Fundamentals of Human Resource Management 5th Edit
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Instructor's Resource Manual for Fundamentals of Human Resource
Management 5th Edition by Carol Heeter A+
Chapter 1: Managing Human Resources Today
I. What Is Human Resource Management? — The management process involves the
following functions: planning, organizing, staffing, leading, and controlling. The ―people‖ or
personnel aspects of management jobs involve conducting job analyses; planning labor needs
and recruiting job candidates; selecting job candidates; orienting and training new employees;
managing wages and salaries; providing incentives and benefits; appraising performance;
communicating; training employees and developing managers; building employee commitment;
being knowledgeable about equal opportunity, affirmative action, employee health and safety,
and handling grievances and labor relations.
A. Why Is HR Management Important to All Managers? — Managers don‘t want to make
mistakes while managing, such as hiring the wrong person, having their company taken to court
because of discriminatory actions, or committing unfair labor practices. As a manager anywhere
in the organization, you will want to improve performance. You may spend time as an HR
manager or become an entrepreneur and require basic and some advanced knowledge and skills
in HR.
B. Line and Staff Aspects of HRM — Although most firms have a human resource
department with its own manager, all managers tend to get involved in activities like recruiting,
interviewing, selecting, and training.
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C. Line Versus Staff Authority — Authority is the right to make decisions, to direct the
work of others, and to give orders. Line managers are authorized to direct the work of
subordinates. Their subordinates are generally involved in work that directly produces or sells
the company‘s product or service, such as sales or manufacturing. Staff managers are authorized
to assist and advise line managers in accomplishing their basic goals. The subordinates of staff
managers are generally involved in work that supports the products or services, in departments
such as Purchasing or Quality Control. HR managers are generally staff managers.
D. Line Manager‘s Human Resource Responsibilities — All supervisors are responsible for
aspects of HR/personnel tasks such as placement, training, and development of employees.
E. The Human Resource Department — The HR department provides specialized assistance
such as acting as a recruiter, EEO representative, job analyst, compensation manager, training
specialist, or labor relations specialist.
1. Many employers are revamping how they organize their human resource functions to
include ―shared services‖ or ―distributed‖ HR. Others may use corporate or embedded teams.
II. The Trends Shaping Human Resource Management — Trends in the environment are
changing how employers get their human resource management tasks done.
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A. Workforce Demographics and Diversity Trends — The labor force is getting older and
more multi-ethnic. The aging labor force presents significant changes in terms of potential labor
shortages, and many firms are instituting new policies aimed at encouraging aging employees to
stay, or at attracting previously retired employees. High rates of immigration also present
challenges and opportunities for HR managers. With projected workforce
shortfalls, many employers are hiring foreign workers for U.S. jobs. Milennials who grew up
with technology are experts at collaborating.
B. Trends in How People Work — Technological change will continue to shift growth in
employment opportunities in different occupations.
1. Service jobs — More than two-thirds of the U.S. workforce is employed in producing and
delivering services, as opposed to products.
C. Globalization Trends — Refers to the tendency of firms to extend their sales, ownership,
or manufacturing to new markets abroad. The rate of globalization continues to be high, and has
several strategic implications for firms. More globalization means more competition, and more
competition means more pressure to lower costs, make employees more productive, and do
things better and less expensively.
D. Economic Trends — All these trends are happening within a context of economic
upheaval. U.S. consumers actually spend more than they earn. The United States itself has
become a debtor nation. The United States has had to borrow money to keep buying more from
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abroad than it sold. So much of the economic boom was built on debt, which eventually ran its
course. Because of the ―Great Recession‖ of 2007–2009, consumers are wary of resuming their
spending at pre-recession rates.
1. The labor force is growing more slowly than expected; as Baby Boomers leave the
workforce, the labor participation rate declines, contributing to a slowing of economic growth.
E. Technology Trends — Companies are using digital and mobile devices to deliver human
resource management services; some are using artificial intelligence. Some use cloud-based
performance management systems. Others use talent analytics (the use of statistical techniques,
algorithms, and problem solving to identify relationships among data for the purpose of solving
problems).
1. Employers are becoming more dependent on their workers‘ human capital: knowledge,
education, training, skills, and expertise.
III. The New Human Resource Management — HR management has evolved over the years
and is now much more involved in strategic planning. The trends discussed above create new
challenges for employers and the following responses reflect HR‘s role in meeting these
challenges.
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