Introduction to Human

Resource Management
Chapter 1
Reference Books:
Human Resource Management ( Gary Dessler)
Human Resource Management (Mondy)
Human Resources and Personnel Management ( keith Davis)

When you finish studying this chapter, you
should be able to:
Answer the question What is human resource
management?
Why are we concerned about HRM
Overview of HRM Activities
Identify the environmental factors that affect human
resource management.
Give examples of human resource managements role
as a strategic partner

Human Resource Management

HR refers to people in organization.
Almost all Managers are involved in carrying out HR
activities
The main purpose of these activities are to
facilitate & improve the productive contribution of
employees in achieving organizational goals &
objectives.
Human Resource Management
Management process
The bottom line of managing: Getting results
The five basic functions of planning, organizing, staffing,
leading, and controlling.
Human resource management (HRM)
Managerial function that tries to match an
organizations needs to the skills and abilities of its
employees.
Human Resource Management
The policies and practices involved in carrying out the
people or human resource aspects of a management
position, including recruiting, screening, training, rewarding,
appraising, and providing a safe and fair environment to your
company & employees
Strategic Human Resource Management
The linking of HRM with strategic goals and objectives in
order to improve business performance and develop
organizational cultures that foster innovation and
flexibility.
Formulating and executing HR systemsHR policies and
activitiesthat produce the employee competencies and
behaviors the company needs to achieve its strategic aims.
Measuring HRs Contribution
Strategy
The companys long-term plan for how it will
balance its internal strengths and weaknesses with
its external opportunities and threats to maintain a
competitive advantage.
HR managers today are more involved in partnering
with their top managers in both designing and
implementing their companies strategies.
Top management wants to see, precisely, how the
HR managers plans will make the company more
valuable.
The Management Process
ORGANIZATIONAL
GOALS
Planning
Leading
INFORMATION
RESOURCES
PHYSICAL
RESOURCES
FINANCIAL
RESOURCES


HUMAN
RESOURCES


Management in Organizations
Inputs from the environment
Human resources
Financial resources
Physical resources
Information resources
Planning
and decision
making
Leading
Organizing
Controlling
Goals attained
Efficiently
Effectively
Efficiency versus Effectiveness
Efficiency:
Operating in
such a way
that resources
are not wasted
Effectiveness:
Doing the right
things in the
right way at
the right times
Successful
Management
Organizational Performance
Efficiency: A measure of how well
resources are used to achieve a goal
Doing Things Right

Effectiveness: A measure of the
appropriateness of the goals chosen (are
these the right goals?), and the degree to
which they are achieved
Doing the Right Things Right
Functions of HRM
Determining the nature, functions of each employees job
(Conducting job analyses)
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment
Staffing
HUMAN RESOURCE
MANAGEMENT
FUNCTIONS
Employee
& Labor
Relations
Safety &
Health
Compensation
& Benefits
Human
Resource
Development
Some Common Consequences Caused by
Poor HRM Practices
Hire the wrong person for the job
Experience high turnover/dissatisfaction
Have your people not doing their best
Employees will not know that what to do & how to do
Have your company in court because of
discriminatory/unlawful actions
Have some employees think their salaries are unfair and
inequitable internally & other organizations.
Allow a lack of training to undermine your departments
effectiveness
Commit any unfair labor practices
Why Is HRM Important to All Managers?
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
Staffing
Employee
& Labor
Relations
Safety
& Health
Compensation
& Benefits
Human
Resource
Development
HR Management
Functions
Legal consideration
Labor Force
S
o
c
i
e
t
y

T
h
e

E
c
o
n
o
m
y

t
e
c
h
n
o
l
o
g
y

Customer
Competition Share holder
Unions
OPS
Mkt

Fin.

O F A
Environment (Challenges) of HRM
B
r
a
i
n

d
r
a
i
n

Turn over
Budget downsizing
The External Environment
Components
Labor Force
Legal legislation
Society ( Social
Responsibility)
Unions
Stakeholders
Competition
Customers
Technology
Economy
Brain-drain
Rapid change

Open System- An open system is one that is effected by environments
Firm has little control over external factors
The External Environment:
Proactive Versus Reactive
Reactive Response: Action taken in
response to change
Proactive Response: Action taken in
anticipation of change
The Internal Environment


Limited budgets
Trends of Downsizing
Workforce Diversity
High Turn over
Restructuring
Internal Unions
Competitive Advantage
Competitive
advantage means
any factors that allow
an organization to
differentiate its
product or service
from those of its
competitors to
increase market
share
There is greater
recognition that
distinctive
competencies are
obtained through highly
developed employee
skills, distinctive
organizational cultures,
management
processes, and
systems.
Competitive Advantage
HR as
HRs Role in Formulating
Strategy
HR participates in the strategy
formulation process by supplying
information regarding the companys
internal human strengths and
weaknesses
HRs Role in Executing
Strategy
HR is heavily involved in the execution of
most firms downsizing and restructuring
strategies, through out-placing employees,
instituting pay-for-performance plans,
reducing health care costs, and retraining
employees.
The Strategic Future of the HR
Department
Human resource departments will face
further downsizing and reengineering, as
they face pressure from senior
management to add value to the
organization or have their functions
contracted out.

HR Professionals
Responsibilities
Establish HRM policies
Develop/choose HRM methods
Monitor/evaluate HRM practices
Advise/assist managers on HRM-
related activities
Productivity (increasing performance)
Operations (cohesive linking)
Relationships (between diff. levels of mgt / dept)
Conflict (help handling conflict)
Stress (managing stress)
Reward systems (help motivate people)
HRM can help manage
Effective
HRM
Effective
Organization
Functions (Scope) of Personnel Policy/HRM
1.Staffing
Functions
of Personnel
Policy/HRM
5.Employee
& Labor
Relations
4.Safety &
Health
3.Compensation
& Benefits
2.Human
Resource
Development
1.Staffing
Process through which an organization ensures that
it always has the proper number of employees with
the appropriate skills in the right jobs at the right
time to achieve the organizations objectives.
It includes
Personnel planning
Job Analysis
Recruitment
Selection
2.Human Resource Development
Major Personnel function that consist not only of
T&D but also individual career planning, developing
activities and performance appraisal.
HRD is composed of
Training
Development
Career planning
Career Development
Performance Appraisal
3.Compensation & Benefits
Consist of all direct, indirect, financial & non
financial rewards given to employees in return of
their services.
Pay - Money that a person receives for performing a
job
Benefits Additional Financial rewards in addition
to base pay including paid vocations, sick leave,
insurance etc.
Non financial Rewards
The Job
The Environment

4. Safety & Health
Safety involves protecting employees from injuries
caused by work related accidents. Health refers to
employees freedom from physical or emotional
illness.
5. Employee & Labor Relation
Deals with employee employer relationship &
dealing with labor unions