Chapter 14 - Managing Human Resources
The Strategic Role of Human Resource Management
Human Resource Management refers to the design and application of formal systems in an
organization to ensure the effective and efficient use of human talent to accomplish
organizational goals. HRM strategies outline the organization’s people objectives and must
be an integrated part of its overall business strategy. HRM recognizes 3 key elements. First,
all managers are human resources managers. Second, employees are viewed as assets.
Third, HRM is a matching process, integrating the organization's strategy and goals with the
correct approach to managing the firm’s human capital. Current strategic issues include
hiring and retaining the right people with the following competencies:
1. Becoming more competitive on a global basis.
2. Improving quality, innovating and customer service
3. Applying new information technologies for e-business
Just as HRM must support the organization's overall aims and objectives, it must maintain
and reinforce the organization's culture and core values. The culture represents the values,
beliefs, assumptions, and symbols that define how the organization conducts its business.
The Influence of Globalization on HRM
International Human Resource Management (IHRM) specifically addresses the added
complexity that results from coordinating and managing diverse people on a global scale.
IHRM managers need a high degree of cultural sensitivity and the ability to tailor and
communicate policies and practices to different cultures. Each subsidiary of the MNC is
faced with the task of establishing and maintaining both external legitimacy in its host
environment and internal legitimacy within the MNC. MNCs do not necessarily adapt to the
local environments, but rather, manage their legitimacy through negotiation processes with
their multiple environments.
Maintaining an Effective Workforce
Maintenance of the current workforce involves motivation, job design, and occasional
terminations. Motivation refers to the forces either within or external to a person that arouse
enthusiasm and persistence to pursue a certain course of action. Employee motivation
affects productivity, and part of a manager’s job is to channel motivation towards the
accomplishment of organizational goals. The contemporary approach to employee
motivation is dominated by three types of theories, the content theories, which stress the
analysis of underlying human needs. The process theories focus on how people seek
rewards in work circumstances. The reinforcement theories focus on employee learning of
desired work behaviors.
Content Perspectives on Motivation
Content theories emphasize the needs that motivate people. People have basic needs such
as those for monetary rewards, achievement, and recognition. These needs translate into an
internal drive that motivates specific behaviors in an attempt to fulfill the needs.
Heirarchy of needs theory
The Strategic Role of Human Resource Management
Human Resource Management refers to the design and application of formal systems in an
organization to ensure the effective and efficient use of human talent to accomplish
organizational goals. HRM strategies outline the organization’s people objectives and must
be an integrated part of its overall business strategy. HRM recognizes 3 key elements. First,
all managers are human resources managers. Second, employees are viewed as assets.
Third, HRM is a matching process, integrating the organization's strategy and goals with the
correct approach to managing the firm’s human capital. Current strategic issues include
hiring and retaining the right people with the following competencies:
1. Becoming more competitive on a global basis.
2. Improving quality, innovating and customer service
3. Applying new information technologies for e-business
Just as HRM must support the organization's overall aims and objectives, it must maintain
and reinforce the organization's culture and core values. The culture represents the values,
beliefs, assumptions, and symbols that define how the organization conducts its business.
The Influence of Globalization on HRM
International Human Resource Management (IHRM) specifically addresses the added
complexity that results from coordinating and managing diverse people on a global scale.
IHRM managers need a high degree of cultural sensitivity and the ability to tailor and
communicate policies and practices to different cultures. Each subsidiary of the MNC is
faced with the task of establishing and maintaining both external legitimacy in its host
environment and internal legitimacy within the MNC. MNCs do not necessarily adapt to the
local environments, but rather, manage their legitimacy through negotiation processes with
their multiple environments.
Maintaining an Effective Workforce
Maintenance of the current workforce involves motivation, job design, and occasional
terminations. Motivation refers to the forces either within or external to a person that arouse
enthusiasm and persistence to pursue a certain course of action. Employee motivation
affects productivity, and part of a manager’s job is to channel motivation towards the
accomplishment of organizational goals. The contemporary approach to employee
motivation is dominated by three types of theories, the content theories, which stress the
analysis of underlying human needs. The process theories focus on how people seek
rewards in work circumstances. The reinforcement theories focus on employee learning of
desired work behaviors.
Content Perspectives on Motivation
Content theories emphasize the needs that motivate people. People have basic needs such
as those for monetary rewards, achievement, and recognition. These needs translate into an
internal drive that motivates specific behaviors in an attempt to fulfill the needs.
Heirarchy of needs theory
