Human Resource Management Contents in Brief

Human Resource Management

Contents in Brief • Part One: HR Resources Management in Perspective – Development of HR Management: Challenges – EEO and Affirmative Action: The Environment • Part Two: Meeting HR Requirements – Job Requirements – HR Planning and Recruitment – Selection

Contents in Brief • Part Three: Developing Effectiveness in HR – Training – Career Development – Appraising and Improving Performance • Part Four: Implementing Compensation and Security – Managing Compensation – Incentive Compensation – Employee Benefits – Safety and Health

Contents in Brief • Part Five: Enhancing Employee Relations – Employee Rights and Discipline – Labor Relations – Collective Bargaining and Contract Administration • Part Six: International HR Management and HR Audits – International HR Management – Creating High Performance Systems

Why are you studying HRM? HRM CAREER ASPIRANT NEED AS A MANAGER OF PEOPLE Job Decision Organization Successful Organization Staffing Motivating People Evaluating Talent UNDERSTAND PEOPLE WORK RELATIONSHIPS LEARN THE CONTENT UNDER WHICH PEOPLE PERFORM

Core Competencies • Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers.

Human Resource Management: Contribute to Organizational Goals Personnel: Record Keeping Management Oriented

Personnel Management vs. Human Resource Management PERSONNEL MANAGEMENT • Coordinates functions of the personnel program • Involves a functional approach • Emphasizes behavior and interpersonal relations • Success judged by results achieved through functions of the personnel program HUMAN RESOURCES MANAGEMENT • Coordinates personnel management with organization planning • Involves a system approach • Emphasizes environments and issues • Success judged by contributions to cost reductions and profit growth or service objectives

Early Development (Pre-1920’s) • • • Factory System: Industrial Revolution Mass Production Scientific Management Efficiency Workers Pressed – Labor Union Strife

Later Developments (Post-1920’s) • • The Human Relations Movement Emergency Relations Movement Government Regulations Technology Revolution

Foundations of Human Resources Management SCIENTIFIC MANAGEMENT Provides a basis for: • Determining the best work methods in order to: - improve efficiency - place right employee in the right job - teach employees the right methods • Establishing time standards in order to: - appraise performance - eliminate unsatisfactory performance - reward superior performance HUMAN RELATIONS BEHAVIORAL SCIENCE Is an extension of human Focuses attention upon: relations that: - individual differences - involves an interamong employees disciplinary approach - interpersonal relations at - views the organization work as a dynamic system - informal group behavior - is concerned with the - employee attitudes and total organizational opinions climate - leadership techniques - is oriented toward both - communication practices economic and humanistic objectives - retains concern for employee participation, group behavior, and interpersonal relations

Overall Framework for HR Current Focus COMPETITIVE CHALLENGES HUMAN RESOURCES MANAGEMENT • Globalization • Technology • Managing change • Intellectual capital • Market response • Cost containment • Planning • Staffing • Job Design • Training • Appraisal • Compensation EMPLOYEE CONCERNS • Diversity • Age distribution • Gender issues • Education levels • Employee rights • Privacy issues • Work Attitudes • Work and family

Functional Specialization Still Essential to Achieve Organizational Goods • • • Staffing/Planning Broader Job Design Recruitment Selection Training Staff Development Performance Management Compensation Management/Incentive Labor Relations/Global Teamwork

Competencies of HR Professionals BUSINESS CAPABILITIES Financial, Strategic, Technological MANAGING CHANGE HUMAN PROCESSES RESOURCES Diagnosis, Staffing, Influence, Development, Contracting, Appraisal, Intervention, Rewards, Problem Organizational Solving, Planning Relationships, Communication

Professionalization of Human Resource Management Development of Professional Organizations 1. Code of Ethics 2. Literature and Research 3. Body of Knowledge/University Level Courses

Professional Associations

Professional Characteristics of Human Resources Management 1. Experimentation and research is encouraged. 2. Organized body of information and knowledge has been accumulated. 3. The exchange of information is promoted through professional meetings and publications. 4. Adherence to an established code of ethics is prescribed. 5. University curriculums for developing practitioners have been created. 6. A program for accrediting practitioners has been established.

Code of Ethics As a member of the Society for Human Resource Management, I pledge myself to: Maintain the highest standards of professional and personal conduct. Strive for personal growth in the field of human resource management. Support the society’s goals and objectives for developing the human resource management profession. Encourage my employer to make the fair and equitable treatment of all employees a primary concern Strive to make my employer profitable both in monetary terms and through the support and encouragement of effective employment practices. Instill in the employees and the public a sense of confidence about the conduct and intentions of my employer. Maintain loyalty to my employer and pursue its objectives in ways that are consistent with the public interest. Uphold all laws and regulations relating to my employer’s activities. Refrain from using my official positions, either regular or volunteer, to secure special privilege, gain or benefit for myself. Maintain the confidentiality of privileged information. Improve public understanding of the role of human resource management.

Human Resource Management • Goals/Mission Statements/Visions • Policies • Procedures/Practice I. U. Human Resources

Corporate Mission Statements • • NCR Shared Values Walmart Value Statement J&J Credo Marathon Statement of Principles

Objectives Where are we going? • • • Essential for Planning Purpose Rapid Decisions Consistent Decisions/Reliable Control of Process Feedback and Re-evaluation

Policies • Need • Formulation by Management and Workforce Teams • Written in clear terms; No misunderstandings • Communication/Dissemination – How? IU Staff Policy Manual

Sample HR Policy Statement Subject: Overtime Hours and Pay Purpose: To ensure equitable payment of overtime compensation to eligible employees in accordance with all applicable provisions of federal and state law. Guidelines: • The company’s workweek runs from Monday through Sunday, with normal operating hours scheduled from 8 a. m. Monday through 5 p. m. Friday. The normal daily work schedule for employees consists of an eight-hour day within a 24 -hour period. The normal weekly schedule consists of a 40 -hour week. Employees are entitled to a daily one-hour unpaid lunch period, and to two 15 -minute paid break periods each day.

Sample HR Policy Statement CONTINUED. . . • Business demands or production deadlines occasionally may require some employees to work overtime, which means more than eight hours in a 24 -hour day or more than 40 hours in a week. Supervisors will try to inform employees well in advance of any overtime requirement. Employees may not work more than their scheduled daily or weekly hours without written authorization from their supervisor. In assigning overtime, supervisors will seek to distribute extra hours equitably among employees who have the required skills and abilities to perform the necessary work. • All employees considered “nonexempt” under the Fair Labor Standards Act will be paid at the rate of time and one-half (1 1/2 times their regular rate of pay) for all hours worked in excess of 40 in one week. Scheduled holidays, vacation days, and time off for jury duty will be considered hours worked for purposes of calculating overtime. Unscheduled absences or time off for sickness, emergencies, or other personal reasons will not be considered hours worked for overtime purposes.

Sample HR Policy Statement CONTINUED. . . • Nonexempt employees who work on company-recognized holidays will be paid their regular rate for the extra hours worked, in addition to their regular holiday pay. However, no “pyramiding” of paid holiday work time, treating it as hours worked for weekly overtime computation purposes is allowed. • Employees considered “exempt” under the Fair Labor Standards Act will be compensated for abnormal amounts of extra time worked. Exempt employees will be paid their straight-time rate for all extra authorized hours worked in excess of 46 in a week. • Compensatory time off is not available to any employee--exempt or nonexempt--for work in excess of regularly scheduled hours. • Nonexempt employees must record their daily work hours either on time clocks in their department or time cards supplied by their supervisor. Occasional minor differences--five minutes or less--between a nonexempt worker’s scheduled time and recorded work-time will be ignored. Exempt employees must complete and turn in to their supervisor a weekly report indicating how many hours they spent on exempt work an how many, if any, on nonexempt work. • Employees who falsify their own or another worker’s time record will be subject to severe penalties, up to and including dismissal.

Procedures • • Implement Policies Chronological Steps Periodic Review Modify as Needed IU Staff Handbook for Professional Staff

Human Resources Management: Goals, Policies, and Procedures Org. goals to be achieved Actions to achieve goals Policies (guidelines) governing action Procedures (steps) for taking actions Possible action for adjustment needed Modification if needed Review of policies Review of procedures Results achieved Org. goals Audit results against organizational goals

Human Resource Management Information System What are the Talent/Abilities of the Workforce? • Accurate Data • Computer Requirement • Inventories of Talents (KSAs) – Knowledge – Skills – Abilities • KSA: Education and Work Experience

Human Resources Information Systems (HRIS) • Computerized system that provides current and accurate data for purposes of control and decision making.

Human Resource Management Budget • Support for Managers • Maintain Policies and Communication Vehicles • Financial Plan/HR Budgets • HRIS • Processes and Flows • Surveys and Studies • Support Staff

Organization of Human Resources Department Human Resources Manager Employment Division Recruitment Interviewing Testing Placement Orientation Reassignments Terminations Records Safety Division Safety Campaigns Engineering Inspections Education Accident Investigation Records Awards Employee Development Division Compensation Division Training Program Operators Supervisors Apprentices Job Analysis Job Evaluation Work Standards Wage Surveys Employee Classification Training Instructors Facilities Materials Medical Division Examinations First Aid Medical Facilities Health Program Treatment and Services Personnel Research Division Records and Reports Statistical Analysis Manuals Systems and Procedures Policies Personnel Audits Opinion surveys Labor Relations Division Collective Bargaining Legal Grievance Suggestion Plans Bargaining Associations Employee Benefits Division Pensions Profit Sharing Savings Insurance Cafeteria Publications Recreation Counseling Parking Miscellaneous Human Resources Planning Division Forecasting Personnel Inventories Planning Models Resource Information Career Paths Equal Opportunity Employer Affirmative Action Planning Records Discrimination Complaints Counseling and Liaison

Qualifications for a Career in HRM Academic Training Courses • General education (behavioral sciences, English, communications, psychology, mathematics, and business courses including accounting, marketing, and others) • Human resources management • Supervision • Labor relations • Organizational behavior • Personnel and organizational psychology • Sociology • Law • Electronic data processing • Statistics • Economics • Industrial engineering Extracurricular Activities • Professional organizations • Publications staffs • Student Personnel Association • Leadership roles in organizations

Qualifications for a Career in HRM Personal Qualifications Desirable • Integrity Employment • Determination Experiences • Competency • Experience at the • Dependability operating level • Fair-mindedness • Experience in positions • Good mental health of leadership • A sense of humor • Ability to tolerate frustration • A flexible approach to problems • Ability to communicate effectively • Patience • Objectivity towards others • Cooperative and understanding SHRM: HR Jobs attitude SHRM: HR News Online • Ability to listen effectively Occupational Outlook Handbook • Human Relations skills

Organizational Objectives HR Objectives Processes of Mgmt HR Budgets Planning Organizing Staffing Directing Controlling HR Functions Performed Job Analysis Recruitment Selection Development Performance Appraisal Compensation Labor Relations HR Procedures HR Policies

Responsibilities of Human Resource Department • In-house Consultant • Structure of Department • Jobs in Human Resources Management

Line vs. Staff Authority Line Authority (Production Manager) Derived from: üSuperior through delegation üDirectives, regulations, assignments, etc. üExercise discretion Includes right to: üGive orders and direction üTake disciplinary action üSubordinates in line of Exercised over: authority (Chain of Command) Staff Authority (HR Manager) üKnowledge, information and expertise in functional area üCoordinate and control performance of a function üProvide consultation and service in functional areas üOther members of the organization in the performance of a particular function

Human Capital • The knowledge, skills, and abilities of individuals that have economic value to an organization.

HRM AS A COMPETITIVE BUSINESS MODEL The Competition Edge: Comes from HR • Value of Talent • Rare Talent (hire, train, motivate best) • Not Easy to Duplicate (Teams/Individuals) • Organized Workforce

COMPETITIVE CHALLENGES CHANGE PROFESSION What are the “Competitive Challenges? ” • • Globalization Technology Change Human Capital Market Forces Worldwide Demographics Workforce Partnerships

GLOBILIZATION IMPACT Differences/Issues • • • Geographies Cultures Laws Business Practices Rewards

TECHNOLOGY IMPACT • Labor vs. Knowledge • Education Levels • Systems – HRIS - ERP – Database - E-Commerce • Websites for Info “Changes the Enterprise Work Processes”

HRM WEBSITES • Cornell School of Industrial & Labor Relations • Society of HRM • TCM Training & Development • U. S. Dept. of Labor • BPO Home Page

IMPACT OF CHANGE • • • No Status Quo Always on Cutting Edge Staff Talents Must Adjust Very High People Resistance Creates Stress/Pressure/Adoption

IMPACT ON HUMAN CAPITAL (Not just Financial Capital) • Competition Through People • Balance Sheet Item? • People Investment – High Rewards for Performance – Use Talents Wisely – Enhance Talents – Organize Skill Sets

Impact on Global Competitive Marketplaces • Talent is Global • Quality Products are Essential • Business Process Management creates Competitiveness • Cost constantly Removed • Speed to Market is Essential

IMPACT FROM ENHANCING GLOBAL COST CONTROL • Creates Downsizing • Creates Mergers/Acquisitions • Creates Reorganization for Efficiency • Forces Outsourcing • Encourages Temporary Workforce – Temporary Workers – Contract Employees/Leasing

GLOBAL DEMOGRAPHIC CHANGES • • Diversity Age Distribution Gender Distribution Rising Levels of Education Employee Rights – Legal Employee Privacy Attitudes Toward Work Balancing Life Goals with Work Goods

Hot Links to HRM Articles: HRM Trends Alternative Work Schedules Free Agents