers worldwide is connected to the ways in which countries
operate, produce, and distribute the goods and services they provide. The world
economy is becoming more interdependent and interrelated.
Demographic and workforce trends
o Trends in demographics indicate a growing proportion of Hispanic, Asian, African-
American, and non-traditional workers in the workforce (see Table 1). A large jump in
older workers is expected by 2018. The differences in style and values of such a
changing workforce will challenge the role of HR.
o Aging workforce
Trends in the nature of work
, o More knowledge work: There are more high-tech and service jobs available, and
more focus on the knowledge, skills and experience people bring to the workplace.
Economic challenges and trends
o After World War II, the U.S. manufactured and sold almost all durable goods
(automobiles, washers, dryers, etc.) but has now become an information and service-
based society. U.S. citizens are now becoming knowledge workers. Meanwhile,
countries such as Japan, China, and others have assumed global manufacturing roles.
o Economic downturn: The recent and continuing economic troubles in the U.S. also
have impacted the ways in which workers are hired and employed by companies.
Fewer available jobs may mean broader responsibilities for the workers within a
given firm.
o Slower economic growth
Indebtedness and deregulation
o Deregulation: The deregulation of banks and other financial institutions have
contributed to individuals spending more than they make. Lending and borrowing
practices have helped move the U.S. into a “debtor nation” status.
Finally, the challenging times mean that for the foreseeable future—and even well after things turn
positive—employers will be more frugal and creative in managing their human resources than
perhaps they’ve been in the past.
The New HR Manager
Focuses more on strategy
Focuses on improving performance
Measures HR performance and results
Uses evidence-based human resource management
Adds value by boosting profit & performance
Uses new ways to provide HR services
Takes a talent management approach
Manages employee engagement
Manages ethics
Understands human resource philosophy
Has new competencies
Tasks like formulating strategic plans and making data-based decisions require new human resource
manager skills. HR managers can’t just be good at traditional personnel tasks like hiring and training.
Instead, they must “speak the CFO’s language” by defending human resource plans in measurable
terms (such as return on investment).
To create strategic plans, the human resource manager must understand strategic planning,
marketing, production, and finance. (Perhaps this is why about one third of top HR managers in
Fortune 100 companies moved there from other functional areas.) He or she must be able to
formulate and implement large-scale organizational changes, design organizational structures and
work processes, and understand how to compete in and succeed in the marketplace.
The bottom line is that today’s employers want their HR managers to add value by boosting profits
and performance. “Adding value” means helping the firm and its employees improve in a
measurable way as a result of the human resource manager’s actions.
HR will use new technology to free up time for their new strategic duties and to provide HR services
cost effectively.
, Improved performance requires engaged employees. The Institute for Corporate Productivity defines
engaged employees “as those who are mentally and emotionally invested in their work and in
contributing to an employer’s success.” Unfortunately, studies suggest that less than one-third of the
U.S. workforce is engaged. Today’s human resource managers need skills to manage employee
engagement.
CHAPTER 3: HRM Strategy and Analysis
It’s all about strategy – the strategic management process
Strategy
A course of action the organization intends to pursue in order to achieve its strategic aims.
Strategic Plan
How an organization intends to match its internal strengths and weaknesses with its external
opportunities and threats to maintain a competitive advantage over the long term.
Strategic Management
The process of identifying and executing the organization’s strategic
plan, by matching the company’s capabilities with the demands
of the environment.
Blue= Done by Management
Green + Orange = Done by HR
Strategic Planning – The process
1. Define the business and develop a mission
o What products do we sell?
2. Perform external and internal audits
o The SWOT analysis – often it is a case of “change or die”
3. Formulate a new direction
o Vision statement (what do we want to become?)
o Mission statement (what business are we in?)
4. Translate the mission into strategic goals
5. Formulate strategies to achieve the strategic goals
