Chapter01

Topics: Human resources, Human resource management Pages: 63 (13231 words) Published: October 12, 2015
Confirming Pages

c hap t e r

1

Managing Human Resources

What Do I Need to Know?

Introduction

After reading this chapter, you should
be able to:
LO1

LO2
LO3
LO4
LO5
LO6

Imagine trying to run a business where you have to
replace every employee two or three times a year.
Define human resource management,
If that sounds chaotic, you can sympathize with the
and explain how HRM contributes to an
challenge facing Rob Cecere when he took the job
organization’s performance.
of regional manager for a group of eight Domino’s
Identify the responsibilities of human resource
Pizza stores in New Jersey. In Cecere’s region,
departments.
store managers were quitting after a few months
Summarize the types of skills needed for human
on the job. The lack of consistent leadership at
resource management.
the store level contributed to employee turnover
Explain the role of supervisors in human
resource management.
rates of up to 300 percent a year (one position
Discuss ethical issues in human resource
being filled three times in a year). In other words,
management.
new managers constantly had to find, hire, and
Describe typical careers in human resource
train new workers—and rely on inexperienced
management.
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 former chief executive, David Brandon, took charge, he was shocked by the high employee turnover (then 158 percent nationwide), and he made 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

1

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Rev. Confirming Pages

2 CHAPTER 1

Managing Human Resources

Figure 1.1
Human Resource Management Practices

Human Resource
Management (HRM)
The policies, practices,
and systems that
influence employees’
behavior, attitudes, and
performance.

LO1 Define human
resource management,
and explain how
HRM contributes
to an organization’s
performance.

Employee
relations

Performance
management

Compensation

Training and
development

Selection

Recruiting

HR
planning

Analysis and
design of work

Strategic HRM

Company
Performance

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 that should support the organization’s business strategy: analyzing work and designing jobs, determining how many employees with specific knowledge and skills are needed (human resource planning), 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), and creating a positive work environment (employee relations). An organization performs best when all of these practices are managed well. At companies with effective HRM,...
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