Lecture Fundamentals of human resource management (11th Edition): Chapter 2

After reading chapter 2, you should be able to: Describe trends in the labor force composition and how they affect human resource management; summarize areas in which human resource management can support the goal of creating a high-performance work system; define employee empowerment, and explain its role in the modern organization; identify ways HR professionals can support organizational strategies for quality, growth, and efficiency.

Human Resource Management 11e

Chapter 2 Fundamentals of Strategic

HRM

HRM  has a dual nature:

Importance of HRM

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.

Fundamentals of Human 

Resource Management 11e

Strategy Type What It Looks Like Implications for HR

Cost differentiation: Provide

great value and low cost. Emphasize acquiring low cost materials, streamlining

processes, reducing waste, maximizing efficiencies (e.g., Wal- Mart, Hyundai).

Structure jobs, departments to maximize

cross training, knowledge sharing.

Design compensation programs to reward

efficiency, cost savings.

Select employees with versatile skill sets.

Design compensation systems to reward

creativity, innovation.

Educate employees about product/service

differentiating features.

Create marketing campaign to promote

special product features.

Customer Intimacy

Strong personal

relationship between

provider of product or

service and customer.

Emphasize relationship between consumers, point person

Personalized service differentiates the product/service from competitors (e.g., local hair salon, Pandora, Nordstrom).

Recruit and select job candidates with strong customer service and customer relations skills to help fortify the provider/consumer relationship.

Focus reward strategies on customer attraction, satisfaction and retention.

Use strong market research to drive

recruitment and selection so employees have a strong understanding of the target market.

Emphasize versatility and adaptability as

products and services are subject to rapid change.

HRM has four basic functions:

In other words, hiring people, preparing them, stimulating

them, and keeping them.

staffing

training and  development

motivation

maintenance

Fundamentals of Human Resource 

Management 11e

management thought

labor unions

laws and regulations

HRM

dynamic environment

External influences affect HRM functions.

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

When a union is present, employers can

not fire workers for unjustified reasons.

management thought

The Hawthorne Studies gave rise to the human relations movement: benefits, healthy work conditions, concern for employee well-being.

External Influences on HRM

§ Frederick Taylor developed principles to enhance worker productivity

§ Hugo Munsterberg devised improvements to worker testing, training,  evaluations, and efficiency

§ Mary Parker Follet advocated people­oriented organizations

§ Elton Mayo’s Hawthorne Studies: dynamics of informal work groups  have a bigger effect on worker performance than do wage incentives

Fundamentals of Human 

Resource Management 11e

Interpersonal communication skills and ambition are two  factors that HR professionals say advance their careers.

organizational strategy

§ Organizations that spend money for quality HR  programs perform better than those that don’t.  (HCI study)

Fundamentals of Human 

Resource Management 11e

HR Trends and Opportunities

§ Small business HR 

• Managers in small businesses perform the same  functions of those in larger businesses, but on a  smaller scale

Fundamentals of Human 

Resource Management 11e

§ Ethics

• Sarbanes­Oxley act (sox) enacted in response to  ethical failures in several large companies

• Seeks to hold top management responsible for  ethical practices

• HR is responsible for much employee ethics 

training

• HR communicates employee legal rights 

Entrepreneurial, Global, Ethical  HR

staffing, training, motivation, maintenance

environment, laws, labor unions, management thought

employment, training, compensation, employee relations

assistants, generalists, specialists, executives

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

Fundamentals of Human Resource 

Management 11e