Human Resource Management

Fifteenth Edition

Chapter 1
Introduction to
Human Resource
Management

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 Learning Objectives
1-1. Explain what human resource management
(HRM) is and how it relates to the management
process.
1-2. Briefly discuss and illustrate each of the
important trends influencing human resource
management.
1-3. List and briefly describe “distributed HR” and
other important aspects of human management
today.
1-4. List at least four important human resource
manager competencies.
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 I.
Explain what human resource
management is and how it
relates to the management
process.

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 What Is Human Resource
Management? (1 of 2)

The Management Process

– Planning
– Organizing
– Staffing
– Leading
– Controlling

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 What Is Human Resource Management? (2 of 2)
HRM is the process of acquiring, training, appraising,
and compensating employees, and of attending to their
labor relations, health and safety, and fairness concerns.

What is Human Resource?

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 What Is Human Resource Management? (2 of 2)
The topics we’ll discuss should therefore provide you with the concepts and
techniques every manager needs to perform the “people” or personnel aspects
of management.

1.Conducting job analyses (determining the nature of each employee’s

job).
2. Planning labor needs and recruiting job candidates.
3. Selecting job candidates.
4. Orienting and training new employees.
5. Managing wages and salaries (compensating employees).
6. Providing incentives and benefits.
7. Appraising performance.
8. Communicating (interviewing, counseling, disciplining).
9. Training employees, and developing managers.
10. Building employee relations and engagement
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 Objects of Human Resource Management?

▪ All of Emloyees
▪ Related issues: job, rights and duties

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Why Is HRM Important to All Managers?

• To Avoid Personnel Mistakes

• To Improve Profits and Performance
• You May Spend Some Time as an HR Manager
• HR for Small Business – you may end up as your own
HR manager
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 The Human Resources Department

FIGURE 1-1 Human Resource Department Organization Chart Showing Typical HR

Job Titles
Source: “Human Resource Development Organization Chart Showing Typical HR Job Titles,”
www.co.pinellas.fl.us/persnl/pdf/orgchart.pdf. Courtesy of Pinellas County Human Resources. Reprinted
with permission.
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 II.
Trends Shaping Human
Resource Management

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 Table 1-1 Demographic Groups as a Percent of
the Workforce, 1992-2022
Age, Race and 1992 2002 2012 2022
Ethnicity
Age: 16-24 16.9 % 15.4% 13.7% 11.3%

25-54 71.4 70.2 65.3 63.1

55+ 11.8 14.3 20.9 25.6
White 85.0 82.8 79.8 77.7
Black 11.1 11.4 11.9 12.4
Asian 4.0 4.6 5.3 6.2
Hispanic origin 8.9 12.4 15.7 19.1
(Source: Based on U.S Bureau of Labor Statistics Economic New Rellease December 19, 2013)

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Trends in Human Resource Management
Workforce Demographics and Diversity Trends

Trends in How People Work

Improving Performance at Work: HR as a Profit

Center

Globalization Trends

Economic Trends

Technology Trends

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 TRENDS IN HRM
Workforce Demographics and Diversity Trends
➢ More women
➢ Minority group members
➢ Older workers – “ The aging workforce”

▪ Not enough younger workers to replace the

baby boom-ear older workers retiring
▪ Hiring foreign workers for US jobs
✓ Visa program for skilled foreign professionals
✓ 181,000 foreign workers/ year
▪ Nontraditional workers
✓ Multiple jobs
✓ Part-time workers
✓ 10% of American workers (13 million people)
▪ Young generation employees bring challenge
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Trends in Human Resource Management

Trends in How People Work

▪ Shift from manufacturing jobs to
service jobs in North America and
Western Europe
▪ 2/3 of US workforce: producing and
delivering services, not products

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 UNITED STATES

(Source: Meet the US workforce of the future, Deloitte review, 2017, page 55)

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Trends in Human Resource Management

Globalization Trends

• Member of 63 international
organizations
• Relationship with 650 NGOs

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Trends in Human Resource Management

Globalization Trends
▪ Encourage International trade by some Agreements
✓ Increase imports and exports
✓ Drop Cross-border taxes and tariffs
✓ Form economic free trade areas
▪ Problems
✓ Increase international competition
✓ More pressure to be “world class”
✓ Lower costs
✓ Employees: more productive, do things better, less
expensively
✓ Work with people from different cultures
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Trends in Human Resource Management
▪ 5 main types of digital technologies driving HR
professionals to automation:
✓ Social Media Recruit

✓ Mobile Monitor
Applications
✓ Gaming Train
✓ Cloud Computing Monitor & report
✓ Data Analytics Solving particular
(Talent Analytics) problems
Technology Trends
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 III.
Today’s New Human Resource
Management

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 Today’s New Human Resource
Management
• A Brief History of Personnel/Human Resource
Management
• Distributed HR and the New Human Resource
Management
• Trends Shaping HR: Digital and Social Media

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 A Quick Summary

FIGURE 1-4
What Trends
Mean for Human
Resource
Management

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 HR and Strategy
Strategic Human Resource Management
• Strategic human resource management –
means formulating and executing human resource
policies and practices that produce the employee
competencies and behaviors that the company
needs to achieve its strategic aims.

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 HR and Performance
The Human Resource Manager is expected to
spearhead employee performance.
Three Levers can be applied to do so:
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever

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 HR and Evidence Based Management
• Evidence-based human resource
management – is the use of data, facts,
analytics, scientific rigor, critical evaluation, and
critically evaluated research/case studies to
support human resource management proposals,
decisions, practices, and conclusions.

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 HR and Adding Value
• Adding value – means helping the firm and its
employees improve in a measurable way as a
result of the human resources manager’s actions.

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 HR and Performance and
Sustainability
• It is about measuring companies in terms of
maximizing profits but also on their environmental
and social performance as well.

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 HR and Employee Engagement
• Employee engagement – refers to being
psychologically involved in, connected to, and
committed to getting one’s job done.

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 IV.
The New Human Resource
Manager

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 The New Human Resource Manager
The Society of Human Resource Management (SHRM)
has a new “competency model” called the SHRM Body
of Competency and Knowledge that itemizes what a
New HR Manager needs
• What should they be able to exhibit?
• What basic functional areas of HR should they
have command?

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 The New Human Resource Manager
The HR Manager should be able to exhibit:
Leadership & the ability to direct and contribute to initiatives and processes
Navigation within the organization.
Ethical Practice the ability to integrate core values, integrity, and
accountability throughout all organizational and business
practices.
Business Acumen the ability to understand and apply information with which to
contribute to the organization’s strategic plan
Relationship the ability to manage interactions to provide service and to
Management support the organization.
Consultation the ability to provide guidance to organizational stakeholders
Critical Evaluation the ability to interpret information with which to make
business decisions and recommendations.
Global & Cultural the ability to value and consider the perspectives and
Effectiveness backgrounds of all parties.
Communication the ability to effectively exchange information with
stakeholders.

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 The New Human Resource Manager
SHRM says HR managers must have command of the basic functional areas of
HR as follows:

No Functions No Functions
1 Talent Acquisition & Retention 9 Technology & Data

2 Employee Engagement 10 HR in the Global Context

3 Learning & Development 11 Diversity & Inclusion

4 Total Rewards 12 Risk Management

5 Structure of the HR Function 13 Corporate Social Responsibility

6 Organizational Effectiveness & 14 U.S. Employment Law &

Development Regulations
7 Workforce Management 15 Business & HR Strategy

8 Employee Relations

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