HUMAN RESOURCE MANAGEMENT (HRM)

 DEFINITION
 HR SYSTEMS
 AIMS
 CHARACTERISTICS
 RESERVATIONS

BA 204
STRATEGIC HUMAN RESOURCE MANAGEMENT

BY: PILIPINA C. ALMAZAN

 I N I T IO N O F  Human Resource Management 
DE F (HRM or HR) is the strategic approach
H R M to the effective and efficient
management of people in a company
or organization such that they help
their business gain a competitive
advantage.

 Human Resource Management is the

organizational function that manages
all of the issues related to the people
in an organization.
 ST E MS
HR SY Human Resources Management
System (HRMS) or Human
Resources Information
System (HRIS) or Human Capital
Management (HCM) is a form
of human resources (HR) software
that combines a number of systems
and processes to ensure the easy
management of human resources,
business processes and data.
 FEATURES
R SYST E MS
H • HR Information Database - At
the heart of an HR system is the
employee information database.

• Payroll Systems - Having an HR

system allows an organization to
keep employee data integrated
with payroll data, which can be
very helpful when it comes to
making changes in pay,
scheduling, and keeping track of
employee hours.
 FEATURES
R SYST E MS
H • Employee Self-Service - May
allow employees to view and
make changes to their
information, submit time-off
requests, communicate with
peers and HR professionals, and
view their schedule information.
Self-service portals are often
accessible through any mobile
device, increasing convenience
and timeliness for employees and
managers.
 FEATURES
R SYST E MS
H • Performance Reviews  - When
performance management is
done using an HR system,
performance information is
collected on a continual basis.
Managers can tap into this
information directly from the
system without having to dig
through paperwork and even fill
out appraisal forms directly in the
system.
 FEATURES
R SYST E MS
H
• Benefits Administration  - This
feature walks employees through
enrollment, simplifying the steps and
explaining aspects of policies that
may be unclear.

• Recruiting and Onboarding

Options - HR systems let you post
job postings on social media and
company websites, simplify the
application process, filter applicants
by qualifications, and even transfer
information into employee files
when hiring decisions have been
made.
 BENEFITS
R SYST E MS
H
• Frees Up Time for the Human
Aspects of HR   - HR software
automates many mundane HR
tasks. This frees up HR hours,
allowing professionals to focus on
the human elements of HR.

• Improves Security of Sensitive

Information - HR systems
generally comes with encryption to
protect against outside invasions
and role access restrictions to
safeguard against internal HR
system threats.
 BENEFITS
YST E MS
HR S • Creates More Stringent
Hiring Practices - ATS (applicant
tracking system) functionality can
be used for background checks,
resume parsing, and screening, all
of which raise hiring standards.
All applicant information can be
filed and found in one place, so
notes about references,
interviews, and qualifications can
be viewed and compared with
ease.
 BENEFITS
SYST E MS
HR • Provides Actionable Insights
- Analytics and reporting provide
smart ways to use company data
to make timely and future
decisions. By reviewing previous
years and months of labor
statistics, turnover information,
and hiring data, your company
may be able to improve HR
operations.
 BENEFITS
SYST E MS
HR • Minimizes Compliance Risks -
HR software compiles information
pertinent to regulations
automatically and provides
insights on how to file required
reports. Most HR software is
updated regularly, so HR
professionals can stay up to date
and effortlessly manage
compliance requirements.
 F H R M
AIMS O • enable the organization to
obtain and retain the skilled,
committed and well-motivated
workforce it needs

• enhance and develop the

inherent capacities of people:
their contributions, potential
and employability, by providing
learning and continuous
development opportunities
 • develop high-performance work

F H R M systems that include “rigorous

AIMS O recruitment
procedures,
and selection
performance-
contingent incentive
compensation systems, and
management development and
training activities linked to the
needs of the business”

• develop high-commitment
management practices that
recognize that employees are
valued stakeholders in the
organization and help to
develop a climate of
cooperation and mutual trust’
 • create a climate in which

F H R M productive and harmonious

AIMS O relationships can be maintained

through partnerships between
management and employees

• develop an environment in
which teamwork and flexibility
can flourish

• help the organization to balance

and adapt to the needs of its
stakeholders (owners,
government bodies or trustees,
management, employees,
customers, suppliers and the
public at large)
 F H R M
AIMS O
• ensure that people are valued
and rewarded for what they do
and achieve

• manage a diverse workforce,

taking into account individual
and group differences in
employment needs, work style
and aspirations

• ensure that equal opportunities

are available to all
 F H R M
AIMS O • adopt an ethical approach to
managing employees that is
based on concern for people,
fairness and transparency

• maintain and improve the

physical and mental well-being
of employees.
 CHARACTERISTICS OF HRM
1. It is an art and a science - HRM is both the art of managing
people by recourse to creative and innovative approaches; it is
a science as well because of the precision and rigorous
application of theory that is required.

2. It is pervasive - Development of HRM covers all levels and all

categories of people, and management and operational staff.

3. It is a continuous process - It is a process as there are

number of functions to be performed in a series, beginning
with human resource planning to recruitment to selection, to
training to performance appraisal. It is continuous, because
HRM is a never-ending process.
 CHARACTERISTICS OF HRM
4. HRM is a service function - HRM is not a profit centre. It
serves all other functional departments. HRM is a staff function
– a facilitator.

5. HRM must be regulation-friendly - The HRM function has

to be discharged in a manner that legal dictates are not
violated.

6. Interdisciplinary and fast changing - It is encompassing

welfare, manpower, personnel management, and keeps close
association with employee and industrial relations. It is multi-
disciplinary activity utilizing knowledge and inputs from
psychology, sociology, economics, etc. It is changing itself in
accordance with the changing environment.
 CHARACTERISTICS OF HRM
7. Focus on results - HRM is performance oriented. It has its
focus on results, rather than on rules. It encourages people to
give their 100%.

8. People-centred - HRM is about people at work both as

individuals and a group. It tries to help employees to develop
their potential fully. It comprises people-related functions like
hiring, training and development, performance appraisal,
working environment, etc.

9. Human relations philosophy - HRM is a philosophy and the

basic assumption is that employees are human beings and not a
factor of production. HRM recognises individuality and individual
differences.
 CHARACTERISTICS OF HRM
10. An integrated concept - HRM in its scope includes
Personnel aspect, Welfare aspect and Industrial relations aspect
in itself. It is also integrated as it concern with not only
acquisition, but also development, utilisation, and maintenance.
 NS OF H RM
RES E RVAT I O
 HRM promises more than it can deliver
• Guest (1991) believes that HRM is an ‘optimistic but ambiguous
concept’; it is all hype and hope.

• Mabey et al (1998) follow this up by asserting that ‘the heralded

outcomes [of HRM] are almost without exception unrealistically
high’. To put the concept of HRM into practice involves strategic
integration, developing a coherent and consistent set of
employment policies, and gaining commitment. This requires
high levels of determination and competence at all levels of
management and a strong and effective HR function staffed by
business-orientated people. It may be difficult to meet these
criteria, especially when the proposed HRM culture conflicts with
the established corporate culture and traditional managerial
attitudes and behaviour.
 NS OF H RM
RES E RVAT I O
 HRM promises more than it can deliver
• Gratton et al (1999) are convinced on the basis of their
research that there is ‘a disjunction between rhetoric and
reality in the area of human resource management between
HRM theory and HRM practice, between what the HR function
says it is doing and that practice as perceived by employers,
and between what senior management believes to be the role
of the HR function, and the role it actually plays’.
 NS OF H RM
RES E RVAT I O
 The morality of HRM
• HRM is accused by many academics of being manipulative if
not positively immoral. Willmott (1993) remarks that HRM
operates as a form of insidious ‘control by compliance’ when
it emphasizes the need for employees to be committed to do
what the organization wants them to do. It preaches
mutuality but the reality is that behind the rhetoric it exploits
workers.

• As Legge (1998) pointed out: In a world of intensified

competition and scarce resources, it seems inevitable that, as
employees are used as means to an end, there will be some
who will lose out. The accusation that HRM treats employees
as means to an end is often made.
 NS OF H RM
RES E RVAT I O
 Contradictions in the reservations about HRM
• Guest (1999) has suggested that there are two contradictory
concerns about HRM. The first as formulated by Legge (1995,
1998) is that, while management rhetoric may express concern
for workers, the reality is harsher.

• Keenoy (1997) complains that ‘The real puzzle about HRMism is

how, in the face of such apparently overwhelming critical
“refutation”, it has secured such influence and institutional
presence.’

• Guest (1999) remarks that ‘It is difficult to treat HRM as a major

threat (though what it is a threat to is not always made explicit)
deserving of serious critical analysis while at the same time
claiming that it is not practiced or is ineffective.’
REFERENCES
 https://en.wikipedia.org
 Definition & Examples of Human Resource Management? BY SUSAN M.
HEATHFIELD
 HR Systems – Features and Benefits Author: Dave Rietsema - Matchr
CEO
 http://sth-about-human-resources-management.blogspot.com/
2010/01/aims-of-human-resources-management.html
 10 Most Important Characteristics of Human Resource
ManagementArticle shared by :  Smriti Chand
 http://abouthumanresourcemanagement.blogspot.com/2014/08/
reservations-about-human-resource.html
END OF PRESENTATION!!
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