Overview of HRM - What is HR? - term used to devise formal systems devised for the management of people within an organization- Why does it matter?-Effective HR practices can help with cost cutting-obedience to legal and ethical standards-*People are a source of competitive advantage*------- (HRM is all about using your employees’ human, social, and intellectual capital to gain a competitive advantage and to do so in accordance with legislation and basic human decency)- HRM Functions1) Analysis and design of work--------job analysis2) Recruitment and Selection----------recruiting, interviewing, assessments, coordinating temporary employees3) Training and Development----------orientation, socialization, developmentprograms4) Performance Management---------performance appraisals, feedback, and coaching5) Compensation and benefits----------wage and salary administration, insurance, vacation, retirement, health and wellness 6) Employee Relations/Labor Relations-------Attitude surveys, employee handbook, relocation and outplacement services7) Employee data and information system-----record keeping, workforce analytics8) Legal compliance ------- Policies to ensure lawful behavior: safety inspections, accessibility accommodations, privacy policies, ethics9) Support for Business Strategy ------- HR planning and forecasting, talent management, organizational development. - Trends in HRM-Outsourcing HRM responsibilities (having a third party provide HRM responsibilities)-Benefits to outsourcing:1) saves money2) improves the quality of HR by relieving middle managers of those duties and hiring a company to focus on the issues full-time3) Better talent recruitment and management 4) Protection from lawsuits- With outsourcing and also introduction of software and analytic tools, HR professionals are less busy with administrative stuff and more involved in designing HR strategy that are aligned with (and serve) firm strategy- Allows actions like salary change, terminations, etc. To be taken by line managers - HR professionals are more focused on: employee development, needs assessment, HR planning.- Current Realities of HRM1) Administrative activities have become easy with the use of software2) Now there is a shift towards attracting the right people to the company3) And then hiring those who have the most fit with our needs and culture4) And then developing their skills and maintaining them- Goals of HRMGoals:1) Facilitating organizational competitiveness2) Complying with legal and social obligations3) Enhancing productivity and quality4) Promoting individual growth and developmentHRM STRATEGY- What is Strategic Management?- significant impact on key performance indicators (like EPS or earnings per share, sales for a company, or living, dying, losing a part, etc. for a person)- typically has significant risk, ambiguity, and uncertainty-needs support of key stakeholder- typically (but not always) long-term - typically driven by competition -Strategic management is “bridging between NOW and FUTURE”-Where are we now?-Where do we want to go from here?-How are we going to get there?-Strategic management- is “a process for analyzing a company’s competitivesituation, developing a plan of action and allocation of resources… that will increase the likelihood of achieving those goals”Dell example: - goal set in 1994: 50% of sale through internet- strategic actions: developing a website, advertising their website, preparing employees and managers- Results: decrease in the cost of interactions with customers. Now, sales associates had much more free time to interact with big customers- Dell online sales in 1996: 1 mill USD- Dell online sales in 1999: 35 mill USD- Summary:A company’s strategy is management’s game plan for growing the business, staking out a market position, attracting and pleasing customers, competingsuccessfully, conducting operations, and achieving targeted objectives- Different levels of HRM integration in Strategic Management - In order to effectively compete in the market, you must link your strategic plan with HRM. There are a few ways to do this:1) One-way (top down) linkages- upper management develops the strategic plan and informs HR departments of their function with the plan2) Two- way linkages: HRM is considered during the strategy formulation process; this is sequential3) Integrative Linkages- dynamic participation in the strategy formulation process; there may be a chief human resources officer.HR LEGAL- Every HR action you take as a manager, from interviewing applicants to training, appraising, and rewarding them, has equal employment opportunity implications- Equal Employment Opportunity (EEO) – “the government’s attempt to ensure that all individuals have an equal opportunity for employment regardless of race, color, religion, sex, age, disability, or national origin”- Laws and statues seek to ensure equal opportunity employment- Prospective employees----protection from discrimination in selection, initial job placement, and initial compensation- Current Employees---- Protection from discrimination in performance, appraisal, subsequent job placements, training and development opportunities, career and promotion opportunities, and all other dimensions of work in the organization.The Equal Pay Act of 1963§ Men and women in the same organization, who are doing equal work, must be paid equally .§ Equal does not necessarily mean identical. “Substantially” equal—it is job content, not job titles, that determines job equality. § Under what conditions can men and women be paid differently for doing the same job?1.Seniority2.Merit -- This is behavioral science. It can be difficult to quantify variables such asskills.3.Quantity or quality of production●Given an organizational practice is found in violation of this act, no pay may be reduced. Instead, pay differentials are corrected by paying the lower-paid employee more.Civil Rights Act (CRA) of 1964, Title VII  Prohibits discrimination on employment actions based on an individual’s race, color, sex, religion, or national origin Title VII applies to employers with 15 or more employees who are working 20 or more weeks a year Title VII created the Equal Employment Opportunity Commission (EEOC)The goal of the EEOC is to ensure that organizations are hiring and dismissing individuals based solely on the individual’s ability to perform the job.