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HRM Ch. 16
Terms in this set (46)
Transactional Activities (the most time spent)
Day-to-day transactions such as benefits administration, record keeping, and employee services.
Performance management, training, recruiting, selection, compensation, and employee relations.
Transformational Activities (the least time spent)
Knowledge management, management development, cultural change, and strategic redirection and renewal.
Strategic Management of the HRM Function
- HRM needs to be strategic partner with an input into company policies and strategies
- HRM programs must be aligned to implement company policies and strategies
HRM function as a strategic business unit defined in terms of the customer base, the customers' needs, and the technologies to satisfy customers' needs. First identify who are its customers.
Customer-Oriented Perspective of the HRM Function
Customers (line managers, strategic planners, employees) -> HRM Function -> Technology (staffing, performance management, rewards, training and development) -> Customers' Needs (committed and competent employees).
Building the HR Strategy: The Basic Process
1. Scan the environment for trends or events that might have an impact on the organization
2. Examine strategic business issues or needs
3. Identify people issues to address
4. Design HR strategy
5. Communicate to relevant parties
Their involvement can increase the quality of information from the HR strategy created. Provide input through surveys, interviews about business challenges and opportunities.
Involve them in the development of the HRM strategies.
Provide regular updates on the HRM strategies.
Approve the strategy
"Sign-off" and implement HRM strategies.
Marketing the Function
Shows how HR supports the organization and is trying to support all aspects of the company's business.
Shows if and how HR is meeting its objectives.
Audit Approach Key Indicators Include
2. Equal employment opportunity
3. Compensation & Benefits
4. Training & development and employee appraisal
5. Succession planning
6. Labor relations
7. Overall effectiveness
Assessment of HRM effectiveness that examines the impact of, or the financial costs and benefits of a program or practice.
Focuses of the Analytic Approach
1. Determining whether the introduction of a program or practice (like a training program or a new compensation system) has the intended effect
2. Estimating the financial costs and benefits resulting from an HRM practice
3. Using analytic data to increase organizational effectiveness.
Human Resource Accounting
1. Capitalization of salary
2. Net present value of expected wage payments
3. Returns on human assets and human investments
1. Turnover costs
2. Absenteeism and sick leave costs
3. Gains from selection programs
4. Impact of positive employee attitudes
5. Financial gains of training programs
Improving HRM Effectiveness
Eliminating as much of the transactional work as possible (and some traditional work) to free up time and resources to focus more on the higher-value-added transformational work.
Improving HRM Effectiveness - Transformational
1. Knowledge management
2. Strategic redirection and renewal
3. Cultural change
4. Management development
Improving HRM Effectiveness - Traditional
1. Recruitment and selection
3. Performance management
5. Employee relations
Improving HRM Effectiveness - Transactional
1. Benefits administration
2. Record keeping
3. Employee services
Outsourcing, process redesign, information technology
What are traditional HRM functions structured around
Basic HRM sub-functions, such as staffing, training, compensation, appraisal, and labor relations.
What must happen for HRM to strategically contribute to the company?
The senior HR person must be part of top management team, reporting directly to CEO.
New HRM structure divides the HRM function into three devisions
1. The centers for expertise
2. The field generalists
2. The service center
Contracting with an outside vendor to provide a product or service. It may be cheaper or more effective (more expertise). Primarily outsource transactional activities and services: Pensions and benefits administration and payroll
A complete review of critical work processes and redesign to make them more efficient and able to deliver higher quality.
The process of reengineering
1. Identify the process to be reengineered
2. Understand the process
3. Redesign the process
4. Implement the new process
Recruitment and Selection
Labor intensive, lots of face-to-face communications with potential hires, reviewing applicants' material, and ensuring compliance with all employment laws. Online recruiting 1/8 hires through online application forms, initial online screening interviews. Monitor hiring processes to minimize risk of discriminatory hiring decisions.
Human Resource Information System
A software or online solution for the data entry, data tracking, and data information needs of the HR functions.
Current applications of knowledge, procedures, and equipment that haven't been used previously.
Computations and calculations used to review and document HRM decisions and practices.
Decision Support Systems
Designed to help managers solve problems.
Computer systems incorporating the decision rules of people deemed to have expertise in a certain area.
The Future for HR Professionals
1. Successful companies recognize the need to attract and retain best talent while keeping labor costs as low as possible
2. Future HR managers need skills to play a significant role in gaining a competitive advantage
Four Basic Competencies of Future HR Professionals
1. Business competence
2. Professional-technical knowledge
3. Management of change processes
4. Integration competence
Chief HR Officer
Has overall responsibility for leading the HR function and overall management of all HRM. Ensure that HR systems and processes deliver value to the company.
Seven roles of the CHRO
1. Strategic advisor to the executive team
2. Talent architect
4. Leader of the HR function
5. Liaison to the board
6. Workforce sensor
7. Representative of the firm
What role does the CHRO spend the most time in?
Strategic advisor to the executive team
Formulation and implementation of the firm's strategy.
Counselor/confidante/coach to the executive team
Counseling or coaching team members or resolving interpersonal or political conflicts among team members.
Liason to the board of directors
Preparation for board meetings, phone calls with board members, attendance at board meetings.
Building and identifying the human capital critical to the present and future of the firm.
Leader of the HRM function
Working with HR team members regarding the development, design, and delivery of HR services.
Identifying workforce morale issues or concerns.
Representative of the company
Activities with external stakeholders, such as lobbying, speaking to outside groups, etc.