Topics: Human resources, Human resource management, Management Pages: 50 (13742 words) Published: December 12, 2010


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What Do I Need to Know? After reading this chapter, you should be able to: 1. Define human resource management and explain how HRM contributes to an organization’s performance. 2. Identify the responsibilities of human resource departments. 3. Summarize the types of skills needed for human resource management. 4. Explain the role of supervisors in human resource management. 5. Discuss ethical issues in human resource management. 6. Describe typical careers in human resource management.

Imagine trying to run a business where you have to replace every employee two or three times a year. If that sounds chaotic, you can sympathize with the challenge facing Rob Cecere when he took the job of regional manager for a group of eight Domino’s Pizza stores in New Jersey. In Cecere’s region, store managers were quitting after a few months on the job. The lack of consistent leadership at the store level contributed to employee turnover rates of up to 300 percent a year (one position being filled three times in a year). In other words, new managers constantly had to find, hire, and train new workers—and rely on inexperienced people to keep customers happy. Not surprisingly, the stores in Cecere’s new territory were failing to meet sales goals. Cecere made it his top goal to build a stable team of store managers who in turn could retain employees at their stores. He held a meeting with the managers and talked about improving sales, explaining, “It’s got to start with people”: hiring good people and keeping them on board. He continues to coach his managers, helping them build sales and motivate their workers through training and patience. In doing so, he has the backing of Domino’s headquarters. When the company’s current chief executive, David Brandon, took charge in 1999, he was shocked by the high employee turnover (then 158 percent nationwide), and he made




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Managing Human Resources

Define human resource management and explain how HRM contributes to an organization’s performance. human resource management (HRM) The policies, practices, and systems that influence employees’ behavior, attitudes, and performance.

that problem his priority. Brandon doubts the pay rates are what keeps employees with any fast-food company; instead, he emphasizes careful hiring, extensive coaching, and opportunities to earn promotions. In the years since Brandon became CEO, employee turnover at Domino’s has fallen. And in New Jersey, Cecere is beginning to see results from his store managers as well.1 The challenges faced by Domino’s are important dimensions of human resource management (HRM), the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving “people practices.” Figure 1.1 emphasizes that there are several important HRM practices: analyzing work and designing jobs, attracting potential employees (recruiting), choosing employees (selection), teaching employees how to perform their jobs and preparing them for the future (training and development), evaluating their performance (performance management), rewarding employees (compensation), creating a positive work environment (employee relations), and supporting the organization’s strategy (HR planning and change management). An organization performs best when all of these practices are managed well. At companies with effective HRM, employees and customers tend to be more satisfied, and the companies tend to be more innovative, have greater productivity, and develop a more favorable reputation in the community.2 In this chapter, we introduce the scope of human resource management. We begin by discussing why human resource management is an essential element of an organization’s succcess. We then turn to the elements of managing human resources: the roles and...
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