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McGraw-Hill/IrwinCopyright?2010byTheMcGraw-HillCompanies,Inc.Allrightsreserved.Chapter2AStrategicManagementApproachtoHumanResourceManagementTakingaStrategicHRMApproachHRMstrategiesGreaterfocusonstrategicthinkingandprocessesMakeHRmanagementatoppriorityIntegrateHRMwiththecompany’soverallstrategy,mission,andgoalsBeincludedinstrategicplanningfromtheonsetDeterminewhatmustbedonetoachievepriorityobjectivesStrategicPlansThreetofiveyeartimelineAnnualmonitoring&modificationFitbetweenorgstrategy&HRMpolicies/programsRecruitment,selection,

outsourcing,telecommuting,

performanceevaluation,compensationAModeltoOrganizeHRMADRMGoalsofARDM:sociallyresponsible,ethicalpracticesAcquiringDevelopingRewardingMaintaining

&ProtectingAModeltoOrganizeHRMExternal

InfluencesInternalInfluencesGovernmentrequirements,regulations,lawsTheunionEconomicsCompetitivenessLaborforcecompositionLocationStrategyGoalsOrganizationalcultureNatureofthetaskWorkgroupLeader’sstyleandexperienceAModeltoOrganizeHRMMatchingpeopleandactivitiesiseasiertoaccomplishwithadiagnosticapproachEmployeesarethebestqualifiedTheyperformjobsthatsuit

theirneeds,skills,abilitiesSuccessofanyHRMactivityTakingaDiagnosticApproachtoHRMTheARDMmodelhasfourspecificstepsDiagnosisImplementationPrescriptionEvaluationTakingaDiagnosticApproachtoHRM=Sociallyresponsible,ethicalbehaviorsCompetitive,high-qualityproducts

andservicesFocuson

ADRM+EnvironmentAvailableresourcesHRMEnvironmentalInfluencesGuidelinesThelabor

forceEconomic

conditionsUnionprocedures,

requirementsGovernment

laws,regulationsCompetenciesInternalInfluencesExternalInfluencesHRMisOneFunctionAmongManyProductionFinanceAccountingMarketingR&DHRMGovernmentLawandRegulationsGovernmentregulationdirectlyaffects:RecruitingSelectionEvaluationPromotionGovernmentLawandRegulationsEEO&HRrightslegislationindirectlyaffects:EmploymentplanningOrientationCareerplanningTrainingEmployeedevelopmentGovernmentLawandRegulationsOtherareasoflegislationandregulationEmploymentofillegalaliens

Discriminationbasedonsex,age,disability

Compensationregulation

Benefitsregulation

Workers'compensationandsafetylaws

Laborrelationslawsandregulations

Privacylaws

GovernmentLawandRegulationsGovernmentregulationhasincreasedsubstantiallyIn1940,theU.S.Dept.ofLaboradministered18regulatoryprogramsIn2004,itadministeredmorethan135AndthatisjustonegovernmentagencyGovernmentLawandRegulationsEncouragessimplisticthinkingoncomplicatedissuesComplexityleadstoslowdecisionmakingLeadstocomplicatedlegalmaneuveringManyregulationsareoutdated,withlittlepurposeOverlap,contradictionamongregulatoryagenciesGovernmentregulationimpactsamanager’sjobTheUnionUnion

ImpactsWorking

conditionsWork

hoursGrievance

processesEmployee

rightsFringe

benefitsWagesand

salariesTheUnionUnionsarenolongerconcentratedinafewsectorsThefastest-growingsectorsarethe

publicsectorandthethirdsectorUnionizedemployeesarenolongerjustblue-collarfactoryworkersEconomicConditionsTwoeconomicfactorsaffectHRMprograms:

ProductivityTheworksectoroftheorganizationProductivityis:Abigpartofanation'seconomiccondition

Representativeofanorganization’soverallefficiency

Theoutputofgoodsandservicesperunitofinput(resources)usedinaproductionprocess

EconomicConditionsDetermine

outputcostsIsolatetheoutputsComparecurrent&previousyearMeasuring

productivityProductivitymeasuresarecrudeandsubjecttoshort-termerror,butovertimecanshowatrendEconomicConditionsSuggestedSolutionsforIncreasingProductivityPotential

NegativeImpactsOthersAirpollutionRadiationToxicwasteReducegovernmentcontrolsDevelopfavorableincometaxincentivesReindustrializeEconomicConditionsInfluenceproductivitythroughsoundHRMprogramsDiagnose,prescribe,implement,evaluateRecruitmentandselectionMotivationaltechniquesCompensationTraininganddevelopmentTheWorkSectorofHRMPrivateSector60%Profit-orientedbusinessesPublicSector30%GovernmentThirdSector10%Museums,socialclubs,orchestras,schools,churchesCompetitivenessOrganizationalcompetitiveness…substituteorganizationfornation,andemployeesforcitizensThedegreetowhichanationcan,underfreeandfairmarketconditions,producegoodsandservicesthatmeetthetestofinternationalmarkets

whilesimultaneouslymaintainingorexpandingtherealincomes

ofitscitizensOrganizationalCompetitivenessHoweffectivelydoweproducetheproduct?Howgoodareourservicesorgoods?Canworkershandlenewtechnology?Cantheproductioncostsbelowered?Dowehaveenoughworkersforglobal

productionlevels?Willworkingharderandfasterincrease

turnover,absenteeism,anddefects?CompetitivenessDealingeffectivelywithemployees,customers,suppliers,competitorsHavingasuperiormarketplacepositionrelativetocompetitorsHowHRMactivitiesareimplementedandmodified

canprovidetheseadvantagesCompetitive

AdvantageSustainableCompetitiveAdvantageCompetitivenessActivitiesthatenhance/sustaincompetitiveadvantageEmploymentsecuritySelectiverecruitingHighwagesIncentivepayEmployeeownershipInformationsharingParticipation,empowermentTeamsandjobredesignTraining(skilldevelopment)SymbolicegalitarianismPromotionfromwithinMeasurementofpracticesCross-utilization,cross-trainingWagecompressionLong-termperspectiveOverarchingphilosophyCompetitivenessCompetitorscanadoptand/orimproveonsuccessfulHRMactivities

AfirmwithfairandequitabletreatmentofhumanresourcesislesssusceptibletolosingitscompetitiveadvantageAfewHRMactivitiescanbecopied,butimitationofanentirecultureandsystemofHRMisdifficultComposition&DiversityofLaborForce

In2004,146+millionAmericans

wereintheworkforceNotinthemilitaryEmployedoractivelyseekingwork16yearsorolderWomenintheWorkforceIn2007,about48%ofU.S.workforcewasfemaleA280%increasesince1947TheystillfaceworkplacediscriminationMosthaveprofessionaljobsMinoritiesintheWorkforceThemostrecentimmigrantgroups

takethelowest-leveljobsFewHispanics,African-Americans,orNativeAmericanshavehigh-status,high-payingjobsMinoritieslivedintheU.S.

longbeforeimmigrantsarrivedThesituationforracialðnicminorities

issimilartothatforwomenFactsAboutOlderEmployeesWorkers45+haveno

moreaccidentsthanyoungeronesUntilage55,absenteeism

ratesarethesameorlowerOlderemployeesarejustaseffective

asyoungeronesInsurancepremiumsarehigher,

makingthemmorecostlytoemployWithagingcomesaloss

ofsomefacultiesEmploymentProjectionDentalhygienistsSoftwareengineers,applicationsPhysicaltherapistassistantsPhysicianassistantsNetworksystems/datacommunicationsanalystsHomehealthaidesFastestGrowingOccupations2004-2014GeographicLocationofOrganizationThelocationoftheorganization

impactshiringpracticesand

HRMactivitiesRuralversusurbanInternationalversuslocalEducationBehaviorLegal-politicalfactorsEconomicsInter-culturaltrainingInternalInfluencesonHRMProgramsCorporatestrategyCorporategoalsCompanyCultureThenatureofthetasksWorkgroupsLeaderstyle/experienceStrategyWhatkeyexecutiveshopetoaccomplishinthelongrunConcernedwithcompetitionandaligningtheresourcesofthefirmLong-termsuccesslinkedtohelpingemployeesachieve

work-lifebalanceGoalsEffectivenessproblemsIfprofitstakeprecedence,HRMgoalsreceivelittleattentionMostdepartmentshave

similargoalsDifferencesarisefromtheimportanceplacedongoalsGoalsdifferwithinandamongdepartmentsGoalsDiversityreferstoanymixtureofthemescharacterizedbydifferencesandsimilarities

Diversityinorganizationsmeansfocusingonthecollectivepictureofdifferencesandsimilarities

GoalsWisconsinPowerandLight’sapproachtodiversitytrainingFormadiversitysteeringteamCreateadiversitytrainingteamSelecttrainingprojectmanagerCompleteculturalauditDesigntrainingprogramImplementandevaluatethetrainingOrganizationalCultureHowemployeesand

customersaretreatedHowbusiness

isconductedDegreeofloyalty

expressedbyemployeesAutonomyorfreedomin

departmentsorofficesSystemofshared

meaningheldby

organizationmembersOrganizationCultureImpactsexpectationsNoone“best”cultureProvidesbenchmarkforperformancestandardsImpactsbehavior,productivityPerceptionsofcultureheldbyemployeesNatureoftheTaskHRMistheeffectivematchingof

thenatureofthetask(job)

withthenatureoftheemployee

JobFactorsthatAttract/RepelWorkersEnvironmental

pleasantnessJobdesignPhysical

locationTaskidentityTaskvarietyTimedimensionHuman

interactionDegreeof

empowermentPhysical

exertionDegreeof

knowledgePhysical

exertionWorkGroupConsiderthemselvesagroupWorkinter-dependentlyInteractcontinuouslyOftenworknexttoeachotherTwoormorepeopleEffectiveWorkGroupsEffectiveWorkGroupsFullmemberparticipationClearlydefinedgoalsAdequateresourcesMembersfurnishsuggestionsleadingtogoalachievementStablemembershipSupportsorganizationgoalsFewinnumber(7to14)WorkcloselytogetherHavesimilarbackgroundsDependonthegroupto

satisfytheirneedsSupportmanagementFunctionasateamEffectiveGroupMembersWorkGroupChangingagroup’snormsandbehaviorManager’sleadershipRewardsanddisciplineMembertransfersLeader’sStyleandExperienceTheexperience/leadershipstyleoftheoperatingmanagerdirectlyaffectsHRMactivitiesOrchestratingtheskills,experiences,

personalities,andmotivesofindividualsFacilitatinginteractionwithinworkgroupsProvidingdirection,encouragement,and

authoritytoevokedesiredbehaviorsReinforcingdesirablebehaviorStrategicHRM:AKeytoSuccessStrategic(longterm)RewardsManagerial(mediumterm)Operational(shortterm)HRMStrategyLevelsAppraisalsDevelopmentEmployeeselection/placementHRMActivitiesStrategicHRM:AKeytoSuccessStrategicHRMplanningLeadstogrowth,profits,

businesssurvivalExpandsawarenessofpossibilities

Identifiesstrengthsandweaknesses

Revealsopportunities

Pointstotheneedtoevaluatethe

impactofinternalandexternalforces

StrategicHRM:AKeytoSuccessMatchingStrategicplansEmployeecharacteristicsCompetitiveproductsandservicesHRMactivities=StrategicHRMInvolvedinallaspectsoforganization’soperationMakeseverydaycontributionsComprehensiveprogramsAdaptivetoorganization’scultureResponsivetoemployeeneedsOptimizesemployeeskills,talents,creativityResponsivetoglobalchallengesStrategicHRM:AKeytoSuccessGlobalmarketconnectionGrowingknowledgeneedsShiftinhumancompetenciesQuickerinnovationBusinessstreamliningRapidresponseTechnologyTrendsQualityimprovementIndustrialrevolutionBuildingaCooperativeWorkforceAlmosthalftheworkforceisfemaleSlowergrowthinnumberofCaucasianworkersWhitemalesnolongerdominateworkforceBabyboomersarestayinginworkforcelongerChangesinU.S.WorkforceGenXisvyingwithBoomersforjobsMoreHispanic,Asian,olderworkersBuildingaCooperativeWorkforceMoreemphasison…ChildandeldercareDiversityunderstanding,trainingFair,ethical,promptissuehandlingRecruiting/developingskilledlaborRestructuringandDownsizingHalfofdownsizedfirmsendupwithasmanyworkersDownsizinginmanufacturingisnotnewPositivelycorrelatedtoforeigncompetitionEncouragesfirmstoreducetheircostsProfitsincreaseintheshort-run,butnotproductivityLeadstolowercompensation/wageswithinthefirmFactsAboutDownsizingRestructuringandDownsizingRestructuringChangingthereportingandauthorityrelationshipswithin

afirmDownsizingAreductioninacompany’sworkforceCanresultin

stress-related

healthproblemsContingentWorkersTemporaryParttimeContractLeasedHighestgrowthrate…h(huán)omehealthcare;medicalassistants;computerhardware,datacommunication,andsoftwarePeople&theHRMDiagnosticFrameworkAbilitiesAttitudes,preferencesStylesIntellectualcapacitiesWayofdoingjobsAbilitiesofEmployeesAbilities/SkillsMechanicalMotorcoordinationMentalCreativeAbilitiesresultingfromgeneticfactorscanrarely

bechangedEmployeeAttitudesandPreferencesPreferenceEvaluatinganobject,idea,orpersoninapositiveornegativewayAttitudeCharacteristic,long-lastingwayofthinking,feeling,andbehavingObject,idea,person,orgroupWorkTheamountofenergydirectedtowardworkisdirectlylinkedtotheamountdirectedtofamily,interpersonalrelations,andrecreationAllowsexpressionofbothaggressiveand

pleasure-seekingdrivesOffersjustificationforexistenceAwaytochannelenergyProvidesincomeAwaytoachieveself-esteem,self-worthMotivationAsetofattitudesthatpredisposesapersontoactinaspecific,goal-direct

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