Ch.1: Introduction To Human Resource Management

CH.1: Introduction to Human Resource Management The points will be covered:

1- What is HRM? 2- HRM and management process. 3- HR functions and benefits (importance) for managers. 4- Line HR managers and staff HR managers. 5- The responsibilities of line and staff HR managers. 6- HRM role in formulating and executing company strategy. -------------------------------------------------------------------------. 1- What is the HRM? The policies and practices involved in carrying out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising.

2- HRM and management process. Management processes are the five basic functions of planning, organizing, staffing, leading, and controlling. Staffing: determine what type of people should be hired, recruiting prospective employees, evaluating performance, selecting employees, setting performance standards, compensating employees, evaluating performance, counseling employees, training and developing employees. From the previous definition of HRM so we can note that HRM is the same as staffing , because staffing is one of the management processes so we can consider HRM is one of the management processes. 1

3- HR functions and benefits (importance) for managers. The personnel aspects in the manager job: a- Conducting job analyses (determining the nature of each employee’s job). b- Planning labor needs and recruiting job candidates. c- Selecting job candidates. d- Orienting and training new employees. e- Managing wages and salaries (compensating employees). f- Providing incentives and benefits. g- Appraising performance. h- Communicating (interviewing, counseling, disciplining). i- Training and developing managers. j- Building employee commitment. The benefits of the HRM:  Hire the right person for the job  Experience low turnover  Have your people doing their best  Waste time with useful interviews  Have every employee think their salaries is fair and equitable relative to others in the organization  Allow training to undermine your department’s effectiveness  Commit fair labor practices

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Line HR managers and staff HR managers.

a- first what is the meaning of line and staff HR managers: -Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks. -Staff manager A manager who assists and advises line managers. b- Here HR manager have many functions to do: Functions of the HR Manager:  A line function – The HR manager directs the activities of the people in his or her own department and in related service areas (like the plant cafeteria).  A coordinative function – HR managers also coordinate personnel activities, a duty often referred to as functional control.  Staff (assist and advise) functions – Assisting and advising line managers is the heart of the HR manager’s job.

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c- So, HR managers have many authorities:  Authority – The rights to make decisions, direct others’ work, and give orders.

 Implied authority – The authority exerted by an HR manager by virtue of others’ knowledge that he or she has access to top management.

 Line authority – The authority exerted by an HR manager by directing the activities of the people in his or her own department and in service areas. d- Cooperative Line and Staff HR Management: 1. The line manager’s responsibility is to specify the qualifications employees need to fill specific positions. 2. HR staff then develops sources of qualified applicants and conduct initial screening interviews 3. HR administers the appropriate tests and refers the best applicants to the supervisor (line manager), who interviews and selects the ones he or she wants.

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5- The responsibilities of line HR managers. 1- Placing the right person on the right job. 2- Starting new employees in the organization (orientation). 3- Training employees for jobs new to them. 4- Improving the job performance of each person. 5- Gaining creative cooperation and developing smooth working relationships. 6- Interpreting the firm’s policies and procedures. 7- Controlling labor costs. 8- Developing the abilities of each person. 9- Creating and maintaining department morale. 10- Protecting employees’ health and physical condition

6- HRM role in formulating and executing company strategy. First, what is the Strategy? The company’s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. *HR managers today are more involved in partnering with their top managers in both designing and implementing their companies’ strategies. So, how we can measure this strategic contribution of HR? Measuring HR’s Contribution in organization strategy: 5

We will measure this contribution through:  The HR Scorecard – Shows the quantitative standards or “metrics” the firm uses to measure HR activities. – Measures the employee behaviors resulting from these activities. – Measures the strategically relevant organizational outcomes of those employee behaviors. HR Metrics (quantitative standards):  Absence Rate [(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of workdays)] × 100

 Cost per Hire (Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation costs + Recruiter pay and benefits) ÷ Number of Hires  Health Care Costs per Employee Total cost of health care ÷ Total Employees  HR Expense Factor HR expense ÷ Total operating expense  Human Capital ROI Revenue − (Operating Expense − [Compensation cost + Benefit cost]) ÷ (Compensation cost + Benefit cost)  Human Capital Value Added

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Revenue − (Operating Expense − ([Compensation cost + Benefit Cost]) ÷ Total Number of FTE  Revenue Factor Revenue ÷ Total Number of FTE  Time to fill Total days elapsed to fill requisitions ÷ Number hired  Training Investment Factor Total training cost ÷ Headcount  Turnover Costs Cost to terminate + Cost per hire + Vacancy Cost + Learning curve loss  Turnover Rate [Number of separations during month ÷ Average number of employees during month] × 100  Workers’ Compensation Cost per Employee Total WC cost for Year ÷ Average number of employees

Strategy and the Basic HR Process

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Chapter quiz: 1- Planning, organizing, staffing, leading and controlling represent the: abcd-

HR management function. Globalization movement. Results of competition. Management process

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The bottom line of managing is:

Doing everything right. Motivating subordinates. Exerting authority. Getting results.

Which of the following is not a right bestowed by a manager's authority? Give orders. Directing the work of others. Make decisions. None of the above.

A (n) _____ manager is always someone's boss.

Line Human resources Staff Functional

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HR's employee advocacy role includes all the following except: Defining how management should treat employees. Implied authority, functional control, line authority. Coordinative function, service function, functional control. Creating a learning organization.

The tendency of firms to extend sales, ownership and manufacturing to new markets abroad is: Non-traditional trade. Competition. Exporting jobs. Globalization.

Increased globalization results in:

Non-traditional jobs. Increased competition. Technological advancements. Reduced competition.

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Negative results of increased globalization are:

Reducing costs. Changing demographics. Exporting jobs. Technological advancements.

The knowledge, education, skills, and expertise of workers is collectively known as: Human capital. Human resources. Demographics. Human diversity.

A company's _____ is its plan for balancing internal strengths and weaknesses with external opportunities and threats. Strategy. Diversity. Demographics. None of the above.

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Human resources creates value for the firm by:

Measuring outcomes of employee behaviors. Measuring employee behaviors. Engaging in activities that produce needed employee behaviors. Utilizing an HR Scorecard.

Planning, organizing, staffing, leading and controlling are elements of the management process. True False

Failing to motivate subordinates can prevent getting desired results despite brilliant plans and building modern production facilities. True False

Managers who are in charge of accomplishing the organization's basic goals are staff managers.

True False

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HR managers usually exert line authority, staff authority, and functional control simultaneously in an organization. True False

The heart of an HR manager's job is playing an employee advocacy role.

True False

Ensuring that line managers implement HR objectives, policies and procedures is achieved by HR managers exerting line authority. True False

Globalization is partially responsible for firms increasingly using non-traditional workers.

True False

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Human capital refers to the costs incurred in hiring and compensating qualified workers.

True False

A plan for balancing internal strengths and weaknesses with external opportunities and threats is a firm's strategy. True False

An HR Scorecard lists the proficiencies HR needs to implement the firm's strategic plan.

True False

What a supervisor can and cannot say and do when a union is organizing its employees are governed by equal employment laws. True False

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Explain how an HR manager is imbued simultaneously with line authority, staff authority, and implied authority.

Describe how workplace environmental changes are impacting the HR manager's role in the workplace.

Describe the proficiencies needed by today's HR managers.

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