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Introduction
HRM is charged with programs concerned with people
Effective use of people
Achieving individual & organizational goals Getting every manager involved
Employees + Good Management = $
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Objectives of the HRM Function
HRM Contributions to Effectiveness
Help the organization reach goals Provide trained, motivated employees 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,
Coping With Change
Growing global competition Rapidly expanding technologies Demand for individual, team, organizational competencies
Faster cycle times Increasing legal and compliance scrutiny
1-7
A Brief History of HRM
Science
Harmony
Scientific Management (Frederick Taylor)
Cooperation
Maximum output
1-8
A Brief History of HRM
Industrial Psychology
Strategic Importance of HRM
Direction
Employees
Managers
Tone
The firm
Effectiveness
The work
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HRM and Organizational Effectiveness
For a firm to survive and prosper, reasonable goals must be achieved in: Performance Legal compliance Employee satisfaction Absenteeism Turnover Training effectiveness and ROI Grievance rates Accident rates
Concerns about productivity Organizational downsizing and redesign
Increasingly diverse workforce Competitive need to use all organizational resources
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A Brief History of HRM
The Hawthorne studies (1924 to 1933): Determine the effect of illumination on workers and output Pointed out the importance of social interaction on output and satisfaction
The worker Individual differences Maximum well being
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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
Cost centers
Strategic HRM
Line managers
Improved understanding and use of human assets
Lead, inspire, understand
Short, intermediate, long term
Flexible, based on human resources
Until the 1960s, the personnel function was concerned only with blue-collar employees Filing, housekeeping, social worker, firefighter, diffuser of union trouble
Recruitment, selection, motivation, orientation
1-5
HRM Orientation
Action
People
Global
Future
1-6
A Brief History of HRM
English Guilds
Industrial Revolution
Use realistic, challenging, specific, and meaningful goals in planning models
Prepare reports on HRM solutions to problems Train HR staff to emphasize importance of profits
1-14
Strategic Importance of HRM
Key Concepts to Apply
Analyze/solve problems from a profit-oriented point of view Assess/interpret costs and benefits of HRM issues
Company structure
HRM
1-20
HRM and Organizational Effectiveness
The people who do the work and create the ideas
allow the organization to survive
1-21
HRM and Organizational Effectiveness
Recognizing the importance of people made HRM a major player in developing strategic plans HRM strategies must reflect the organization’s strategy regarding people, profit, and effectiveness
Higher customer expectations Mechanized, routine work now knowledge-based
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HRM and Organizational Effectiveness
Profitability gains Higher stock prices Company survival
Specialists
Better performance
Respond to needs Short-term results Rules, policies, position
power Bureaucratic, top-down,
centralization Following the rules
1-1
McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
1-2
Chapter 1
Introduction to Human Resource Management
and the Environment
Open, participative, empowerment
Developing people
Investment in human assets
1-13
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
1-15
Strategic Importance of HRM
Measured
HRM actions, language,