Chapter 1

MANAGING HUMAN
RESOURCES

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 What Do I Need To Know?
LO 1-1 Define human resource management, and explain how
HRM contributes to an organization’s performance.
LO 1-2 Identify the responsibilities of human resource
departments.
LO 1-3 Summarize the types of competencies needed for human
resource management.
LO 1-4 Explain the role of supervisors in human resource
management.
LO 1-5 Discuss ethical issues in human resource management.
LO 1-6 Describe typical careers in human resource
management.

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 Human Resource Management (HRM)

The policies, practices, and

systems that influence
employees’
• behavior
• attitudes
• performance

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 Companies With Effective HRM

Employees and customers tend to be more

satisfied when…
The companies tend to
 be more innovative
 have greater productivity
 develop a more favorable reputation in the community

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 Figure 1.1 HRM Practices

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 Human Resources and Company Performance 1 of 3

Human capital – an
organization’s employees
described in terms of
The concept of HRM
their:
• training implies that employees
• experience are resources of the
• judgment employer.
• intelligence
• relationships
• insight

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 Figure 1.2 Impact of HRM

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 Human Resources and Company Performance 2 of 3

HRM and Sustainable Competitive Advantage

• An organization can succeed if it has sustainable
competitive advantage.
• HR give organizations advantages because human
resources are valuable, cannot be imitated, have no
good substitutes and with needed skills and
knowledge are sometimes rare.

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 Human Resources and Company Performance 3 of 3

High-Performance Work System

An organization in which technology, organizational
structure, people, and processes all work together to give
an organization a competitive advantage.

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 Responsibilities of Human Resource Departments 1 of 13

HR Product Lines

• Administrative services and transactions

• Business partner services

• Strategic partner

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 Table 1.1 Responsibilities of HR Departments
Function Responsibilities
Analysis and design of work Work analysis; job design; job descriptions
Recruitment and selection Recruiting; job postings; interviewing; testing; coordinating use of temporary
labor
Training and development Orientation; skills training; career development programs
Performance management Performance measures; preparation and administration of performance
appraisals; discipline
Compensation and benefits Wage and salary administration; incentive pay; insurance; vacation leave
administration; retirement plans; profit sharing; stock plans
Employee relations Attitude surveys; labor relations; employee handbooks; company publications;
labor law compliance; relocation and outplacement services
Personnel policies Policy creation; policy communication
Employee data and Record keeping; HR information systems; workforce analytics
information systems
Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety
inspections; accessibility accommodations
Support for strategy Human resource planning and forecasting; talent management; change
management
Sources: Bureau of Labor Statistics, “Human Resources Managers,” Occupational Outlook Handbook, 2014–2015, January 8, 2014, http://www.bls.gov/ooh; SHRM-BNA
Survey No. 66, “Policy and Practice Forum: Human Resource Activities, Budgets, and Staffs, 2000–2001,” Bulletin to Management, Bureau of National Affairs Policy and
©McGraw-Hill Education. Practice Series (Washington, DC: Bureau of National Affairs, June 28, 2001).
 Responsibilities of Human Resource Departments 2 of 13

Job Analysis
Process of getting
detailed information
about jobs.

Job Design
Process of defining the
way work will be © Lars A. Niki RF

performed and the tasks

that a given job requires.

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 Responsibilities of Human Resource Departments 3 of 13
Recruitment
The process through
which the organization
seeks applicants for
potential employment.
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Selection
The process by which the
organization attempts to
identify applicants with
the necessary knowledge,
skills, abilities, and other
characteristics that will
help the organization
achieve its goals.
 Responsibilities of Human Resource Departments 4 of 13

Which of the following are top qualities employers

look for in employees?
1. Teamwork skills
2. Decision making, problem solving
3. Planning, prioritizing tasks
4. Verbal communication skills
5. Gathering/processing information
6. All the above

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 Responsibilities of Human Resource Departments 5 of 13

Training Employees Development

A planned effort to Acquisition of
enable employees to knowledge, skills, and
learn job-related behaviors that improve
knowledge, skills, and an employee’s ability to
meet changes in job
behavior. requirements and in
customer demands.

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 Responsibilities of Human Resource Departments 6 of 13

Performance Management – The process of

ensuring that employees’ activities and outputs
match the organization’s goals.
– HR may be responsible for developing or obtaining
questionnaires and other devices for measuring
performance.

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 Responsibilities of Human Resource Departments 7 of 13

Planning Pay & Administering Pay &

Benefits Benefits
 How much salary, wages  Systems for keeping track
bonuses, commissions, of employees’ earnings
and other performance- and benefits are needed.
related pay to offer  Employees need
 Which benefits to offer information about their
and how much of the cost benefits plan.
will be shared by  Extensive record keeping
employees and reporting is needed.

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 Responsibilities of Human Resource Departments 8 of 13

Maintaining Positive Employee Relations

• Preparing and distributing employee handbooks and
company publications
• Dealing with and responding to communications from
employees’ questions
• Negotiating union contracts and maintaining
communication with union representatives

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 Responsibilities of Human Resource Departments 9 of 13

Establishing and Administering Personnel Policies

• hiring
• discipline
• promotions
• benefits
HR personnel communicate through a variety of
channels.

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 Responsibilities of Human Resource Departments 10 of 13

Managing and Using Human Resource Data

– Workforce Analytics - use of quantitative tools and
scientific methods to analyze data from human
resource databases and other sources to make
evidence-based decisions that support business
goals.

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 Responsibilities of Human Resource Departments 11 of 13

Ensuring Compliance with Labor Laws

– Government requirements include:
 filing reports and displaying posters
 avoiding unlawful behavior
– Managers depend on HR professionals to help them
keep track of these requirements.
– Lawsuits will continue to influence HRM practices
concerning job security.
• Employment at will, age discrimination, etc.

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 Responsibilities of Human Resource Departments 12 of 13

Supporting the Organization’s Strategy

HR planning – identifying the numbers and types of
employees the organization will require to meet its
objectives.
Talent Management- a systematic, planned effort to
attract, retain, develop, and motivate highly skilled
employees and managers.
Evidence-based HR– Collecting and using data to
show that human resource practices have a positive
influence on the company’s bottom line or key
stakeholders.

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Responsibilities of Human Resource Departments 13 of 13

Supporting the Organization’s Strategy

Corporate Social Responsibility
A company’s commitment to meeting the needs of its
stakeholders.
Corporate Social Responsibility
The parties with an interest in the company’s
success (typically, shareholders, the community,
customers, and employees.)
Sustainability
An organization’s ability to profit without depleting its
resources, incl. employees, natural resources, and
support of surrounding community.

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 Skills of HRM Professionals 1 of 2

SHRM Success Categories

• Define knowledge and skills associated with
success in HRM
• Four clusters of categories
– technical
– interpersonal
– business
– leadership

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Figure 1.3
Competencies
for HR
Professionals

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 Skills of HRM Professionals 2 of 2

In an organization, who should be

concerned with HRM?
A. Only HR
B. Only managers
C. Managers, supervisors and HR

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 HR Responsibilities of Supervisors

• Company’s founders
– First supervisors
• Supervisors have many HR responsibilities

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 Figure 1.4 Supervisors’ Involvement In HRM

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 Ethics In Human Resource Management 1 of 3

Ethics – fundamental principles of right and

wrong.
Ethical behavior – behavior that is consistent with
those principles.
– Many ethical issues in the workplace involve HRM.

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 Ethics In Human Resource Management 2 of 3

Employee Rights

Free consent

Privacy

Freedom of conscience

Freedom of speech

Due process
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 Ethics In Human Resource Management 3 of 3

Ethical companies act according to four principles:

1. In their relationships with customers, vendors, and
clients, ethical companies emphasize mutual benefits.
2. Employees assume responsibility for the actions of
the company.
3. The company has a sense of purpose or vision that
employees value and use in their day-to-day work.
4. They emphasize fairness.

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 Figure 1.5 Standards for Identifying Ethical Practices

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 Careers in Human Resource Management

• Salaries vary depending on education and

experience.
• Some positions are generalists, some are
specialized.
• Most positions require a college degree.

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 Figure 1.6 Median Salaries for HRM Positions

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 Test Your Knowledge
Which HR functions are primarily concerned with
1. ensuring employees are capable of doing their
current job and
2. ensuring that employees are satisfied with their
rewards?
A. 1) Development 2) Employee Relations
B. 1) Training 2) Legal Compliance
C. 1) Selection 2) Pay & Benefits
D. 1) Training 2) Pay & Benefits

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 Summary 1 of 4
HRM consists of an organization’s “people
practices”
 policies, practices, and systems that influence
employees’ behavior, attitudes, and
performance.
 influences who works for the organization and
how those people work.
 responsible for a variety of functions related to
acquiring and managing employees.

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 Summary 2 of 4

HRM requires human relations skills, including:

communicating
negotiating
team development
HR professionals also need to:
understand the language of business
be a credible with line managers and executives
be strategic partners

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 Summary 3 of 4

 Non-HR managers must be familiar with the

basics of HRM and their own role with regard to
managing HR.
 Supervisors typically have responsibilities
related to all HR functions such as analyzing
work, interviewing, training and performance
appraisals.
 HR professionals should make decisions
consistent with sound ethical principles.

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 Summary 4 of 4

Decisions of HR professionals should:

result in the greatest good for the largest number
of people.
respect basic rights of privacy, due process,
consent, and free speech.
treat employees and customers equitably and
fairly.
Careers in HRM may involve specialized work in
fields such as recruiting, training, or
compensation

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