Fundamentals of Strategic HRM: Fundamentals of Human Resource Management, 10/E, Decenzo/Robbins

Chapter 2
Fundamentals of
Strategic HRM
Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Importance of HRM
HRM has a dual nature:

.
supports the
organization’s strategy
represents and advocates

for the employees
Strategic HRM provides a clear connection between the

organization’s goals and the activities of employees.

The HRM Functions
HRM has four basic functions:
staffing
training and
development
motivation
maintenance
In other words, hiring people, preparing them, stimulating

them, and keeping them.

The HRM Functions
staffing
 strategic human resource planning: match prospects’ skills to

the company’s strategy needs
 recruiting: use accurate job descriptions to obtain an
appropriate pool of applicants
 selection: thin out pool of applicants to find the best choice
Staffing has fostered the most change in HR departments

during the past 30 years.

The HRM Functions
training and
development
 orientation: teach the rules, regulations, goals, and culture of the

company
 employee training: help employees acquire better skills for the job
 employee development: prepare employee for future position(s) in the
company
 organizational development: help employees adapt to the company’s
changing strategic directions
 career development: provide necessary information and assessment
in helping employees realize career goals
The goal is to have competent, adapted employees.

The HRM Functions
motivation
 theories and job design: environment and well-constructed jobs

factor heavily in employee performance
 performance appraisals: standards for each employee; must provide
feedback
 rewards and compensation: must be link between compensation and
performance
 employee benefits: should coordinate with a pay-for-performance
plan

The HRM Functions
maintenance
 safety and health: caring for employees’ well-being has a big

effect on their commitment
 communications and employee relations: keep employees
well-informed of company doings, and provide a means of
venting frustrations
Job loyalty has declined over the past decade.

External Influences on HRM
dynamic
environment
management laws and

thought HRM regulations
labor
unions
External influences affect HRM functions.

dynamic
environment
globalization decentralized work sites

workforce diversity technology
teams employee involvement
changing skill requirements ethics
continuous improvement
“The only constant in life is change.”

laws and
regulations
 legislation has an enormous effect on HRM
 laws protect employee rights to union representation, fair

wages, family medical leave, and freedom from discrimination
based on conditions unrelated to job performance
The U.S. Equal Employment Opportunity Commission

www.eeoc.gov enforces federal laws on civil rights at work.

labor unions
assist workers in dealing with company management

negotiate wages, hours, and other terms of employment
promote and foster a grievance procedure between workers
and management
When a union is present, employers can not fire workers for

unjustified reasons.

management
thought
Frederick Taylor developed principles to enhance worker productivity

Hugo Munsterberg devised improvements to worker testing, training,
evaluations, and efficiency
Mary Parker Follet advocated people-oriented organizations
Elton Mayo’s Hawthorne Studies: dynamics of informal work groups
have a bigger effect on worker performance than do wage incentives
The Hawthorne Studies gave rise to the human relations movement:

benefits, healthy work conditions, concern for employee well-being.

Structure of the HR Department
There are four areas in a typical nonunion HR

department:
compensation /
employment
benefits
training and employee

development relations
Many HR departments also offer services such as operating the

company’s credit union, making child-care arrangements,
providing security, or running in-house medical or food services.

Structure of the HR Department
promotes staffing activities, recruits new

employment employees, but does not make hiring decision
training and helps workers adapt to change in the company’s

development external and internal environments
compensation/ pays employees and administers their benefits

benefits package
ensures open communication within the company by

employee fostering top management commitment, upward and
relations accurate communication, feedback, and effective
information sources

Careers in HR
HR positions include:
 assistants who support other HR professionals
 generalists who provide service in all four HR functions
 specialists who work in one of the four HR functions
 executives who report to top management and coordinate HR

functions to organizational strategy
Interpersonal communication skills and ambition are two

factors that HR professionals say advance their careers.

Careers in HR
Organizations that spend money for quality HR

programs perform better than those that don’t.
(HCI study)
Quality programs:
reward productive work
offer a flexible, work-friendly environment
properly recruit and retain quality employees
provide effective communications
Make sure HR services match the overall

organizational strategy.

HR Trends and Opportunities
 more than half of all companies outsource all or some

parts of their HR functions
 professional employer organizations (PEO) help small- to

medium-size companies attract stronger candidates and
handle new laws in HR
 shared services allow organizations with several divisions

or locations to consolidate some HR functions into one
central location while retaining certain functions in divisional
locations

Match the Fours
Four major HR positions staffing, training, motivation, maintenance
Four HR department environment, laws, labor unions, management

areas thought
employment, training, compensation,

Four quality programs
employee relations
Four HRM functions assistants, generalists, specialists, executives
reward productive work

Four external influences offer a flexible, work-friendly environment
on HRM properly recruit and retain quality employees
provide effective communications

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Chapter 2

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

HRM has a dual nature:

represents and advocates

Strategic HRM provides a clear connection between the

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

HRM has four basic functions:

In other words, hiring people, preparing them, stimulating

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 strategic human resource planning: match prospects’ skills to

Staffing has fostered the most change in HR departments

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 orientation: teach the rules, regulations, goals, and culture of the

The goal is to have competent, adapted employees.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 theories and job design: environment and well-constructed jobs

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 safety and health: caring for employees’ well-being has a big

Job loyalty has declined over the past decade.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

management laws and

External influences affect HRM functions.

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

globalization decentralized work sites

changing skill requirements ethics

“The only constant in life is change.”

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 legislation has an enormous effect on HRM

 laws protect employee rights to union representation, fair

The U.S. Equal Employment Opportunity Commission

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

assist workers in dealing with company management

When a union is present, employers can not fire workers for

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Frederick Taylor developed principles to enhance worker productivity

The Hawthorne Studies gave rise to the human relations movement:

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

There are four areas in a typical nonunion HR

training and employee

Many HR departments also offer services such as operating the

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

promotes staffing activities, recruits new

training and helps workers adapt to change in the company’s

compensation/ pays employees and administers their benefits

ensures open communication within the company by

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 assistants who support other HR professionals

 generalists who provide service in all four HR functions

 specialists who work in one of the four HR functions

 executives who report to top management and coordinate HR

Interpersonal communication skills and ambition are two

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Organizations that spend money for quality HR

Make sure HR services match the overall

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

 more than half of all companies outsource all or some

 professional employer organizations (PEO) help small- to

 shared services allow organizations with several divisions

Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins