After Studying This Chapter, You Should Be Able To
After Studying This Chapter, You Should Be Able To
to:
1. 2. 3. 4. 5. 6.
Explain what human resource management (HR) is and how Explain what human resource management (HR) is and how it relates to the management process. it relates to the management process. Give at least eight examples of how managers can use HR Give at least eight examples of how managers can use HR concepts and techniques. concepts and techniques. Illustrate the HR management responsibilities of line and Illustrate the HR management responsibilities of line and staff (HR) managers. staff (HR) managers. Provide a good example that illustrates HRs role in Provide a example that illustrates HRs role in formulating and executing company strategy. formulating and executing company strategy. Write a short essay that addresses the topic: why metrics Write a short essay that addresses the topic: why and measurement are crucial to todays HR managers. and are crucial to todays HR managers. Outline the plan of this book. Outline the plan of this book.
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Personnel Mistakes
Hire the wrong person for the job Experience high turnover Have your people not doing their best Waste time with useless interviews Have your company in court because of discriminatory actions Have your company cited by OSHA for unsafe practices Have some employees think their salaries are unfair and inequitable relative to others in the organization Allow a lack of training to undermine your departments effectiveness Commit any unfair labor practices
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Basic HR Concepts
Getting results
The bottom line of managing
HR creates value by engaging in activities that produce the employee behaviors the company needs to achieve its strategic goals.
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Staff manager
A manager who assists and advises line managers.
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A coordinative function
HR managers also coordinate personnel activities, a duty often referred to as functional control.
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HR and Authority
Authority
The right 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.
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Employee Advocacy
HR must take responsibility for:
Clearly defining how management should be treating employees. Making sure employees have the mechanisms required to contest unfair practices. Represent the interests of employees within the framework of its primary obligation to senior management.
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Job analysts
Collect and examine information about jobs to prepare job descriptions.
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Training specialists
Plan, organize, and direct training activities.
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Figure 11
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Figure 12
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Note: length of bars represents prevalence of activity among all surveyed employers.
Source: HR Department Benchmarks and Analysis, BNA/Society for Human Resource Management, 2002.
Figure 13
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A Changing HR Environment
Globalization Technological Advances Exporting Jobs The Nature of Work Workforce Demographics
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Source: Michael Shroeder, States Fight Exodus of Jobs, Wall Street Journal, June 3, 2003, p. 84.
Figure 14
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Top management wants to see, precisely, how the HR managers plans will make the company more valuable.
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HR Metrics
Absence Rate
[(Number of days absent in month) (Average number of employees during mo.) (number of workdays)] 100
HR Expense Factor
HR expense Total operating expense
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13 20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
Figure 15
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HR Metrics (contd)
Revenue Factor
Revenue Total Number of FTE
Time to fill
Total days elapsed to fill requisitions Number hired
Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 1320;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers, Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
Figure 15 (contd)
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HR Metrics (contd)
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
Figure 15 (contd)
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Figure 16
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HR Professional Certification
HR is becoming more professionalized. Society for Human Resource Management (SHRM)
SHRMs Human Resource Certification Institute (HRCI)
SPHR (senior professional in HR) PHR (professional in HR) certificate
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HR and Technology
Benefits of technological applications for HR
Intranet-based employee portals through which employees can self-service HR transactions. The availability of centralized call centers staffed with HR specialists. Increased efficiency of HR operations. The development of data warehouses of HR-related information. The ability to outsource HR activities to specialist service providers.
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Figure 18
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KEY TERMS
management process human resource management (HRM) authority line manager staff manager line authority implied authority functional control employee advocacy globalization nontraditional workers human capital strategy metrics HR Scorecard outsourcing
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