04-Oct-12 1 Human Resource Management: Overview Management Essentials • Management is the process of efficiently and effectively achieving the objectives of the organization with and through people. What is an Organization? Purpose Structure People Management Essentials • Primary Functions of Management – Planning – establishing goals. – Organizing – determining what activities need to be done. – Leading – assuring the right people are on the job and motivated. – Controlling – monitoring activities to be sure goals are met. Human Resource Management • process of acquiring, utilizing, improving, and preserving an organization's orkforce. • set of organizational activities directed at attracting, developing, and maintaining an effective workforce. All accomplished to achieve organizational objectives Human Resources Process Recruitment Orientation/ Training Human Resource Planning Performance Compensation External Influences External Influences Disengagement Selection Organizational Boundaries Organizational Boundaries 04-Oct-12 2 HRM Process 1. Human Resource Planning: – Forecasting Demand Supply and Job Analysis. 2. Staffing the Organization: – Recruitment, Selecting, and Orientation. 3. Developing the Workforce: – Training and Performance Appraisal. . Compensation and Benefit: – Wages and Salaries, Incentive and Benefit Programs. Basic Functions of HRM • Staffing • Human Resource Development • Compensation • Safety and Health • Employee and Labor Relations Importance of HRM to an Organization • concerned with the “people” dimension. – it is both staff (support) function (assists line employees) and function of every manager’s job. Importance of HRM to an Organization • The Strategic Nature – – support the business strategy; • assist in maintaining competitive advantage. – determines value added to the organization; Importance of HRM to an Organization Changing Environment, Changing HR managers’ roles (HRM today requires a new level of sophistication): – Jobs have become more technical and skilled. – Employment legislation has placed new requirements on employers. – Traditional job boundaries blurred with advent of project teams, telecommuting, etc. – Global competition has increased demands for productivity. Human Resource: Certification Recruiter EEO coordinator Training specialist Labor relations specialist Job analyst Compensation manager HR Certification 04-Oct-12 3 ENVIRONMENTAL INFLUENCES ON HRM Recruitment Orientation/ Training Human Resource Planning Performance Compensation
Organizational Boundaries External Influences Disengagement Selection External Influences Organizational Boundaries legal considerations political parties unions shareholders society competition customers economy technology unanticipated events labor market HUMAN RESOURCE MANAGEMENT Internal Environment External Environment Marketing Operations Finance Others… legal considerations labor market society political parties unions shareholders competition customers technology economy unanticipated events Organizational Environments: Review ENVIRONMENTAL INFLUENCES ON HRM Environmental Influences on HRM • Legal considerations • Labor market Society • Political parties • Unions • Shareholders • Competition • Customers • Economy • Technology • Management Thought • Unanticipated events Environmental Influences on HRM • Legal Considerations – Governmental Legislation; national/local. – Laws directing employer and employee actions. • Labor Market – Potential employees located within certain geographic area; always changing. – Workforce diversity. Environmental Influences on HRM • Society (ethics/social responsibility) – Act ethically and responsibly, to remain acceptable to the general public. • Unions – Group of employees. – Bargain (joint decisions) with management n members’ behalf. – Third party dealing with the company. 04-Oct-12 4 Environmental Influences on HRM • Shareholders – Owners. – May challenge management’s programs. • Competition – In product/service and labor markets. – Maintain supply of competent employees. Environmental Influences on HRM • Customers – Employment practices not to antagonize… – Capable workforce for quality output. • Economy – Booming: difficult getting qualified workers. – Downturn: more applicants available. – Different economies in same country. Environmental Influences on HRM • HR Technology – Innovations has led to Human Resource Information Systems (HRIS). HRIS: (Assignment – WHAT IS HRIS? ) • used to obtain and track information for HR decisions: recruitment, benefits administration, safeguarding confidential information. – Social Networking • Virtual community: people use internet to communicate: blogs, LinkedIn, Facebook, etc. Environmental Influences on HRM • Management Thought (Management practices) – Scientific management – Behavioral approach – System approach (Reading Assignment) – Contingency approach Environmental Influences on HRM • Unanticipated Events – Unforeseen occurrences. – Require tremendous amount of adjustment. CHANGING STRATEGIC ROLE OF HR 04-Oct-12 5
Changing Strategic Role of HR • HR’s Changing Role: Questions • Can some HR tasks be performed more efficiently by line managers or outside vendors? • Can some HR tasks be centralized or eliminated altogether? • Can technology perform some of the tasks that were previously done by HR personnel? Changing Strategic Role of HR • Who is Responsible for HRM Tasks? – Human resource managers – HR outsourcing – Professional employer organization (employee leasing) – Line managers Changing Strategic Role of HR • Human Resource Manager – Historically , responsible for HR functions. – Staff capacity; support other managers on HR matters. Today, getting smaller. • HR Outsourcing – Transfer of responsibility to external provider. Changing Strategic Role of HR • Professional Employer Organization (Employee Leasing) – Company that leases employees to other businesses: becoming common – Advantages: • Economies of scale. • Greater job mobility for workers. • Job security through leasing company. – Disadvantage: employee loyalty. Changing Strategic Role of HR • Line Managers – Involved, by nature of their jobs. – Now performs HR specialists’ job due to automation processes: • record keeping • recruitment/selection • performance appraisal • etc Questions…
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