Professional Documents
Culture Documents
Chapter 01
Chapter 01
Fifteenth Edition
Chapter 1
Introduction to
Human Resource
Management
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Where Are We Now….. We begin with Chapter 1 Introduction to Human Resource
Management
The purpose of this chapter explains what Human Resource Management is and why it’s
important to all managers. We’ll see that human resource management activities such as
hiring, training, appraising, compensating, and developing employees are part of every
manager’s job. We’ll see that human resource management is also a separate function.
The main topics we’ll cover will include what human resource management is, the trends
shaping human resource management, human resource management today, the new
human resource manager, and the plan of the book.
More importantly, the human resource management concepts and techniques you’ll learn
in this book can help ensure that you get results—through people. Remember that you
can do everything else right as a manager—lay brilliant plans, draw clear organization
charts, set up world-class assembly lines, and use sophisticated accounting controls—but
still fail, by hiring the wrong people or by not motivating subordinates. On the other hand,
many managers—presidents, generals, governors, supervisors—have been successful
even with inadequate plans, organization, or controls. They were successful because they
had the knack of hiring the right people for the right jobs and motivating, appraising, and
developing them. Remember, as you read this book getting results is the bottom line of
managing, and that, as a manager, you will have to get those results through people.
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Learning Objectives (1 of 2)
1-1. Explain what human resource management is
and how it relates to the management
process.
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Learning Objectives (2 of 2)
1-2. Briefly discuss and illustrate each of the
important trends influencing human resource
management.
1-3. List and briefly describe “distributed HR” and
other important aspects of human
management today.
1-4. List at least four important human resource
manager competencies.
1-5. Outline the plan of this book.
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I.
Explain what human resource
management is and how it
relates to the management
process.
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Working for any organization means that you and those around you share
common goals, which include an interest in the growth and continuing
development of the organization. Some of those common goals include how
work is accomplished within the organization. We now begin our study of the
elements of the management process and how they relate to human resource
management. Note that such individuals generally work together to achieve
the common goals of an organization.
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What Is Human Resource
Management? (1 of 2)
• The Management Process
– Planning
– Organizing
– Staffing
– Leading
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What Is Human Resource Management? – To understand what human resource
management is, it’s useful to start with what managers do. Most writers agree that
managing involves performing five basic functions: planning, organizing, staffing, leading,
and controlling. These functions in total represent the management process.
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What Is Human Resource
Management? (2 of 2)
The topics we’ll discuss should therefore provide
you with the concepts and techniques every
manager needs to perform the “people” or
personnel aspects of management.
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These concepts and techniques include the following:
1. Conducting job analyses (determining the nature of each employee’s job).
2. Planning labor needs and recruiting job candidates.
3. Selecting job candidates.
4. Orienting and training new employees.
5. Managing wages and salaries (compensating employees).
6. Providing incentives and benefits.
7. Appraising performance.
8. Communicating (interviewing, counseling, disciplining).
9. Training employees, and developing managers.
10. Building employee relations and engagement.
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Why Is Human Resource Management
Important to All Managers?
• To Avoid Personnel Mistakes
• To Improve Profits and Performance
• You May Spend Some Time as an HR Manager
• HR for Small Business – you may end up as your
own human resource manager
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Why Is HR Management Important to All Managers?
Because of the following:
1. To Avoid Personnel Mistakes – managers don’t want to make personnel
mistakes, such as not having employees doing their best, hiring the wrong
person for the job, experiencing high turnover, having to be in court due to
discriminatory actions, being cited for unsafe practices, letting a lack of
training undermined department effectiveness, or committing any unfair
labor practices.
2. To Improving Profits and Performance – to help ensure that you get
results—through people.
3. You May Spend Some Time as an HR Manager – about a third of large
U.S. businesses surveyed have appointed non-HR managers to be their
top human resource executives.
4. HR for Small Business – you may well end up as your own human
resource manager. More than half of the
people working in the United States work for small firms. Small
businesses as a group also account for most
of the 600,000 or so new businesses created every year
Carefully studying this book will help you in these areas.
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Line and Staff Aspects of Human
Resource Management
• Authority is the right to make decisions, to direct
the work of others, and to give orders. Managers
usually distinguish between line authority and staff
authority.
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Line and Staff Managers
• Line authority
gives you the right
to issue orders
• Staff authority
gives you the right
to advise others in
the organization
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When the vice president of sales tells her sales director to “get the sales
presentation ready by Tuesday,” she is exercising her line authority.
Staff authority gives a manager the right to advise other managers or
employees. It creates an advisory relationship. When the human
resource manager suggests that the plant manager use a particular
selection test, he or she is exercising staff authority.
Human resource managers are usually staff managers. They assist and
advise line managers in areas like recruiting, hiring, and compensation.
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Line Manager’s HR Management
Responsibilities (1 of 3)
This is because the direct handling of people has always
been part of every line manager’s duties, from the president
down to first-line supervisors.
Some line supervisors’
responsibilities for effective
human resource management fall
under these general headings:
1. Placing the right person in the
right job.
2. Starting new employees in the
organization (orientation).
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Line Manager’s HR Management
Responsibilities (2 of 3)
3. Training employees for jobs that are new to them.
4. Improving the job performance of each person.
5. Gaining creative cooperation and developing
smooth working relationships.
6. Interpreting the company’s policies and
procedures.
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Line Manager’s HR Management
Responsibilities (3 of 3)
7. Controlling labor costs.
8. Developing the abilities of each person.
9. Creating and maintaining departmental morale.
10. Protecting employees’ health and physical
conditions.
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The Human Resources Department
However as the organization grows, line managers usually need the assistance, specialized
knowledge, and advice of a separate human resource staff.
In larger firms, the human resource department provides such specialized assistance.
This FIGURE 1-1 Human Resource Department Organization Chart Showing Typical HR Job
Titles
Source: “Human Resource Development Organization Chart Showing Typical HR Job Titles,”
www.co.pinellas.fl.us/persnl/pdf/
orgchart.pdf. Courtesy of Pinellas County Human Resources. Reprinted with permission.
At the other extreme, the human resource team for a small manufacturer may contain just
five or six (or fewer) staff and have an organization similar to that in Figure 1-1. There is generally
about one human resource employee per 100 company employees.
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New Approaches To Organizing HR
• Reorganizing the HR function of how it is
organized and delivers HR services
– Shared Services (Transactional) HR teams
– Corporate HR teams
– Embedded HR teams
– Centers of expertise
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Many employers are changing how they organize their human resource
functions.
For example, one survey found that 44% of the large firms surveyed planned to
change how they organize and deliver HR services
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II.
Trends Shaping Human
Resource Management
In the continuing development of human resource
management, there exist various trends that will
help shape its practice and evolution in the coming
years.
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Trends in Human Resource
Management
• Workforce Demographics and Diversity Trends
• Trends in How People Work
• Improving Performance at Work: HR as a Profit
Center
• Globalization Trends
• Economic Trends
• Technology Trends
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Trends are occurring in the environment of human resource management that are changing how
employers get their human resource management tasks done.
These trends include workforce trends, trends in how people work, technological trends, and
globalization and economic trends:
• Demographic and Workforce Trends. The composition of the workforce will continue to change
over the next few years; specifically, it will continue to become more diverse with more women,
minority group members, and older workers in the workforce.
• Trends in How People Work. At the same time, work has shifted from manufacturing jobs to service
jobs in North America and Western Europe. Today over two-thirds of the U.S. workforce is employed
in producing and delivering services, not products. An example of this is on-demand workers like
Uber.
• Economic Trends. Although globalization supported a growing global economy, the past
10 or so years were difficult economically. Look at Figure 1-2, Gross National Product
(GNP)—a measure of the United States of America’s total output—it boomed between
2001 and 2007. During this period, home prices (see Figure 1-3) leaped as much as 20%
per year. Unemployment remained docile at about 4.7%. Then, around 2007–2008, all
these measures fell off a cliff. GNP fell. Home prices dropped by 10% or more
(depending on city). Unemployment nationwide soon rose to more than 10%.
• Technology. It may be technology that most characterizes the trends shaping human
resource management today. Let’s take a look at the five main types of digital
technologies that are driving this transfer of functionality from HR professionals to
automation.
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More on HR Technology Trends
• There are 5 main types of digital technologies
driving HR professionals to automation:
– Social Media
– Mobile Applications
– Gaming
– Cloud Computing
– Data Analytics (as known as Talent Analytics)
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• Employers increasingly use social media—tools such as Twitter,
Facebook, and LinkedIn (rather than, say, as many employment
agencies) —to recruit new employees.
• Employers use new mobile applications, for instance, to monitor
employee location and to provide digital photos at the facility clock-in
location to identify workers.
• Employers use gaming, new training applications, and websites such
as Knack, Gild, and True Office enable employers to inject gaming
features into training, performance appraisal, and recruiting.
• Employers use cloud computing which enable employers to monitor
and report on things like a team’s goal attainment and to provide real-
time evaluative feedback.
• Employers also use data analytics, also called talent analytics, which
use statistical techniques, algorithms, and problem-solving to identify
relationships among data for the purpose of solving particular problems
(such as what the ideal candidate’s traits are, or how can I tell in
advance which of my best employees is likely to quit?)
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III.
Today’s New Human Resource
Management
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Today’s New Human Resource
Management
• A Brief History of Personnel/Human Resource
Management
• Distributed HR and the New Human Resource
Management
• Trends Shaping HR: Digital and Social Media
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A Brief History of Personnel/Human Resource Management
“Personnel management” is not new. It dates back to the 1800’s, By 1900, employers set
up the first “hiring offices,” training programs, and factory schools. Personnel management
had begun. In these early firms, personnel managers took over hiring and firing from
supervisors, ran the payroll departments, and administered benefits plans. New union laws
were added in the 1930s, equal employment laws came along in the 1960s that made
employers more reliant on personnel management to avoid discrimination claims. Now
today, a new human resource management is emerging. We’ll look at this next.
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A Quick Summary
FIGURE 1-4
What Trends Mean
for Human Resource
Management
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A Quick Summary
We can summarize to this point as follows:
● One big consequence of globalized competition, economic, and demographic trends, and
the shift to high-tech and service jobs is the growing emphasis by employers on getting the
best from their “human capital,” in other words, from their workers’ knowledge, education,
training, skills, and expertise. This means, among other things, using human resource
methods to improve employee performance and engagement.
● Thanks to digital devices and social media, employers are shifting (distributing) more HR
tasks from central human resource departments to employees and line managers.
● This gives many line managers more human resource management responsibilities.
● And it means that many human resource managers can refocus their efforts from day-to-
day activities like interviewing candidates to broader, strategic efforts, such as formulating
plans for boosting employee performance and engagement.
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HR and Strategy
Strategic Human Resource Management
• Strategic human resource management –
means formulating and executing human resource
policies and practices that produce the employee
competencies and behaviors that the company
needs to achieve its strategic aims.
Today’s human resource managers are more involved in longer-term, strategic
“big picture” issues. We’ll see in Chapter 3 (Strategy) that strategic human
resource management means formulating and executing human resource
policies and practices that produce the employee competencies and behaviors
the company needs to achieve its strategic aims. We illustrate this throughout
this book with Strategic Context features such as on the next slide.
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Improving Performance: The
Strategic Context
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L.L.Bean illustrates how companies do this. The heart of L.L.Bean’s strategy has always been offering great
outdoor equipment with outstanding service and expert advice. As its company history said, “L.L.Bean, Inc.,
quickly established itself as a trusted source for reliable outdoor equipment and expert advice. The small
company grew. Customers spread the word of L.L.Bean’s quality and service.”
To provide such service, L.L.Bean needs special people as employees, ones whose love of the outdoors
helps them deal knowledgeably and supportively with the company’s customers. To paraphrase its Website,
L.L.Bean is looking for a special type of employee, one (like its customers) who loves the outdoors, and the
company therefore treats its employees just as well as it famously treats its customers.
L.L.Bean’s HR policies and practices attract and develop just such employees. For one thing, the company
knows just who to recruit for. It wants sociable, friendly, experienced, outdoors-oriented applicants and
employees. To attract and cultivate these sorts of employee competencies and behaviors, the company uses
multiple interviews to screen out applicants who might not fit in. And L.L.Bean offers an outdoor-oriented
work environment and competitive pay and benefits. It was a Fortune “100 Best Companies to Work For”
employer in 2015.
To help encourage great employee service, L.L.Bean also provides a supportive environment. For example,
when its Web sales recently for the first time exceeded phone sales, L.L.Bean closed four local call centers
but arranged for the 220 employees to work from their homes. And instead of sending jobs abroad, the
company keeps its jobs close to the town where Leon Leonwood Bean started his company almost 100
years ago. L.L.Bean’s managers built the firm’s strategy and success around courteous, expert service.
They know that having the right employees is the key to its success and that it takes the right blend of
human resource practices to attract and nurture such employees.
Talk About it (Discussion) : What would you say are (1) L.L.Bean’s strategic aims, (2) its required
employee behaviors and skills to achieve these aims, and (3) HR policies and practices it needs to produce
these necessary employee behaviors and skills?
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HR and Performance
The Human Resource Manager is expected to
spearhead employee performance.
Three Levers can be applied to do so:
1. Department Lever
2. Employee Cost Lever
3. Strategic Results Lever
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Employers also expect their human resource managers/“people experts” to
spearhead employee performance-improvement efforts.
2. The Employee costs lever. For example, the human resource manager takes
a prominent role in advising top management about the company’s staffing levels,
and in setting and controlling the firm’s compensation, incentives, and benefits
policies.
3. The strategic results lever. Here the HR manager puts in place the policies
and practices that produce the employee competencies and skills the company
needs to achieve its strategic goals. That’s what was done at L.L.Bean, for
instance.
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HR and Evidence Based Management
• Evidence-based human resource
management – is the use of data, facts,
analytics, scientific rigor, critical evaluation, and
critically evaluated research/case studies to
support human resource management proposals,
decisions, practices, and conclusions.
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Put simply, evidence-based human resource management means using the best
available evidence in making decisions about the human resource management
practices you are focusing on. The evidence may come from the following:
• actual measurements (such as, how the trainees like this program?)
• existing data (such as, what happened to company profits after we installed this
training program?)
• research studies (such as, what does the research literature conclude about the
best way to ensure that trainees remember what they learn?)
Sometimes, companies translate their findings into what management gurus call
high-performance work systems, which are “sets of human resource
management practices that together produce superior employee performance.”
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HR and Adding Value
• Adding value – means helping the firm and its
employees improve measurably as a result of the
human resources manager’s actions.
The bottom line is that today’s employers want their human resource
managers to add value by boosting profits and performance.
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HR and Performance and
Sustainability
• It is about measuring companies in terms of
maximizing profits but also on their environmental
and social performance as well.
PepsiCo wants to achieve business and financial success while leaving a positive
imprint on society (click www.pepsico.com, then click What We Believe, and then
Performance with Purpose)
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HR and Employee Engagement
• Employee engagement – refers to being
psychologically involved in, connected to, and
committed to getting one’s job done.
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IV.
The New Human Resource
Manager
As the challenges continue for today – so does important aspects of Human
Resource Management.
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The New Human Resource Manager
The Society of Human Resource Management
(SHRM) has a new “competency model” called the
SHRM Body of Competency and Knowledge that
itemizes what a New HR Manager needs
• What should they be able to exhibit?
• What basic functional areas of HR should they
have command?
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What does it take to be a New Human Resource Manager today?
Recently, the SHRM Body of Competency and Knowledge itemized the
competencies, skills, knowledge, and expertise human resource managers need.
The HR Manager should be able to exhibit:
● Leadership & Navigation – the ability to direct and contribute to initiatives and
processes within the organization.
● Ethical Practice –the ability to integrate core values, integrity, and accountability
throughout all organizational and business practices.
● Business Acumen – the ability to understand and apply information with which
to contribute to the organization’s strategic plan.
● Relationship Management – the ability to manage interactions to provide
service and to support the organization.
● Consultation – the ability to guide organizational stakeholders.
● Critical Evaluation – the ability to interpret information with which to make
business decisions and recommendations.
● Global and cultural Effectiveness – the ability to value and consider the
perspectives and backgrounds of all parties.
● Communication – the ability to effectively exchange information with
stakeholders.
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SHRM also says HR managers must have command of the basic functional areas
of HR as follows:
● Functional Area #1: Talent Acquisition & Retention
● Functional Area #2: Employee Engagement
● Functional Area #3: Learning & Development
● Functional Area #4: Total Rewards
● Functional Area #5: Structure of the HR Function
● Functional Area #6: Organizational Effectiveness & Development
● Functional Area #7: Workforce Management
● Functional Area #8: Employee Relations
● Functional Area #9: Technology & Data
● Functional Area #10: HR in the Global Context
● Functional Area #11: Diversity & Inclusion
● Functional Area #12: Risk Management
● Functional Area #13: Corporate Social Responsibility
● Functional Area #14: U.S. Employment Law & Regulations
● Functional Area #15: Business & HR Strategy
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The Skills of the New HR Manager
HR managers can't
just be good at
traditional personnel
tasks like hiring and
training, but must
"speak the CFO's
language" by
defending human
resource plans in
measurable terms.
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HR and the Manager’s Skills
This book aims to help every manager develop the skills he or she needs to carry out
the human resource management-related aspects of his or her job, such as recruiting,
selecting, training, appraising, and incentivizing employees, and providing them with a
safe and fulfilling work environment.
HR and Ethics
Ethics refers to the standards someone uses to decide what his or her conduct should
be.
HR Manager Certification
Many human resource managers use certification to demonstrate their mastery of
contemporary human resource management knowledge and competencies.
Appendices A and B cover this information more in-depth.
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Many human resource managers use certification to demonstrate their mastery of
contemporary human resource management knowledge and competencies. Managers
currently have, at this writing, at least two testing processes to achieve certification.
Starting in 2015, SHRM began offering its own competency and knowledge-based
testing and certifications for SHRM Certified Professionals and SHRM Senior Certified
Professionals, based on its certification exams. The exam is built around the SHRM
Body of Competency and Knowledge model which includes functional knowledge and
skills as well as competencies.
The SHRM and the HRCI knowledge bases certification information is summarized
separately in Appendices A and B of this book.
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V.
The Plan of this Book.
In this book, several themes and features highlight particularly important issues, and
provide continuity from chapter to chapter.
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The Basic Themes and Features
Themes and features are used to highlight
particularly important issues and provide continuity
from chapter to chapter.
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In this new edition you will find features that are titled:
IMPROVING PERFORMANCE: HR TOOLS FOR LINE MANAGERS AND
ENTREPRENURS.
These features highlight actual tools and practices any manager can use to improve
performance at work.
IMPROVING PERFORMANCE: HR AS A PROFIT CENTER. We’ve seen that employers
need human resource management practices that add value. These show actual examples
of how human resource management practices add measurable value—by reducing costs or
boosting revenues.
IMPROVING PERFORMANCE: HR PRACTICES AROUND THE GLOBE. These features
highlight how actual companies around the globe use effective HR practices to improve their
teams’ and companies’ performance.
IMPROVING PERFORMANCE THROUGH HRIS. These features highlight how managers
use human resource technology to improve performance.
DIVERSITY COUNTS. These features provide insights and guidelines for managing a
diverse workforce.
TRENDS SHAPING HR: DIGITAL AND SOCIAL MEDIA. These features emphasize how
digital and high-tech trends are shaping Human Resource Management.
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IMPROVING PERFORMANCE: THE STRATEGIC CONTEXT. These
features provide insight for understanding how the employer’s human
resource management policies and practices produce the employee skills
and performance the company needs to achieve its strategic aims.
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Practical Tools for Every Manager
• Human resource management is the responsibility
of every manager—not just those in human
resources.
• Managers use HR techniques to improve
performance, productivity, and profitability
Human resource management is the responsibility of every manager—not just
those in human resources.
Throughout every page in this book, you’ll therefore find an emphasis on practical
material that you as a manager will need to perform your day-to-day
management responsibilities, even if you never spend one day as an HR
manager.
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Chapter Contents Overview
There are 5 parts to this book
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Part 1: Introduction
• Chapter 1 – Introduction to Human Resource
Management. The manager’s human resource management jobs; crucial
global and competitive trends; how managers use technology and modern HR
measurement systems to create high-performance work systems.
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Part 2: Recruitment, Placement, and
Talent Management
• Chapter 4 – Job Analysis and the Talent
Management Process. How to analyze a job; how to determine the
human resource requirements of the job, as well as its specific duties; and what talent
management is.
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Part 3: Training and Development
• Chapter 8 – Training and Developing Employees .
Providing the training and development to ensure that your employees have the
knowledge and skills needed to accomplish their tasks.
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Part 4: Compensation
• Chapter 11 – Establishing Strategic Pay Plans. How
to develop equitable pay plans for your employees.
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Part 5: Enrichment Topics in Human
Resource Management
• Chapter 14 – Building Positive Employee Relation. Developing employee
relations programs and employee involvement strategies; ensuring ethical and fair
treatment through discipline and grievance processes.
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The Topics are Interrelated
• Human Resource Management 15th edition
chapter topics are interrelated. The themes and
features highlighted throughout the book also
provide continuity from chapter to chapter.
In practice, do not think of each of this book’s topics
as being unrelated to the others. Each topic
interacts with and affects the others, and all should
align with the employer’s strategic plan.
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Chapter 1 Review
What you should now know….
• In review of Chapter 1, you should now be able to:
1. Explain what human resource management is and how it is related to the management
process.
2. Briefly discuss and illustrate each of the important trends influencing human resources
management.
3. List and briefly describe “distributed HR” and other important aspects of human
management today.
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