Human Human Resource

Resource Management in
Organizations
Management
CHAPTER 1

Robert L. Mathis | John H. Jackson | Sean

R. Valentine

14e

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Web site, in whole or in part.
Learning Objectives
 Define human capital
 Identify where employees can be used as a
core competency
 Show the seven categories of HR functions
 Provide an overview of four challenges
facing HR today

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Learning Objectives
 Explain how organizational ethical issues
affect HR management
 Explain the key competencies needed by HR
professionals and why certification is
important

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Human Resource (HR) Management

Design of formal systems in an

organization to manage human
talent for accomplishing
organizational goals

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Figure 1.1 - Typical Division of HR
Responsibilities: Selection Interviewing

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Web site, in whole or in part.
Types of Organizational Assets

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Human Capital
 Collective value of the capabilities,
knowledge, skills, life experiences, and
motivation of an organizational workforce
 Called intellectual capital to reflect following
contributions of employees
 Thinking
 Knowledge
 Creativity
 Decision making

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Web site, in whole or in part.
Smaller Organizations and HR
Management

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Views of HR Department
Positive Negative

• Deal with the huge • Too bureaucratic, detail-

number of government oriented, and costly and
regulations are comprised of
• Protects corporate assets naysayers
against the many legal • More concerned about
issues activities than results
• Efforts are seen as seldom
linking employee,
managerial, and business
performance

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Web site, in whole or in part.
Core Competency
 Unique capability that creates high value in
which an organization excels
 Differentiates an organization from its
competitors
 Is a key determinant of competitive
advantage
 HR department focus on using people as a
core competency

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Web site, in whole or in part.
Figure 1.2 - Where Employees Can be
a Core Competency

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Web site, in whole or in part.
Organizational Productivity

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Web site, in whole or in part.
Figure 1.3 - HR Approaches to
Improving Productivity

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Web site, in whole or in part.
Customer Service and Quality Linked
to HR
 Affects organizational effectiveness

Human Resource
Management

Customer
Service
Quality

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Web site, in whole or in part.
Organizational Culture
 Shared values and beliefs in an organization
 Evolves over a period of time
 Provides employees with rules for behavior
 Is constant and enduring
 Constitutes organizational climate
 Affects service and quality, organizational
productivity, and financial results

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HR Management Functions
 Influenced by following forces of external
environment
 Global

 Environmental

 Geographic

 Political, social, and legal

 Economic, and technological

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HR Management Functions
 HR strategy and planning
 Equal employment opportunity
 Staffing

 Talent management
 Rewards

 Risk management and worker protection

 Employee and labor relations

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Figure 1.5 - Mix of Roles for HR
Departments

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Web site, in whole or in part.
Roles of HR Management
Administrative
• Clerical administration, recordkeeping, legal paperwork and
policy implementation
• Major shifts - Use of technology and outsourcing

Operational and Employee Advocate

• Cooperate with managers and supervisors
• Identify and implement needed programs and policies in the
organization

Strategic
• Address business realities
• Focus on future business needs
• Fit between human capital and business plans and needs
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Web site, in whole or in part.
Current HR Management Challenges

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Web site, in whole or in part.
Competition, Cost Pressures, and
Restructuring

Job Shifts
• Caused to reduce the number of existing
employees attract and retain employees
with different capabilities

Skill Shortages
• Inadequate supply of workers with the skills
needed to perform the emerging new jobs

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Globalization
Integration of global operations,
management, and strategic alliances

Types of global workers

Expatriate: Citizen of one country working in a
second country and employed by an organization
headquartered in the first country
Host-country national: Citizen of one country
working in that country and employed by an
organization headquartered in a second country
Third-country national: Citizen of one country
working in a second country and employed by an
organization headquartered in a third country
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Web site, in whole or in part.
Globalization - Legal and Political
Factors
 Many nations function under turbulent and
varied legal and political systems
 Role of HR professionals
 Conducting comprehensive reviews of the political
environment and employment laws before
beginning operations in a country

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Globalization - Challenges For
Global Human Resource
Strategy

People

Complexity

Risk

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Changing Workforce
Racial/Ethnic Diversity

Gender in the Workforce

Aging Workforce

Growth in Contingent Workforce

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Advantages of Technology
 Improves the efficiency of the administrative
HR functions and reduces costs
 Helps in strategic HR planning
 Supports recruitment, selection and training
 Contributes to organizational performance
through collection and analysis of HR-related
data

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Figure 1.8 - HR and Organizational
Ethics

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Web site, in whole or in part.
Ethical Behavior and Organizational
Culture

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Ethics and Global Differences
 Differences in legal, political, and cultural
values and practices in different countries
 Global employers must comply with both
their home-country laws and the laws of
other countries

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HR’s Role in Organizational Ethics

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Figure 1.9 - Examples of HR-Related
Ethical Misconduct

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Sarbanes-Oxley (SOX)Act
 Reduces likelihood of illegal and unethical
behaviors
 HR issues - Major concerns are linked to
executive compensation and benefits
 Requires companies to:
 Establish ethics codes
 Develop employee complaint systems
 Have antiretaliation policies for employees who act
as whistle blowers to identify wrongful actions

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HR Management Competencies
and Careers

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Web site, in whole or in part.
HR Management as a Career Field

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Human Resource Professionalism and
Certification
 HR professionals need knowledge in following
areas
 Employment regulations
 Finance
 Tax law
 Statistics
 Information systems

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Figure 1.10 - HR Certifications at a
Glance

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Web site, in whole or in part.