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Human Resource Management Functions and Strategy

This document discusses human resource management (HRM) functions and strategy. It outlines the four main HRM functions as staffing, training and development, motivation, and maintenance. It also discusses the four areas within a typical HR department, external influences on HRM including laws/regulations, labor unions, management thought and a dynamic environment, careers in HR, and trends including outsourcing HR functions and the role of an ethical HR professional.

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Emmanuel Magsombol
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© © All Rights Reserved
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54 views

Human Resource Management Functions and Strategy

This document discusses human resource management (HRM) functions and strategy. It outlines the four main HRM functions as staffing, training and development, motivation, and maintenance. It also discusses the four areas within a typical HR department, external influences on HRM including laws/regulations, labor unions, management thought and a dynamic environment, careers in HR, and trends including outsourcing HR functions and the role of an ethical HR professional.

Uploaded by

Emmanuel Magsombol
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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HRM Functions and Strategy

Importance of HRM

HRM has a dual nature:


supports the
organization’s strategy

represents and advocates


for the employees

Strategic HRM provides a clear connection between the


organization’s goals and the activities of employees.
The HRM Functions

HRM has four basic functions:

staffing

training and
development
motivation
maintenance

In other words, hiring people, preparing them, stimulating


them, and keeping them.
The HRM Functions

staffing

 strategic human resource planning: match prospects’ skills


to the company’s strategy needs
 recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants
 selection: thin out pool of applicants to find the best choice

Staffing has fostered the most change in HR departments


during the past 30 years.
The HRM Functions

training and
development

 orientation: teach the rules, regulations, goals, and culture of the


company
 employee training: help employees acquire better skills for the job
 employee development: prepare employee for future position(s) in the
company
 organizational development: help employees adapt to the company’s
changing strategic directions
 career development: provide necessary information and assessment
in helping employees realize career goals

The goal is to have competent, adapted employees.


The HRM Functions

motivation

 theories and job design: environment and well-constructed jobs


factor heavily in employee performance
 performance appraisals: standards for each employee; must provide
feedback
 rewards and compensation: must be link between compensation and
performance
 employee benefits: should coordinate with a pay-for-performance
plan
The HRM Functions

maintenance

 safety and health: caring for employees’ well-being has a big


effect on their commitment
 communications and employee relations: keep employees
well-informed of company doings, and provide a means of
venting frustrations

Job loyalty has declined over the past decade.


External Influences on HRM

dynamic
environment

management laws and


thought HRM regulations

labor
unions

External influences affect HRM functions.


External Influences on HRM

dynamic
environment

globalization decentralized work sites

workforce diversity technology


teams employee involvement

changing skill requirements ethics

continuous improvement

“The only constant in life is change.”


External Influences on HRM

laws and
regulations

 legislation has an enormous effect on HRM

 laws protect employee rights to union representation, fair


wages, family medical leave, and freedom from
discrimination based on conditions unrelated to job
performance

 The U.S. Equal Employment Opportunity Commission


www.eeoc.gov enforces federal laws on civil rights at work.
External Influences on HRM

labor unions

 assist workers in dealing with company management


 negotiate wages, hours, and other terms of employment
 promote and foster a grievance procedure between workers
and management

When a union is present, employers can not fire workers for


unjustified reasons.
External Influences on HRM

management
thought

Frederick Taylor developed principles to enhance worker productivity


Hugo Munsterberg devised improvements to worker testing, training,
evaluations, and efficiency
Mary Parker Follet advocated people-oriented organizations
Elton Mayo’s Hawthorne Studies: dynamics of informal work groups
have a bigger effect on worker performance than do wage incentives

The Hawthorne Studies gave rise to the human relations movement:


benefits, healthy work conditions, concern for employee well-being.
Structure of the HR Department

There are four areas in a typical nonunion HR


department:
compensation /
benefits
employment

employee
training and relations
development

Many HR departments also offer services such as operating the


company’s credit union, making child-care arrangements,
providing security, or running in-house medical or food services.
Structure of the HR Department

promotes staffing activities, recruits new


employment employees, but does not make hiring decision

training and helps workers adapt to change in the company’s


development external and internal environments

compensation/ pays employees and administers their benefits


benefits package

ensures open communication within the company by


employee fostering top management commitment, upward and
relations accurate communication, feedback, and effective
information sources
Careers in HR

HR positions include:

 assistants who support other HR professionals

 generalists who provide service in all four HR functions

 specialists who work in one of the four HR functions

 executives who report to top management and coordinate HR


functions to organizational strategy

Interpersonal communication skills and ambition are two


factors that HR professionals say advance their careers.
Careers in HR

Organizations that spend money for quality HR


programs perform better than those that don’t.
(HCI study)

Quality programs:
 reward productive work
 offer a flexible, work-friendly environment
 properly recruit and retain quality employees
 provide effective communications

Make sure HR services match the overall


organizational strategy.
HR Trends and Opportunities

 more than half of all companies outsource all or some


parts of their HR functions

 professional employer organizations (PEO) help small- to


medium-size companies attract stronger candidates and
handle new laws in HR

 shared services allow organizations with several divisions


or locations to consolidate some HR functions into one
central location while retaining certain functions in
divisional locations
Entrepreneurial, Global, Ethical HR

 HR managers in small businesses perform the same


functions of those in larger businesses, but on a smaller
scale

 international HRM is very involved and costly

 recent corporate scandals and resulting legislation (SOX)


have spurred the “corporate ethicist / ombuds” position

See www.ombudsassociation.org for info on the profession.


Match the Fours

Four major HR positions staffing, training, motivation, maintenance

Four HR department environment, laws, labor unions, management


areas thought

Four quality programs employment, training, compensation,


employee relations
Four HRM functions
assistants, generalists, specialists, executives
Four external influences
reward productive work
on HRM
offer a flexible, work-friendly environment
properly recruit and retain quality employees
provide effective communications

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