The Manager’s Human Resource

Management Jobs
 Management process
– The five basic functions of planning,
organizing, staffing, leading, and controlling.
 Human resource management (HRM)
– The policies and practices involved in
carrying out the “people” or human
resource aspects of a management position,
including recruiting, screening, training,
rewarding, and appraising.

© Prentice Hall Inc. All rights reserved. 1–1

Personnel Aspects Of A Manager’s
Job
 Conducting job analyses (determining the nature of each
employee’s job)
 Selecting job candidates
 Orienting and training new employees
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment

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Personnel Mistakes
 Hire the wrong person for the job
 Experience high turnover
 Have your people not doing their best
 Commit any unfair labor practices

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Line and Staff Aspects of HRM
 Line manager
– A manager who is authorized to direct the
work of subordinates and is responsible for
accomplishing the organization’s tasks.
 Staff manager
– A manager who assists and advises line
managers.

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Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Training employees for jobs new to them
3. Controlling labor costs
4. Developing the abilities of each person

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HR and Authority
 Authority
– The right to make decisions, direct others’
work, and give orders.
 Implied authority
– The authority exerted by an HR manager by
virtue of others’ knowledge that he or she
has access to top management.
 Line authority
– The authority exerted by an HR manager by
directing the activities of the people in his
or her own department and in service areas.

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Examples of HR Job Duties
 Recruiters
– Search for qualified job applicants.
 Equal employment opportunity (EEO)
coordinators
– Investigate and resolve EEO grievances,
examine organizational practices for
potential violations, and compile and submit
EEO reports.
 Job analysts
– Collect and examine information about jobs
to prepare job descriptions.

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Examples of HR Job Duties (cont’d)
 Compensation managers
– Develop compensation plans and handle the
employee benefits program.
 Training specialists
– Plan, organize, and direct training activities.
 Labor relations specialists
– Advise management on all aspects of union–
management relations.

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The Changing Environment Of
HR Management
 HR’s changing role:
“ Personnel departments”
– Took over hiring and firing from supervisors,
payroll, and benefit plans administration.
– In the 1930s added “protecting the firm in
its interaction with unions” responsibilities
(labor relations).
– Assumed organizational responsibilities for
equal employment and affirmative action.

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Measuring HR’s Contribution
 Strategy
– The company’s long-term plan for how it will
balance its internal strengths and
weaknesses with its external opportunities
and threats to maintain a competitive
advantage.
• HR managers today are more involved in partnering with
their top managers in both designing and implementing
their companies’ strategies.

– Top management wants to see, precisely,

how the HR manager’s plans will make the
company more valuable.

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 HR Metrics
 Absence Rate
[(Number of days absent in month) ÷ (Average number
of employees during mo.) × (number of workdays)] ×
100
 Cost per Hire
(Advertising + Agency Fees + Employee Referrals +
Travel cost of applicants and staff + Relocation costs +
Recruiter pay and benefits) ÷ Number of Hires
 Health Care Costs per Employee
Total cost of health care ÷ Total Employees
 HR Expense Factor
HR expense ÷ Total operating expense
Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–
20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using
Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning,
Commerce Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. Figure 1–5
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Measuring HR’s Contribution
 The HR Scorecard
– Shows the quantitative
standards, or “metrics” the
firm uses to measure HR
activities.
– Measures the employee
behaviors resulting from these
activities.
– Measures the strategically
relevant organizational
outcomes of those employee
behaviors.
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Benefits of a High Performance Work
System (HPWS)
 Generate more job applicants
 Screen candidates more effectively
 Provide more and better training
 Provide a safer work environment

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HR and Technology
 Benefits of technological applications for HR
– Intranet-based employee portals through
which employees can self-service HR
transactions.
– The availability of centralized call centers
staffed with HR specialists.
– Increased efficiency of HR operations.
– The development of data warehouses of HR-
related information.
– The ability to outsource HR activities to
specialist service providers.
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