Human
Resource
Management
Human Resource
Management in
Organizations
CHAPTER 1
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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
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Learning Objectives
Explain
how organizational ethical issues
affect HR management
Explain
the key competencies needed by HR
professionals and why certification is
important
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Human Resource (HR) Management
Design of formal systems in an
organization to manage human
talent for accomplishing
organizational goals
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Figure 1.1 - Typical Division of HR
Responsibilities: Selection Interviewing
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Types of Organizational Assets
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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
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Smaller Organizations and HR
Management
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Views of HR Department
Positive
Negative
• Deal with the huge
number of government
regulations
• Protects corporate assets
against the many legal
issues
• 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
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Core Competency
Unique
capability that creates high value in
which an organization excels
Differentiates
competitors
an organization from its
Is
a key determinant of competitive
advantage
HR
department focus on using people as a
core competency
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Figure 1.2 - Where Employees Can be
a Core Competency
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Organizational Productivity
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Figure 1.3 - HR Approaches to
Improving Productivity
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Customer Service and Quality Linked
to HR
Affects organizational effectiveness
Human Resource
Management
Customer
Service
Quality
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Organizational Culture
Shared
values and beliefs in an organization
Evolves
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
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HR Management Functions
Influenced
by following forces of external
environment
Global
Environmental
Geographic
Political,
social, and legal
Economic,
and technological
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HR Management Functions
HR
strategy and planning
Equal
employment opportunity
Staffing
Talent
management
Rewards
Risk
management and worker protection
Employee
and labor relations
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Figure 1.5 - Mix of Roles for HR
Departments
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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
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Current HR Management Challenges
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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
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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
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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
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Globalization - Challenges For
Global Human Resource
Strategy
People
Complexity
Risk
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Changing Workforce
Racial/Ethnic Diversity
Gender in the Workforce
Aging Workforce
Growth in Contingent Workforce
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