Module Name: Human Resource Management Module Code: MMBA 704 Module Tutor: Md.

Sajjad Hosain Week: 01 Lecture No: 01 Lecture Topic: Introduction to Human Resource Management The basic purpose of this lecture is to introduce the students to the basic general overview of Human Resource Management-definition, importance, HR managers functions and what are the areas they need to be good at. The lecture also includes the global and competitive trends that affect human resource management.
The basic Management functionsAccording to the mass experts, there are five basic functions of management. These all five functions together represent the management process. They are as followsPlanning: Establishing goals and standards; developing rules and procedures; developing plans and forecasting. Organizing: Assigning each subordinate a specific task; establishing departments; developing authority to subordinates; establishing channels of authority and communication; coordinating the work of subordinates. Staffing: Determining what type(s) of people should be hired; recruiting prospective employees; selecting the best employee(s); setting performance standards; compensating employees; evaluating performance; counseling, training and developing employees. Leading: Getting others to get the job done; maintaining employee job morale motivating employees. Controlling: Setting standards(such as sales quotas, quality standards, quality standards or production levels) for checking to see how actual performance compares with the set standards; taking corrective measures as needed. Human Resource ManagementThroughout the semester, we will only focus on one of the above functions-the staffing, personnel management or human resource management. Human resource management is the process of acquiring, training, appraising and compensating employees; and of attempting to their labor relations, health and safety and fairness concerns. Therefore, the topics we will discuss later should give you the concepts and techniques of how to perform the people, personnel, or staff related aspects of the traditional(or general) management process. Functions of HR Manager/DepartmentThe major jobs/functions of an HR manager are as follows-

1. Conducting job analysis(determining the nature of each employees job responsibility). 2. Planning labor needs and recruiting job candidates. 3. Selecting job candidates. 4. Orienting and training new employees. 5. Managing wages and salaries(compensating employees). 6. Providing incentives and benefits. 7. Appraising job performance. 8. Communicating(interviewing, counseling, disciplining). 9. Training and developing. 10.Building employee commitment. What an HR Manager should know about? In addition to the basic functions noted above, an HR manager should also familiar to some other aspects that will help them to perform their job in a proper manner. They include(A) Equal Employment Opportunity(EEO) and affirmative action. (B) Health and Safety issues. (C) Handling grievances and labor relations. Why HRM is important to all industries? It is easier to answer the above question by listing some of the personnel mistakes an organization do not want to make. For example1. 2. 3. 4. 5. 6. Hire the wrong person for the job. Experience high turnover. Have the people not doing their best. Waste time with useless interviews. Have the company taken to the court because of discriminatory treatment. Have the company fined by the court because of unsafe and unhygienic practices. 7. Have unsatisfactory employees(because of unfair and inequitable salary structure relative to other department or organization). 8. Allow a lack of training and motivation. 9. Commit any unfair labor practices. An HR manager may have everything else right-lay brilliant plans, draw clear organization chart, set up modern assembly lines, and use of sophisticated accounting controls, but still he/she may fail by hiring wrong people or by not motivating the subordinates. On the other hand, many managers, presidents, CEOs, supervisors have been successful even with inadequate plans, organizations or controls. They were successful because of hiring the right people for the right jobs; and motivating and developing them. Line & Staff AuthorityIn general, all the managers perform HR functions more or less in an organization as all of them get involved in activities like recruiting, interviewing, selecting and training. Now a days most of the companies have their own human

resource departments. Now we will go through some definitions regarding line and staff authority. An authority is the right to make decisions, direct others work and give orders. Line authority is the authority exerted by an HR manger by directing the activities of the people in his/her own department or in service areas. Staff authority gives the manager the right to advise other managers or employees. HR Managers duties regarding the Line and Staff(a)A line function: The HR manager directs the activities of the people in his/her own areas or relates service areas. In other words, he/she exerts line authority within the HR department. Again, they are likely to discharge implied authority. This is because all the managers/supervisors know the HR department and have to communicate with them to implement the HR policies. (b)A staff function(assist and advice): Assigning and advising the line managers is the heart of an HR managers job. He/she assists in hiring, training, evaluating, rewarding, counseling, promoting and firing employees. (c)A coordinated function: HR managers also coordinate personnel activities of functional authority. Here he/she acts as the representative of the CEO/Chairman to ensure that the line managers are implementing the HR policies and practices set by the company. In short, human resource managers are staff managers. They assist and advise the line managers in areas like recruiting, hiring, compensation and even firing the staffs. Again, all the line managers have some human resource duties like training, performance appraisal and creating and maintaining the job morale.

The HR managers proficiencies-

Human resource managers require some proficiencies. These proficiencies needed again varies according to the level of job designation a person holds. The proficiencies can be shown by the following diagramPrimary HR proficiencies: traditional skills and knowledge in areas like recruitment, selection, training and compensation. Usually needed at the supervisory level of HRD. Business proficiencies: reflect human resource professionals new strategic roles formulating human resource strategies, return on investment period, cost per unit of production. Strictly speaking, human resource managers must be familiar to the other departments like finance, accounts, marketing and production because they are closely related to HR to implement the overall organizational policies. These skills are generally needed at mid level of HRD.

Leadership quality: the ability to work with and lead the groups and to implement the changes required. For example, to set the punching card system for the staff entry and exit in an office. Usually such proficiencies are needed at the to level of HRD.

Diagram-1 shows the proficiencies needed mangers/supervisors of an HR Department.

by

the

different

level

Leadership Proficiencies

Top

Management

Business Proficiencies

Mid Level Management

HR

Primary or Supervisory Level

Primary Proficiencies

HRD

Fugure-1: Proficiencies vary in importance at different levels of

The changing trends in the nature of workBy the last 100 years, there is an increasingly changing trend in the field of science, technology, trade & business policies and work environment that has substantially affected the nature of the job and workers. Some of the prominent changes areGlobalization: The tendency of the firms to extend their sales, ownership, plants and markets to new places abroad, that is other than the home country. For example, Toyota produces its brand Corolla in China, McDonalds has spread its business in more than 50 countries outside USA, Suzuki is producing Honda in India. Companies go abroad for several reasons-sales expansion, cheap labor or merging with another firm to gain the market share and/or exchanging technological ideas. High-Tech Jobs: With the increase in science and technology, there is a huge change in manufacturing process that has adopted by the firms to

increase productivity. Companies are replacing the labor-intensive work environment to capital-intensive(using more machines and equipments to produce) one. Examples might be calculator to computer and files to databases. Service Jobs: According to a recent study done in the USA, between 2011 to 2020, about 1 billion new jobs will be added in the developed countries in the world. It is because, with global competition, more and more firms are shifting to the low-wage countries and service will be the key factor in these countries to cope with the unemployment problem.

The changing role of human resource managementWith these trends, human resource managers jobs has grown broader and more strategic over time. In the earliest times, the personnel department did hiring & firing, ran the payroll department and administered benefit plans. Today, the HR departments are playing an extended role with the emergence of labor unions, more legislative acts, globalization and technological advancements that affect the firms. The following changes are expected by the firms for a HR department to cope up with the changes in work environmentStrategic Planning: Strategy is the long term plan for how it will balance its internal strengths and weaknesses to the external opportunities and threats. Strategic human resource management is the formulation and execution of human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. Strategic human resource plans enable the company to hire the employees who could exhibit the behaviors the company need to accomplish its goals. Todays HR managers are involved in partnering with their top managers in both designing and executing the company strategies. Therefore, the HR managers must express their departmental plans and accomplishments in measureable terms; as top management wants to see, precisely, how the HR plans will make the company more valuable-boosting skill level and thereby, improving company performance. Managing with Technology: Technological applications improve HR managers performance. More and more firms are installing internet and computer based systems for improving HR productivity. High-Performance Work Systems: Study shows that companies in a wide range of industries performing well because of their highperformance work systems. A high-performance work system is an integrated set of human resource management policies and practices that together produce superior employee performance.

There is no hard and fast rule about what comprises high-performance work systems, most organizational experts agree about the following practicesi. ii. iii. iv. v. vi. vii. viii. ix. x. Employment security Selective hiring Extensive training Self-managed training decentralized decision making Reduce status distinctions between managers and workers Sharing of information Contingent(pay for performance) Transformational leadership(inspiring motivation) Measurement of management practices Emphasis on high quality work