COBSHUR CHAP 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
• Time spent on administrative tasks

  Decreasing
• Roles as a strategic business partner, change agent, and employee advocate

  Increasing
• Role of Technology


  Reducing HRM role in administrative tasks, maintaining records, and providing self-service to employees
• Shift to self-service gives employees access to many HR functions
• HR managers have more time to work with managers on employee issues
• Most commonly outsourced HR activities

  • Benefits administration
  • Relocation
  • Payroll
• Most common reasons for outsourcing HR

  • Cost savings
  • Increased ability to recruit and manage talent
  • Improved HR service quality
  • Protection of the company from potential lawsuits by standardizing processes such as selection and recruitment
• 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
• Questions to Ask: Is HRM Playing a Strategic Role in the Business?


  • What is HRM doing to provide value-added services to internal clients?
  • Do the actions of HRM support and align with business priorities?
  • How are you measuring the effectiveness of HRM?
  • How can we reinvest in employees?
  • What HRM strategy will we use to get business from point A to B?
  • From an HRM perspective, what should we be doing to improve our marketplace position?
  • What's the best change we can make to prepare for the future?
  • Do we react to business problems or anticipate them in advance?
• Evidence-based HR


  Requires use of HR or workforce analytics, big data, information merged from HR databases, corporate financial statements, employee surveys, and other data sources, 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 developed by SHRM for 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
• Highlights of Employment Projections to 2026

  • The labor force is projected to increase by 11.5 million, reaching approximately 168 million
  • Today, 93% of U.S. jobs are nonagriculture wage and salary jobs: 12% are in goods-producing industries (mining, construction, manufacturing); 81% are in service-providing industries; and 1.3% in agriculture, forestry, fishing, and hunting. The distribution of jobs across industries is projected to be similar in 2026
  • 46.5 million job openings are expected, with more than three-fourths resulting from the need to replace workers who retire or leave an occupation
  • The median age of the workforce will increase to 42.3 years, the highest ever recorded
  • Health care support and practitioner occupations are projected to be the fastest-growing occupational groups and contribute the most new jobs (one out of four new jobs)
• Population is most important factor in determining size and composition of labor force
• Growth is slow as labor force is aging
• Diversity is increasing, especially Hispanics
• Importance of service sector, especially health care
• Education is important to meet job requirements
• Shortage of qualified workers, especially with STEM skills
• 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