Unit 1: Intro to HRM

Personnel Management vs HRM: Differences: HRM

Long term, proactive, strategic, integrated commitment self-control unitarist, individual, high trust organic, devolved, flexible roles largely integrated into line management maximum utilization (human asset accounting)

Strategic Partner

Management of "strategic" human resources

Change Agent

Management of transformation and change

Why is Modern HRM paying off? (tech companies in particular)

Revenue's and profits per employee have expanded considerably over the years

Personnel Management vs HRM: Similarities

Time and planning perspective, pyschological contract, control systems, employee relations perspective, preferred structures/systems, roles, evaluation criteria

Google's compensation and benefits package's have 3 fold purpose:

To create a community (micro kitchens in the office), to drive innovation (encouraging interaction to foster creativity), to promote efficiency (on site oil changes, dry cleaning)

HR organization in large companies:

Training and Development Compensation Staffing Safety and Health Labor Relations

Who is an HR manager?

Within the scope of their duties, every operations manager is also an HR manager (designing jobs and teams, staffing, developing employees, improving their performance, rewarding success) HR specialists design processes and systems that/and support operating managers on their HRM tasks

Training: MANAGERS

provides technical information monitor's training needs conduct and monitor continuing on the job training continually discuss employee's growth and future potential participate in organizational change

Personnel Management vs HRM: Differences: Personnel management

short term, reactive, ad hoc, marginal compliance external controls pluralist, collective, low trust bureaucratic/mechanistic, centralized, formal defined roles, specialist/professional cost minimization

Leader (competency model)

takes risks, ethical, decisive, develops staff, creates trust

Advocate: (competency model)

values diversity, resolves conflict, communicates well with others, respects others

Division of HR responsibilities

(Divided into PLANNING and TRAINING) among HR UNIT and MANAGERS

Training: HR UNIT

;Prepares skill training materials :Coordinates training efforts :Conducts or arranges for off the job training :Coordinates career plans and employee development efforts :Provides input and expertise for organizational development

HR metrics (examples)

Absence Rate: (# of days absent per month/ Average # of employees during month time the # of workdays) x 100- to create a score Cost per hire: (Advertising+agency fees+employee referrals+travel cost of applicants and staff+relocation costs+recruiter pay and benefits)/ (# of hires) HR expense factor: (HR expense)/ (Total operating expense) Time to Fill: (Total days elapsed to fill job requisitions)/ ( Number hired) Turnover Rate: (Number of separations during month)/ (average number of employees during month) times 100 to give a score

Ulrich's 4 roles of HRM as a Business Partner

Change Agent, Employee Champion, Strategic Partner, Administrative Partner

HR specialists (in relation to Operations managers)

Develop legal, effective interviewing techniques Train managers in conducting interviews Conduct interviews and testing Send top 3 applicants to managers for final review Check references Do final interviewing and hiring for certain job classifications

Google's value proposition as employer

Focus on innovation and smart business practices with a small-company feel and everyone has direct access to top management, and thus can present new ideas.

HR Jobs/Specialists

HR manager/specialist HR business partner HR advisor Recruiter/Recruiting Manager Job/HR/HRIS Analyst Compensation Specialist/Manager Benefits Specialist/Manager Training/HRD Specialist/Manager Employee Relations Specialist EEO Coordinator Talent (Sourcing) Specialist/Manager

HRM value creation

HRM creates value by engaging in activities that produce behaviors that the company needs to achieve its strategic goals

Dave Ulrich's theory on HR

HRM in companies must function as a business partner, according to whether it's focus is process or people oriented, respectively on day-to-day operations or future strategies.

HRM: Key differences from Personnel Management

HRM is resource centered whereas personnel management is workforce centered. HRM has an emphasis on planning, monitoring, and control

Planning: Managers:

Identify supply and demand needs for each division/department Review/discuss HR planning info with HR specialists Integrate HR plan with departmental plans Monitor HR plan to identify changes needed Review employee succession plans associated with HR plan

HR Transformation

In the past HR was mostly administrative, followed by operational and employee advocacy, with strategic being of the least importance. Now, and heading towards the future, administrative is becoming the least prevalent category, operational and employee advocacy is still of the same weight, while strategy has become the forefront of HR, with about 60% focus

What is HRM?

Process of managing human resources (human capital and intellectual assets) to achieve an organization's objectives Policies and practices involved in carrying out the "people" or human resource aspects of a management position, including recruiting, training, rewarding, and appraising Designing management systems to ensure that human talent is used effectively and efficiently to accomplish organizational goals *All are different definitions of the same thing

HR Value Chain: Primary Activities

Recruiting, Selecting, Training, Rewarding, Leading, Managing performance, motivating, releasing

HR Planning (Chronological)

Recruitment (and decruitment), Selection, Identify and Select Competent Employees, Orientation, Training, Provide employees with up-to-date skills and knowledge, performance management, compensation and benefits, career development, retain competent and high performing employees

HR Value Chain: Supporting Activities:

Resource planning, Resource marketing, Resource controlling, HR information management

Value Creation Chain

Selection to BEHAVIOR PERFORMANCE (KEY), which then goes to Appraisal. Appraisal goes towards training and reward. Reward cycles back to Behavior performance. Training also cycles back to behavior performance, AND selection.

Operating Managers (in regards to HR)

advise HR of job openings, decide whether or not to do final interviewing, receive interview training from HR unit, do final interviewing and hiring where appropriate, review reference information, provide feedback to HR unit on hiring/rejection decisions

Competency Model (Structure, Puzzle) for HR professionals

centerpiece is Change Agent, with HR expert, Business, Leader, and Advocate being outside components

HR Scorecard

contains quantitative standards ("metrics") firms use to measure HR activities Measures employee behaviors resulting from these activities Measures strategically relevant organizational outcomes of those employee behaviors

HR expert (competency model)

knows HR principles, customer oriented, applies business procedures, manages resources, uses HR tools

Administrative Partner

management of Firm infrastructure

Employee Champion

management of employee contribution

Change Agent: (competency model)

manages change, consults, analyzes, uses coalition skills, influences others

Business (competency model)

mission oriented strategic planner systems innovator understands team behavior

Planning: HR UNIT

participates in strategic planning process for entire organization identifies HR strategies designs data systems for HR planning Compiles and analyzes data from managers on staffing needs Implements HR plan as approved by top management