Human Resource Management

Chapter One:

Human Resource Management

Presented by
Mohamed Mahad Isse

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Human Resource Management

Department: Commerce + Community

Course name: HRM

Class level: Semester Five , Six

Lecturer: M. Mahad

Duration: 16 weeks

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Course objectives:

• Explain the strategic role of the HR system plays in an

organization,
• Explain each function of the HR system (e.g.
Organization and Classification, Staffing, HRP and

• Performance Review, Labor Relations, etc.)

• Explain how each function can be aligned to the Mission
and business strategy within organization.

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Objectives

• Understand the rights and responsibilities of the employer

and the employee in the organization.
• Explain the ways in which proactive organizations
recognize diversity at work.
• Understand the complexity of HRM issues and be able to
critically analyze them

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Course outline:

Chapter one: Introduction to Human Resource MGt

Chapter two: Job analysis and Job design
Chapter three: HR planning, Recruitment and Selection
Chapter four: Training and Development

Chapter five: Performance Appraisal

Chapter Six: Career Development
Chapter Seven: Employees Compensation and
Motivation Management
Chapter Eight: Promotion policies

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Course Duration:

 This course assigned to study with 4 months consecutive

relatively 16 weeks through two class per week.
 Total required credit hours is 48 hours which means 3
hour s per week.

 Every Monday two class, one class on Tuesday at

afternoon shift, 12 hours per month, 48 hours for all the
semester.
 Examination week is not included the above mentioned
time schedule.

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Methods of teaching

 Multimedia presentation
 Traditional class room teaching

 Open group discussion

 Practical Internship courses

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Course References

 Hard copy references

- Human Resource Management 11 edition

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Lecturer Evaluation

Required tasks Allocated credit marks

Attendance 5%
Quizzes 5%
Course project 15%
Midterm examination 15%
Final examination paper 60%
Total marks 100%

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Work session

• Firstly, the students have to choice a team (7-9 students).

• This work is practical and it’s necessary to go within local
organization’s HR Department.
• The team has to write a report (15-20 pages, 1 ½ spacing
without annexes).

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Cont’ed:

• The core of report is the analysis of job and the relations

with every sector of human resource department
- (analyzing job,
- planning,
- recruitment, selection,
- interviewing
- appraisal and etc
• Every team will present their work in class by power point
presentation.

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Further reading

• Every day, it’s possible to find a lot of interesting articles

about HRM. In Montreal, there are a lot of sources of
information.
 Review Fortune
 Business Week
 Wall Street Journal
 Harvard Business review
 Financial times

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Introduction

Introduction to
,
Human Resource Management

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Introduction

• The term “Human resource management" has been

commonly used for about the last
• 30 to 20 years. Prior to that, the field was generally
known as "personnel administration." The name change
is not merely cosmetics.

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Cont’ed:

• Human resource management (HRM), also called

personnel management, consists of all the activities
• undertaken by an enterprise to ensure the effective
utilization of employees toward the attainment of
individual, group, and organizational goals

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Introduction to HRM.

 The modern society the greatest accomplishment of the

last twenty one century, and most significant

 achievement that may have succeed its based on-

Human resource competencies with in organization.

 Organization are the most inventive social arrangement of

our age and our civilization as whole.

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Conte’d:

 People are the common element in every organization,

they create the innovation for which organizations are
noted.

 People are the most valuable asset in every

organization not like other assets, land, material and
capital.

 In addition HR are those are produce a nation’s valued

products and services.

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Conte’d:

 And these valued outputs determine society’s wellbeing

and its standard of living.

 Consider the first of many examples that highlights the

important of human resource management.

 There is a caroms called by (6 P,P,P,P,P,P)

people, Product, Price, promotion, place, progress
thus people are the most valuable asset of every
organizations.

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Organizational Resource

 Human resource
 Physical resource
 Financial resource

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HRM

 Human
- is the most valuable asset with in every organization
 Resource
- it is something in your environment that you can use to
survive eg physical resource, natural resource, HR etc.
 Management
– Is a process of planning, organizing, staffing, leading,
and controlling.

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A Changing HR Environment

• Globalization (expatriate EE – BIG $)

• Technological Advances (job searches, background

checks, etc)

• Exporting (importing) Jobs (serious issue)

• The Nature of Work ( cost of human capital,)

• Workforce Demographics (diversity, people retire later,

more women in the workplace, flexible work hours, etc)

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. 1–
Historical Development

• The Late 15th Century

• Scientific Management
• Human Relations Movement.
• The First World War

• Between the wars

• The Second World War
• The job War Years

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Conte’d

• Human resource management has changed in name

various times throughout history.
• The name change was mainly due to the change in social
and economic activities throughout history.
1) Industrial Welfare
2) Recruitment and Selection era
3) Industrial Relations
4) Legislation
5) Flexibility and Diversity
6) Information Technology

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Industrial Welfare

• Industrial welfare was the first form of human resource

management (HRM).
• In 1833 the factories act stated that there should be male
factory inspectors.
• In 1878 legislation was passed to regulate the hours of
work for children and women by having a 60 hour week.
• During this time trade unions started to be formed.

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Example: Conditions of employment

• It shall be unlawful to employ any person in any industry

or occupation within the state of USA under conditions of
labor detrimental to their health;
• and it shall be unlawful to employ workers in any industry
within the USA at wages which are not adequate for their
maintenance

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Recruitment and Selection

• It all started when Mary Wood was asked to start

engaging girls during the 1st world war.
• In the 1st world war personnel development
increased due to government initiatives to encourage

• the best use of people. Especially armed forces ability

• In 1916 it became compulsory to have a welfare worker in
explosive factories and was encouraged in munitions
factories.

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Industrial Relations

• Consultation between management and the workforce

spread during the war.
• The personnel manager had the authority to negotiate
deals about pay and other collective issues.

• Health and safety and the need for specialists became

the focus.
• In the 1970's industrial relations was very important.

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Legislation

• In 1868 the 1st trade union conference was held. This

was the start of collective bargaining.
• In the 1970's employment legislation increased and the

• personnel function took the role of the specialist

• In 1913 the number of industrial welfare workers had
grown so a conference organized by Seebohm Rowntree
was held.

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Flexibility and Diversity

• In the 1990's a major trend emerged where employers

were seeking increasing flexible arrangements
• in the hours worked by employees due to an increase in
number of part- time and temporary contracts

• and the invention of distance working.

• In the year 2000, growth in the use of internet meant a
move to a 24/7 society.

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Information Technology

• Some systems where IT helps HRM are: Systems for e-

recruitment; On-line short-listing of applicants;
• Developing training strategies on-line; Psychometric
training; Payroll systems; Employment data;
• Recruitment administration; References; Pre-employment
checks.
• IT helps HR managers offload routine tasks which will
give them more time in solving complex tasks.

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 Historical Development in HRM
No Details
,
1890- 1910 Frederick Taylor develops his ideas on
scientific management. Taylor advocates
selection of workers based on qualifications

1910-1930 Many companies establish departments devoted to

maintaining the welfare of workers.
Research and scientific innovation based
1930-1945 personnel behavior

1945-1985 The civil right movement and legislation

which prohibits discrimination on the basis of race,
color, sex, religion, and national origin. And equal
employment opportunity.

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HRM Definition:

HRM Definition:
The policies and practices involved in carrying out the
“people” or human resource aspects of a management
position, including recruiting, screening, training, rewarding,
and appraising.

 HR creates value by engaging in activities that produce the

employee behaviors that the company needs to achieve its
strategic goals.

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Definition

C. megison:
• HRM is the total knowledge, skills, creative abilities,
talents, and aptitudes, of organizations. workforce as well
as the values attitudes and beliefs of the individuals
involved within organization.

• HRM also defined as art of procuring, developing, and

maintaining, competent workforce to achieve goals of
organizations in an effective and efficient manner

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Human Capital

• Human Capital
• employees are the most and greatest valuable asset
of every organization and the ability to attract and retain
them is the key driver of our future success.

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Case study 1

 During the early 1980s, the General Motors automobile

assembly plant in Fremont, California, was closed.
 At that time the daily absentee rate was about 20 percent
and employees turn over was more than 20% a year.

 About 5000 outstanding union grievance remained

unresolved between the company and its 5000
employees.
 And unexpected “wildcat” strikes interrupted production
which was about 24000 cars per year.

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Conte’d:

 By the mid-1980s, GM formed a joint venture with Toyota

Motor Corporation, called the New united Motor
Manufacturing, GM’s primarily contribution was the closed
Fremont plant.

 Toyota also contributed its management and HRM skills.

Within eighteen months the production become a
different.

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Conte’d:

 Adding little new technology, NUMM’s Japanese set up a

typical Toyota production system, with a flexible assembly
line run by teams of workers in charge of their own jobs.

 They hired back most of the former United Auto workers

members who wanted to work even their military leaders.

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Conte’d:

 NUMM’s Makes a single auto while GM built several

models. But its 2500 employees can accumulate 240,000
cars a year, approximately

 equal to what it took 5000 or more people to produce

under GM its almost 48000 cars a year.

 There are only two grievances outstanding and

absenteeism is running under 2%.

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Conte’d:

 The result were achieved with most of the same people,

resources, materials, and equipments used by General
Motors.

 The main difference was the attention awareness,

treatment of the workers, training, incentives as well as
effective Human resource Management.

 In addition the benefits of High quality HRM exit in other

sectors of the country’s economy as whole.

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Next class

• Next class

• 2 Lecture

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Why HRM its important?

• Helping organization to reach its goals

• Efficiently employing the skills and activities of workforce
• Providing the organization with well-trained/motivated
personnel

• Increasing employee job satisfaction and potential (self-

actualization).
• Maintaining the organization's HRM policies to all
employees.

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Planning for Human Resources

• Determine Personnel Requirements

• Set Organization Structure
• Prepare Job Delegation
• Develop Personnel Policies:
- job descriptions,
- working conditions,
- holidays and leaves,
- remuneration and pay,
- employee benefits,
- grievance procedure
•

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The Hiring Process

Sources of Employees
- from within, other businesses,
- employee referrals,
- advertising,
- employment agencies,
- educational institutions
The Screening Process
 Application form, the employment interview, checking
references, test
 Notification of the Hiring Decision

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Conte’d:

•Employees productivity:

Productivity: Outputs Goods and Services

Inputs People, Capital, , Energy, MTR

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Figure

HRM
productivity

Input T. process Output

-Education. -HR activities -HR contribution
-Energy -Recruiting -Motivated worker
-Skills -Appraisal -Capable staff
-Other -Other
The purpose of MRM.

•HRM Purpose
the purpose of Human Resource Management is to improve
the productive contribution of the people to the organization.

this purpose guides the study and practice of HRM and it

describes what human resource managers do and what they
shall do.

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Objectives of HRM

• Management objectives Supporting Activities

 Social objectives: 1. legal compliance

2. required services
3. Union relations

 Org Objectives: 1. HR planning

2. Selection
3. Training and Development
4. Equipments

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Conte’d:

• Management objectives Supporting Activities

 Functional Objective: 1. Appraisal

2. Placement
3. Control activities

 Personal Objectives: 1. Promotion

2. Training and Development
3. Compensation, career success
4. Rewards

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Functions of management

 Planning,
 organizing,
 Directing and
 controlling

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HRM Operative functions:

 Employee development,
 compensation,
 motivation,
 training,
 rewarding,
 Promotion
 pay and reward
 employee relations.

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HRM Role

 Administrative role: policy makers, legal affairs,

administrative experts , financial policy , conflict
resolutions as well as the whole organizational policy

 Operational role: recruiter, trainer, coordinator, mediator.

 Strategic role: change agent translate vision statement

in to the meaningful format strategic partner- trainer
center, design center

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Qualities and qualification of HRM managers

 Personal attributes: initiatives, resourcefulness,

perception, maturity, analytical ability and understating
the human behavior.
 Skills: educational skills, human skills, executive skills,
and leadership skills.
 Experience and training: professional attributes
knowledge of various disciplines

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Who is responsible for HRM

 HRM professionals Line managers

 Senior HR Officers Supervisors

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HRM responsibilities

o Establish HR procedures
o Placing the right person on the right job
o Training employees for jobs that are new to them

o improving the job performance of each person.

o Gaining creative working conditions.
o Protecting employees’ health and physical condition.

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HRM Fundamentals or Functions:

 Recruitment and selection

 Interview and orientation
 Discrimination
 Discipline
 Training and development
 Promotion
 Rewards and motivation

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Figure 2

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Recruitment objectives

• Recruitment objectives:
 identifying suitable and pool of applicants
 timely
 cost efficient
 legally acceptable

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Selection objectives

• Selection objectives:
 Accurate hiring
 Cost effectiveness
 Right person
 Fair and legally
 Social responsibility

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Training and Development objectives

• T and D objectives
 Improves organizational performance
 Enhance the knowledge and skill levels of the employees
 Internal competition
 Promotion based staff qualification

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PM vs. HRM

Human Resource Management Personnel Management

,

 HRM is the latest development in Personnel management precedes

the evaluation of management HRM

 It gives more importance to the Performance is evaluated within

abilities of employees rather than the framework of rules
evaluating them as per rules

 It supports performance related  It supports fixed remuneration

remuneration

It practices division of work along It practices only division of work
with team work

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 Competence
 knowledge, skills, and abilities
 Motivation
 willingness to exert effort
 Work-related attitudes
 job satisfaction
 organizational commitment
 organizational citizenship
HRM Practices that Affect
Employee Competence

Recruitment

Selection

Employee
Training Competence

Performance Appraisal

Compensation
 HRM Practices that Affect Employee
Motivation

Selection

Promotion
Employee
Motivation

Productivity
Improvement
Programs
Organization-Centered Outcomes

• Output

• Retention

• Legal Compliance

• Company Reputation

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How Employee Outcomes Affect
Organization Outcomes

Employees with
Leads to organizations
• positive job attitudes with:
• who are competent quantity
• who are motivated
quality
Company reputation

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Human Resource Development policy

• HRD policy is a statement of an organization, which

provides a broad framework within organization.

• HRD policy is formulated by the HRD department under

the supervision of top management.

• HRD policy includes procedures, rules, code of

conducts and practices affecting human resources.
• And it can be used a long life policy within organization.

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Characteristics of today’s workforce

o Competition of Workforce
o Technological progress
o Agricultural sector
in to services sector

o Economic fluctuation
o Limited Education
o Absence of Unity
o Labour Turnover

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 Chapter summary

• Human Resource Management (HRM)

– The policies and practices involved in carrying out the

“people” or human resource aspects of a management

– position, including recruiting, screening, training,

rewarding, and appraising.

• The basic fundamentals of (HRM) as follows:

- The recruitment, selection, training, motivation, promotion

rewards, discipline and employee relations and etc.

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 Chapter summary

o Human resource management also defined as follows

is as art of procuring, developing, and maintaining, competent
workforce to achieve goals of organizations in an effective
and efficient manner.
•The Main HRM Purpose
is to improve the productive contribution of the people to the
organization. this purpose guides the study and practice of

HRM and it describes what human resource managers do

and what they shall do.

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The end chapter 1

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