Exam 3 Management Study Guide Chapter 9 Human Resource Management Getting the Right People for Managerial Success 9 1 Strategic Human Resource Management Major Question How do effective managers view the role of people in their organization s success Human Resources Management Managing an Organization s Most Important Resource o Human resource HR management consists of the activities managers perform to plan for attract develop and retain an effective workforce All organizations must deal with staffing o The old Personnel Department is now called the Human Resources Department It is intended to suggest the importance of staffing to a company s success o Human Resources as Part of Strategic Planning At many companies human resources has become part of the strategic planning process Thus HR departments deal not only with employee paperwork and legal accountability a very important area but also with helping to support the organization s overall strategy o The purpose of the strategic human resource process is to get the optimal work performance that will help the company s mission and goals o Human Capital Human capital is the economic or productive potential of employee knowledge and actions A present or future employee with the right combination of knowledge skills and motivation to excel represents human capital with the potential to give the organization a competitive advantage Why is human capital important Because we are living in a time when a new economic paradigm characterized by speed innovation short cycle times quality and customer satisfaction is highlighting the importance of intangible assets such as brand recognition knowledge innovation and particularly human capital o Social Capital Social capital is the economic or productive potential of strong trusting and cooperative relationships Relationships do matter Planning the Human Resources Needed o Here we are concerned with something more than simply hiring people on an as needed basis Strategic human resource planning consists of developing a systematic comprehensive strategy for two reasons Understanding current employee needs Predicting future employee needs o Understanding Current Employee Needs To plan for the future you must understand the present what today s staffing picture looks like This requires that you do first a job analysis and from that write a job description and a job specification o The purpose of job analysis is to determine by observation and analysis the basic elements of a job Specialists who do this interview job occupants about what they do observe the flow of work and learn how results are accomplished o Once the fundamentals of a job are understood then you can write a job description which summarizes what the holder of the job does and how and why he or she does it Next you can write a job specification which describes the minimum qualifications a person must have to perform the job successfully This process can produce some surprises Jobs that might seem to require a college degree for example might not after all o Thus the process of writing job analyses descriptions and specifications can help you avoid hiring people who are overqualified or underqualified for a particular job In addition by entering a job description and specification with their attendant characteristics into a database an organization can do computer searching for candidates by matching keywords on their resumes with the keywords describing the job o Predicting Future Employee Needs As you might expect predicting future employee needs means you have to become knowledgeable about the staffing the organization might need and the likely sources for that staffing The staffing the organization might need o Managers SHOULD assume that the organization will change and so then will staffing needs and that personnel might come from inside or outside the firm Thus you need to understand the organization s vision and strategic plan so that the proper people can be hired to meet the future strategies and work The likely sources for staffing o You can recruit employees from either inside or outside the organization In looking at those inside you need to consider which employees are motivated trainable and promotable and what kind of training your organization might have to do A device for organizing this kind of information is a human resource inventory a report listing your organization s employees by name education training languages and other important information In looking outside you need to consider the availability of talent in your industry s and geographical area s labor pool the training of people graduating from various schools and such factors as what kind of people are moving into your area The U S Bureau of Labor Statistics and the U S Census Bureau issue reports on such matters 9 2 The Legal Requirements of Human Resource Management Major Question To avoid exposure to legal liabilities what areas of the law do I need to be aware of Whatever your organization s human resource strategy in the United States and in U S divisions overseas it has to operate within the environment of American law There are four areas you should be aware of o Labor relations o Compensation and benefits o Health and safety o Equal employment opportunity EEO Labor Relations o The earliest laws affecting employee welfare had to do with unions and they can still have important effects Legislation passed in 1935 the Wagner Act resulted in the National Labor Relations Board which enforces procedures whereby employees may vote to have a union and for collective bargaining Collective bargaining consists of negotiations between management and employees about disputes over compensation benefits working conditions and job security o A 1947 law the Taft Harley Act allows the President of the US to prevent or end a strike that threatens national security Compensation and Benefits o The Social Security Act in 1935 established the US retirement system o The passage of the Fair Labor Standards Act of 1938 established minimum living standards for workers engaged in interstate commerce including provision of a federal minimum wage currently 7 25 an hour and a maximum workweek now 40 hours after which overtime must be paid along with banning products from child labor Salaried executive administrative and professional employees are exempt from overtime rules Health and Safety o From miners risking tunnel cave ins to cotton mill workers breathing lint
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