1.

 Explain what HRM is and how it relates to

the management process.
2. Discuss how all managers can use HR
concepts.
Introduction to 3. Compare the HR responsibilities of line
Human Resource and staff managers.
Management
4. Explain changing role of HR managers.
© 2009 Pearson Education South Asia Pte Ltd.
All rights reserved. © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–2

What is Management?

5.  Discuss the changing environment of   All Managers perform the 5 basic functions;
HRM. staffing, planning, controlling, organizing,
and leading.
6.  Discuss HRM as a profession.
7.  Explain how HR practices are influenced
by cross-cultural values.
8.  Know the plan of this book – if you have
one.

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–3 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–4

Human Resource is a Part of Every

Manager’s Responsibilities! HR Aspects Of A Manager’s Job

Performs the “people” aspects of management.   Conducting job analyses (determining the
5 main functions: nature of each employee’s job)
1.  Recruiting   Planning manpower needs - includes
recruiting, interviewing and selecting job
2.  Interviewing and Selecting candidates
3.  Training   Training and orientation of new employees

4.  Appraising
5.  Rewarding.

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1
 HR Aspects Of A Manager’s Job HR Aspects Of A Manager’s Job

  Appraising performance   Understanding employment laws

  Communicating (interviewing, counseling,   Knowing employee health and safety issues
disciplining)
  Building employee commitment   Handle grievances and employee relations
  Managing compensation - wages and
salaries and setting incentives and benefits

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–7 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–8

Personnel Mistakes – Personnel Mistakes –

What to Avoid What to Avoid
  Hiring the wrong person for the job   Having your company fined for unsafe
  Experiencing high turnover practices
  Your people not doing their best   Some employees think their salaries are
unfair and inequitable relative to others in the
  Wasting time with useless interviews
organization
  Having your company sued for discriminatory
actions   Allowing a lack of training to undermine your
department’s effectiveness
  Committing any unfair employment practices

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–9 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–10

Basic HR Concepts Line and Staff Aspects of HRM

  Getting results   Authority

–  The right to make decisions, direct others’
–  the bottom line of managing work, and give orders.

  HR creates value by engaging in   Staff authority (Advisory)

–  The authority gives right to the HR manager
activities that produce the employee to advise other managers or employees.
behaviors that the company needs to   Line authority (Superior-Subordinate)
achieve its strategic goals. –  The authority of managers to direct people
in his or her own department.

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–11 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–12

2
 Line Managers’ HRM
Line and Staff Aspects of HRM
Responsibilities
  Line manager (Line Authority) 1.  Place the right person in the right job
–  A manager who is authorized to direct the
2.  Orientate new employees
work of subordinates and is responsible for
accomplishing the organization’s tasks. 3.  Train employees
4.  Improve the job performance of each person
  Staff manager (Staff Authority)
–  A manager who assists and advises line 5.  Gain cooperation and develop smooth
managers. working relationships

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–13 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–14

Line Managers’ HRM

Functions of the HR Manager
Responsibilities
6.  Interpret the company’s policies and   Carries out 4 main functions:-
procedures
1.  Line and Staff authority
7.  Control costs
2.  Coordination and implementation
8.  Develop the abilities of each person
9.  Maintain morale 3.  Assist and advise
10. Protect employees’ health and physical 4.  Strategic partner
welfare.

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–15 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–16

Functions of the HR Manager Functions of the HR Manager

  A line function   A coordinative function

–  HR manager directs the activities of –  HR managers also coordinate personnel
people in his/her own department and in activities, a duty often referred to as
related service areas (ex. cafeteria, club). functional control.

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3
 Functions of the HR Manager Size of HR Department

  Staff (assist and advise) functions   Depends on company size

–  Assisting and advising other line managers –  Small Company:
is the heart of the HR manager’s job.   Only a few persons perform all HR tasks

–  Large Company:
  Full range of specialists for each of the
different HR functions (ex. compensation,
training).

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–19 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–20

Size of HR Department Size of HR Department

  Example of the HR department in a   Example of HR department in a Large company:

Small company:

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Duties of HR Specialists Duties of HR Specialists

  Training Specialist   Recruiter

–  Plan, organize and direct training –  Collect information about jobs
–  Advise managers on training –  Interview and recommend suitable
  Job Analyst candidates
–  Collect information about jobs   EEO (Equal Employment Opportunity)
–  Prepare job description Coordinator
–  Investigate EEO grievances
–  Examine HR practices for potential
violations

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4

Duties of HR Specialists
  Compensation Manager
–  Develop compensation plans
–  Handle employee benefits program
  Employment relations specialist
–  Advise managers on ER issues
–  Negotiate with unions
© 2009 Pearson Education South Asia. Modified by KKB for class use.
Cooperative Line and Staff HR
Management
  Some common practices:
© 2009 Pearson Education South Asia. Modified by KKB for class use.
The Changing Environment Of
HR Management
  Globalization
–  Companies extend sales, ownership, or
production to other countries - e.g.
Toyota produces cars in China, India, etc.;
Lenova buys IBM PC business.  staffing
issues (who, what, where??)
–  More competition  more pressure to be
“world class”  lower costs and
increase productivity of employees.
© 2009 Pearson Education South Asia. Modified by KKB for class use.
Cooperative Line and Staff in
HR Management
  What is difference in HR duties between
a HR Manager and Line Managers:
–  No standard rule for organizations
–  This can become a big issue!
1–25 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–26
The Changing Environment Of
HR Management
  HR managers must be able to respond to
changes that are happening every day
  Major changes or trends as follows:
–  globalization
–  technological advances
–  nature of work
–  workforce demographics
1–27 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–28
The Changing Environment Of
HR Management
  Technological Advances
–  Use of internet & info communication
technology such as PDAs, telephony,
video, on-line  recruiting, performance
appraisal, etc.
–  Outsourcing of on-core activities to
other countries where costs are lower 
causes changes in how work is done.
1–29 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–30
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 The Changing Environment Of
HR Management
  Changes in Nature of Work
–  From manufacturing (factory) jobs to
service industry jobs
–  Usage of “non-traditional” workers who
may hold multiple jobs or part-time staff.
They have alternative arrangements –
flexi-time, teleworking, job share, etc.
© 2009 Pearson Education South Asia. Modified by KKB for class use.
The Changing Role Of
HR Management
  All these changes in environment - how
are you going to manage these
changes?
  HR managers are taking on new
responsibilities
  HR functions becoming more strategic
© 2009 Pearson Education South Asia. Modified by KKB for class use.
The Changing Role Of
HR Management
  Strategic Planning in HRM
–  Formulating the HR policies and
introducing practices that produce staff
competencies and behaviors that the
company needs in order to achieve its
strategic goals.
–  That’s a mouthful!
© 2009 Pearson Education South Asia. Modified by KKB for class use.
The Changing Environment Of
HR Management
  Changes in Workforce Demographics
–  Diversified workforce  staff employed
are of different race, religion, nationality,
gender, age, culture, background, etc.
–  E.g workers from Bangladesh, China,
India, Indonesia, Pakistan in Singapore’s
construction sector.
–  Diversity Management = challenge for
HR managers to keep balance.
1–31 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–32
The Changing Role Of
HR Management
  Strategic Planning
–  Long-term plan for how to match
internal strengths and weaknesses with
external opportunities and threats to
maintain a competitive advantage.
–  3 questions in Strategic Planning
•  Where are we now?
•  Where do we want to be?
•  How should we get there?
1–33 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–34
The Changing Role Of
HR Management
  Strategic HRM
–  HR managers are more involved in
partnering with other department
managers in both designing and
implementing their companies’ strategies
–  Top management wants to see how the
HR manager’s plans can contribute to
the company’s bottom line.
1–35 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–36
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 The Changing Role Of The Changing Role Of
HR Management HR Management
  Outsourcing HR Activities   High Performance Work Systems (HPWS)
–  Computer-based systems make it easier
to outsource HR activities to service Integrated set of HRM policies and
providers practices that try to produce excellent
–  e.g. payroll, benefits, wellness programs, employee performance.
employee training, testing, etc.

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–37 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–38

The Changing Role Of The Changing Role Of

HR Management
  No Fixed Rules on HPWS but should include:
•  Selective hiring
•  Employment security
•  Self managed teams and decentralized decision
making
•  Reduce status distinctions among managers and
workers
•  Information sharing among managers
•  Pay-for-performance rewards
•  Emphasis on high quality work
HR Management
  High Performance Work Systems – Benefits
•  Produce more qualified applicants per position
•  More employees are hired based on validated
selection tests
•  Provide more hours of training for new employees
•  Higher % of employees receive regular
performance appraisals.
•  Provide a safer work environment

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–39 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–40

The Changing Role Of The Changing Role Of

HR Management HR Management
  Measuring HRM Team’s Performance   Measuring HRM Team’s Performance
–  Employees and other managers expect HR Metrics
teams to provide measurable proof of the –  A set of quantitative performance
effectiveness of their programs! measures that HR managers use to
–  Require quantitative measures assess their operations
–  Metrics and HR Scorecard are used •  Absence Rate
((# of days absent in month) ÷
(avg. # employees in month) × (# of workdays))
× 100

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–41 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–42

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 The Changing Role Of The Changing Role Of
HR Management HR Management
  Measuring HRM Team’s Performance   Measuring HRM Team’s Performance
–  Cost per Hire Health Care Cost per Employee
(advertising + agency fees + employee referrals +
  total cost of health care ÷ total # employees
travel cost of applicants and staff + relocation costs
+ recruiter pay and benefits)
÷ Number of Hires HR Expense Factor
  HR expense ÷ total operating expenses

Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, “Improving the Return on Human Capital: New Metrics,” Compensation and Benefits Review, January/February 2000, pp. 13–
20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce
Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–43 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–44

The Changing Role Of

The New HR Manager
HR Management
  Measuring HRM Team’s Performance   New Proficiencies – from the Backroom to
–  HR Scorecard used to measure; the Boardroom
–  HR activities –  Prove HR’s worth by having more than
just technical knowledge
–  Employee behaviors
–  Organizational outcomes of behaviors –  Show how HR can help in key biz areas &
produce positive return on investment
–  More in Chapter 3
–  Make HR measurable in eyes of senior
management
–  Gain in-depth understanding of industry

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–45 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–46

The New HR Manager HRM and Professionalism

  HR Certification
–  HRM is becoming more professional. Look
at pp 27 to 30. Professional Institutes
provide;
-  Certification
-  Upgrade of skills and expertise
-  Exchange of views
-  Contribution to community

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 HRM and Professionalism HRM and Professionalism

  Is HR a profession?   Professional Institutes

–  Training and education
–  To look at criteria for a Profession
–  Up-to-date knowledge and information
–  Maintain links with similar organizations
in other countries
–  Active in regional associations
–  International conferences
–  Authority to specify qualification of
members

© 2009 Pearson Education South Asia. Modified by KKB for class use. 1–49 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–50

HR and Cross-Cultural Values HR and Cross-Cultural Values

  Confucianism   Han Fei Tzu: Rewards and Punishment

–  Harmonious relationship –  A leader should:
–  Mutual obligations •  Find talented subordinates
–  Hierarchy •  Set up a system of rules
–  Social order •  Explain these rules to subordinates
•  There is appropriate time and place to deal
  Sun Tzu’s Art of War
with problems
–  Explains theories of organization, •  Strictly administer rewards and punishment
planning, leadership and strategies
–  Importance of training, discipline, loyalty

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HR and Cross-Cultural Values HR and Cross-Cultural Values

  Han Fei Tzu: Rewards and Punishment   Other approaches

–  Role of a leader (summarized) –  Thailand: Buddhist approach
–  Malaysian cultural values
–  What about Macau?
–  National Values:
•  Indonesia: Pancasila
•  Malaysia: Rukunegara
•  Singapore: National Shared Values

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HR and Cultural Values
© 2009 Pearson Education South Asia. Modified by KKB for class use.
Strategy and the Basic HR
Process (page 22)
© 2009 Pearson Education South Asia. Modified by KKB for class use.
The Plan of This Book:
Basic Themes
  HR management is the responsibility of every
manager—not just those in the HR department.
  HR managers must be ready to defend their plans
and contributions in measurable terms.
  An HR department’s performance is measured
relative to achieving the company’s strategic aims.
  HR managers increasingly rely on IT to help support
their company’s strategic aims.
  Virtually every HR-related decision managers make
have legal implications.
  Globalization and diversity are important HR issues
today.
1–55 © 2009 Pearson Education South Asia. Modified by KKB for class use. 1–56
1–57
10