Human Resources Management - Pearson

1 PART 1 Human Resources Management in PerspectiveChapterOutlineIntroduction to HumanResources ManagementInternal EnvironmentalInfluencesExternal EnvironmentalInfluencesTomorrow s HR, TodayHuman ResourcesManagement: The Field and ItsEnvironmentChapter1 Learning OutcomesAfter studying this chapter, you should be able to:Definehuman Resources Management and describeits Human Resources Management responsibilities of all role of the Human Resources impact of organizational culture and climate on humanresources external environmental factors affecting Human resourcesmanagement policies and practices, and explaintheir new modes of organizing and managing that have emergedand explainthe importance of employee to Human Resources Management In 1994, a noted leader in the Human Resources (HR) field made the followingobservation.

2 1 Yesterday, the company with the access to the most capital or the latest technologyhad the best competitive advantage. Today, companies that offer products with thehighest quality are the ones with a leg up on the competition. But the only thing thatwill uphold a company s advantage tomorrow is the calibre of people in the predicted future is today s reality. Most managers in public- and private-sector firms of all sizes would agree that people truly are the organization s mostimportant asset. Having competent staff on the payroll does not guarantee thata firm s Human Resources will be a source of competitive advantage, however.

3 Inorder to remain competitive, grow, and diversify, an organization must ensurethat its employees are qualified, placed in appropriate positions, properlytrained, managed effectively, and committed to the firm s success. Achievingthese goals is the aim of Human Resources Management , the field that is exploredin this is Human Resources Management ? Human Resources Management (HRM) refers to the Management of people inorganizations. It comprises the activities, policies, and practices involved inobtaining, developing, utilizing, evaluating, maintaining, and retaining theappropriate number and skill mix of employees to accomplish the organization sobjectives.

4 The goal of HRM is to maximize employees contributions in orderto achieve optimal productivity and effectiveness, while simultaneously attain-ing individual objectives (such as having a challenging job and obtaining recog-nition), and societal objectives (such as legal compliance and demonstratingsocial responsibility).2 Objectives of Human Resources Management The objectives of HRM include: assisting the organization in obtaining the right number and types ofemployees to fulfill its strategic and operational goals helping to create a climate in which employees are encouraged to developand utilize their skills to the fullest helping to maintain performance standards and increase productivitythrough effective job design; providing adequate orientation, training anddevelopment; providing performance-related feedback.

5 And ensuring effec-tive two-way communication helping to establish and maintain a harmonious employer/employee rela-tionship helping to create and maintain a safe and healthy work environment developing programs to meet the economic, psychological, and social needsof the employeesPart 1 Human Resources Management in Perspective2human Resources Management (HRM)The activities, policies, and practices involved in obtaining,developing, utilizing, evaluating,maintaining, and retaining theappropriate number and skill mixof employees to accomplish theorganization s objectives.

6 Helping the organization to retain productive employees ensuring that the organization is in compliance with provincial/territorialand federal laws affecting the workplace (such as Human rights, employ-ment equity, occupational health and safety, employment standards, andlabour relations legislation).Rather than addressing organizational goals as separate and distinct fromthose of employees, they should be seen as compatible and mutually win win situation results when this occurs. As explained by communicationsconsultant Katie Delahaye Paine:3 When you align HR with organizational strategy, you ll see growth in employee com-mitment, improved financial results, and find yourself better able to attract andretain the right people for your organization s business and is Human Resources Management Importantto All Managers?

7 Managers at all levels must concern themselves with HRM, since they all meettheir goals through the efforts of others, which requires the effective manage-ment of people. Every supervisor and manager has responsibilities related to awide range of HRM activities. These include analyzing jobs, planning labourneeds, selecting employees, orienting and training employees, managing com-pensation, communicating (which includes counselling and disciplining), andmaintaining employee commitment. They also include ensuring fair treatment;appraising performance; ensuring employee health and safety; building andmaintaining good employee/labour relations; handling complaints and griev-ances; and ensuring compliance with Human rights, occupational health andsafety, labour relations, and other legislation affecting the workplace.

8 Regardlessof field of expertise, from accounting to production control, learning aboutemployee rights, employer responsibilities, and effective HRM practices canprovide managers with knowledge that will enable them to perform more book is designed to provide information that will assist individuals whoare currently working in an HR department or in a supervisory or managerialcapacity in another department (or planning to assume such responsibilities inthe future). As explained by Jim Frank, vice-president and chief economist atThe Conference Board of Canada,4 You can see it so clearly.

9 Some organiza-tions in the same industry are more successful than others, and it s because theyhave different leadership leadership that is able to mobilize its people aroundits goals and objectives. At no time in history have effective HRM skills been more important thanthey are today. As we will discuss in a moment, such factors as increasing work-force diversity; rapidly changing technology; increasing government involve-ment in the employer employee relationship; and globalization, have triggeredan avalanche of change, one that many firms have not survived.

10 In such an envi-ronment, the future belongs to those managers who can best manage change,but to manage change, they must have committed employees who do their jobsas if they own the company. Throughout this book, we will demonstrate thatsound HRM practices and policies can play a crucial role in fostering suchemployee commitment and enabling organizations to better respond to 1 Human Resources Management : The Field and Its Environment3 Gateway to Hot HR ~ Human Resources ManagementFunctions Except for very small businesses, most firms today have an HR departmentheaded by an HR professional.