(Human Resource Management 15e Robert Mathis, John Jackson, Sean Valentine, Patricia Meglich)
(Instructor Manual, For Complete File, Download link at the end of this File)
CHAPTER 1
Human Resource Management in
Organizations
CHAPTER SUMMARY
Chapter 1 provides an overview of human resource management in today’s organizations. First, the
chapter defines human resource management and human capital. It describes how human resource
management and employees can be core competencies for organizations. It explains the seven
human resource management functions and the three roles of human resource departments. Human
resource management faces challenges, which are discussed next. The role of ethics in human
resources is examined. Finally, the necessary competencies for human resource personnel are
identified.
LEARNING OBJECTIVES
After students have read this chapter, they should be able to:
• Understand human resource management and define human capital.
• Identify how human resource management and employees can be core competencies for
organizations.
• Name the seven categories of HR functions.
• Provide an overview of four challenges facing HR today.
• Explain how ethical issues in organizations affect HR management.
• Explain the key competencies needed by HR professionals and why certification is
important.
The chapter opens with a feature describing the current trends in human resource management.
Trends include developing human capital, globalization and diversity, technology, and ethics.
LECTURE OUTLINE
HR Headline: Entrepreneurial HR Culture at MGM Resorts International
MGM Resorts International, a Las Vegas–based gaming organization, relies on an
entrepreneurial approach to foster innovation in its employees. This approach, which includes
focus groups and information sharing, encourages employees to ask questions and develop
ideas that improve company operations.
1-1. What is Human Resource Management?
Human resource management is designing formal systems in an organization to manage
human talent for accomplishing organizational goals.
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© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: Human Resource Management in Organizations
1-1a. Why Organizations Need HR Management
The same HR issues must be managed in every organization. In large
organizations, HR specialists form the HR department.
Attitude toward HR can be positive or negative.
Discussion Starter: Ask students how an HR department can foster a positive image.
The need for HR increases as a company grows.
HR Perspective: Transforming HR at Popeyes Louisiana Kitchen
The HR department at Popeyes has grown and changed over time to meet the company’s needs
and focus on corporate strategy. Today, the department handles more issues than it ever has.
Servant leadership requires leaders to put the needs of the company and the employees above
their own needs. Although the HR personnel face challenges, corporate expectations are high.
1. Given the issues at Popeyes, how would you redesign an HR department in any
organization to better tackle a company’s needs?
Answers will vary. Students should determine the company’s needs before changing the
HR department’s organization.
2. What needs do you think deserve the most attention given the current trends in HR?
Answers will vary. Students should consider factors such as the economy and the
company’s industry.
1-2. Managing Human Resources in Organizations
Human resource management and employees can be core competencies.
1-2a. Human Resource Management as a Core Competency
A core competency is a unique capability that creates high value for a company.
HR can be a core competency and a key to a company’s competitive advantage.
1-2b. Employees as a Core Competency
Organizations must manage four types of assets: physical, financial, intellectual
property, and human.
Human capital is the collective value of the capabilities, knowledge, skills, life
experiences, and motivation of an organizational workforce. Human capital is also
called intellectual capital.
Use valued rewards and “personal value proposition” to manage human capital.
Teaching Tip: Figure 1-2 shows that employees can be core competencies in productivity,
organizational culture, and customer service.
Productivity is a measure of the quantity and quality of work done, considering the
cost of the resources used.
Unit labor cost, a way to measure the productivity of human resources, is
computed by dividing the average cost of workers by their average levels of
output.
Teaching Tip: Figure 1-3 identifies four ways to increase employee productivity: organizational
restructuring, redesigning work, aligning HR activities, and outsourcing analysis.
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© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: Human Resource Management in Organizations
Productivity, customer service, and quality affect organizational effectiveness and
can be a focus for developing employees as a core competency.
Organizational culture consists of the shared values and beliefs that give members
of an organization meaning and provide them with rules for behavior. Culture
takes time to develop.
Discussion Starter: Ask students to describe the culture at different local or national companies.
For example, some companies have a reputation for being a fun place to work.
1-3. HR Management Functions
HR Competencies & Applications: Building Healthy Organizations
Key Competencies: Leadership & Navigation (Behavioral Competency) and Organization
(Technical Competency)
The HR department can help the company create positive organizational health to motivate
employees and inspire customer loyalty. HR develops policies, such as management
development, performance feedback, and rewards, to foster a positive work environment.
1. How would you encourage the CEO and other top leaders to focus their efforts on
creating a healthy organization culture? What issues do you think deserve the most
attention?
Answers will vary. Students should consider increased profit for a for-profit company
or meeting an organization’s mission goals for a nonprofit organization.
2. In addition to the points already mentioned, what steps would you take to develop a
healthy organization?
Answers will vary. Students should consider the characteristics of a healthy
organization.
HR management is designing the formal systems used to manage people. This yields seven
interlocking functions that are influenced by eight external forces—global, environmental,
geographic, political, social, legal, economic, and technological forces.
Teaching Tip: Use Figure 1-4 to help students visualize the relationship between HR functions
and the external factors that affect them.
As shown in Figure 1-4, the set of seven HR functions include (1) HR strategy and
planning, (2) equal employment opportunity, (3) staffing, (4) talent management, (5)
rewards, (6) risk management and worker protection, and (7) employee and labor relations.
Teaching Tip: Explain that each of the seven HR functions is covered in the major sections of the
book.
1-4. Roles for Human Resource Departments
HR can play three different roles: administrative, operational and employee advocate, and
strategic.
Teaching Tip: Use Figure 1-5 to explain that the strategic role has been growing over time and it
will continue to become more important in HR departments of the future.
1-4a. Administrative Role for Human Resource
The administrative role involves processing and keeping information.
Two major shifts include the greater use of technology and outsourcing.
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© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 1: Human Resource Management in Organizations
1-4b. Operational and Employee Advocate Role for Human Resources
HR has been viewed as an employee advocate because it balances the needs of the
employees and the organization.
Operational requires cooperation between HR and various managers.
1-4c. Strategic Role for Human Resources
HR is involved in devising and implementing strategy. A broad business focus
helps companies reach their strategic goals.
1-5. Human Resources Management Challenges
HR challenges change as the company and the environment change.
1-5a. Competition, Cost Pressures, and Restructuring
Organizations want to operate in a “cost-less” mode, which means continually
looking for ways to reduce costs of all types.
Some occupations are more in demand than others. Over time, the number of jobs
changes in specific areas. Figure 1-6 lists occupations that are expected to
experience the greatest growth in percentage and numbers by 2022.
Discussion Starter: Survey the students in the class to determine the most popular industries.
Compare the results to the industries represented by the occupations in Figure 1-6.
Skill shortages exist in specific industries and locations.
1-5b. Globalization
The integration of global operations, management, and strategic alliances has
significantly affected HR management. An expatriate is a citizen of one country
who is working in a second country and employed by an organization
headquartered in the first country.
Wages for the same job differ greatly from country to country, as shown in Figure
1-7.
Teaching Tip: Wages for the same type of job differ greatly within the same country, between
industries, and between companies in the same geographic area as well. Ask students to identify
where they think differences exist.
Legal and political factors also affect the amount paid for a job.
A common set of challenges for global companies includes strategy, people,
complexity, and risk.
1-5c. A Changing Workforce
The U.S. workforce is more diverse racially and ethnically, has more women in it
than ever before, and has older workers.
1-5d. Human Resources and Technology
Technology has affected HR tasks in many ways. Data management, mobile
devices, and social media have had the most effect on HR.
Discussion Starter: Discuss how information released to the public can affect a company’s
actions. For example, an employee’s comment to a group of friends is released on social media and
results in the termination of the individual’s employment.
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© 2017 Cengage Learning . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
