Professional Documents
Culture Documents
Development of HRM in US
As the United States shifted from an agricultural economy to an industrial economy, companies were forced to develop and implement effective ways of recruiting and keeping skilled workers. In addition, industrialization helped spur (prompt) immigration, as the country opened its borders to fill industrial positions. Filling these jobs with immigrants, however, created an even greater need for adequate management of employees.
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encompasses a much broader scope than technical training. Employees need to know more
than the requirements of a specific task in order to make their maximum contribution.
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Definition of HRM
In its broadest sense, HRM refers to the management of all decisions within an organization that are related to people. In practice, however, HRM is a tool used to try to make optimum use of human resources, to foster individual development, and to comply with government mandates. Larger organizations typically have an HRM department and its primary objective is making
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Maintenance
Development
Compensation
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Acquisition
Acquisition duties consist of human resource planning for employees, which includes activities related to: analyzing employment needs, determining the necessary skills for positions, identifying job and industry trends, and forecasting future employment levels and skill requirements.
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Acquisition..Contd.,
Four specific goals of effective human resource planning are: 1. Sustaining stable workforce levels during ups and downs in output, which can reduce unnecessary employment costs and liabilities and increase employee morale that would otherwise suffer in the event of lay-offs. Preventing a high turnover rate among younger recruits. Reducing problems associated with replacing key decision makers in the event of an unexpected absence. Making it possible for financial resource managers to efficiently plan departmental budgets.
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Development
The second major HRM function, human resource development, refers to performance appraisal, training and development activities. The basic goal of appraisal is to provide feedback to employees concerning their performance. This feedback allows them to evaluate the appropriateness of their behavior in the eyes of their coworkers and managers, correct weaknesses, and improve their contribution. They must also tie the appraisal process into compensation and incentive strategies, and work to ensure that government regulations are observed.
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Compensation
Compensation refers to HRM duties related to paying employees and providing incentives for them.
HRM professionals are typically charged with developing wage and salary systems that accomplish specific organizational objectives, such as employee retention, quality, satisfaction, and motivation. In particular, HRM managers must learn how to develop compensation system within the organization that doesn't hamper morale and that provides sufficient financial motivation. Besides financial compensation and fringe benefits, effective HRM managers also design programs that reward employees by meeting their emotional needs, such as recognition for good work.
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Maintenance
Maintenance of human resources encompasses HRM activities related to employee benefits, safety and health, and worker-management relations. Employee benefits such as health insurance and free parking, and are often used to transfer non-taxed compensation to employees. The three major categories of benefits managed by HRM managers are: employee services, such as recreational activities, and legal services; vacations, holidays, and other allowed absences; and services related to benefits such as insurance, retirement, health benefits etc. To successfully administer a benefits program, HRM professionals need to understand tax incentives, retirement investment plans, and other benefit packages.
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First, need to define authority: The right to make decisions, to direct others is authority. 1. Line manager A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organizations tasks. 2. Staff manager A manager who assists and advises line managers.
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Roles of HR Manager
A line function The HR manager directs the activities of the people in his or her own department. Also have implied authorityhas the ear of top management. A coordinative function HR managers also coordinate personnel activities, a duty often referred to as functional control. Right arm of the top executive Staff (assist and advise) functions Assisting and advising line managers is the heart of the HR managers job. Employee advocacy.
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Note: length of bars represents prevalence of activity among all surveyed employers.
Source: HR Department Benchmarks and Analysis, BNA/Society for Human Resource Management, 2002.
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Source: Adapted from How Much Time Should Your HR staff Spend on Recruiting? Human Resources Department Management Report, June 2000, p. 6.
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