Essential Management Functions and HR Practices Explained
School
Universitas Indonesia**We aren't endorsed by this school
Course
MANAGEMENT ECMM801101
Subject
Management
Date
Dec 9, 2024
Pages
4
Uploaded by KidTank15432
Week 8 – Chapter 1&3OrganizationA group of people with formally assigned roleswho work together to achieve the organization’s goals.ManagerA person responsible for achieving the organization's goals by managing the efforts of its people.ManagingThe act of overseeing and coordinating peopleand tasks within an organization.ManagementProcessThe core functions of planning, organizing, staffing, leading, and controlling.HumanResourceManagement(HRM)The process of acquiring, training, appraising, and compensating employees, and addressingemployee relations, health, safety, and fairness.AuthorityThe power to make decisions and give orders.Line AuthorityAuthority given to managers to direct the activities of subordinates.Staff AuthorityAuthority to advise but not command others, often held by HR professionals in support of line managers.Line ManagerManagers who have direct authority over subordinates and are responsible for achieving specific organizational goals.Staff ManagerManagers who advise or support line managers, rather than direct control.StrategicHumanResourceManagementThe practice of aligning HR policies and practices with the strategic objectives of the organization.EmployeeEngagementThe degree to which employees are committed to their work and the organization’s goals.EthicsThe principles of right and wrong that guide individuals and organizations in making decisions.Management involves five key functions:>> Planning: Setting goals and standards, creating rules, and developing plans.>> Organizing: Assigning tasks, forming departments, delegating authority, and coordinating work.>> Staffing: Hiring the right people, setting performance standards, compensating, evaluating, and training employees.>> Leading: Motivating employees, maintaining morale, and ensuring tasks are completed.>> Controlling: Setting standards like sales targets, checking performance, and making adjustments as needed.Concepts and techniques every manager needs to perform:>> Conducting job analyses (determining the nature of each employee’s job).>> Planning labor needs and recruiting job candidates.>> Selecting job candidates.>> Orienting and training new employees.>> Managing wages and salaries (compensating employees).>> Providing incentives and benefits.>> Appraising performance.>> Communicating (interviewing, counseling, disciplining).>> Training employees and developing managers.>> Building employee relations and engagement.What every manager should know about:>> Equal opportunity and affirmative action.>> Employee health and safety.>> Handling grievances and labor relations.Why Is Human Resource Management Important to All Managers?>> AVOID PERSONNEL MISTAKES>> IMPROVING PROFITS AND PERFORMANCE>> YOU MAY SPEND SOME TIME AS AN HR MANAGER>> HR FOR SMALL BUSINESSESLine Managers’ Human Resource Management Responsibilities:1. Placing the right person in the right job2. Starting new employees in the organization (orientation)3. Training employees for jobs that are new to them4. Improving the job performance of each person5. Gaining creative cooperation and developing smooth working relationships6. Interpreting the company’s policies and procedures7. Controlling labor costs8. Developing the abilities of each person9. Creating and maintaining departmental morale10. Protecting employees’ health and physical conditions
Examples of job duties of HR include:>> Recruiters: Use various methods including contacts within the community and print and online media to search for qualified job applicants.>> Equal employment opportunity (EEO) representatives or affirmative action coordinators: Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports>> Job analysts: Collect and examine detailed information about jobduties to prepare job descriptions.>> 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.The Trends Shaping Human Resource Management>> workforce demographic trendsexample: Different generations in the workplace (e.g., Baby Boomers, Millennials, Gen Z) bring distinct expectations and values, such as flexibility, technology use, and work-life balance preferences.>> trends in jobs people doexample: Shifting from manufacturing to service, increase in freelance and remote work, technology rise (AI)>> technological trendsexample: technological change is affecting the nature of jobs, technology is changing how employers get human resource management tasks done>> globalization trendsexample: Toyota has thousands of sales employees based in America, while GE has over 10,000 employees in France>> economic trendsexample: During a recession, companies often face budget constraints, leading HR to focus on cost-saving strategies. HR might freeze hiring, reduce overtime, or implement temporary layoffs.Important Components of Today’s New Human Resource Management:>> Distributed HR and the New Human Resource ManagementThis approach makes HR practices more accessible and responsive. By involving line managers, HR becomes integrated into day-to-day operations, allowing HR teams to focus on strategic planning and long-term goals.>> Strategic Human Resource ManagementSHRM positions HR as a strategic partner in the organization, helping achieve goals like growth, innovation, and competitiveness. It moves HR from a purely operational role to a central role in driving organizational success.>> Performance and Human Resource ManagementEffective performance management aligns individual employee goals with organizational objectives, drives productivity, and identifies areas for development. It enables HR to foster a high-performance culture that contributes to organizational success.>> Sustainability and Human Resource ManagementSustainable HR practices, such as promoting employee well-being, ethical sourcing, and environmental responsibility, help organizations attract socially conscious employees and foster a culture of accountability and ethical behavior.>> Employee Engagement and Human Resource ManagementEngaged employees are more productive, loyal, and invested in the company’s success. HRM’s role in building engagement through recognition, meaningful work, and a positive culture directly contributes to the organization’s performance and retention.>> Ethics and Human Resource ManagementEthical HR practices build trust, enhance the company’s reputation, and reduce legal risks. HR ensures compliance with laws and fostersa work culture that prioritizes fairness and integrity, which are essential for long-term organizational sustainability and positive employee relations.The Strategic Management ProcessThe basic management planning process consists of five steps: setting objectives, making basic planning forecasts, reviewing alternative courses of action, evaluating which options are best, and then choosing and implementing your plan.In companies, it is traditional to view the goals from the top of the firm downto front-line employees as a chain or hierarchy of goals.Policies andproceduresprovide day-to-day guidance employees need to do their jobs in a manner that is consistent with the company’s plans and goals.Figure 3-2 summarizes the strategic management process. Its sevensteps include:(1) ask, “What business are we in now?”; the manager defines the company’s current business. Specifically, “Whatproducts do we sell, where do we sell them, and how do our products or services differ from our competitors?”
(2) evaluate the firm’s internal and external strengths, weaknesses, opportunities, and threats; “Are we in the right business given our strengths and weaknesses and the challenges that we face?” To answer this, managers “audit” or study both the firm’s environment and the firm’s internal strengths and weaknesses.Assess company’s environment using environmental scan worksheet and assess strength/weakness using SWOT analysis.(3) formulate a new business direction; what should our new business be, in terms of what we sell, where we will sell it, and how our products or services differ from competitors’ products and services? generate Vision statementand mission statement(4) decide on strategic goals; translate the desired new direction into strategic goals. At Ford, for example, what exactly did making “Quality Job One” mean for each department in terms of how they would boost quality? The answer was laid out in goals such as “no more than 1 initial defect per 10,000 cars(5) choose specific strategies or courses ofaction. chooses strategiesthat will enable the company to achieve its strategic goals. For example, how should Ford pursue its goal of no more than 1 initial defect per 10,000 cars? Perhaps open two new high-tech plants, and put in place new, rigorous employee selection and training(6) and (7) are to implement and then evaluate the strategicplan.strategy execution, means translating the strategies into action. This meansactually hiring (or firing) people, building (or closing) plants, and adding (or eliminating) products and product lines. evaluates the results of his or her planning and execution. Things don’t always turn out as planned. All managers should periodically assess the progress of their strategic decisions.Types of StrategiesIn practice, managers engage in three types or levels of strategic planning, corporate level strategic planning, business unit (orcompetitive) strategic planning, and functional (or departmental) strategic planning(see Figure 3-5)Strategic Human Resource ManagementStrategic human resource management means formulating andexecutinghuman resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.Strategic Human Resource Management ToolsManagers use several tools to translate the company’s strategic goals into humanresource management policies and practices. These tools include the strategy map, the HR scorecard, and the digital dashboardExample of strategy map:HR Metrics>> Definition: Quantitative measures used to assess HR activities, such as hiring, performance, retention, and employee satisfaction.>> Example: Tracking turnover rates to understand retention issues, or measuring time-to-fill for vacant positions.Benchmarking >> Definition: The practice of comparing an organization’s metrics against industry standards or best practices to identify improvementareas.>> Example: Comparing your company’s average time-to-hire with industry averages to assess recruiting efficiency.Strategy-Based Metrics >> Definition: Specific metrics tied to activities that support the company’s strategic goals, ensuring HR activities align with overall business objectives.>> Example: Tracking customer service training completion rates ina retail company to support a strategy focused on improving customer satisfaction.
HR Audit >> Definition: A systematic review of HR policies, practices, and compliance to ensure efficiency and alignment with organizational goals.>> Example: Conducting an audit to assess if all departments comply with diversity hiring policies and identifying areas for improvement. High-Performance Work Systems (HPWS)>> Definition: is a set of human resource management policies and practices that together produce superior employee performance>> Example: a manufacturing firm might implement HPWS by training employees on lean production techniques, encouraging them to participate in problem-solving teams, and rewarding them for suggestions that improve efficiency.Strategic PlanA company’s overall plan for aligning internal strengths and weaknesses with external opportunities and threats to maintain a competitive position.StrategyA course of action a company pursues to achieve its strategic aims.StrategicManagementThe process of identifying and executing theorganization’s strategic plan by matching itscapabilities with external demands.VisionStatementA general statement of the organization’s intended direction, showing what the company wants to become.MissionStatementA summary of the company's current main tasks and goals.Corporate-LevelStrategyStrategy that defines the types of businesses the company will engage in, such as diversification or consolidation.CompetitiveStrategyIdentifies how to build and maintain the company's competitive position in its market.CompetitiveAdvantageUnique factors that allow a company to differentiate its product or service and increase market share.FunctionalStrategySpecific activities each department must undertake to support the company's business-level strategies.StrategicHumanResourceManagementFormulating and executing HR policies and practices that produce the competencies and behaviors required to achieve the company's strategic goals.Strategy MapA visual tool linking each department’s performance with the company’s strategic goals.HR ScorecardA tool that assigns financial and non-financial goals to HR activities and tracks how they contribute to strategic goals.DigitalDashboardA visual display on a manager’s desktop that shows performance metrics related to the organization’s strategic goals.HumanResource MetricQuantitative measures of HR activities, suchas turnover rates and time to hire, used to assess HR performance.Strategy-BasedMetricsMetrics specifically tied to measuring activities that contribute to the company’s strategic goals.HR AuditAn analysis of HR functions to ensure compliance, efficiency, and alignment with the organization's goals.High-PerformanceWork System(HPWS)A set of HR practices that together produce superior employee performance and organizational outcomes.