HUMAN

RESOURCE
MANAGEMENT

1
 Definition and Background
01
2

Responsibility of Human
02 Resource Department

HRM Function, Role and

CONTENT 03 Careers

Evolution and
04 Development of HRM

Goal of Human
05 Resource Management

06 Competitive Challenges
of HRM
 1.1. Definition and Background
3

 1960-1970 –large staffs, with heavyweight,

hierarchical bureaucracies and stagnant
businesses.
 1970- measuring company success in terms of
profitability and the number of employees –
the more the better
 By the end of the twentieth century-
‘downsizing’ or reducing the number of people
employed to create businesses that were lean,
fit and flexible.
 1.1. Definition and Background (cont’d…)
4

 By the beginning of the twenty-first

century the problems of the scales being
tipped so considerably towards
rationalization were beginning to show.
Businesses became more than slim
 There is now a move towards redressing
that balance in search for an equilibrium
between the needs for financial viability
and success in the marketplace on the one
hand and the need to maximize human
capital on the other.
 1.1. Definition and Background (cont’d…)
5

 Human resource management is designing

management systems to ensure that human
talent is used effectively and efficiently to
accomplish organizational goals.
 “HRM is concerned with the most effective
use of people to achieve organizational and
individual goals. It is the way of managing
people at work, so that they give their best
to the organization”. - Invancevich and
Glueck
 1.1. Definition and Background (cont’d…)
6

 “Policies and practices involved in carrying

out the “people” or human resource aspects
of a management position, including
recruiting, screening, training, rewarding, and
appraising comprises of HRM.”- Dessler
 Generally, HRM refers to the management of
people in organizations.
 1.1. Definition and Background (cont’d…)
7

 "Human resource management is responsible for how

people are treated in organizations. It is responsible
for bringing people into the organization, helping
them perform their work, compensating them for
their labors, and solving problems that arise"
(Cherrington, 1995, p. 5).
 HRM means employing people, developing their
resources, utilizing, maintaining and compensating
their services in tune with the job and organizational
requirement. Armstrong(2006).
 1.1. Definition and Background (cont’d…)
8

 The goal of HRM is to maximize employees’

contributions in order to achieve optimal
productivity and effectiveness, while simultaneously
attaining individual objectives ( such as having a
challenging job and obtaining recognition), and
societal objectives (such as legal compliance and
demonstrating social responsibility).
 1.1. Definition and Background (cont’d…)
9

 It is valid-and perhaps more

honest- to refer to HRM as ‘people
management’
 Human beings in an
organization:
 Represent a greater assets
 Perceived as major generators of
cost
 1.1. Definition and Background (cont’d…)
10

 HRM is combination three concepts:

 Human - people (i.e. employees and managers)
 Resource - assets/costs for organizations
 Management - co-ordination and control to
achieve set goals but humans, unlike other
resources in the context of work and
management, cause problems.
 Importance of HR
 People is the key factor of production.
 Productivity is the key to measure a nation’s
economic growth potential, and labor quality is the
key to improving productivity.
 Competition today is the competition for talents.
 1.2. Responsibility of HRM Department
11

 The goal of HRM is to maximize employees’

contributions in order to achieve optimal
productivity and effectiveness, while simultaneously
attaining individual objectives ( such as having a
challenging job and obtaining recognition), and
societal objectives (such as legal compliance and
demonstrating social responsibility).
 Responsibilities of HR Departments
12
13 Who is Responsible for HRM?

HR Line
Professionals Managers
 HR Professionals’ Responsibilities
14

 Establish HRM procedures

 Develop/choose HRM methods

 Monitor/evaluate HRM practices

 Advise/assist managers on HRM- related

activities
15 Line Managers’ Responsibilities

 Implement HRM practices

 Provide input for HRM practices

16
HRM Conducted by Line Managers

 Interview job  Discipline

applicants employees
 Provide orientation,  Investigate
coaching, & OJT accidents
 Evaluate job  Settle grievance
performance issues
 Recommend pay
increases
 Who is responsible for HRM
17
Practices?
View #1: A Separate Department is
Useful
 HR Professional (specialists) perform
the Job
 Importance of Human Resources
 Competitive Advantage
 Increasing Complexity
 Global workforce
 External Influences
 Legal Requirements
 Who is responsible for HRM
18
Practices?...
View #2 - Every Supervisor or Manager is an
HR Manager

 Anyone who deals with subordinates plays a

HRM role
 The “Line” perspective
 Tasks Completed by Line Managers
 Interview job applicants
 Provide orientation, coaching, and on-the-job
training
 Provide and communicate job performance ratings
 Recommend salary increases
 Carry out disciplinary procedures
 Investigate accidents
 Settle grievance issues
19
HR Responsibilities of Supervisors
 1.3. Specific HRM Functions
20
 Human Resource
Planning
 Analyzing Jobs
 Recruiting
 Selecting
 Appraising
 Training
 Developing
 Compensating
 Benefits
 Work Environment
 Human Resource Management
21 Function
Four Major Categories of Activities

The Acquisition The Development

of of
Human Resources Human Resources

The Rewarding The Maintenance

of of
Human Resources Human Resources
 How HR Functions Relate to HR Activities
22

The Acquisition of The Development of

Human Resources Human Resources
 Planning
 Analyzing Jobs  Performance Management
 Recruitment  Training
 Selection  Developing
 How HR Functions Relate to HR Activities…
23

The Rewarding of
The Maintenance of
Human Resources
Human Resources

 Compensating
 Wages & Salaries  Safety & Health
 Incentives  Labor Relations
 Employee benefit
24 Role of HR Manager

 Fully Fledged Business Partner

 Attraction and retention of talents
 Empowering people
 HR services and HR administration
 Internal customer relationships
 Preparation of “wish lists” for companies
 Managing complexity and building capabilities
 General welfare of employees
25 Role of HR manager (cont’d…)

 Focus on Mentoring (in modern mgt

the mentor plays a vital role)
 Expanded role in media exposure
 Advice on stress, harassment and
bullying
 Why is HRM Important to an Organization?
26

 The role of human resource managers

has changed. HRM jobs today require
a new level of sophistication.
 Employment legislation has placed new
requirements on employers.
 Jobs have become more technical and skilled.
 Traditional job boundaries have become
blurred with the advent of such things as
project teams and telecommuting.
 Global competition has increased demands for
productivity.
 Why is HRM Important to an
27
Organization? (cont’d…)
 The Strategic Nature – HRM must be
 a strategic business partner and represent
employees.
 forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
 concerned with the total cost of its
function and for determining value added
to the organization.
 HR Management as a Career Field
28
 HR Generalist
 A person with responsibility for performing a
variety of HR activities.
 HR Specialist
 A person with in-depth knowledge and
expertise in a limited area of HR.
 Professional Organization
 Society for Human Resource Management
(SHRM)
 Overall Framework for
29
Human Resource Management

COMPETITIVE
COMPETITIVE HUMAN
HUMAN EMPLOYEE
EMPLOYEE
CHALLENGES RESOURCES
RESOURCES CONCERNS
CHALLENGES CONCERNS
•• Globalization ••Planning
Planning •• Background
Globalization ••Recruitment Background
•• Technology Recruitment diversity
Technology ••Staffing diversity
•• Managing Staffing •• Age
Managing ••Job
Jobdesign
design
Age
change
change ••Training/ distribution
distribution
Training/
•• Human
Human development •• Gender
Gender issues
issues
development
capital
capital ••Appraisal
Appraisal
•• Educational
Educational
•• ••Communications
Communications levels
levels
Responsivenes ••Compensation
Compensation •• Employee
Responsivenes Employee
ss ••Benefits
Benefits rights
rights
•• Cost ••Labor
Laborrelations •• Privacy
Cost relations Privacy issues
issues
containment
containment •• Work
Work attitudes
attitudes
 HRM Objectives
30
 To help the organization reach its goals.
 To ensure effective utilization and maximum development of HR.
 To ensure respect for human beings.
 To identify and satisfy the needs of individuals.
 To ensure reconciliation of individual and organizational goals.
 To provide the organization with well-trained and well-motivated
employees.
 To increase employee's job satisfaction, motivation and self-
actualization.
 To develop and maintain a quality of work life.
 To be ethically and socially responsive to the needs of society.
 To enhance employee's capabilities to perform the present job.
 General Goals of Human
31 Resource Management

Facilitating Enhancing
organizational productivity and
competitiveness quality

The human resource

function in contemporary
organizations

Complying with Promoting

legal and social individual growth
obligations and development
 1.5. Evolution and Development
32
of HRM
Traditions Period Description
Welfare Up to 1920s
Personnel management as a personal service to employees,
who are the ‘clients’ of the personnel or welfare officer. Major
concerns were the provisions of canteens, sick visiting, the
supervision of moral welfare in anticipation of a reciprocal
sense of service from the employee

Employment Up to 1930s
Emphasized the control of numbers and budget and placed
Management
stress on economic efficiency plus a high value on
performance investigation by organization and method type
studies. Employees have not always shared these beliefs,
thus leading to a ‘Theory X’ view of workers by managers

The ‘personnel administrator’ typical of many large

organizations operates a comprehensive set of rules based
1914 to on a belief in
Bureaucratic
present order and rationality, and on the intrinsic merit of the
organization’s internal status system, to which employees
are expected to subscribe
 1.5. Evolution and Development of HRM (cont’d…)
33
Traditions Period Description
Professional 1945 to A belief in specialization sustained by personnel application of
Personal present techniques applied for the benefit of the ‘client’, who is the line
manager manager, and is supported by a general social acceptance of
‘expertise’.
Employment 1945 to Emphasized the control of numbers and budget and placed
Management present stress on economic efficiency plus a high value on performance
investigation by organization and method type studies.
Employees have not always shared these beliefs, thus leading to
a ‘Theory X’ view of workers by managers
This personnel manager sees their role as improving
communications and leadership. Approach is that of a radical
Liberal 1930s to
liberal, a belief in individualism and the need to participate with
radical present
employees, anticipating agreement and enthusiasm from those
at work
Accent on development and utilization of people as assets.
Human
1980s to Employment costs and the return on these costs are central
resource
present concerns, leading to desire for adaptability, fixability of the
manager
people and to use outsourcing arrangements to reduce costs.
 1.5. Evolution of HRM (cont’d…)
34
Human
Capital
Human Managemen
Resource t
Employmen Managemen
regards them as
t t
assets and
Manageme emphasizes
Labor nt that competitive
Managemen advantage is
-Human is treated
t as a precious achieved by strategic
-Systematic labor
resource of the investments in those
management
business assets
-Standardized
-Human resource through employee
labor
-Manual management management is engagement and
Employment
-Employee works as become a profit retention, and others
system
slave center instead of -Human capital
-High
-Low performance cost center. management was
performance
-Low proactive enhanced to
-Employee works
-Low morale business
like a machine
management
 1.6. Competitive Challenges of
35
Human Resources Management
The most pressing competitive issues facing
firms:
 Going global
 Embracing technology
 Managing change
 Developing human capital
 Responding to the market
 Containing costs
 Business Strategy: Issues Affecting
HRM
36
37
Desired Outcomes of HRM

 Attraction
 Retention
 Job Performance
 Productivity
 Employee Safety and Health
 Attendance
 Job Satisfaction
 Competitive Advantage
 Company Performance
 Impact of Human Resource
38
Management
Any Questions