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Chapter 1
Introduction to Human
Resource Management
and the Environment
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Introduction
HRM is charged with programs
concerned with people
Getting every manager involved
Effective use of people
Achieving individual &
organizational goals
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HRM Activities
EEO compliance
HR planning
Training, development
Job analysis
Labor relations
Performance evaluation, compensation
Safety, health, wellness
Recruitment, selection, motivation, orientation
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HRM Orientation
Action
People
Future
Global
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A Brief History of HRM
Personnel departments were created to deal with:
Drastic changes in technology
Organizational growth
The rise of unions
Government intervention
Employee-management conflict

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Strategic Importance of HRM
Today, HRM plays a major role in:
Clarifying the firms human resource problems
Developing solutions for them
Strategic HRM differs from traditional HRM
Traditional arrangements responsibility for
managing human resources lies with specialists
Strategic approach people management rests with
anyone who is in direct contact with workers or line
managers
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Strategic Importance of HRM
Traditional HRM Strategic HRM
Responsibility for
human resources
Specialists Line managers
Objective Better performance Improved understanding and
use of human assets
Role of HRM Respond to needs Lead, inspire, understand
Time focus Short-term results Short, intermediate, long term
Control Rules, policies, position
power
Flexible, based on human
resources
Culture Bureaucratic, top-down,
centralization
Open, participative,
empowerment
Major emphasis Following the rules Developing people
Accountability Cost centers Investment in human assets
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Strategic Importance of HRM
For years, HRM was not linked to corporate profit
Organizations focused on current performance
HR managers did not have a strategic perspective
Executives categorized HRM in a traditional manner
It was hard to develop metrics for HRM activities
Recognizing the importance of people made HRM
a major player in developing strategic plans
HRM strategies must reflect the organizations
strategy regarding people, profit, and effectiveness
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Strategic Importance of HRM
Assess/interpret costs and benefits of HRM issues
Use realistic, challenging, specific, and meaningful goals
in planning models
Key Concepts to Apply
Analyze/solve problems from a profit-oriented point of view
Prepare reports on HRM solutions to problems
Train HR staff to emphasize importance of profits
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Strategic Importance of HRM
HRM accountability resulted from:
Concerns about productivity
Organizational downsizing and redesign
Increasingly diverse workforce
Competitive need to use all
organizational resources
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HRM and Organizational Effectiveness
Measure of Effectiveness
Reaching
goals
Using
employees
efficiently
Influx/
retention
of good
employees
Mission and
strategy
Company
structure
HRM
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HRM and Organizational Effectiveness
Coping With Change
Growing global competition
Rapidly expanding technologies
Demand for individual, team, organizational competencies
Faster cycle times
Increasing legal and compliance scrutiny
Higher customer expectations
Mechanized, routine work now knowledge-based
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Objectives of the HRM Function
Help the organization reach goals
Employ workforce skills/abilities efficiently
Increase satisfaction, self-actualization, quality of work life
Communicate HRM policies to all employees
Maintain ethical policies, socially responsible behavior
Manage change to the mutual advantage of individuals,
groups, the enterprise, and the public
HRM Contributions to Effectiveness
Provide trained, motivated employees
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Providing Trained, Motivated Workers
Reward good results
Dont reward non-performance
Make goals clear
Measure results clearly, fairly
Provide the right people
at the right time
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Increasing Job Satisfaction
This job is matches my
skills perfectly
The company treats
me equitably
I find this job
very fulfilling
Dissatisfied workers can produce as much as
satisfied workers, but they quit and are absent
more often, and produce lower-quality work
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Objectives of the HRM Function
Meaningful
tasks
Work working
hours
Job safety
Good physical
surrounds
Freedom and
autonomy
Management
style
Quality of
Work Life
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Objectives of the HRM Function
Communicating HRM policies to all employees:
HRM policies, programs, and procedures
must be communicated fully and effectively
They must be represented to outsiders
Top-level managers must understand what
HRM can offer
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Ethical & Socially Responsible Behavior
Show by example that HRM
activities are fair, truthful,
honorable
Do not discriminate
Protect the basic rights of
employees
Apply to all HRM activities
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Trends and Changes
Telecommuting
Outsourcing HRM
Family
medical leave
Child care
Spouse relocation
assistance
Pay for skills
Benefit cost-
sharing
Union-
management
negotiation
New lifestyles,
aging population
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Objectives of the HRM Function
Shorter cycle times mean less time to:
Train, educate, and assign managers
Solve sexual harassment complaints
Recruit and select talented people
Improve the firms image
Learning provides a framework for decreasing
cycle time

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Learning Framework
Culture that rewards learning
Emphasis on working efficiently, quickly
Key Learning Areas
Leadership behaviors
Quicker, more flexible decision making
Empowerment
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Outsourcing
Downsizing
Rapid growth or decline
of business
Restructuring
Globalization
Increased competition
Contributors to
HRM outsourcing
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Outsourcing
Some executives assume that outsourcing can:
Reduce costs
Improve flexibility
Permit the hiring of specialized expertise
There is little empirical support for these
assumptions
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Developing a Competitive Advantage
These must become so important and effective that
every unit in the firm knows they are needed for
success:
The compensation system
Training opportunities
Diversity management programs
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HRMs Place in Management
To educate others about the HR implications of
decisions, HR executives must understand
Investments Advertising
Marketing
Production
IT
R&D
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Clarifying Meaningful HRM Objectives
More specific
Strategy: The plan that
integrates major objectives
Objectives: Goals that are
specific and measurable
Policies: Decision making guides
Procedures/rules: Specific
directions for decision making
More specific
More specific
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HRM Policy
A policy is a general guide that expresses
limits within which action should occur
Arises from past or potential problems
Frees managers from making certain
decisions
Ensures some consistency
in behavior
Allows managers to concentrate
on decisions where they have the most
experience and knowledge
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HRM Procedures
Procedures (rules) are specific directions
In standard operating procedure (SOP) manuals
Helps ensure consistent decision making
Should be well-developed, but not excessive
Develop for only the most vital areas
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Organization of an HR Department
HR specialists are usually located at the
headquarters of an organization
Chief HR
Executive
Typically reports to the
top manager
Small/Medium
Firms
Nonprofits
HRM is typically a unit in the
business office
HRM and another function may
be in a single department