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Mgmt 383


Mgmt 383 Chapter 1 The Changing Nature of HRM Fall 2008 Course Syllabus Due to budget constraints, I will no longer be handing out course syllabi. – PowerPoint PPT presentation

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Title: Mgmt 383

Mgmt 383
  • Chapter 1
  • The Changing Nature of HRM
  • Fall 2008

SOBA and UM Policy No Food or Drink in the
Course Syllabus
  • Due to budget constraints, I will no longer be
    handing out course syllabi. You may download the
    syllabus from my WebPage
  • http//

Are You Getting Ready?
  • INDUSTRY Manufacturing       TITLE  HR Manager
    flex, Benefits RELOCATION  Paid
  • SUMMARY A world leader in providing engineering
    thermoplastics materials solutions in more than
    60 countries worldwide, we help redefine the way
    OEMs original equipment manufacturers design --
    from concept to reality. The candidate will be
    responsible for all Human Resources (HR)
    activities. Provide client support for all
    functions of 120 employee-based world-class
    plastics manufacturing facility. The candidate is
    required to

Are You Getting Ready?
  • Provide overall HR responsibility for
    exempt/non-exempt teams including staffing,
    training, leadership development/coaching, career
    planning, performance management, compensation,
    salary planning, policy interpretation/development
    , communications, benefits, early ID program,
    leadership programs, cultural diversity,
    affirmative action, integrity policy
    enforcement/application employee satisfaction.
  • Lead all staffing, employee development,
    compliance/business leadership processes as
    integral member of the site leadership staff.
  • Implement strategic HR initiatives to create
    strong culture of leaders high-performing
  • Lead change initiatives to drive organizational
    effectiveness, talent development for operations,
    both technology commercial.
  • Participate in Company-wide HR initiatives
    including leadership development.
  • Responsible for community/public affairs
    including community donations, appearance all
    media contacts.

Four Types of Assets in Organizations
  • Physical (Plant Equipment)
  • Financial (Fiscal)
  • Intangible (Information)
  • Human

Management of Human Capital in Organizations
  • Human Capital (Organizational) - The sum of
    capabilities, knowledge, skills, life experience,
    and motivation of an organizational workforce.
  • It is the KSA that a business needs in order to
    accomplish its goals.
  • It is also known as intellectual capital.
  • Human Capital produces demonstrable value for an
    organization, especially in labor intensive
    industries (hospitality, retail, service, e.g.).

Core Competency
  • Core Competency - a unique capability that
    creates high value for customers and
    differentiates a firm from its competitors.
  • Possessing a unique technology (product or
  • Possessing a workforce with unique capabilities
    (skills competitors cannot access, more motivated
    employees, etc.)

The HR Activities
  • Strategic HRM (a.k.a., HRP)
  • Equal Employment Opportunity (a.k.a., Regulatory
  • Staffing (a.k.a., Recruiting Selection)
  • Talent Management (a.k.a. Training Development,
    HR Development )
  • Total Rewards (a.k.a., Compensation Benefits)
  • Risk Management Worker Protection (a.k.a.,
    Health, Safety, Security)
  • Employee Labor Relations (a.k.a., Industrial

Strategic HRM
  • HR Planning (HRP)
  • Anticipating/forecasting future HR supply and
  • HR Measurement
  • Providing for measures of HR effectiveness
  • HR Technology (HRMS/HRIS)
  • HR Retention

Equal Employment Opportunity
  • Regulatory compliance with employment laws.
  • Civil Rights Act of 1964, Title VII
  • ADEA
  • ADA
  • EPA (Equal Pay Act)
  • FLSA
  • Diversity
  • Affirmative action

  • Job analysis.
  • Job descriptions.
  • Job specifications.
  • Performance standards.
  • Recruiting.
  • Selection.

Talent Management
  • Employee orientation.
  • HR Training.
  • Training needs analysis.
  • Job skill training.
  • HR Development.
  • Career planning.
  • Performance management (assessing employee

Compensation Benefits
  • Compensation
  • Wage Salary Administration
  • Performance v. entitlement pay systems.
  • Merit-based v. seniority based pay systems.
  • Incentives
  • Individual
  • Group
  • Organizational
  • Benefits
  • Cost v. employee retention.

Risk Management Worker Protection
  • Health reducing work-related illnesses.
  • Employee assistance programs (EAP).
  • Wellness programs.
  • Safety reducing work-related injuries.
  • Security providing a secure work environment.
  • Disaster and Recovery Planning

Employee Labor Relations
  • Employee rights and responsibilities in the
  • Privacy concerns.
  • Developing HR policies, employment practices and
    work rules.
  • IR in organized (unionized) work places, contract

Size and the HR Job
  • HRs job varies based on the size of the
  • HR Generalist are typically found in small to
    medium size businesses.
  • HR Specialists do not usually appear until large
    HR departments can be supported, usually large

Concerns in Small Businesses
  • Small businesses account annually for 60-80 of
    new job growth and gt50 of total U.S. employment.
  • Primary concerns
  • Shortage of qualified workers
  • Increasing benefits costs
  • Increasing taxes
  • Regulatory compliance.

Three Organizational Roles of HRM
  • Administrative Role 50 (59)
  • Operational Role 30 (35)
  • Strategic Role 20 (6)

The Administrative Role of HRM
  • Administrative Role focus is on clerical
    administration and records keeping.
  • Day-to-day administering benefit programs.
  • Preparing EEO reports.
  • Conducting new employee orientations.
  • Two major changes are projected to reduce the
    time allocated to administrative tasks.
  • IT improvements
  • Outsourcing

The Operational Role of HRM
  • Operational Role identifying and implementing
    needed policies related to implementation of
    strategic plans.
  • Cooperation with operational managers is crucial.
  • Developing EEO compliance policies.
  • Recruiting and selecting candidates for current
  • Employee advocate role (grievance resolution,
    litigation avoidnce).

The Strategic Role of HRM
  • Strategic Role Helping top management to define
    strategy and effectively use of human capital to
    gain a competitive advantage.
  • HR Planning.
  • Monitoring evolving legal issues.
  • Community workforce development.
  • Organizational restructuring.
  • Evaluating acquisitions and mergers.
  • Planning compensation strategies.

Contributing at the Table
  • Examples of HR contributions
  • Evaluating the viability of mergers
    acquisitions (KSA, Staffing needs, structural
    changes, etc.)
  • Conducting HRP
  • Identify attrition of critical KSA
  • Planning for workforce expansion or contraction.
  • Leading site selection for new facilities or
    transferring operations internationally based on
    workforce needs..

Contributing at the Table
  • Examples of HR contributions
  • Instituting a HRMS/HRIS to reduce administrative
    time and expenses (including staff reductions).
  • Working with top management to develop
    compensation strategies to motivate employees.
  • Sales incentives.
  • New product/service incentives.
  • Profit sharing or gainsharing plans.

Challenges Facing HRM
  • Globalization of Business
  • International outsourcing
  • Global competition
  • Manufacturing to service economy (IT, Health
    care, retail services, financial services)
  • Labor costs are increasingly important
  • Labor markets are international
  • Global expansion
  • HSS issues related to security and terrorism.

  • Off-shoring contracting out goods or services
    to unaffiliated companies in another country
    (licensing, e.g.).
  • In-shoring foreign business shifting their
    business activates to the U.S.
  • Outsourcing - contracting out goods or services
    to unaffiliated companies either at home or

Global Forces Impacting HR Management
  • HR is a transnational process in MNCs.
  • Expatriates
  • Host country nationals
  • Third country nationals
  • Continued outsourcing of jobs to the developing
    world, especially India, PRC, Philippines,
    Mexico, etc.

Economic Technological Changes
  • Occupational Shifts
  • U.S has shifted from manufacturing economy to a
    service economy (gt80 of GDP is from services)
  • Heaavy growth predicted in healthcare

Economic Technological Changes
  • Occupational shifts Projected growth in jobs thru
    2014 BLS
  • Home health aides 56.0
  • Medical assistants 52.1
  • Computer software engineers 48.4
  • Personal and home care aides 41.0
  • Postsecondary teachers 32.2
  • Accountants and auditors 22.4
  • Janitors and cleaners 18.5
  • Retail salespersons 17.3
  • General and operations managers 17.0

Workforce Availability and Quality Issues
  • Increased demand for certain skills and
    knowledge, less demand for unskilled labor
  • Education Training
  • Over 50 of workforce will need training.
  • Increasing illiteracy (About one in 20 adults is
    not literate in English).
  • Poor math/computer skills.
  • Public education system is failing to produce
    job-related KSA.
  • In 2005, half of all Cal. State freshmen need
    remedial courses.
  • Over 57 of University of Illinois-Chicago
    freshmen took remedial math.
  • We do poorly in international educational

Workforce Availability and Quality Issues
  • Education Training
  • Standardized test scores have decline to the
    point that some are normed annually.
  • Foreign students account for nearly 40 of
    graduate students in science and engineering
    Michael Mandel, Business Week Nov. 20, 2006
  • In 2005, only 61 of high school seniors
    performed at or above the Basic level, and 23
    percent performed at or above Proficient.
    (National Assessment of Education Progress)
  • HR responses
  • Emphasis on accurately assessing education skills
    of current and potential employees.
  • More in-house literacy programs.
  • More training at all levels in the organization.
  • Hiring inpatriates H-1B visas

Economic Technological Changes
  • Growth in the Contingent Workforce
  • Temporaries
  • Independent contractors
  • Part-time
  • Leased employees
  • Reasons for the increased demand for Contingent
  • Paid less
  • Fewer benefits
  • Reduced exposure to litigation

Economic Technological Changes
  • Technological Shifts the Internet
  • Technology enables more people to work from home.
  • Technology means that more people (i.e.,
    managers) are more available.
  • Technology means that more employees are on
  • There is a rise of virtual employees, those who
    do not work on site.
  • Computers also mean appropriate use policies.
  • Technology enhance HR functions through HRIS and

Workforce Demographics Diversity
  • More representation of ethnic minorities in
  • Multilingual workplaces.
  • Educational skill deficiencies.
  • Underrepresentation in sciences and professions.
  • More individuals are calling themselves
    multi-racial (two or more races) indicating
    that the melting pot is very much alive.

Workforce Demographics Diversity
  • Women are increasing in their participation in
    the workforce.
  • Demand for more flexible work hours.
  • Careers may have gaps.
  • Job sharing child care concerns.
  • Flexible leave.
  • More dual career couples (60 of all married
  • People are marrying later (27/24).
  • Same-sex arrangements

Workforce Demographics Diversity
  • Balancing Family Work
  • Two groups of female managers Felice Schwartz,
    Harvard Business Review, 1989 -an idea not
    popular in feminist circles
  • Career-Primary - career first, family second.
  • Career-and-Family - gravitate to middle
    management jobs, accept less pay to devote more
    time to families. May account for much of the pay
    inequity statistics.

Organizational Cost Pressures and Restructuring
  • Re-engineering
  • Identifying eliminating marginal activities.
  • Downsizing (a.k.a., Right-sizing) - Intentional
    reduction of the workforce.
  • May result from closing facilities.
  • Look out for Organizational Anemia.
  • Outsourcing (subcontracting)
  • Merging with other companies (consider the
    airline and computer industries).
  • Outplacing workers

HR Technology
  • Human Resource Management System (HRMS) an
    integrated system provided information used in HR
  • Enable more accurate and time work flow analysis.
  • Reducing data collection and analysis.
  • Reduction of paperwork.
  • A.k.a., HRIS

HR Technology
  • Typical uses of HR Technology
  • Bulletin boards
  • Databases access by employees (intra- and
    extranet access to information)
  • Employee self-service (benefit enrollment, e.g.)
  • Extended linkage
  • Access to venders and HR resources
  • On-line training
  • On-line recruiting

Ethics and HR Management
  • Ethics - what ought to be done.
  • More than just legal compliance (there is right,
    there is wrong and there is the law).
  • Ethical codes must answer two questions
  • Does the behavior conform with applicable laws,
    regulations, and government mandates?
  • Does the behavior conform to both company
    standards and professional standards of behavior?

Ethics and HR Management
  • Examples of ethical dilemmas
  • Should employees be forced to quit smoking.
  • Should employees be fired for objecting to
    alternative life styles on religious grounds?
  • Should coworkers be informed if an employee has a
    serious communicable disease.
  • Should employees be informed that they are under
    video surveillance while at work?

Ethics and HR Management
  • Four elements of effective ethics programs
  • A written code of ethics/standards of conduct.
  • Training on ethical behavior at all levels in
    the organization (executive, management,
  • Provides a a means of employees to obtain advice
    on ethical situations.
  • Provides a system for confidential reporting of
    questionable or unethical behavior.

  • Sarbanes-Oxley Act of 2002 requires
    publicly-trade companies to follow certain
    accounting controls to reduce the likelihood of
    fraudulent or unethical behavior.
  • A response to a number of major corporate and
    accounting scandals (i.e., Enron WorldCom).
  • Compensation records have come under increased
    scrutiny (attendance).
  • Enhance financial disclosure.

HR Competencies
  • Five Sets of HR Competencies
  • Strategic Contribution focus on long-term
    organizational success.
  • Business Knowledge
  • HR Delivery
  • HR Technology HRMS/HRIS
  • Personal Credibility

HR as a Career
  • HR Generalist - performs a variety of HR
    activities (i.e., TD, recruiting, regulatory
    compliance, staffing, etc.).
  • HR Specialist - in-depth expertise in a limited
    HR area (i.e, Employee Relations Specialist,
    Industrial Relations Specialist, Benefits
    Administrator, Classification Specialist).

Professional HR Certification
  • PHR Professional in Human Resources, a minimum
    of two years practical HR experience and passing
    the HRCIs PHR examination.
  • SPHR Senior Professional in Human Resources, a
    minimum of six years practical experience and
    passing the HRCIs PHR examination.

Other Certifications
  • CCP - Certified Compensation Professional 1
  • CBP - Certified Benefits Professional 1
  • CEBS - Certified Employee Benefits Specialist 2
  • CPT - Certified Performance Technologist
  • CSP - Certified Safety Professional
  • OHST - Occupational Health Safety Technologist
  • 1 American Compensation Association
  • 2 International Foundation of Employee Benefits
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