Use this constant contact with people to solve problems, reach decisions, and prevent future difficulties. Smaller organizations usually have no HR unit, so the operating managers have many HRM responsibilities, such as: Scheduling work Recruitment and selection Compensating people As the organization increases in size, the operating manager's work is divided up, and some of it becomes specialized. HR specialists are employed in organizations with about 100 to 150employees An HR department is typically created when the number of employees reaches 200 to 500, depending on the nature of the organization
Chapter 02 - A Strategic Management Approach to Human Resource Management 2-41 Outsourcing The outsourcing of HRM activities is growing in popularity because of: Downsizing Rapid growth or decline of business Globalization Increased competition Restructuring Some executives assume that outsourcing can: Reduce costs Improve flexibility Permit the hiring of specialized expertise The choice to outsource some, all, or none of the HRM activities is being made with little empirical support. The Interaction of Operating and HR Managers With both operating managers and HR specialists making HRM decisions, there can be conflict. They sometimes differ on who has authority for what decisions They also have different orientations (line andstaff),which have different objectives. A staffperson supports primary functions, such as marketing and production by providing advice, counsel, and information. Line managers have the authority to make final decisions concerning their operations Members of the HR unit have much to say about various programs and activities The conflict between HR employees and operating managers is most pressing when there must be joint decisions on such issues as: Discipline Physical working conditions Termination Transfer Promotion Employment planning
Chapter 02 - A Strategic Management Approach to Human Resource Management 2-42 Operating managers and HR specialists also differ on: How much authority employees should have over job design Labor relations Organizational planning Rewards, such as bonuses and promotions Sweeping changes in business, globalization, technology, and demography have changed the roles of HRM and operating managers. Line managers now have greater responsibilities, managing more people and/or bigger projects. In the past, line managers were masters of routine. Now they must be masters of change. Research shows that people don't leave companies, they leave managers. HRM can help managers do a better job There is still tension and conflict between some HRM units and operating managers. HRM is often viewed as a company policeman It is also seen as inflexible and over-attentive to detail HRM specialists and departments are encouraged to: Analyze every activity and prove its added value Understand the business in order to become a strategic partner with line managers Seek out operating managers Help managers avoid problems
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