Pearson BTEC Level 5 HND

Diploma in Business
Human Resource
Management

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Bilal Saleh
MHRM, PMP
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2
9/8/2014
3
 Trainer and
UAE Consultant
Turkey Jordan Lebanon

Syria

Egypt
Media contribution
 After the completion of the unit the student
: will be able to
1. Understand nature of Human Resource Management
2. Know the differences Between Personnel Management and
Human Resource Management
3. Understand Objectives of Human Resource Management
4. Know the Functions of Human Resource Management
5. Understand Importance of Human Resource Management
6. Understand New Role of Human Resource Manage

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 What does HR
Mean?
Human Resource Management is a process, which consists
of four main activities, namely, acquisition, development,
motivation, as well as maintenance of human resources.
 NATURE OF HUMAN
RESOURCE MANAGEMENT
1. Inherent Part of Management
2. Pervasive Function
3. Basic to all Functional Areas
4. People Centered
5. Personnel Activities or Functions
6. Continuous Process
7. Based on Human Relations

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 Personnel Management VS Human
Resource Management
Differences:
HRM views people as an important source or asset to be used for the
benefit of organizations, employees and society.
It is being integrated into the overall strategic management of
businesses
Similarities:
Both models emphasize the importance of integrating personnel/HRM
practices with organizational goals.
Both models vest Personnel/HRM firmly in line management.
Both models emphasize the importance of individuals fully developing
their abilities for their own personal satisfaction to make their best
contribution to organizational success.
Both models identify placing the right people into the right jobs as an
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important means of integrating personnel/HRM practice with
 OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT
1. To ensure effective utilization of human resources, all other organizational
resources will be efficiently utilized by the human resources.
2. To establish and maintain an adequate organizational structure of
relationship among all the members of an organization by dividing of
organization tasks into functions, positions and jobs, and by defining clearly
the responsibility, accountability, authority for each job and its relation with
other
3. To jobs inmaximum
generate the organization.
development of human resources within the
organization by offering opportunities for advancement to employees throug
training and education.

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 OBJECTIVES OF HUMAN RESOURCE
MANAGEMENT
4. To ensure respect for human beings by providing various services and welfa
facilities to the personnel.

5. To ensure reconciliation of individual/group goals with those of the

organization in such a manner that the personnel feel a sense of commitme
and loyalty towards it.
6. To identify and satisfy the needs of individuals by offering various monetary
and non-monetary rewards.

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 In order to achieve the above objectives,
human resource management undertakes
: the
1. Human Resource following
Planning, activities
i.e., determining the number and kinds of
personnel required to fill various positions in the organization.
2. Recruitment, selection and placement of personnel, i.e., employment
function.
3. Training and development of employees for their efficient performance and
growth.
4. Appraisal of performance of employees and taking corrective steps such as
transfer from one job to another
5. Motivation of workforce by providing financial incentives and avenues of
promotion
6. Remuneration of employees. The employees must be given sufficient wages
and fringe benefits to achieve higher standard of living and to motivate them
to show
7. Social higher and
security productivity.
welfare of employees.
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FUNCTIONS OF HUMAN RESOURCE
MANAGEMENT

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Managerial HR Functions

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HR Planning

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 Organization
Under organization, the human resource manager has to
organize the operative functions by designing structure of
relationship among jobs, personnel and physical factors in such
a way so as to have maximum contribution towards
organizational objectives.
In this way HR manager performs following functions :
Preparation of task force;
Allocation of work to individuals;
Integration of the efforts of the task force;
Coordination of work of individual with that of the department.

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 Directing
Directing is concerned with initiation of organized
action and stimulating the people to work.
The personnel manager directs the activities of
people of the organization to get its function
performed properly.
A personnel manager guides and motivates the
staff of the organization to follow the path laid
down in advance.

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 Controlling
It provides basic data for establishing standards,
makes job analysis and performance appraisal,
etc.
All these techniques assist in effective control of
the qualities, time and efforts of workers.

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HR Operative Function

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 Procurement of
Personnel
It is concerned with the obtaining of the proper
kind and number of personnel necessary to
accomplish organization goals.
It deals specifically with such subjects as the
determination of manpower requirements, their
recruitment, selecting, placement and orientation,
etc.

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 Development of
Personnel
Development has to do with the increase through
training, skill that is necessary for proper job
performance.
In this process various techniques of training are
used to develop the employees.
Framing a sound promotion policy, determination
of the basis of promotion and making performance
appraisal are the elements of personnel
development function.
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 Compensation to
Personnel
Compensation means determination of adequate and
equitable remuneration of personnel for their contribution
to organization objectives.
To determine the monetary compensation for various jobs
is one of the most difficult and important function of the
personnel management.
A number of decisions are taken into the function, job-
evaluation, remuneration, policy, inventive and premium
plans, bonus policy and co-partnership, etc.
It also assists the organization for adopting the suitable
wages and salaries, policy and payment of wages and
salaries in right time. 4/19/17
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 Record Keeping
In record-keeping the personnel manager collects and
maintains information concerned with the staff of the
organization.
It is essential for every organization because it assists the
management in decision making such as in promotions.

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 Personal Planning and
Evaluation
Under this system different type of activities are
evaluated such as evaluation of performance, personnel
policy of an organization and its practices, personnel
audit, morale, survey and performance appraisal, etc.
It is essential for every organization because it assists the
management in decision making such as in promotions.

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 Importance of Human
Resource
It helps management in the preparation adoption and continuing
evolution of personnel programmes and policies.
It supplies skilled workers through scientific selection process.
It ensures maximum benefit out of the expenditure on training and
development and appreciates the human assets.
It prepares workers according to the changing needs of industry and
environment.
It motivates workers and upgrades them so as to enable them to accomplish
the organization goals.
Through innovation and experimentation in the fields of personnel, it helps in
reducing casts and helps in increasing productivity.
It contributes a lot in restoring the industrial harmony and healthy employer-
employee relations.
It establishes mechanism for the administration of personnel services that are
delegated to the personnel department. 4/19/17
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 New role of Human
Resource
The new role of human resource management is much more
strategic than before.
Some of the new directions of the role of HRM can be summed up
as follows:
A Facilitator of Change : To carry people through upheaval requires the
true management of human resources.
An Integrated Approach to Management : Rather than being an isolated
function, human resource is regarded as a core activity, one which shapes a
companys values. In particular, this can have an impact on customer service.

A Mediator : Establishing and balancing the new and emerging aspirations

and requirements of the company and the individual.

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 Function of Human
Resource Manager
Human Resource Man as an Intellectual.
Expert in communication and designing policies and agreements.
Mentality skill in dealing with the staff in an intelligent manner as
well as to understand what they are trying to say.
Human Resource Man as an Educator.
HR manager must not only provide opportunities for his employees
to learn, get the required training and assimilate new ideas but;
He himself should be a teacher.
Human Resource Man as a Discriminator.
HR Manager should be a good judge when he sits on a selection
board, a fair person when he advises on disciplinary matters and a
good observer of right conduct in an organization.

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 Function of Human
Resource Manager
Human Resource Man as an Executive.
HR Manager must execute the decisions of the management and its
policies with speed, accuracy and objectivity.
He has to streamline the office, tone up the administration and set
standards of performance.
Human Resource Man as a Leader.
HR must inspire his people and motivate them towards better
performance.
He should resolve the conflicts of different groups and build up
teamwork in the organization.
Human Resource Man as a Humanist.
HR manager should have a deep faith in human values and empathy
with human problems.
He must perform his functions with sensitivity and feeling.
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 Function of Human
Resource Manager
Human Resource Man as a Visionary.
HR should be a thinker who sets the pace for policy-making in an
organization in the area of human relations and should gradually
work out new patterns of human relations management consistent
with the needs of the organization and the society.

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Human Resource Planning

Human Resource Planning

and Job Analysis

Fundamentals of Human Resource

Management, 10/e, 30 Chapter 5, slide
DeCenzo/Robbins
 Introduction
Human resource planning is a process by which an
organization ensures that

it has the right number and kinds (capabilities) of people

at the right place

at the right time

capable of effectively and efficiently completing those tasks that will

help the organization achieve its overall strategic objectives

31 Chapter 5, slide
 Introduction
HR planning must be:

linked to the organizations overall strategy to compete domestically and

globally

translated into the number and types of workers needed

Senior HRM staff need to lead top management in planning for HRM issues.

32 Chapter 5, slide
 An Organizational
Framework
A mission statement defines what business the organization is in,
including

why it exists

who its customers are

strategic goals set by senior management to establish targets for the organization to
achieve

Goals are generally defined for the next 5-20 years.

33 Chapter 5, slide
 Linking Organizational
Strategy to HR Planning
During a corporate assessment,

SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis determines what is

needed to meet objectives

strengths and weaknesses and core competencies are identified

HRM determines what knowledge, skills, and abilities are needed by the organizations human
resources through a job analysis.

34 Chapter 5, slide
Linking Organizational
Strategy to HR Planning
STRATEGIC DIRECTION HR LINKAGE

mission determining organizations

business

setting goals and

objectives and goals
objectives

strategy determining how to attain

goals and objectives

determining what jobs need to be

structure
done and by whom

matching skills, knowledge,

people and abilities to required jobs

35 Chapter 5, slide
 Linking Organizational
Strategy to HR Planning
HR must ensure staff levels meet strategic planning goals.

An HR inventory report summarizes information on current

workers and their skills

HR information systems (HRIS)

process employee information

quickly generate analyses and reports

provide compensation/benefits support

36 Chapter 5, slide
Linking Organizational
Strategy to HR Planning
Succession planning includes the development of
replacement charts that

portray middle- to upper-level management positions that may

become vacant in the near future.

list information about individuals who might qualify to fill the

positions.

Fundamentals of Human Resource

Management, 10/e, 37 Chapter 5, slide
DeCenzo/Robbins
 Linking Organizational
Strategy to HR Planning
HR must forecast staff requirements.

HR creates an inventory of future staffing needs for job level

and type, broken down by year

forecasts must detail the specific knowledge, skills, and

abilities needed, not just we need 25 new employees

Fundamentals of Human Resource

Management, 10/e, 38 Chapter 5, slide
DeCenzo/Robbins
 Linking Organizational Strategy to
Human Resource Planning
HR predicts the future labor supply.

a units supply of human resources comes from:

new hires
contingent workers
transfers-in
individuals returning from leaves

predicting these can range from simple to complex

transfers are more difficult to predict since they depend on

actions in other units
39 Chapter 5, slide
Linking Organizational Strategy to
HR Planning
Decreases in internal supply come about through:
retirements easiest to forecast

dismissals possible to forecast

transfers possible to forecast

layoffs possible to forecast

sabbaticals possible to forecast

voluntary quits difficult to forecast

prolonged illnesses difficult to forecast

deaths hardest to forecast

 Linking Organizational Strategy to
HR Planning
Candidates come from:

migration into a community

recent graduates
individuals returning from military service
increases in the number of unemployed and employed
individuals seeking other opportunities, either part-time or
full-time

The potential labor supply can be expanded by formal or

on-the-job training.

41 Chapter 5, slide
 Linking Organizational Strategy to
HR Planning
To match labor demand and supply, HR

compares forecasts for demand and supply of workers

monitors current and future shortages, and overstaffing.

Sometimes, strategic goals must change as a result

uses downsizing to reduce supply and balance demand

42 Chapter 5, slide
Linking Organizational Strategy
to HR Planning
Employment Planning and
the Strategic Planning Process

demand for labor Outcomes

demand exceeds recruitment

assess current supply
define establish human resources compare demand
organization corporate goals -- - - - - - - - - - - - - for and supply of
mission and objectives HRMS: human resources
job analysis supply exceeds
demand decruitment

supply of
human resources

43 Chapter 5, slide
 Job Analysis
Job analysis is a systematic exploration of the activities
within a job.

it defines and documents the duties, responsibilities, and

accountabilities of a job and the conditions under which a
job is performed

See
http://www.staffing-and-recruiting-essentials.com/Sample-Job-Analy
sis.html
for a sample job analysis.
 Job Analysis
Job analysis methods
1. observation job analyst watches employees directly or reviews film of
workers on the job
2. individual interview a team of job incumbents is selected and
extensively interviewed
3. group interview a number of job incumbents are interviewed
simultaneously
4. structured questionnaire workers complete a specifically designed
questionnaire
5. technical conference uses supervisors with an extensive knowledge
of the job
6. diary job incumbents record their daily activities
The best results are usually achieved with some combination of methods.
Job Analysis
understand the purpose review draft
of the job analysis with supervisor

understand the roles of

develop draft
jobs in the organization

benchmark positions seek clarification

determine how to collect

job analysis information
46 Chapter 5, slide
Job Analysis
The Occupational Information Network (O*NET) content
model includes:
1. worker characteristics
2. worker requirements
3. experience requirements
4. occupation-specific information
5. workforce characteristics
6. occupational requirements

See http://online.onetcenter.org/
 Job Analysis
Job descriptions list:
job title
job identification
job duties/essential functions in order of importance
job specifications - minimal qualifications for job

They are critical to:

describing job to candidates
guiding new-hires
developing performance evaluation criteria
evaluating jobs compensation worth
Job Analysis
Almost all recruiting
labor
HRM activities relations
selection

are tied to job

analysis; it is
HR
the starting safety &
planning
health
point for
job analysis
sound HRM. job description
job specifications
employee
compensation development

performance employee
management training
career
development
Job Analysis
Job design is how a position and its tasks are organized.
great job design enriches and motivates through
skill variety task identity task significance
autonomy feedback from job itself

flexible work schedules keep employees motivated

and loyal
flex time job sharing telecommuting

part of HR planning and job analysis is finding team

members with
technical and interpersonal skills