1、Introduction to Human Resource Management,Fall 2008,Management 412 / Intro to HRM,Page 2,Introduction to HRM,Two questions: Does it matter? Why does it matter? What is HRM? Organizations methods and procedures for managing people to enhance skills and motivation Activities to enhance the organizatio
2、ns ability to attract, select, retain and motivate people,Fall 2008,Management 412 / Intro to HRM,Page 3,The Death of HR ?,Traditional “personnel” function Recordkeeping Perceived as a dumping ground The death of HR? HRs rebirth,Sources: Caudron (2003); Schuler (1990); Schuler Wells (2003),Fall 2008
3、,Management 412 / Intro to HRM,Page 4,Outsourcing HR,Would it just make more sense to outsource HR functions? Many organizations are doing just this Recordkeeping and administrative, perhaps Basic functions,Sources: Caudron (2003); Stewart Zimmerman (April 2001),Fall 2008,Management 412 / Intro to H
4、RM,Page 5,Approaches to Revitalizing HR,Accounting for human resources Managing people for competitive advantage,Fall 2008,Management 412 / Intro to HRM,Page 6,Accounting for Human Resources,Cascios costing approach: Cost accounting for employee outcomes Calculate cost of interventions and outcomes
5、on individual basis Tracking costs and contributions to firm net profitability Human capital approach Employees are intangible assets, but can still be valued Based on assumed contribution of employees to corporate earnings,Sources: Cascio (1982); Sheley (1996) Solomon (2000); Stewart (1995); Zimmer
6、man (February 2001),Fall 2008,Management 412 / Intro to HRM,Page 7,Costing HR: Example,The costs of turnover per individual: Exit interviews Unemployment tax Recruitment advertising Staff time to interview applicants Reference checking, medical exams Training new employees Costs of reducing turnover
7、 Additional training Realistic job previews Net savings,Calculated per person, then totaled,Source: Cascio (1982),Fall 2008,Management 412 / Intro to HRM,Page 8,Human Capital: The Steps,Determine three years total pretax earnings Determine average assets over same three years Calculate firms return
8、on assets (ROA) Determine industry average ROA Calculate “excess returns” Subtract taxes Calculate net present value of excess return Result: “intangible value” of firms human capital,Sources: Stewart (October 1995); Zimmerman (February 2001),Fall 2008,Management 412 / Intro to HRM,Page 9,Human Reso
9、urces and Competitive Advantage,The basic idea: establishing and maintaining competitive advantage through people. Competitive advantage: Valuable, rare, inimitable, nonsubstitutable Achieved not through strategy, but strategy implementation,Source: Pfeffer (1994, 1998),Fall 2008,Management 412 / In
10、tro to HRM,Page 10,Traditional Sources of Competitive Advantageand Where Theyve Gone,Product and process technology Technological innovations make innovation easier and faster Development and manufacturing technology freely available Protected and regulated markets Move to global economy Deregulatio
11、n Access to financial resources Global capital market Venture capital Economies of scale Fragmented markets Less important with advances in technology So, whats leftpeople,Source: Pfeffer (1994, 1998),Fall 2008,Management 412 / Intro to HRM,Page 11,Competitive Advantage Through People,Viewing the wo
12、rk force as an asset, not an expense The result: Harder work, from increased involvement and commitment Smarter work, through enhanced skills and competence Lower overhead, by pushing responsibility downward High performance work systems,Source: Pfeffer (1994, 1998),Fall 2008,Management 412 / Intro
13、to HRM,Page 12,High-Performance Work Systems: The Seven Practices,Employment security Selective hiring Self managed teams and decentralized decision making High compensation, based on organizational performance Extensive training Reduced status distinctions Extensive information sharing (both financ
14、ial and performance),Critical to remember that all of these are part of a system,Source: Pfeffer (1994, 1998),Fall 2008,Management 412 / Intro to HRM,Page 13,The Research Evidence,Garment manufacturing Steel minimills Initial public offerings,Fall 2008,Management 412 / Intro to HRM,Page 14,Garment M
15、anufacturing,Bundle system = traditional assembly line (the employee receives a bundle of garments, does one thing, then passes the bundle on to the next worker) Modular system = small cross-trained and self-managed work teams, team pay,Source: Pfeffer (1998),Fall 2008,Management 412 / Intro to HRM,
16、Page 15,The Minimills,* 1 = very little to 6 = very much,Source: Pfeffer (1998),Fall 2008,Management 412 / Intro to HRM,Page 16,The Case of the IPOs,Source: Pfeffer (1998),Fall 2008,Management 412 / Intro to HRM,Page 17,Why Not? The Downward Performance Spiral,Individual Behaviors Decreased motivati
17、on More accidents Higher turnover Reduced effort,Source: Pfeffer (1998),Fall 2008,Management 412 / Intro to HRM,Page 18,Aligning Strategy and HR,Determine the firms strategy Determine the competencies needed to carry out the strategy Examine current management practices Determine congruence Do the c
18、urrent practices work to enhance needed competencies? Are the current practices internally consistent?,Source: Pfeffer (1998),Fall 2008,Management 412 / Intro to HRM,Page 19,External Influences on HRM,Economic conditions Legal requirements and constraints Demographics Technology,Fall 2008,Management
19、 412 / Intro to HRM,Page 20,General Economic Conditions,Global economy Lower wage levels vs. quality and productivity Ethical issues and political considerations Domestic factors Move from manufacturing economy to service / information economy Mergers duplication of functions layoffs Supply and dema
20、nd of labor influences price Supply and demand of companys product, which determines available resources,Sources: Challenger (2003); Cole, et al. (2003),Fall 2008,Management 412 / Intro to HRM,Page 21,Changes in the U.S. Economy, 1939 to Present,Source: U.S. Department of Labor, Bureau of Labor Stat
21、istics,Fall 2008,Management 412 / Intro to HRM,Page 22,Fastest Growing Occupations, 2006-2016 (by percentage growth),Source: Department of Labor, Bureau of Labor Statistics,Fall 2008,Management 412 / Intro to HRM,Page 23,Fastest Growing Occupations, 2006-2016 (by number of jobs),Source: Department o
22、f Labor, Bureau of Labor Statistics,Fall 2008,Management 412 / Intro to HRM,Page 24,Largest Job Losses, 2006-2016,Fall 2008,Management 412 / Intro to HRM,Page 25,Legal Requirements and Constraints,Government now an intermediary in the relationship between employers and employees Legal requirements a
23、nd constraints are usually a reflection of social attitudes and opinions,Fall 2008,Management 412 / Intro to HRM,Page 26,Demographics,Supply of labor (number of people, skills, etc.) New skills needed, but are they present in workforce? Basic skills availability? Different needs of different groups
24、in the population Increasing number of women in paid workforce Dual-earner families Family friendly benefits Aging population,Sources: Challenger (2003); Cole, et al. (2003),Fall 2008,Management 412 / Intro to HRM,Page 27,Participation in the Paid Labor Force by Gender: 1948 to 2007,Source: Departme
25、nt of Labor, Bureau of Labor Statistics,Fall 2008,Management 412 / Intro to HRM,Page 28,Labor Force By Age, 2006-2016,Fall 2008,Management 412 / Intro to HRM,Page 29,Technology,New jobs; old jobs vanish Need for new skills Need for continuous skills development Managing the HR function Data management Employee communications,Fall 2008,Management 412 / Intro to HRM,Page 30,HR Functions: What Well Be Looking At,Reward Systems,Planning,
