AN OVERVIEW

               Human Resource Management

                   Module 1/Chapter 1
                    Instructor: Junaini

•   What is HRM?
•   The HRM functions
•   Dynamic HRM environment
•   Human resource manager
•   HR outsourcing
•   The HR organization structure
•   Evolution of HRM

    Human Resource Management
• Utilization of individuals to achieve
  organizational objectives
• All managers at every level must concern
  themselves with human resource
• Five functions

          definition and functions
 Utilization of individuals to achieve organizational

   HRM functions:
   Staffing
   Human Resource Development
   Compensation
   Employee and Labor Relations
   Safety and Health

Figure 1.1. page 5

    Human Resource Management Functions


               Safety and


• Job Analysis
• Human Resource Planning
• Recruitment
• Selection

                      Staffing (Cont.)

    • Staffing - Process through which organization ensures it always has
      proper number of employees with appropriate skills in right jobs at
      right time to achieve organizational objectives
    • Job analysis - Systematic process of determining skills, duties, and
      knowledge required for performing jobs in organization
    • Human resource planning - Systematic process of matching the
      internal and external supply of people with job openings anticipated
      in the organization over a specified period of time .
    • Recruitment - Process of attracting individuals on a timely basis, in
      sufficient numbers, and with appropriate qualifications, to apply for
      jobs with an organization
    • Selection - Process of choosing from a group of applicants the
      individual best suited for a particular position and the organization

    Human Resource Development
                  Training •
               Development •
              Career Planning •
           Career Development •
        Organizational Development •
        Performance Management •
          Performance Appraisal •

         Human Resource Development (Cont.)

    • Training - Designed to provide learners with knowledge and skills
      needed for their present jobs
    • Development - Involves learning that goes beyond today's job; it has
      more long-term focus
    • Career planning - Ongoing process whereby individual sets career
      goals and identifies means to achieve them
    • Career development - Formal approach used by organization to ensure
      that people with proper qualifications and experiences are available
      when needed
    • Organization development - Planned process of improving organization
      by developing its structures, systems, and processes to improve
      effectiveness and achieving desired goals

         Human Resource Development (Cont.)

 • Performance management - Goal-oriented process directed toward
   ensuring organizational processes are in place to maximize productivity
   of employees, teams, and ultimately, the organization
 • Performance appraisal - Formal system of review and evaluation of
   individual or team task performance

      Compensation - All rewards that individuals receive as a result of their
     • Direct Financial Compensation - Pay that person receives in form of
       wages, salaries, bonuses, and commissions.
     • Indirect Financial Compensation (Benefits) - All financial rewards not
       included in direct compensation such as paid vacations, sick leave,
       holidays, and medical insurance.
     • Nonfinancial Compensation - Satisfaction that person receives from
       job itself or from psychological and/or physical environment in which
       person works

                      Safety and Health
      Employees who work in safe environment and enjoy good health are
       more likely to be productive and yield long-term benefits to
     • Safety - Involves protecting employees from injuries caused by
       work-related accidents

     • Health - Refers to employees' freedom from illness and their
       general physical and mental well being

        Employee and Labor Relations

     • Private-sector union membership has fallen from 39
       percent in 1958 to 7.8 percent in 2005.
     • Business is required by law to recognize a union and
       bargain with it in good faith if the firm’s employees want
       the union to represent them
     • Human resource activity is often referred to as industrial
     • Most firms today would rather have a union-free

     Human Resource Research

               • Human resource
                 research is not
                 separate function.
               • It pervades all HR
                 functional areas.

     Dynamic Human Resource Management
•    Labor market
•    Legal considerations
•    Society
•    Unions
•    Shareholders
•    Competition
•    Customers
•    Technology
•    economy

                 Labor Market

     • Potential employees
       located within
       geographic area from
       which employees are
     • Always changing

             Legal Considerations

     • Federal, state and
       local legislation
     • Court decisions
     • Presidential
       executive orders

     • No longer content to accept, without
       question, the actions of business
     • Ethics - Discipline dealing with what is good
       and bad, or right and wrong, or with moral
       duty and obligation
     • Social responsibility - Implied, enforced or
       felt obligation of managers to serve or
       protect interests of groups other than

     • Group of employees who have joined together for
       purpose of dealing collectively with their employer
     • Become a third party when dealing with the


     • Owners of corporation
     • Because they have invested money in
       firm, they may at times challenge
       programs considered by management to
       be beneficial to organization

 • Firms may face intense competition in both their product or
   service and labor markets
 • Must maintain a supply of competent employees
 • Bidding war often results


• People who actually use firm’s goods and services
• Management has task of ensuring its employment practices do
  not antagonize members of market it serves
• Workforce should be capable of providing top-quality goods and


     • The world has never before seen
       technological changes occur as rapidly as
       they are today.
     • Created new roles for HR professionals
     • Additional pressures on them to keep
       abreast of technology


• In general, when economy is booming, it is
  often more difficult to recruit qualified
• When a downturn is experienced, more
  applicants are typically available.

         Unanticipated Events
• Occurrences in the external environment that
  could not be foreseen
• Every disaster, whether manmade or by
  nature, requires a tremendous amount of
  adjustment with regard to human resource


 • Possibility of never-ending workday
 • BlackBerrys, cell phones, text messaging, and
   e-mail create endless possibilities for
 • Some workers believe their employer wants
   them available 24/7

         HR as a Strategic Partner

     • HR executives must
       understand complex
       organizational design
     • Sharp deviation from
       what has traditionally
       been an administrative
       type role for HR

     How is HRM practiced in real?!
     Changing roles for HR:
      Human Resource Manager: individual who normally acts in an
        advisory or staff capacity, working with other managers to
        help them deal with human resource matters.
      HR Outsourcing: process of hiring an external provider to do
        the work that was previously done internally. Functions
        covered: recruitment, benefits.. Strategic components are
        not usually outsourced.
      HR Shared Service Centre: a shared service centre is a centre
        that takes routine, transaction based activities dispersed
        throughout the organization and consolidates them in one
        place. (training, benefits…)

     How is HRM practiced in real?!

      Professional Employer Organization: a company that
       leases employees to other businesses. It manages all
       administrative and HR issues. For business it is
       sometimes good because it lowers cost but they face
       loyalty problems.
      Line Managers: individuals who are directly involved in
       accomplishing the primary purpose of the
       organization. They sometimes step up and perform
       some HR duties.

       HR as a strategic Partner
 HR executives must work with top management so
   as to adapt to the flows of business and ensure
   supporting the firm’s mission:
They must understand the operational side of the
   business and
- Comprehend the complex organizational design and
- Must be able to determine the strategic components
   capabilities of the company’s workforce.
 HR units must be able to show how they add to the
   company ( leveraging human capital)
       HR as a strategic Partner
 Top management expect HR to:
- Make workforce strategies integral to company
  strategies and goals,
- Leverage HR’s role in major change initatives such as
  strategic planning, mergers, acquisitions,
- Earn the right to a seat at the corporate table,
- Develop awareness and/ or an understanding of the
- Understand finance and profits,
- Help line managers achieve their goals.

        HR as a strategic Partner
 A strategic HR Audit: is an internal audit that includes the
  main functional areas such as workforce planning and
  employees’ development. Auditors document whether
  activities are being accomplished in an optimal manner.
  Such audit is done to identify possible risks (law suits)
  also it reflects the professionalism of HR unit.
 Human Capital Metrics: are measures of HR performance;
  in order to assess HR efficiency. They include productivity
  and cost metrics for the HR function, such as time taken
  to fill open positions. Human capital metrics’ main
  function is to determine how HR activities contribute to
  the company’s profits.

        HR Designations (Titles)
 Executive: a top level manager who reports directly to a
  corporation’s chief executive officer or the head of a major
 Generalist: a person who may be an executive and performs
  tasks in a variety of HR related areas.
 Specialist: an individual who may be a human resource
  executive, manager or non manager and who is typically
  concerned with only one of the five functional areas of
  human resource management.

          Evolution of HRM; moving
            towards strategic hrm
 Figure 1.4 and 1.5. pages 18 and 19
 Personnel as HRM was called as a profession was generally
  held in low esteem; and its organizational position was
  typically near the bottom of the hierarchy. Personnel
  executives were the “back slapper” who kept the morale
 HR now must focus on the bottom line of the organization
  and be more strategic, leaving the administrative work to
     technology or others.

           Ethical and social
         considerations in hrm
 Ethics: discipline dealing with what is good and bad,
  or right and wrong or with moral duty and
  obligation. Type I ethics is the relationship between
  what an individual believe as ethical and what
  available guidance about what is morally correct.
  Type II ethics is the strength of the relationship
  between what one believes and how one behaves . A
  person is ethical when having the two types.
 A code of ethics establishes the that the organization
  lives by. HR must ensure enforcement of a code of
  ethics and training of ethics for all.

          Ethical and social
        considerations in hrm
 Corporate Social Responsibility: implied, enforced or
  felt obligation of managers acting in their official
  capacity to serve or protect the interests of groups
  other than themselves. It how a company as a whole
  behaves towards society.
 Stakeholder Analysis: protecting the diversity of
  stakeholder interests and answering them.
 A social contract is a set of written and unwritten
  rules and assumptions about acceptable
  interrelationships among the various elements of

                    Work force diversity
 Diversity: any perceived difference among people: age, ethnicity,
  religion, physical ability, profession, or any perceived difference.

 Diversity management: ensuring that factors are in place to provide for
  and encourage the continued development of a diverse work force by
  melding actual and perceived differences among workers to achieve
  maximum productivity.
 Components of a diverse work force include:
- Working women and mothers,
- Dual career family (when both husband and wife are working),
- Immigrants,
- People with disabilities,
- Minorities
 Affirmative Action Program: approach developed by organizations with
  governments contracts to demonstrate that workers are employed in
  proportion to their representation in the firm’s relevant labor market.
                       Module conclusion

We learnt that HRM:
• HRM is about best utilization of people towards goals
  achievement through different functions and roles.
• Certain external factors affect HR functions
• HRM is moving strategically, it evolved through time from
  just functional and administrative to a strategic partner.
• Ethics, social responsibility and diversity should be
  carefully understood and dealt with by HR.


To top