HUMAN

RESOURCE
MANAGEMEN
T
(CHAPTER 1)
 Human Resource Management
OBJECTIVES:
● Discuss and elaborate the following:
○ Human Resource
○ Human Resource Management
○ Nature of HRM
○ HR Planning
○ HRP Components
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 Human Resource Management

● Organization is a group of people established

either formally or informally for the attainment
of certain objectives.
● So, people are the foundation of any
organization.
● In societal context, organization need people
and people need organization. It is people who
staff, lead and control organizations. 3
Who are Human Resource?
● In organizational context, the personnel
involved in different activities of an
organization are the human resources of that
organization.
● Such type of personnel (referred as human
resources) have one thing common i.e.
fulfillment of their assigned duties &
responsibilities in order to achieve the
organizational goals and objectives.
● People become human resource when they
involved in any organization with physical
strength, energy and competencies.
Competencies consists of knowledge, skill,
attitudes and potential for growth.
● Human resources are effectively mobilized by 4
What is Human Resource Management?
• An essential function of management; and
also an important part of every manager’s
job.
• HRM is concerned with managing
people in organizations.
• It is concerned with philosophy, principles,
policies and practices related to human
aspect of management.
• It aims at achieving organizational
objectives through the efficient and
effective mobilization of human resources.
Nature of HRM
● Human Focus
“
● Management Function
● Dynamic
● Mutually oriented
● Continuous-on-going activity

”
Human Resource Planning
● Human Resource planning sees to it that
the company can achieve its mission and
vision by having the right people with the right
skills in the right departments at the right
time.
● The strategic objectives of the organization in
the different functions are accomplished with
the employment of people suited for the
different tasks assigned to each department
● The human resource planning process is
divided into four stages: environmental
scanning; forecasting human resource
requirements; decision analysis; and action
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plans/program implementation.
HRP sees to it that the company can achieve its mission and vision by having
the right people with the right skills deployed in the right departments at the
right time. One department cannot function independently or avoid
coordinating with the other functional departments. The number of people as
well as their skills, abilities, experience, and educational background will
always matter to the other departments since human resource is a core
resource.
● The strategic objectives of the organization in the different
functions are accomplished with the employment of
people suited for the different tasks of each department.
HRP has three components: coordination,
concentration, and consideration. These provide the
framework by which human resource planning
accomplishes its tasks as a key function in HRM.

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COORDINATION
Bulla and Scott (1994, cited in Armstrong,
2009) define HRP as “the process for
ensuring that the human resource
requirements of an organization are
identified and plans are made for
satisfying those requirements.”
Reily (2003, cited Armstrong, 2009)
describes it as “the process in which
an organization attempts to
estimate the demand for labour and
evaluate the size, nature, and
sources of supply which will be
“

”
CONSIDERATION
During the second stage of the HRP process,
there are certain considerations that the HR
should deal with. To be successful, there is a
need for an HR manager to be guided by the
following information;

The Human Resource Planning (HRP)

Team
It should consist of individuals across all
levels and departments who understand the
value of HRP in the organization. Once
chosen, they should commit themselves to 12
The following personnel should be considered in the HRP
team:

1. Senior members of top management – provides the necessary

support and the “go ahead” signal to execute the plan.
2. Department managers – assist in analysing the human resource
requirements and aligning them correctly in the organization.
3. HR support professionals – are the support group that ensures
that all department managers are provided with all the help they
need to implement the process.
4. Information technology (IT) professionals – undertake the
process automation.
5. Finance/Budget analysts – make the necessary linkages between
human resource requirements and the corresponding monetary
limitations.
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● Current and Long-term Workforce Requirements

● During HRP, there are certain changes that have to be

made on the current workforce. The HR department
should replace those who are due for retirement; consider
those who can be promoted; and look into current
vacancies that need to be filled immediately.

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● Evaluation of the company’s
current roster of personnel
There is a need to assess how many
regular or full-time employees and part-
time or temporary workers there are in an
organization. The group of temporary
hires is called contingent workers. In
evaluating the workforce, a skills inventory
is needed. It entails comprehensive
information on an employee’s educational
background, experience, compensation
history, and specialized skills.

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CONCENTRATION
The concentration of efforts is
very crucial in the organization’s
achievement of its strategic
objectives. In determining the
shortage or surplus of manpower,
it is very important to forecast
future requirements.
FORECASTING HR DEMAND
“
There are a number of quantitative and qualitative methods of forecasting HR
demand. The three types of quantitative techniques are the following:
trend analysis, ratio analysis, and regression analysis.

● Trend Analysis
● Ratio Analysis

”
● The main types of qualitative techniques
are the following: Delphi method,
nominal group technique, and scenario
analysis.

1. Delphi Method. This method uses a panel of

experts to project the number of personnel
through various factors such as economics,
demographics, and the technological and social
conditions of the environment. There are internal
factors used such as educational background,
experiences, and productivity of the workforce.

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 “
2. Nominal Group Technique. It uses a panel of experts,
mostly line managers, who discuss, meet face to face, and
project HR demand. Advantageously, the panel of experts
will strive very hard to come up with an accurate forecast.

3. Scenario Analysis. This method applies multiple

scenarios to predict HR demand, based on a number of
assumptions. Because of the unpredictability of the future,
an organization may opt for different scenarios, each with
corresponding predictions based on the characteristics of a
particular situation.

”
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Personnel Management
The precursor of the term human resource management is personnel
management. In the early days, the personnel function is confined to keeping records of
employees.

Human Resource Development

Human resource development (HRD) is one aspect of HRM that deals with
training and development.

Human Capital Management

Human capital management (HCM) complements HRM as it focuses on
providing a strategic approach to managing a company’s staff.

Talent Management
One aspect of HCM is talent management. It is the process of attracting highly
skilled workers and retaining them.

Knowledge Management
Knowledge management, on the other hand, is the effective and integrated
approach to identify, capture, evaluate, retrieve, and share a company’s information assets.

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ANY QUESTIONS?

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 THANK YOU FOR
LISTENING.

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