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Chapter 9
Human Resource Management
The Strategic Role
of Human Resource Management

Human Resource management has shed its old personnel image
and gained recognition as a vital player in corporate strategy

HRM departments not only support the organization’s strategic
objective but actively pursue an ongoing, integrated plan for
furthering the organization’s performance
●Higher
employee productivity
●Stronger financial results
●Achieve organization’s strategic goals
●Key players on management team
Manager’s Challenge: UPS Buffalo, New York
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2
Human Resource Management
All managers
are resource
managers
Employees are
viewed as
assets
Matching process,
integrating the
organization’s
goals with
employees’ needs
How a company manages its workforce may be single
more important factor in sustained competitive success
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3
Current Strategic Issues
Determine a company’s need for skills and employees

Becoming more competitive globally

Improving quality, productivity, &
customer service

Managing mergers & acquisitions

Applying new information technology for
e-business
Experiential Exercise: Do You Want to be an HR Manager?
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4
Human Resource Management Goals
Company Strategy
Attract an Effective Workforce
HRM Environment
Legislation
Trends in society
International events
Changing
technology
HRM planning
Job analysis
Forecasting
Recruiting
Selecting
Maintain an Effective Workforce
Wage and salary
Benefits
Labor relations
Terminations
Develop an Effective Workforce
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5
Training
Development
Appraisal
Human Capital - IHRM

Human Capital = economic value of the
knowledge, experience, skills, and
capabilities of employees
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6
Information Technology

Human resource information technology =
an integrated computer system designed to
provide data and information used in HR
planning and decision making

Traditional HR to e-HR significantly affected
every area of human resource management

Some organizations are close to a paperless HRM
system – saves time, money, frees staff
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Federal Legislation

Discrimination = hiring or promoting of
applicants based on criteria that are not job
relevant

Affirmative action = policy requiring
employers to take positive steps to
guarantee equal employment opportunities
for people within protected groups
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8
Major Federal Laws - HRM
Exhibit 12.3

Equal Opportunity/Discrimination Laws

Compensation/Benefits Laws

Health/Safety Laws
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9
Attracting an Effective Workforce
HR Planning
Retirements
Growth
Resignations
Choose Recruiting
Sources
Select the
Candidate
Want ads
Headhunters
Internet
Application
Interview
Tests
Welcome New
Employee
Employee Contributions
Match with
Company Inducements
Employee Needs
Pay and benefits
Meaningful work
Advancement
Training
Challenge
Stage of career
Personal values
Promotion aspirations
Outside interests
Family concerns
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10
Ability
Education
Creativity
Commitment
Expertise
Recruiting

●
Recruiting = activities or practices that define the
desired characteristics of applicants for specific jobs
●
Internal – promote-from-within policies used by
many to fill high-level positions
●
External = recruiting newcomers from outside has
advantage of multiple sources
E-cruiting = use of Internet - fastest-growing
approach to recruiting
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11
Basic Building Blocks
of HR Management
Job Analysis
Job Description
Job Specification
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12
Interviewing An Applicant
Know what you want
Prepare a road map
Use open-ended questions
Do not ask irrelevant questions
Do not rush interview
Do not rely on your memory
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13
Interview as Predictor of Success

Panel interviews – candidate meets with
several interviewers who take turns asking
questions – increases interview validity
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14
Inappropriate or Illegal Questions
Employment Applications and Interviews






Race-related questions
Age
Religion
Gender
National origin
Marital/family status
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15
Developing an Effective Workforce
Following selection, next goal of HRM is to develop employees

Training and development = planned effort to
facilitate employees’ learning of job-related
skills and behaviors $100 billion/year

On-the-job training = an experienced employee
“adopts” a new employee to teach him or her how
to perform job duties
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Assessing Performance Accurately

360° Feedback Process

Performance Evaluation Errors
– Stereotyping
– Halo effect
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