Fundamentals of Human Resource

Management 8e, DeCenzo and

Robbins
Chapter 2
Fundamentals of HRM
Fundamentals of Human
Resource Management
Eighth Edition
DeCenzo and Robbins
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Management Essentials

Management involves setting goals and

allocating scarce resources to achieve
them.

Management is the process of

efficiently achieving the objectives of
the organization with and through
people.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Management Essentials

rimary Functions of Management

!
Planning ! establishing goals
!
Organizing ! determining what activities
need to be done
!
Leading ! assuring the right people are on
the job and motivated
!
Controlling ! monitoring activities to be
sure goals are met
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Why is HRM Important to an
Organization

"he role of human resource managers has

changed. HRM jobs today re#uire a new level
of sophistication.
!
Federal and state employment legislation has
placed new re#uirements on employers.
!
$obs have become more technical and s%illed.
!
"raditional job boundaries have become blurred
with the advent of such things as project teams
and telecommuting.
!
&lobal competition has increased demands for
productivity.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Why is HRM Important to an
Organization

"he 'trategic (ature HRM must be

!
a strategic business partner and represent
employees.
!
forward)thin%ing* support the business
strategy* and assist the organization in
maintaining competitive advantage.
!
concerned with the total cost of its function
and for determining value added to the
organization.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Why is HRM Important to an
Organization

HRM is the part of the organization

concerned with the +people, dimension.

HRM is both a staff* or support function

that assists line employees* and a
function of every manager-s job.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Why is HRM Important to an
Organization

HRM .ertification
!
.olleges and universities offer HR
programs.
!
"he !ociety for Human Resource
Management and Human Resource
Certification Institute offer professional
certification.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Why is HRM Important to an
Organization
Four basic
functions"

'taffing

"raining and
/evelopment

Motivation

Maintenance
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Ho# E$ternal Influences %ffect
HRM

'trategic Environment

&overnmental 0egislation

0abor 1nions

Management "hought
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Ho# E$ternal Influences %ffect
HRM

HRM 'trategic Environment includes2

!
&lobalization
!
"echnology
!
3or% force diversity
!
.hanging s%ill re#uirements
!
.ontinuous improvement
!
3or% process engineering
!
/ecentralized wor% sites
!
"eams
!
Employee involvement
!
Ethics
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Ho# E$ternal Influences %ffect
HRM

&overnmental 0egislation
!
0aws supporting employer and employee
actions

0abor 1nions
!
4ct on behalf of their members by
negotiating contracts with management
!
E5ist to assist wor%ers
!
.onstrain managers
!
4ffect non unionized wor%force
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Ho# E$ternal Influences %ffect
HRM

Management "hought
!
Management principles* such as those
from scientific management or based on
the Ha#thorne studies influence the
practice of HRM.
!
More recently* continuous improvement
programs have had a significant influence
on HRM activities.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
!taffing Function %cti&ities

Employment planning
!
ensures that staffing will contribute to the
organization-s mission and strategy

Job analysis
!
determining the specific s%ills* %nowledge
and abilities needed to be successful in a
particular job
!
defining the essential functions of the job
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
!taffing Function %cti&ities

Recruitment
!
the process of attracting a pool of #ualified
applicants that is representative of all
groups in the labor mar%et

Selection
!
the process of assessing who will be
successful on the job* and
!
the communication of information to assist
job candidates in their decision to accept
an offer
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
'oals of the (raining and
De&elopment Function

4ctivities in HRM concerned with

assisting employees to develop up)to)
date s%ills* %nowledge* and abilities

Orientation and socialization help

employees to adapt

Four phases of training and development

!
Employee training
!
Employee development
!
6rganization development
!
.areer development
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(he Moti&ation Function

4ctivities in HRM concerned with helping

employees e5ert at high energy levels.

7mplications are2
!
7ndividual
!
Managerial
!
6rganizational

Function of two factors2

!
4bility
!
3illingness

Respect
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(he Moti&ation Function

Managing motivation includes2

!
$ob design
!
'etting performance standards
!
Establishing effective compensation and
benefits programs
!
1nderstanding motivational theories
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(he Moti&ation Function

Classic Motivation Theories

Hierarchy of Needs Maslo

Theory X Theory Y Mc!regor

Motivation Hygiene Herzberg

Achievement, Affiliation, and Power Motives

McClelland

Eqity Theory "dams

E!"ectancy Theory # $room

Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Ho# Important is the
Maintenance Function

4ctivities in HRM concerned with maintaining

employees- commitment and loyalty to the
organization.
!
Health
!
'afety
!
.ommunications
!
Employee assistance programs

Effective communications programs provide

for 8)way communication to ensure that
employees are well informed and that their
voices are heard.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

Four Functions2
!
Employment
!
"raining and development
!
.ompensation9benefits
!
Employee relations
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

Employment ) Employment specialists2

!
coordinate the staffing function
!
advertising vacancies
!
perform initial screening
!
interview
!
ma%e job offers
!
do paperwor% related to hiring

(raining and De&elopment !

!
help employees to ma5imize their potential
!
serve as internal change agents to the
organization
!
provide counseling and career development
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

Compensation and *enefits !

!
establish objective and e#uitable pay
systems
!
design cost)effective benefits pac%ages
that help attract and retain high)#uality
enployees.
!
help employees to effectively utilize their
benefits* such as by providing information
on retirement planning.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

Employee Relations ! involves2

!
communications
!
fair application of policies and procedures
!
data documentation
!
coordination of activities and services that
enhance employee commitment and
loyalty
!
Employee relations should not be confused
with labor relations* which refers to HRM in
a unionized environment.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

urpose and Elements of HRM

.ommunications
!
:eep employees informed of what is
happening and %nowledgeable of policies
and procedures.
!
.onvey that the organization values
employees.
!
;uild trust and openness* and reinforce
company goals.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
(ranslating HRM Functions
into )ractice

Effective .ommunication programs

involve2
!
"op Management .ommitment
!
Effective 1pward .ommunication
!
/etermining 3hat to .ommunicate
!
4llowing for Feedbac%
!
7nformation 'ources
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
Does HRM Really Matter

Research has shown that a fully functioning

HR department does ma%e a difference.

6rganizations that spend money to have

#uality HR programs perform better than
those who don-t.

ractices that are part of superior HR

services include2
!
rewarding productive wor%
!
creating a fle5ible wor%)friendly environment
!
properly recruiting and retaining #uality wor%ers
!
effective communications
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
HRM in an Entrepreneurial
Enterprise

&eneral managers may perform HRM

functions* HRM activities may be
outsourced* or a single generalist may
handle all the HRM functions.

;enefits include
!
freedom from many government regulations
!
an absence of bureaucracy
!
an opportunity to share in the success of
the business
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
HRM in a 'lobal +illage

HRM functions are more comple5 when

employees are located around the
world.

.onsideration must be given to such

things as foreign language training*
relocation and orientation processes*
etc.

HRM also involves considering the

needs of employees- families when they
are sent overseas.
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
HR and Corporate Ethics

HRM must2
!
Ma%e sure employees %now about
corporate ethics policies
!
"rain employees and supervisors on how
to act ethically
Fundamentals of Human Resource
Management 8e, DeCenzo and
Robbins
HR and Corporate Ethics

"he !arbanes,O$ley %ct passed in

8<<8* establishes procedures for public
companies regarding how they handle
and report their financial status.
!
Establishes penalties for noncompliance.
!
rovides protection for employees who
report e5ecutive wrongdoing.
!
Re#uires that companies have
mechanisms in place where complaints
can be received and investigated.