Human Resource Management:
functions, applications, and skill development
Robert N. Lussier & John R. Hendon
PART I - 21ST CENTURY HUMAN RESOURCE MANAGEMENT STRATEGIC PLANNING
AND LEGAL ISSUES
Chapter 1 - The New Human Resource Management Process
Human resources (HR); the people within an organization.
- Human resources are one of the primary means of creating a competitive advantage for
organizations, because management of human resources affects company performance.
- Most companies of comparable size and scope within the same industry generally have
access to the same materials and facilities-based resources that any other organization
within the industry may have. Therefore, it is difficult to create a competitive advantage
based on material, facility, or other tangible or economic resources.
- If organizations can manage its human resources more successfully than its competitors
do, if it can get its employees involved in working toward the day-to-day success of the
organization, and if it can get them to stay with the organization, then it has a much
greater chance of being successful.
→ Successful is defined as being more productive and more profitable than the
competition.
Employee engagement is a combination of job satisfaction, ability, and a willingness to perform for the
organization at a high level and over an extended period of time.
- A 2009 study showed that companies with high levels of satisfaction and engagement
outperformed those with less engaged employees in return on investment (ROI), operating
income, growth rate, and long-term company valuation.
- Engaged employees are those who understand what they need to do to add value to the
organization and are satisfied enough with the organization and their roles within it to be willing to
do whatever is necessary to operate successfully within an organization and compete
productively.
HRM PAST EN PRESENT
Management of the organization’s human resources has changed more in the past 15-20 years than in
the entire history of organized companies.
HRM in the past
Around the mid-1970s, human resource manager (or personnel manager) was considered an easy
management job.
- Personnel managers were expected to be only paper pushes who would keep all of the personnel
files straight. They had very little to do with the management of the organization’s business
processes.
- Most HR departments provided limited services to the organization - keeping track of job
applicants, maintaining employee paperwork, and filing annual performance resources.
- The HR department was considered to be a cost center.
→ HRM departments are not able to generate revenue directly because of their tasking
within the organization, but they can generate significant revenue and profit in an indirect
fashion.
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