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Chapter 1

The Strategic Role of Human Resource Management

Instructor presentation questions: docwin@tampabay.rr.com

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Outline of Chapter 1
I. The Managers Human Resource Management Jobs
Why is HR Management Important to All Managers? Line and Staff Aspects of HRM Cooperative Line and Staff HR Management: An Example

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Outline of Chapter 1
II. Strategic Planning and Strategic Trends
The Basics of Strategic Planning The Strategic Planning Process Basic Strategic Trends Managerial Consequences of the Basic Trends

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Outline of Chapter 1
III. HRs Strategic Role
HRs Evolving Role Strategic Human Resource Management HRs Role as a Strategic Partner HR and Technology HR and Employee Performance and Commitment Is there a One Best HR Way? Research Insight

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After Studying This Chapter, You Should Be Able To:

Explain what human resource management (HR)is and how it relates to the management process. Give at least eight examples of how HR management concepts and techniques can be of use to all managers. Illustrate the HR management responsibilities of line managers and staff (HR) managers.

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The Management Process

Planning Organizing Staffing Leading Controlling

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Management Process
Planning

Goals and standards Rules and procedures Plans and forecasting. Tasks Departments Delegating Authority and communication Coordinating

Organizing

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Management Process
Staffing

Hiring Recruiting Selecting Performance standards Compensation Evaluating performance Counseling Training and developing

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Management Process
Leading

Getting the job done Morale Motivation Setting standards Comparing actual performance to standards Corrective action

Controlling

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HRM Function

Human Resource Management is the process of acquiring, training, appraising, and compensating employees and attending to their labor relations, health and safety, and fairness concerns.

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HRM People Functions Include:

Job analyses Labor needs Recruit Select candidates Orient and train Wages and salaries Incentives and benefits
Performance Communicate Train and develop Employee commitment Equal opportunity Health and safety Grievances/labor relations

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HRM is Important to all Managers. Dont Let These Happen to You!

The wrong person High turnover Poor results Useless interviews Court actions Safety citations Salaries appear unfair Poor training Unfair labor practices

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HRM Its All About Results

For many years it has been said that capital is the bottleneck for a developing industry. I dont think this any longer holds true. I think its the work force and a companys inability to recruit and maintain a good work force that does constitute the bottleneck. F. K. Foulkes

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Line and Staff Aspects of HRM

Authority

Making decisions Directing work Giving orders

Accomplishing goals Assisting and advising line managers

Line Managers

Staff Managers

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Line Managers HRM Jobs

The right person Orientation Training Performance Creativity Working relationships Policies and procedures Labor costs Development Morale Protecting

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Staff Managers HRM Jobs

Line authority Implied authority Functional control Employee advocacy

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HR Department Organizational Chart

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Strategic Planning and Trends

Strategy is the companys long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

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Strategic Planning 101

There are three levels of strategic planning as shown below
Corporate Strategy

Business Strategy

Business Strategy

Business Strategy

Business Strategy

Functional Strategies

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The Strategic Planning Process

SWOT analysis - Strengths, Weaknesses, Opportunities, and Threats Best strategic plans balance a companys Strengths and Weaknesses with the Opportunities and Threats the firm faces Basic strategic trends Globalization Technological advances The nature of work The workforce

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Globalization

80 70 60 50 40 30 20 10 0 1920 1950 1970 2000 % fortune 500 with a global presence

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Technological Advances and the Nature of Work

Technology mandates and enables companies to be more competitive Knowledge intensive jobs in industries such as aerospace, computers, telecommunications, and biotechnology are replacing factory jobs in steel, auto, rubber and textiles
Carrier

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The Workforce Itself is Diverse

Asian Black Hispanic Men Women

US Department of Labor website

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Consequences of these basic trends

Global expansion
Technology Strengths and Weaknesses Improved competition Uncertainty, Turbulence, Rapid Change, Changing power bases Companies must be Fast, Responsive, and Costeffective

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HRs evolving role

Protector and Screener

Change Agent

Strategic Partner

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Strategic HRM
Strategic human resource management: linking HRM with strategic goals and objectives to improve business performance and develop organizational cultures fostering innovation and flexibility.
Clarify the business strategy Realign the HR functions and key people practices Create needed competencies and behaviors Realization of business strategies and results Evaluate and refine

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HRs evolving role as strategic partner

Corporate strategy Corporate strategy HR operations HR operations Corporate strategy Corporate strategy HR programs HR programs Corporate strategy

FedEx

HR programs

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How HR helps strategy execution

Functional strategies should support competitive strategies Value chain analysis Outsourcing Strategy Formulation

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How HR helps form strategy

Formation of a companys strategy = identifying, analyzing and balancing external opportunities and threats with internal strengths and weaknesses Environmental scanning

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The Value Chain Approach

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Technology can be the Human Resources engine of change

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HR and technology
Basic HR systems demand paperwork

70% of HRs employees time = paperwork

Off the shelf forms from Office Depot/Officemax

Online forms

Human Resource Information Systems (HRIS)

HR on the Internet

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HR portals
Employees can answer their own questions
HR moves from reactive to proactive

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HR means performance
Can HR have a measurable impact on a companys bottom line? Better HRM translates into improved employee attitudes and motivation (e.g., working at home) Well run HR programs drive employee commitment

TOYOTA

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A Case Study
Dells dual HR roles OPERATIONS Deals with staff - benefits - compensation - call center MANAGEMENT Deals with management - education - recruitment - planning - training - personnel needs

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Is There a One Best HR Way?

Follow a companys operating and strategic initiatives All companies can benefit from

Profit sharing programs Results oriented appraisals Employment security Foster informal relationships- promote worldwide communications Develop global executives

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Things to Remember as We Move into Chapter 2

HR management: the responsibility of every manager HR practices today must address several basic issues including

Improving competitiveness Globalizing Technology and internet-based advances Contributing to strategic success

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Plan for the Rest of the Book

Chapter 2: Equal Opportunity and the Law. Part II: Recruitment and Placement

Chapter 3: Job Analysis Chapter 4: Personnel Planning and Recruiting Chapter 5: Employee Testing and Selection Chapter 6: Interviewing Job Candidates

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Plan for the Rest of the Book

Part III: Training and Development

Chapter 7: Training and Development Chapter 8: Managing Organizational Renewal Chapter 9: Appraising Performance Chapter 10: Managing Careers and Fair Treatment

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Plan for the Rest of the Book

Part IV: Compensation

Chapter 11: Establishing Pay Plans Chapter 12: Pay-for-Performance and Financial Incentives Chapter 13: Benefits and Services

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Plan for the Rest of the Book

Part V: Employee Security and Safety

Chapter 14: Labor Relations and Collective Bargaining Chapter 15: Employee Safety and Health Chapter 16: Managing Human Resources in an International Business.

Part VI: International HRM