INTRODUCTION TO HUMAN

RESOURCE MANAGEMENT

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Chapter Objectives

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Describe the brief history of HRM.

Define human resource management.

Identify the human resource management functions.

Explain who performs the HRM functions.

Discuss the objectives of the HRM Functions.

Discuss the roles of HRM.

Explain the HR department.

Discuss the HR responsibilities.

After studying this chapter, you should be able to:

• HRM can be traced to England, where

craftspeople organized themselves into guilds.

- They used unity to improve working conditions.

• The Industrial Revolution in the 18th century

laid the basis for a new, complex industrial

society.

- Changing work conditions, social patterns, and

labor created a gap between workers and owners.

• During the world wars era, scientific

management, welfare work, and industrial

psychology merged.

I. A Brief History of HRM

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• Frederick W. Taylor, the father of scientific

management, summarized scientific

management as:

Science, not rules of thumb

Harmony, not discord

Cooperation, not individualism

Maximum output, not restricted output

• Industrial psychology, initiated in 1913,

focused on:

The worker

Individual differences

The maximum well being of the worker

I. A Brief History of HRM (Cont.)

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• Personnel departments were created to deal

with:

Drastic changes in technology

Organizational growth

The rise of unions

Government intervention concerning working

people

I. A Brief History of HRM (Cont.)

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• Around the 1920s, more organizations

noticed and acted on employee-management

conflict.

• The Hawthorne studies (1924 to 1933):

Were to determine the effects of

illumination on workers and their output

The studies pointed out the importance of

social interaction on output and satisfaction

I. A Brief History of HRM (Cont.)

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• Until the 1960s, the personnel function

was concerned only with blue-collar

employees.

File clerk, house-keeper, social worker,

firefighter, and union trouble defuser

Is the activities designed by manager to

provide for an ordinate human resources of

an organization. (Rick Colow, 1991)

Refers to the policies, practices, and systems

that influence employees’ behavior, attitudes,

and performance. Many companies refer to

HRM as involving people practices. (Noe, et

al. 2003)

Is utilization of individuals to achieve

organizational objectives. All managers get

things done through the efforts of others;

this requires effective HRM.

II. Definitions of HRM

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• Was responsible for arranging and

coordinating the management of human

resources to help the organization achieve its

goals.

• Is an individual who normally acts in an

advisory or staff capacity, working with other

managers regarding HR matters.

• There was a shared responsibility between

line manager and human resource

professionals.

• Often the line managers go to HR for

guidance such as promotion, hiring, discipline.

III. HR Manager

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IV. HRM Functions

1HRM

Functions

Safety and

Health

Job Analysis

Human Resource Planning

Recruitment

Selection

Û 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.

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1. Staffing

a) Job analysis• Systematic process of determining

skills, duties, and knowledge required

for performing jobs in organization.

1. Staffing (Cont.)

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b) 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.

1. Staffing (Cont.)

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d) Selection• Process of choosing from a group of

applicants, the individuals best suited

for a particular position and the

organization.

c) Recruitment• Process of attracting individuals on a

timely basis, in sufficient numbers,

and with appropriate qualifications, to

apply for jobs with an organization.

a.Training• Designed to provide learners

with knowledge and skills

needed for their present jobs.

2. Human Resource Development

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c.Career planning• Ongoing process whereby individual

sets career goals and identifies means

to achieve them.

b. Development• Involves learning that goes beyond

today's job; it has more long-term focus.

2. Human Resource Development

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d.Career development• Formal approach used by organization

to ensure that people with proper

qualifications and experiences are

available when needed.

e.Organization development• Planned process of improving organization

by developing its structures, systems, and

processes to improve effectiveness and

achieving desired goals.

f. Performance management• Goal-oriented process directed toward

ensuring organizational processes are

in place to maximize productivity of

employees, teams, and ultimately, the

organization.

2. HR Development (Cont.)

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g. Performance appraisal• Formal system of review and

evaluation of individual or team task

performance.

\ All rewards that individuals

receive as a result of their

employment.

3. Compensation

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a. Direct Financial Compensation

• Pay that person receives in form of

wages, salaries, bonuses, and

commissions.

3. Compensation

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c. Nonfinancial Compensation• Satisfaction that person receives from

job itself or from psychological and/or

physical environment in which person

works.

b. Indirect Financial Compensation

(Benefits)• All financial rewards not included in

direct compensation such as paid

vacations, sick leave, holidays, and

medical insurance.

Employees who work in safe environment

and enjoy good health are more likely to

be productive and yield long-term

benefits to organization.

4. Safety and Health

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a) Safety

• Involves protecting employees

from injuries caused by work-

related accidents.

b) Health

• Refers to employees' freedom from

illness and their general physical and

mental well being.

Private-sector union membership has fallen

from 39 percent in 1958 to 9 percent today.

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 relations.

Most firms today would like to have a union-

free environment .

5. Employee and Labor Relations

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3 levels of management perform HRM

functions.

V. Who Performs HRM Functions

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Operating managers are managers who

manage directly people involved with the

production of an organization's products

and services.

HR specialists are people who are specially

trained in one or two areas of HRM.

HR generalists are people who are

responsible for performing various parts of

HR activities.

Human Resource Executives, Generalists, and Specialists

Manager Safety & health

Vice President Human

Resources

Vice President Industrial Relations

Manager Compensation

Manager Training and Development

Executive:

Generalist:

Specialist:

Manager, Staffing

President and CEO

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Performs one or more HR functions

A top-level manager

Reports directly to CEO or head of

major division

Characteristics of an HR

Executive

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Often an executive

Performs tasks in various HR

related areas

Involved in several, or all, of

the five HRM functions

Characteristics of an HR Generalist

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May be an HR executive, manager, or

non-manager

Who typically is concerned with only

one of the five functional areas of

HRM.

Characteristics of an HR Specialist

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Helping the organization

reach its goals.

VI. Objectives of the HRM Function

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Increasing to the fullest the employee’s

job satisfaction and self-actualization.

Providing the organization with well-trained

and well-motivated employees.

Employing the skills & abilities

of the workforce efficiently.

Developing & maintaining a quality of work

life that makes employment in the

organization desirable.

Communicating HRM policies to all

employees.

Helping to maintain ethical policies and

socially responsible behavior.

Managing change to the mutual advantage

of individuals, groups, the enterprise, and

the public.

VI. Objectives of the HRM Function

(Cont.)

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\ There are majors roles associated with the

managing of human resource in

organization.

- Strategic role

- Operational role

VII. The Roles of HRM

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Strategic role of HRM emphasizes that

the people in organization are valuable

resources presenting a significant

investment of organizational efforts.

Human resource can be a source of

competitive strength if they are managed

effectively.

Human resource must be viewed in the

same context as the financial,

technological, and other resources that

are managed in organization.

1. Strategic Roles

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Human resource planning

Evolving legal issue

Workforce trend and issue

Community economic development

Organizational restructuring and

downsizing

Merger / acquisition advising

Compensation planning and strategy

1. Strategic Roles (Cont.)

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The typically activities at strategic point

are viewed:

Operational activities includes both tactical

and administrative in nature.

Compliance with equal employment

opportunity and other laws must be

ensured.

Applicants must be interviewed, new

employees must be oriented, supervisor

must be trained, safety problems must be

solved, and salary and wages must be

administered.

2. Operational role

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a) Recruiting and selecting for current

openings.

b) Conducting employee orientation

c) Reviewing safety and accident report.

d) Resolving employee

complaints/grievance.

e) Administering employee benefits

performances.

2. Operational role (Cont.)

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In short, a wide variety of activities typically

associated with the day-to-day management

of people in organizations must be performed

effectively and appropriately:

\ Is the place that supports to operating

managers on all human resource

activities.

VIII. HR Department

a) Specific services• Maintaining employee's records,

initial phases of employee

orientation.

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\ HR department provides 3 types of

service to operating managers

VIII. HR Department (Cont.)

c) Coordination• Performance appraisals,

compensation matters.

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b) Advice• Disciplinary matters, occupational

safety and health administration,

Shops and Establishments act, all

labour laws etc

Coordination

Advice

Specific

Services

HR DepartmentOperating

Managers

HR Department

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The direct handling of people, is an integral

part of every line manager’s responsibility,

from president down to the lowest-level

supervisor.

IX. HR Responsibilities

• Placing the right person on the right job.

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For example, one major company outlines

its line supervisors’ responsibilities for

effective human resource management

under the following general heading:

• Starting new employees on the

organization (orientation)

• Training employees for jobs that are

new to them

• Improving the job performance of each

person.

• Gaining creative cooperation and

developing smooth working relationship

IX. HR Responsibilities (Cont.)

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• Interpreting the company’s policy and

procedures

• Controlling labor cost

• Developing the abilities of each person

• Creating and maintaining development

moral

• Protecting employees’ health and

physical condition

IX. HR Responsibilities (Cont.)

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4. HRM PRACTICES & RESPONSIBILITIES

Important HRM practices include:

X. HRM PRACTICES &

RESPONSIBILITIES

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RESPONSIBILITIES OF HR DEPARTMENTSRESPONSIBILITIES OF HR DEPARTMENTS

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