Chapter 1
Introduction to Human Resource Management
Learning Objectives
After reading this chapter, you should be able to do the following:
• Explain what human resource management (HRM) is and how it relates to the manage- ment process.
• Identify major events in the history of HRM and explain how they have shaped the current field of HRM.
• Describe the strategic importance of HRM activities performed in the organizational setting.
• Identify your own HRM responsibilities and challenges as an organizational participant and decision maker.
• Define the major responsibilities of a human resources (HR) department.
• Describe the role of the legal environment in HR operations and activities.
• Define each of the major HRM functions and processes of strategic HRM planning, job analysis and design, recruitment, selection, training and development, compensation and benefits, and performance appraisal.
• Identify major recent trends in HRM.
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Frances Roberts/age fotostock/SuperStock
Pre-Test Chapter 1
Pre-Test 1. HR personal credibility is one of the critical competencies required in order for HR profes-
sionals to be able to carry out their duties successfully.
a) True
b) False
2. Human resource management has been defined as:
a) managing people’s skills and talents to effectively align them with organizational goals.
b) all decisions made by human resource departments that improve morale for employees.
c) decisions made by human resource departments that balance the needs of the management team and employee bargaining units.
d) decisions made by management and by employees that help reach the organization’s goals.
3. The market value per employee of publicly traded companies in the United States can indicate the effectiveness of HR practices on organizational performance.
a) True
b) False
4. Corporate governance refers to the relationship between managers and unions in terms of shared corporate rights and responsibilities.
a) True
b) False
5. Which of the following is one of the HR department’s major everyday tasks?
a) Sales and operations planning
b) Supply chain management
c) Inventory accounting
d) Planning and alignment
6. Any of the following can be a reason for employees to join unions EXCEPT:
a) an employee’s personal need to make a difference in the work environment.
b) employee dissatisfaction and discomfort with the existing work environment.
c) unions’ prospective advantages.
d) a greater chance of joining an organization’s board of directors.
7. Which of the following is one of the HRM practices?
a) Union activities
b) Supply chain management
c) Benefits administration
d) Operations management
8. Taking work that used to be done within an organization and contracting it to a third party is called:
a) globalization.
Introduction Chapter 1
b) outsourcing.
c) free trade.
d) economic shifting.
Answers 1. a) True. The correct answer can be found in Section 1.1.
2. a) managing people’s skills and talents to effectively align them with organizational goals. The correct answer can be found in Section 1.2.
3. a) True. The correct answer can be found in Section 1.3.
4. b) False. The correct answer can be found in Section 1.4.
5. d) Planning and alignment. The correct answer can be found in Section 1.5.
6. d) a greater chance of joining an organization’s board of directors. The correct answer can be found in Section 1.6.
7. c) Benefits administration. The correct answer can be found in Section 1.7.
8. b) outsourcing. The correct answer can be found in Section 1.8.
Introduction Consider the various organizations you have been involved in—as an employee, as a customer, as a volunteer, and as a member. From grocery stores and banks to sports teams and political parties, all organizations share a common theme: they have goals, and they need to accom- plish these goals through people. Of course, they also need financial resources, a viable busi- ness plan, the right technology, and a market. However, an organization’s success depends not only on the availability of these resources but also on the people who will organize, lead, control, and use the resources to achieve the organization’s goals. Critical to an organization’s success is the effective management of its people. That’s why Bill Gates of Microsoft and Herb Kelleher of Southwest Airlines, along with many other well-known leaders of highly successful organizations, have often asserted that people are their most important assets.
O P E N I N G C A S E S T U DY
OCBC Bank
Read the following article: http://www.hrmasia.com/case-studies/putting-the-person-in-personnel/144268/
Browse OCBC's website at: http://www.ocbc.com/group/Group-Home.html
OCBC Bank has been recently ranked as the strongest bank in the world for two consecutive years. One of OCBC’s notable strengths is its emphasis on proactive talent management and development. For example, OCBC has an extensive three-year training program for its new employees, ongo- ing career development plans, and a structured approach to job rotations across functions to give employees diversified exposure. Managers are evaluated and rewarded as much for their effective- ness in managing talent as for their functional roles. In this chapter and throughout this textbook, you will learn about many of these practices and how you can apply them.
(continued)
http://www.hrmasia.com/case-studies/putting-the-person-in-personnel/144268/
http://www.ocbc.com/group/Group-Home.html
What Is HRM? Chapter 1
1.1 What Is HRM? Human resource management (HRM) is the managing of human skills and talents to make sure they are used effectively and in alignment with an organization’s goals. Neither the size nor type of a company affects this definition. Whether big or small, for-profit or nonprofit, all organizations perform HR functions that relate to the recruitment, selection, training, and management of their workforces. In addition, every organization is concerned with offering competitive salaries and benefits to attract, motivate, and retain talented employees. Even nonprofit organizations that rely on volunteers are often concerned with attracting, moti- vating, and retaining the best volunteers by providing nonfinancial incentives and designing meaningful roles for them.
It is important to note that HRM activities exist throughout any organization, whether or not there is a recognized HRM department. For instance, you will find managers of various func- tions such as finance, production, and marketing doing such HR activities as hiring, training,
and scheduling employees and appraising their performance. And HRM activities extend further. HRM also involves handling the legal issues related to hiring, training, compensating, rewarding, disciplining, promoting, demoting, and even firing people.
HRM can provide a competitive advantage to organizations through the efficient and effective use of the tools, data, and processes provided by HRM specialists. Yet HRM should also focus on pursuing one strategic priority: helping the organiza- tion function as an exceptional employer that provides rewarding work to qualified and exceptional employees. HRM should not be seen as merely performing routine administrative activities. While these activities are important for organizational and legal purposes, human resources should, first and foremost, be looked on as an asset that plays a strategic role in giving the organization a competitive advantage in the marketplace.