Lecture 1: Introduction to Human Resource Management

LECTURE OVERVIEW

1. The Evolution of HRM

2. Defining the concept of HRM
3. Objectives of HRM
4. The core Values of HRM
5. Theories of HRM
6. Challenges of HRM
 The Evolution of Human Resource Management
Welfare Services Stage Age (1900s)
The era of World War 1 led by Britain, France, Italy , Germany
etc. brought about a high demand for goods and services for
the War
Hence there was the need to organize and cater for welfare of
the workers to ensure constant production of the goods and
services.
This was the coming into being of Welfare Services as it is
today.
 From Welfare Services to Personnel Administration (1920-1930s)
Following the high demand for goods and services,
there was the need for people with knowledge and
skills.
Hence, recruitment, selection, records keeping
became necessary.
Thus, the term “welfare services” was changed to
“personnel administration.”
Here we have the term ‘Administrator.’
 Personnel Administration to Personnel Management (1940-1950s)
The tasks of the personnel administration expand, and led to the
recognition of employees’ needs such as
Work groups/teams rather than individual employees.
 employee motivation, and job satisfaction, training and development
effective communication as a way of reducing conflicts.
Thus, Personnel Administration changed to Personnel Management
Hence we have the term ‘Manager.’
So, what is the difference between ‘Administrator’ and ‘Manager?’
 From Personnel Management to HRM (1970s-)
• From the 1970s, there was a shift to include:
oPrivate business ownerships
oThe maximization of profits
oCompetition, customer tastes, technology
oDemand for innovative employees to keep business alive
• Thus, personnel management led to human resource
management
• That is a period of a new perception towards
employees:
oWorkers no longer regarded as working tools
oEmployees were recognized as human
beings(feelings, reasoning, health)
oRecognition of employee voice
oRecognition of building work relationships etc
 Defining HRM
HRM happens whenever a group of people live together
(i.e. there will be a head/leader of the group)
For instance, in a typical household, the Father, as the
head of the household would harness all available
human resources (wife and children) for the benefit of
the family.
The work to be done by each member of the family
depends on the skills, knowledge, values and
expectations of family members.
• Thus, the success of any organization depends upon how
it manages its human resources.
• No matter the organization, large or small, all of them
work with four main resources (Finance, Physical,
Technology, and Human).
• However, all of them have one thing in common: that is
people. They must have people to make use of the other
resources.
• The human resources and how to manage them should
be at the heart of any organization’s success.
 Dissecting the Key Words
Let us define the key words ‘human, resource, management.’
Human:
• The word ‘human’ refers to the people/employees in the enterprise who
put their knowledge, experiences and skills into work for the benefit of
the organization.
Resource:
• A resource is a possession which society attaches importance because
of its usefulness.
Management:
• Management consists of planning, organizing, controlling and
coordinating human resources in an organization to achieve objectives.
Now, putting the three words together
• Human resource management is designing management systems to
ensure that human talent is used effectively and efficiently to
accomplish organizational goals.
• Human resource management is concerned with the effective
application of management systems and practices to manage people at
work so that they can give their best to the organization.
• Human resource management is the strategic approach to the effective
and efficient management of people in a company or organization such
that they help their business gain a competitive advantage.
 OBJECTIVES OF HRM
HRM objectives are broadly classified into four categories.
Organizational goals: Achieve organizational goals through:
oHuman resources planning, recruiting, selecting, and placement
oPerformance appraisals
oSuccession planning
Functional Objectives: Performs many functions for other
departments through:
oDeveloping HRMS to maintain healthy working relationships
oOverseeing the performance of functions on time.
oDevelop human assets continuously through the training and
development programs.
Societal Objectives: HR achieve social objectives by
oFollowing the rules and laws or legal restrictions imposed by
society
oDevelop and maintain healthy relations between union and
management
oContribute to minimize socio-economic evils such as
unemployment.
Personal Objectives: Achieve personal objectives
oPersonal career desires
oFinancial compensations ( i.e better wages and salaries
oNon-financial compensations (i.e. job satisfaction, better working
conditions)
oHealth and safety
 The core Values/Principles of HRM
The Public’s Will
• HR professionals are to act in the public interest
• Formulate faire policies and decisions, and
• Voicing opposition to bad polices and practices.
Social Equity
Requires HR professionals to act fairly to all members of society
including
Mission-driven Focus
• That is, the aim of HR professionals is to help their
organizations achieve their mission and vision.
• HR professionals are to acquire skills to assist their
organizations
Skills-based Competency
• Recruiting candidates with skills to function effectively
• Hiring professionals to occupy vacancies.
Professional Competency
• Aspire to attain higher professional skills through training and
development.
• HR professionals are obligated to maintain competency in their
positions.
Ethically Organizational Culture.
• HR professionals should maintain ethical behaviors in organizations
• HR officers should be guided by the ethical standards of their
organization
 Roles of HRM

Staffing. People are needed to perform tasks and get work done
in the organization. Staffing is the hiring of people to get work
done.

Development of Workplace Policies. To ensure fairness and

continuity within the organization

Compensation. Ensure compensation is fair, meets industry

standards, and is motivating enough.
Retention. keeping and motivating employees to stay with the
organization.

Training and Development. trained to do their jobs and

continuous growth

Dealing with employment laws. Must be aware of all the laws

that affect the workplace employment.

Worker Protection. Safety is a major consideration in all

organizations
 Skillset of HRM Professionals
To be able to perform the above roles, HR professionals need to
have the following skills and competencies
Business management and leadership skills. To address
organizational challenges in businesses of all sizes; small, large,
private, nonprofit, multi-national.
Human Capital Development Skills. HR professionals must focus
on workforce development, leveraging and managing their
human capital.
Communication and Interpersonal Skills. That is, the ability to
communicate well, and to relate well to those around them.
Organization
HR professionals must be smart when it comes to time
management, calendar management, scheduling, project
management, records and filing and using digital resources to
organize.

Adaptability
HR professionals must be flexible in the face of changes and to
make good decisions when presented with new information.

Confidentiality
HR professionals must be trustworthy, discretional, and
ethical.
 Theories of Modern HRM
Theories of HRM help to shape the understanding of human
resource management today.
Organisation life cycle theory (Cameron & Whetton, 1981).
• This refers to the development stages: formation, growth,
maturity, decline and death.
• Each of these stages require a workforce that is creative, and
innovative
• Thus, management must understand the stages and to adopt
measures to manage each stage effectively.
 Role behaviour theory

• Role behaviour predicts the behaviour of individuals

• This theory helps managers to take good decisions on how to

manage people.

• The use of rewards to promote positive work behaviour and

• The use of punishments to control negative behaviour

 Resource dependency theory

• Refers to the acquisition of resources and effectively utilize

them to remain competitive

• Thus, the theory enables management to understand the need

to harness human resources, and become more competitive

• One of such resources is the employees

• Refers to as the scarcest resources of all.

 Institutional theory

• Refers to establishing relationships based on rights, rules, and

regulations.

• Helps management to understand the need to put in place

appropriate institutional regulations to promote healthy
relationships.

• Such as grievance procedures, sexual harassment policies.

 Human capital theory
• This theory focuses on education and training of workers.
• Helps management to appreciate training and development as
an investment
Organizational learning theory
• It emphasizes the need to learn new ideas and knowledge and
adapt it to suit one’s environment.
• Helps management to encourage individual employee learning
to acquire knowledge related to their work.
 Challenges and Criticisms of Modern HRM
Lack of strategic fit
• HR professionals lack knowledge and skills to link HR strategy
with business strategy.
• This is due to lack of proper training in strategic management.
Not viewing HR managers as business partners.
• HR managers are not viewed as partners in strategic
management.
• Rather, they are viewed only as to recruit new personnel.
Workforce Training and Development
• Some lack the resources to carry out training programs
•Others actually do not see training as an investment
Workplace Diversity
•The existence of diversity may also bring conflicts
•Risks of lawsuits
HRM as a Practice and Strategy
 TRIAL QUESTIONS
Q1.
To what extent is human resource management both a practice
and a strategy?
Q2
As an HR Manager of a public organization, critically examine the
extent to which HR theories can influence you on how to
manage your organization effectively.
Q3.
“Modern HR management is value-based.” Critically examine
this statement and show whether or not you agree with the
statement.
 THE END

HAVE A GOOD NIGHT