Human Resource Management 10e.- Gary Dessler

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Nov 8, 2013 (3 years and 5 months ago)

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© 2009 Pearson Education South Asia Pte Ltd.

All rights reserved.

Gary Dessler and Chwee Huat Tan

Chapter
1

Human Resource
Management:

An Asian Perspective

(Second Edition)

Introduction to
Human Resource
Management

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After studying this chapter,

you should be able to:

1.
Explain what HRM is and how it relates to
the management process.

2.
Discuss how managers can use HR
concepts.

3.
Compare the HR responsibilities of line
and staff managers.

4.
Explain the changing role of HR
managers.

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3

After studying this chapter,

you should be able to:

5.
Discuss the changing environment of HRM.

6.
Discuss HRM as a profession.

7.
Explain how HR practices are influenced by
cultural and religious values.

8.
Know the plan of this book.

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The Manager’s Human Resource

Management Jobs


Management process


The five basic functions of planning,
organizing, staffing, leading, and
controlling.

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The Manager’s Human Resource

Management Jobs


Human resource management (HRM)


The policies and practices involved in
carrying out the “people” or human resource
aspects of a management position, including
recruiting, training, appraising and
rewarding.

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HR Aspects Of A Manager’s Job


Conducting job analyses (determining the
nature of each employee’s job)


Planning manpower needs and recruiting job
candidates


Selecting job candidates


Orienting and training new employees


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HR Aspects Of A Manager’s Job


Managing wages and salaries
(compensating employees)


Providing incentives and benefits


Appraising performance


Communicating (interviewing, counseling,
disciplining)


Building employee commitment

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HR Aspects Of A Manager’s Job


Understanding employment laws


Knowing employee health and safety issues


Handle grievances and employment relations

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Personnel Mistakes


Hire the wrong person for the job


Experience high turnover


Your people not doing their best


Waste time with useless interviews


Have your company sued for discriminatory
actions

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Personnel Mistakes


Have your company fined for unsafe
practices


Some employees think their salaries are
unfair and inequitable relative to others in the
organization


Allow a lack of training to undermine your
department’s effectiveness


Commit any unfair employment practices

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Basic HR Concepts


Getting results


The bottom line of managing


HR creates value by engaging in
activities that produce the employee
behaviors the company needs to
achieve its strategic goals.

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Line and Staff Aspects of HRM


Authority


The right to make decisions, direct others’
work, and give orders.


Staff authority (Advisory)


The authority gives right to the HR manager
to advise other managers or employees.


Line authority (Superior
-
Subordinate)


The authority of managers to direct people in
his or her own department.

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Line and Staff Aspects of HRM


Line manager (Line Authority)


A manager who is authorized to direct the
work of subordinates and is responsible for
accomplishing the organization’s tasks.


Staff manager (Staff Authority)


A manager who assists and advises line
managers.

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Line Managers’ HRM
Responsibilities

1.
Place the right person on the right job

2.
Orientate new employees

3.
Train employees for jobs new to them

4.
Improve the job performance of each person

5.
Gain creative cooperation and developing
smooth working relationships

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Line Managers’ HRM
Responsibilities

6.
Interpret the company’s policies and
procedures

7.
Control costs

8.
Develop the abilities of each person

9.
Maintain morale

10.
Protect employees’ health and physical
condition

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Carries out 3 distinct functions:
-

1.
Line function

2.
Coordination function

3.
Staff function

Functions of the HR Manager

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A line function


The HR manager directs the activities of
the people in his or her own department
and in related service areas (like the plant
cafeteria).

Functions of the HR Manager

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A coordinative function


HR managers also coordinate personnel
activities, a duty often referred to as
functional control
.

Functions of the HR Manager

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Staff (assist and advise) functions


Assisting and advising line managers is the
heart of the HR manager’s job.

Functions of the HR Manager

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Size of HR Department


Depends on company size


Small Company:


Only a few personnel


Large Company:


Full range of HR specialist for each different
function

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Size of HR Department


Example of HR department in a small
company:

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Size of HR Department


Example of HR department in a large company:

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Duties of HR Specialists


Training Specialist


Plan, organize and direct training


Advise managers on training


Job Analyst


Collect information about jobs


Prepare job description

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Duties of HR Specialists


Recruiter


Collect information about jobs


Interview and recommend suitable
candidates


EEO (Equal Employment Opportunity)
Coordinator


Investigate EEO grievances


Examine HR practices for potential
violations

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Duties of HR Specialists


Compensation Manager


Develop compensation plans


Handle employee benefits program


Employment relations specialist


Advise managers on ER issues


Negotiate with unions

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Cooperative Line and Staff HR
Management


Differentiating HR duties to be carried out
by line managers and HR managers:


No standard rule for all organizations

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Cooperative Line and Staff HR
Management


Some common practices:

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The Changing Environment Of

HR Management


HR managers must be able to respond to
changes that are happening every day


Major changes or trends as follows:


Globalization


Technological advances


Changes in nature of work


Changes in workforce demographics

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The Changing Environment Of

HR Management


Globalization


Tendency of companies to extend sales,
ownership, or production to other
countries


More competition


more pressure to be
“world class”


Lower costs and to
increase productivity of employees


E.g. Toyota produces cars in China,
Thailand and many other countries.

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The Changing Environment Of

HR Management


Technological Advances


Use of internet and information
communication technology (ICT) to
increase competitiveness in business


Enabled businesses to outsource their
non
-
core activities to other countries
where costs are lower


Causes changes in nature of work


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The Changing Environment Of

HR Management


Changes in nature of work


Caused by technological advances as well


From manufacturing jobs to service jobs


Usage of “non
-
traditional” workers


staff
holding multiple jobs, or part
-
time staff

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The Changing Environment Of

HR Management


Changes in workforce demographics


Diversified workforce


staff employed
are of different race, religion, nationality,
gender, age and culture


Challenge for HR managers


E.g. Workers from Bangladesh, China,
India, Indonesia, Pakistan and Thailand in
Singapore’s construction sector

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Changes in environment


HR managers to
take on new responsibilities


HR functions more strategic

The Changing Role Of

HR Management

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Strategic Planning


The company’s long
-
term plan for how it
will balance its internal strengths and
weaknesses with its external opportunities
and threats to maintain a competitive
advantage.


3 questions in strategic planning


Current business position


Future business position expected to be


How to get to expected future business
position

The Changing Role Of

HR Management

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Strategic HRM


Formulating HR policies and introducing
practices that produce staff competencies
and behaviors that the company needs to
achieve its strategic goals.

The Changing Role Of

HR Management

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Strategic HRM


HR managers today are more involved in
partnering with their top managers in
both designing and implementing their
companies’ strategies


Top management wants to see, precisely,
how the HR manager’s plans will make
the company more valuable.

The Changing Role Of

HR Management

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Outsourcing HR Activities


Computer
-
based systems easy to
outsource HR activities by providing
access to service providers to the
company’s HR information database


E.g. Payroll, Benefits, Wellness Programs
and Employee Training

The Changing Role Of

HR Management

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High Performance Work Systems (HPWS)


Integrated set of HRM policies and
practices that together produce superior
staff performance


Need to focus on performance


No fixed rule of items that comprises
HPWS but should include:


Employment security

The Changing Role Of

HR Management

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High Performance Work Systems (HPWS)


No fixed rule of items that comprises
HPWS but should include (cont):


Selective hiring


Extensive training


Self managed teams and decentralized decision
making

The Changing Role Of

HR Management

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High Performance Work Systems (HPWS)


No fixed rule of items that comprises
HPWS but should include (cont):


Reduced status distinctions among managers and
workers


Information sharing among managers


Pay
-
for
-
performance rewards


Emphasis on high quality work


The Changing Role Of

HR Management

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High Performance Work Systems (HPWS)


Benefits of HPWS


Generate more job applicants


Screen candidates more effectively


Provide more and better training


Link pay more explicitly to performance


Provide a safer work environment


The Changing Role Of

HR Management

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High Performance Work Systems (HPWS)


Benefits of HPWS (cont)


Produce more qualified applicants per position


More employees are hired based on validated
selection tests


Provide more hours of training for new employees


Higher percentages of employees receiving regular
performance appraisals.


The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


Employees expect HR teams to provide
measurable proof of the effectiveness of
their programs


Require quantitative measures


Metrics and HR Scorecard are used

The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


Metrics


A set of quantitative performance measures that
HR managers use to assess their operations


E.g. of HR Metrics


Absence Rate


[(Number of days absent in month)
÷

(Average
number of employees during mo.)
×

(number of
workdays)]
×

100



The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


Metrics


E.g. of HR Metrics (cont)


Cost per Hire


(Advertising + Agency Fees + Employee Referrals
+ Travel cost of applicants and staff + Relocation
costs + Recruiter pay and benefits)
÷

Number of
Hires



The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


Metrics


E.g. of HR Metrics (cont)


Health Care Costs per Employee


Total cost of health care
÷

Total Employees



HR Expense Factor


HR expense
÷

Total operating expense



Sources:
Robert Grossman, “Measuring Up,”
HR Magazine
, January 2000, pp. 29

35; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, “Improving the Return on Human Capital: New Metrics,”
Compensation and Benefits Review
, January/February 2000, pp. 13

20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics
-
Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics,”
Human Resource Management
39, no. 1 (Spring 2000), pp. 93

105; [
HR Planning
, Commerce
Clearing House Incorporated, July 17, 1996;]
SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey
; www.shrm.org.

The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


HR Scorecard


Measures the HR function’s effectiveness and
efficiency in producing employee behaviors
needed to achieve the company’s strategic goals


Concise and simple measurement system


The Changing Role Of

HR Management

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Measuring HRM Team’s Performance


HR Scorecard


Use to measure:


HR activities (testing, training, compensation and
safety)


Employee behaviors resulting from such
activities


Organizational outcomes of those employee
behaviors (higher performance, and company
profit)



The Changing Role Of

HR Management

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The New HR Manager


New Proficiencies


HR proficiency


Business proficiency


Leadership proficiency


Learning proficiency


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The New HR Manager

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HRM and Professionalism


HR Certification


HR is becoming more professionalized.


Professional institutes

-
Certification

-
Upgrading skills and expertise

-
Exchange views

-
Contribute to community


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HRM and Professionalism


Is HR a profession?


To look at criteria for a Profession


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HRM and Professionalism


Professional Institutes


Training and education


Up
-
to
-
date knowledge and information


Maintain links with similar organizations
in other countries


Active in regional associations


International conferences


Authority to specify qualification of
members

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HR and Cultural Values


Confucianism


Harmonious relationship


Mutual obligations


Hierarchy


Social order


Sun Tzu’s Art of War


Explains theories of organization,
planning, leadership and strategies


Importance of training, discipline and
loyalty

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HR and Cultural Values


Han Fei Tzu: Reward and Punishment


A leader should:


Find talented subordinates


Set up a system of rules


Explain these rules to subordinates


Appropriate time and place to deal with problems


Strictly administer reward and punishment

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HR and Cultural Values


Han Fei Tzu: Reward and Punishment


Role of a leader (summarized)

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HR and Cultural Values


Other approaches


Thailand: Buddhist approach


Malaysian cultural values


National Values:


Indonesia: Pancasila


Malaysia: Rukunegara


Singapore: National Shared Values

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HR and Cultural Values

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The Plan of This Book:

Basic Themes


HR management is
the responsibility of every
manager

not just those in the HR department.


HR managers must be ready to defend their plans
and contributions in measurable terms.


An HR department’s performance is measured
relative to achieving the company’s strategic aims.


HR managers increasingly rely on IT to help support
the company’s strategic aims.


Virtually every HR
-
related decision managers make
has legal implications.


Globalization and diversity are important HR issues
today.

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Strategy and the Basic HR
Process