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TheHistoryandRoleof
HumanResourceManagementTheManager’sHumanResource
ManagementJobsManagementprocessThefivebasicfunctionsofplanning,organizing,staffing,leading,andcontrolling.Humanresourcemanagement(HRM)Thepoliciesandpracticesinvolvedincarryingoutthe“people”orhumanresourceaspectsofamanagementposition,includingrecruiting,screening,training,rewarding,andappraising.2PersonnelAspectsOfAManager’sJobConductingjobanalyses(determiningthenatureofeachemployee’sjob)PlanninglaborneedsandrecruitingjobcandidatesSelectingjobcandidatesOrientingandtrainingnewemployeesManagingwagesandsalaries(compensatingemployees)ProvidingincentivesandbenefitsAppraisingperformanceCommunicating(interviewing,counseling,disciplining)TraininganddevelopingmanagersBuildingemployeecommitment3PersonnelMistakesHirethewrongpersonforthejobExperiencehighturnoverHaveyourpeoplenotdoingtheirbestWastetimewithuselessinterviewsHaveyourcompanyincourtbecauseofdiscriminatoryactionsHaveyourcompanycitedbyOSHAforunsafepracticesHavesomeemployeesthinktheirsalariesareunfairandinequitablerelativetoothersintheorganizationAllowalackoftrainingtoundermineyourdepartment’seffectivenessCommitanyunfairlaborpractices4BasicHRConceptsGettingresultsThebottomlineofmanagingHRcreatesvaluebyengaging
inactivitiesthatproduce
theemployeebehaviors
thecompanyneedsto
achieveitsstrategic
goals.5LineandStaffAspectsofHRMLinemanagerAmanagerwhoisauthorizedtodirecttheworkofsubordinatesandisresponsibleforaccomplishingtheorganization’stasks.StaffmanagerAmanagerwhoassistsandadviseslinemanagers.6LineManagers’HRMResponsibilitiesPlacingtherightpersonontherightjobStartingnewemployeesintheorganization(orientation)TrainingemployeesforjobsnewtothemImprovingthejobperformanceofeachpersonGainingcreativecooperationanddevelopingsmoothworkingrelationshipsInterpretingthefirm’spoliciesandproceduresControllinglaborcostsDevelopingtheabilitiesofeachpersonCreatingandmaintainingdepartmentmoraleProtectingemployees’healthandphysicalcondition7FunctionsoftheHRManagerAlinefunctionTheHRmanagerdirectstheactivitiesofthepeopleinhisorherowndepartmentandinrelatedserviceareas(liketheplantcafeteria).AcoordinativefunctionHRmanagersalsocoordinatepersonnelactivities,adutyoftenreferredtoasfunctionalcontrol.Staff(assistandadvise)functionsAssistingandadvisinglinemanagersistheheartoftheHRmanager’sjob.8EmployeeAdvocacyHRmusttakeresponsibilityfor:Clearlydefininghowmanagementshouldbetreatingemployees.Makingsureemployeeshavethemechanismsrequiredtocontestunfairpractices.Representtheinterestsofemployeeswithintheframeworkofitsprimaryobligationtoseniormanagement.9ExamplesofHRJobDutiesRecruitersSearchforqualifiedjobapplicants.Equalemploymentopportunity(EEO)coordinatorsInvestigateandresolveEEOgrievances,examineorganizationalpracticesforpotentialviolations,andcompileandsubmitEEOreports.JobanalystsCollectandexamineinformationaboutjobstopreparejobdescriptions.10ExamplesofHRJobDuties(cont’d)CompensationmanagersDevelopcompensationplansandhandletheemployeebenefitsprogram.TrainingspecialistsPlan,organize,anddirecttrainingactivities.LaborrelationsspecialistsAdvisemanagementonallaspectsofunion–managementrelations.11HRDepartmentOrganizationalChart(LargeCompany)Figure1–1Source:AdaptedfromBNABulletintoManagement,June29,2000.12CooperativeLineandStaffHRManagementThelinemanager’sresponsibilityistospecifythequalificationsemployeesneedtofillspecificpositions.HRstaffthendevelopssourcesofqualifiedapplicantsandconductinitialscreeninginterviewsHRadministerstheappropriatetestsandrefersthebestapplicantstothesupervisor(linemanager),whointerviewsandselectstheonesheorshewants.13EmploymentandRecruiting—WhoHandlesIt?(percentageofallemployers)Figure1–3Source:HRDepartmentBenchmarksandAnalysis,”BNA/SocietyforHumanResourceManagement,2002.Note:lengthofbarsrepresentsprevalenceofactivityamongallsurveyedemployers.14TheChangingEnvironmentOf
HRManagementHR’schangingrole:
“Personneldepartments”Tookoverhiringandfiringfromsupervisors,payroll,andbenefitplansadministration.Inthe1930sadded“protectingthefirminitsinteractionwithunions”responsibilities(laborrelations).Assumedorganizationalresponsibilitiesforequalemploymentandaffirmativeaction.15AChangingHREnvironmentGlobalizationTechnologicalAdvancesExportingJobsTheNatureofWorkWorkforceDemographics16Basictrend:UseModernHRMandMetricstoSupportCompany’sStrategicGoals
StrategicHRMMetricsHighperformanceWorkSystemsTechnology171.InstituteStrategicHumanResourceManagementFormulatingandexecutingHRsystems—HRpoliciesandactivities—thatproducetheemployeecompetenciesandbehaviorsthecompanyneedstoachieveitsstrategicaims.18HowtoAlign
HRStrategy
andActions
withBusinessStrategy
192.HRMetricsAbsenceRate[(Numberofdaysabsentinmonth)÷(Averagenumberofemployeesduringmo.)×(numberofworkdays)]×100CostperHire(Advertising+AgencyFees+EmployeeReferrals+Travelcostofapplicantsandstaff+Relocationcosts+Recruiterpayandbenefits)÷NumberofHiresHealthCareCostsperEmployeeTotalcostofhealthcare÷TotalEmployeesHRExpenseFactorHRexpense÷TotaloperatingexpenseFigure1–5Sources:RobertGrossman,“MeasuringUp,”HRMagazine,January2000,pp.29–35;PeterV.LeBlanc,PaulMulvey,andJudeT.Rich,“ImprovingtheReturnonHumanCapital:NewMetrics,”CompensationandBenefitsReview,January/February2000,pp.13–20;ThomasE.MurphyandSourusheZandvakili,“DataandMetrics-DrivenApproachtoHumanResourcePractices:UsingCustomers,Employees,andFinancialMetrics,”HumanResourceManagement39,no.1(Spring2000),pp.93–105;[HRPlanning,CommerceClearingHouseIncorporated,July17,1996;]SHRM/EMA2000CostPerHireandStaffingMetricsSurvey;.20HRMetrics(cont’d)HumanCapitalROIRevenue?(OperatingExpense?[Compensationcost+Benefitcost])÷(Compensationcost+Benefitcost)HumanCapitalValueAddedRevenue?(OperatingExpense?([Compensationcost+BenefitCost])÷TotalNumberofFTERevenueFactorRevenue÷TotalNumberofFTETimetofillTotaldayselapsedtofillrequisitions÷NumberhiredFigure1–5(cont’d)Sources:RobertGrossman,“MeasuringUp,”HRMagazine,January2000,pp.29–35;PeterV.LeBlanc,PaulMulvey,andJudeT.Rich,“ImprovingtheReturnonHumanCapital:NewMetrics,”CompensationandBenefitsReview,January/February2000,pp.13–20;ThomasE.MurphyandSourusheZandvakili,“DataandMetrics-DrivenApproachtoHumanResourcePractices:UsingCustomers,Employees,andFinancialMetrics,”HumanResourceManagement39,no.1(Spring2000),pp.93–105;[HRPlanning,CommerceClearingHouseIncorporated,July17,1996;]SHRM/EMA2000CostPerHireandStaffingMetricsSurvey;.21HRMetrics(cont’d)TrainingInvestmentFactorTotaltrainingcost÷HeadcountTurnoverCostsCosttoterminate+Costperhire+VacancyCost+LearningcurvelossTurnoverRate[Numberofseparationsduringmonth÷Averagenumberofemployeesduringmonth]×100Workers’CompensationCostperEmployeeTotalWCcostforYear÷AveragenumberofemployeesFigure1–5(cont’d)Sources:RobertGrossman,“MeasuringUp,”HRMagazine,January2000,pp.29–35;PeterV.LeBlanc,PaulMulvey,andJudeT.Rich,“ImprovingtheReturnonHumanCapital:NewMetrics,”CompensationandBenefitsReview,January/February2000,pp.13–20;ThomasE.MurphyandSourusheZandvakili,“DataandMetrics-DrivenApproachtoHumanResourcePractices:UsingCustomers,Employees,andFinancialMetrics,”HumanResourceManagement39,no.1(Spring2000),pp.93–105;[HRPlanning,CommerceClearingHouseIncorporated,July17,1996;]SHRM/EMA2000CostPerHireandStaffingMetricsSurvey;.22MeasuringHR’sContributionTheHRScorecardShowsthequantitativestandards,or“metrics”thefirmusestomeasureHRactivities.Measurestheemployeebehaviorsresultingfromtheseactivities.Measuresthestrategicallyrelevantorganizationaloutcomesofthoseemployeebehaviors.23StrategicHRRelationshipsFigure3–10HR
ActivitiesEmergentEmployeeBehaviorsStrategicallyRelevantOrganizationalOutcomesOrganizationalPerformanceAchieveStrategicGoals24CreatingTheHRScorecardMustunderstandthecompany’sstrategy,goalsMustunderstandthecausallinksbetweenHRactivities,employeebehaviors,organizationaloutcomes,andthecompany’sperformance.Musthavemetricstomeasurealltheactivitiesandresultsinvolved.253.High-PerformanceWorkSystemsHigh-performanceworksystem(HPWS)practices:High-involvementemployeepractices(suchasjobenrichmentandteam-basedorganizations),Highcommitmentworkpractices(suchasimprovedemployeedevelopment,communications,anddisciplinarypractices)Flexibleworkassignments.PracticesthatfosterskilledworkforcesandexpandedopportunitiestousethoseskillsExpandemployeefairnesssystems26BenefitsofaHighPerformanceWorkSystem(HPWS)GeneratemorejobapplicantsScreencandidatesmoreeffectivelyProvidemoreandbettertrainingLinkpaymoreexplicitlytoperformanceProvideasaferworkenvironmentProducemorequalifiedapplicantsperpositionMoreemployeesarehiredbasedonvalidatedselectiontestsProvidemorehoursoftrainingfornewemployeesHigherpercentagesofemployeesreceivingregularperformanceappraisals.274.HRandTechnologyBenefitsoftechnologicalapplicationsforHRIntranet-basedemployeeportalsthroughwhichemployeescanself-serviceHRtransactions.TheavailabilityofcentralizedcallcentersstaffedwithHRspecialists.IncreasedefficiencyofHRoperations.ThedevelopmentofdatawarehousesofHR-relatedinformation.TheabilitytooutsourceHRactivitiestospecialistserviceproviders.28TheBottomLine29EffectsCFOsBelieveHumanCapital
HasonBusinessOutcomesFigure1–6Source:StevenH.Bates,“BusinessPartners,”HRMagazine,September2003,p.4930TheNewHRManagerNewProficienciesHRproficienciesBusinessproficienciesLeadershipproficienciesLearningproficiencies31HRProfessionalCertificationHRisbecomingmoreprofessionalized.SocietyforHumanResourceManagement(SHRM)SHRM’sHumanResourceCertificationInstitute(HRCI)SPHR(seniorprofessionalinHR)PHR(professionalinHR)
certificate3233HumanResourceManagementinChina:
ChallengesandStrategicTrendsOverview:Past,Present,Future
1949-1994:GovernmentpoliciesmademostHR-typedecisionsunnecessary1994-2005:NewpoliciesmeantrapidadvanceinHRMpracticesFuture:WhatHRMpracticeswillpowerChina’scompaniestowardfurtherworld-classcompetitiveness?4points:StrategicHR;HPWS;Metrics;andHRTechnology35ThePast:1949-1994Centralplanningsystem:UnifiedlaborallocationsystemdetermineswhoworkswhereandnumberandnatureofemployeesfirmshireFixednationalwagescalesdecidepay“Iron”ricebowl(lifetimeemployment)“Iron”positionsystem(managertenure)“Iron”wagesystem(managersexercisedlittleornocontroloverpay)Periodofextraordinaryemploymentgrowth36ATransitionPeriod1978—somegovernmentencouragementforfirmstohire,fire,institutebonusplans1984—stepstolinkperformance,wages1985—someworkerseligibleforincentivepay1992—Regulationsemphasizingthatnewmarketeconomyrequiredenterprisestomakeownbusinessdecisions
37ThePresent:1994-20051994-2005GreatprogressadaptingHRpracticestothenewglobalmarketsandcompetition,asinWatson-Wyatt2003survey:linkingpaytoperformance&strategy,recruitmentpractices,etc.Asfirmsfacedchallengesofincreasedinter-enterpriseemployeemobility,andofattractingandkeepingemployees38StillWorktoDo:forExample,31%ofsmallfirmsmakenouseofHRITRelativelylittleoutsourcingofHRactivities39%offirmscouldnotmeasureHRresultsProfessorXiao:Chinamustformulatepoliciesrecognizingvalueofhumanresources,andupgradeprofessionaltrainingStateCouncil’sDevelopmentCenter:Enterpriseslagindevelopingleaders39TheFuture:SomeAssumptions1.Continuedmovetomarketeconomy,quality,efficiency,productivity2.“Collisioneffect”causedbylabormovingtocities3.Risinglaborshortages,asinGuangdongandFujiannow4.Willleadtomoredemandingworkers,moreemphasisonproductivitythroughpeople,andsotoStrategicHR,HPWS,Metrics,HRTechnology40ChinaHRMSurveysLiteraturereviewofarticlespublishedsince2000pertainingtoHRMactivitiesinChinaPrimarilyrefereedresearchstudies,andempiricalreports41HRMEnvironmentinChinaTodayStrainingtoproducerequiredmanagementtalent(MinistryofPersonnel)LaborshortagesMigration(2003-2010~106mpeopletocities;17%1976,49%2010)Risingturnover(8%2001,14%2005)42SummaryChina’s
employmentsystemisstrainingtoproducethemanagementtalentemployersrequire.Becauseofgovernmentalandotherconstraints,laborshortagesarenotconfinedtoprofessionalandmanagerialpersonnel.Risingturnoverratesareexacerbatingthelaborshortages.Itisthereforesurprisinglydifficulttorecruit,hire,andretainemployees.43ContinuedRecruitmentsourcesinChinaaresimilarinsomerespectstothoseintheWest.HoweverthereisasizeabledisparitybetweenChina’sneedforemployeerecruitmentandrelatedservicesandtheavailabilityofthoseservices.Poachingemployeesisaseriousmatter.Theemployershouldverifythattheapplicantisfreetosignanewemploymentagreement.44ContinuedThedominantemployeeselectionmethodinvolvesanalyzingtheapplicant’srésuméandtheninterviewingtheperson.Employersusepsychometrictestssparingly.
Workersarehighlycareeroriented,andgravitatetowardsemployersthatcanprovidethebestcareeradvancementtrainingandopportunities.45continuedTraininganddevelopmentisofhugeimportancetobothemployeesandemployersinChina,bothforskillbuildingandsocialization,andasasignofthefirm’scommitmenttoemployees’careers.Mostemployersappraiseemployeeperformance.Manyusemoderngoal-orientedperformancemanagementsystems.46ContinuedPayforperformanceisverypopularinChina.Mostinternationalfirmsand,increasingly,evenstateownedenterprises,useperformance-basedpayplans.EmployersputrelativelyhighpercentagesofwagesintoChina'sversionofSocialSecurity,andintopensionandhousingfundsandmedicalandunemploymentinsurancepayments.47ContinuedEmployeesinChinatendtoexpresslowlevelsofsatisfactionwiththei
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