COBSHUR Chapter 1

• Human Resource Management (HRM)

  Policies, practices, and systems that influence employees' behavior, attitudes, and performance
• Human Resource Management Practices

  • Analysis and design of work
  • Recruitment and selection
  • Training and development
  • Performance management
  • Compensation and benefits
  • Employee relations/labor relations
  • Personnel policies
  • Employee data and information systems
  • Legal compliance
  • Support for business strategy
• High-Impact HR Functions


  • More integrated with the business
  • Skilled at attracting and retaining employees
  • Can adapt quickly
  • Identify and promote talent from within
  • Identify what motivates employees
  • Continuously building talent and skills
• HR Department Responsibilities


  • Outplacement
  • Labor law compliance
  • Record keeping
  • Testing
  • Unemployment compensation
  • Some aspects of benefits administration
• Shared service model


  Central place for administrative and transactional tasks, includes centers of expertise or excellence, service centers, and business partners
• Role of Technology


  Reducing HRM role in administrative tasks, maintaining records, and providing self-service to employees
• Outsourcing


  Most commonly outsourced activities: benefits administration, relocation, payroll; Most common reasons: cost savings, increased ability to recruit and manage talent, improved HR service quality, protection from potential lawsuits
• Strategic Role of HRM

  • Lead efforts focused on talent management and performance management
  • Use and analyze data to make a business case for ideas and problem solutions
  • Use people management skills across the business
  • Structure and responsibilities changing to ensure strategic role
• HR can engage in evidence-based HR, requires use of HR or workforce analytics, big data, results in evidence-based HR decisions, show that HR practices influence the organization's bottom line, including profits and costs
• Overall employment in HR-related positions expected to grow by 9 percent between 2014 and 2024
• Competencies and Behaviors of HRM Professionals

  • HR Technical Expertise and Practice
  • Business Acumen
  • Critical Evaluation
  • Ethical Practice
  • Global and Cultural Effectiveness
  • Communications
  • Organizational Leadership and Navigation
  • Consultation
  • Relationship Management
• Sustainability


  Company's ability to meet its needs without sacrificing the ability of future generations to meet their needs
• ESG practices must be part of company's business model to gain competitive advantage and reduce legal risks
• Skill demands for jobs have changed, remaining competitive in global economy requires demanding work hours and changes in traditional employment patterns, companies give more attention to HR practices that influence their ability to attract and retain employees
• Currently economy is thriving and unemployment low
• Types of Assets


  • Financial assets (cash and securities)
  • Physical assets (property, plant, equipment)
  • Intangible assets (human capital, customer capital, social capital, intellectual capital)
• Examples of Intangible Assets

  • Human capital: tacit knowledge, education, work-related know-how, work-related competence
  • Social capital: corporate culture, management philosophy, management practices, informal networking systems, coaching/mentoring relationships
  • Customer capital: customer relationships, brands, customer loyalty, distribution channels
  • Intellectual capital: patents, copyrights, trade secrets, intellectual property
• Types of assets


  • Financial assets (cash and securities)
  • Physical assets (property, plant, equipment)
  • Intangible assets (human capital, customer capital, social capital, intellectual capital)
• Examples of intangible assets

  • Human capital (tacit knowledge, education, work-related know-how, work-related competence)
  • Social capital (corporate culture, management philosophy, management practices, informal networking systems, coaching/mentoring relationships)
  • Customer capital (customer relationships, brands, customer loyalty, distribution channels)
  • Intellectual capital (patents, copyrights, trade secrets, intellectual property)
• Knowledge workers


  Contribute specialized knowledge, share knowledge and collaborate on solutions, in demand because companies need their skills and jobs requiring them are growing
• Empowerment and continuous learning

  • Give employees responsibility and authority, hold them accountable, employees share in the rewards and losses, learning organization
• Adapting to change


  • Inevitable, employees expected to take more responsibility for own careers, challenge is how to build a committed, productive workforce, employees manage change through agility, changes in the employment relationship
• Maximizing employee engagement


  • Passionate about their work, committed to the company and its mission, work hard to contribute, measured with attitude or opinion surveys, focus on employee experience, employee value proposition (EVP)
• Common themes of employee engagement

  • Pride in employer
  • Satisfaction with employer
  • Satisfaction with the job
  • Opportunity to perform challenging work
  • Recognition and positive feedback
  • Personal support from manager
  • Effort above and beyond the minimum
  • Understand link between one's job and company's mission
  • Prospects for future growth with the company
  • Intention to stay with the company
• Talent management


  • Acquiring and assessing employees
  • Learning and development
  • Performance management
  • Compensation
• Nontraditional employment and the gig economy

  • Between 20 and 35% of total U.S. workforce, workers set own schedule and do not work for a company, offers flexibility
• Providing flexibility to help employees meet work and life demands

  • 46% of employees work more than 45 hours per week, only half of employees in U.S. believe they have the flexibility they need for work/life balance, solutions include flexible work schedules, work-at-home arrangements, protecting employees' free time, and more productively using employees' work time, co-working sites or shared offices
• Stakeholders that HR needs to meet the needs of

  • Shareholders
  • Customers
  • Employees
  • Community
• Balanced scorecard


  Demonstrates performance to stakeholders across four perspectives: customer, internal, innovation and learning, financial
• Demonstrating social responsibility


  • Helps boost company's image with customers, helps gain access to new markets, helps attract and retain talented employees
• Total quality management (TQM) five core values

  • Methods and processes are designed to meet internal and external customers' needs
  • Every employee receives training in quality
  • Promote cooperation with vendors, suppliers and customers
  • Managers measure progress with feedback based on data
  • Quality is designed into a product or service so that errors are prevented rather than being detected and corrected
• Malcolm Baldrige National Quality Award


  Competition that promotes quality
• ISO (International Organization for Standardization) 9000 Standards

  International standards of quality
• Six Sigma


  Process of measuring, analyzing, improving, and controlling processes
• Lean Thinking and Process Improvement


  Do more with less effort, equipment space, and time, improve quality of employees' work experiences
• Recognizing and capitalizing on the demographics and diversity of the workforce

  • Internal labor force, external labor market, average age of workforce will increase, increased workforce diversity, immigration will affect size and diversity
• Aging of the workforce


  • Labor force participation of those 55 years and older expected to grow, HRM issues such as career plateauing, retirement planning, and retraining older workers
• Generations in the workforce

  • Traditionalists/Silent Generation (>74 years old)
  • Baby Boomers (55-74 years old)
  • Generation X (39-54 years old)
  • Millennials/Generation Y (24-38 years old)
  • Generation Z (<23 years old)
• A workforce of mixed gender, race, and nationality


  • Diversity of workforce increasing, immigration is contributing, percentage of highly skilled immigrants now exceeds percentage of low-skilled immigrants, legal versus illegal immigration, managing a diverse workforce
• Skills needed to manage a diverse workforce

  • Communicating effectively with employees from various cultural backgrounds
  • Coaching and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races
  • Providing performance feedback based on objective outcomes rather than values and stereotypes
  • Creating a work environment that makes it comfortable for employees of all backgrounds to be creative and innovative
  • Recognizing and responding to generational issues