Introduction to Human Resource Management

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 Learning Objectives

• To develop understanding of HR Management literature: theories,

strategies and techniques.
• To understand HR management phenomenon – especially how managers
successfully manage plans, implement strategies in organizations.
• Entire course is designed to help students in building and developing
their analytical and applied management skills in context of business
organizations.

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 Outline
• Explain what human resource management is and why it is important.
• Briefly discuss functions of HRM
• Describe importance of HRM
• List and briefly describe important trends in human resource management.
• Briefly discuss and illustrate each of the important trends influencing human
resource management.
• Briefly discuss HR Manager and their competencies
Introduction
• A basic concept of management states that manager works in organizations.
• Organization has three basic components, People, Purpose, and Structure.
• HRM is Human Management
• management of people working in an organization.
• a managerial function that tries to match an organization’s needs to the
skills and abilities of its employees(right person, right job, right purpose)
• Let’s see meaning of three key terms… human, resource, and management.
• Human (Social Animal)
• Resources (Human, Physical, Financial, and Informational etc)
• Management (Function of Planning, Organizing, Leading & Controlling
of organizational resources to accomplish goals efficiently and
effectively)
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 The Management Process
Planning

Controlling Organizing

Leading Staffing

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Inc. publishing as Prentice Hall
• What Is Human Resource Management (HRM)?

• The process of acquiring, training, appraising, and

compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns.

• Human Resource Management is responsible for how people are

managed in the organizations.
• It is responsible for bringing people in organization helping them
perform their work, compensating them for their work and
solving problems that arise.

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 Functions of HRM
HRM departments perform following HR functions

• Staffing (HR planning, recruitment and selection)

• Human resource development
• Compensation and benefits
• Safety and health
• Employee and labor relations
• Records maintaining, etc.

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 Growing Importance of HRM
The success of organizations increasingly depends on people’s knowledge, skill,
and abilities.
• Accommodation to workers' needs
• flexible work schedules, parental leave, child-care and elder-care
assistance, job sharing etc
• Increased complexity of the Manager’s job
• Foreign competition, new technology, expanding scientific information,
rapid change etc
• Legislation and litigation
• equal employment, Compensation, safety, and labor relations.
• Consistency
• Cost of Human Resource
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 Why are we concerned with HRM?
• Helps you get results - through others.
• Helps you to gain Competitive Advantage
• To Attract People
• To Develop People (according to the change practices going on in the market)
• To Motivate (keep on delivering like day one)
• To Keep Talented People
• Helps you avoid common personnel mistakes
• Hiring the wrong person for the job
• Experiencing high turnover
• Finding employees not doing their best
• Allowing a lack of training to undermine your department’s effectiveness
• Committing any unfair labor practices
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 Trends Shaping Human Resource Management

Globalization
and Competition Trends

Indebtedness (“Leverage”) and

Deregulation Technological Trends

Trends in HR Management

Workforce and Demographic

Trends in the Nature of Work
Trends

Economic Challenges and

Trends

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Inc. publishing as Prentice Hall
FIGURE 1–4 Trends Shaping Human Resource Management

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Prentice Hall
 THE NEW HUMAN RESOURCE MANAGERS
• Human Resource Management Yesterday and Today
 In twentieth century, personnel managers focused on day-to-day
transactional types of activities.
Hiring and firing
Ran the payroll department
Administered benefits plans
Recruitment and Selection
Helping the employer deal with unions
Today, trends like globalization, indebtedness, and technology confront
employers with new challenges, such as obtain more profits from operations
 THE NEW HUMAN RESOURCE MANAGERS
1. They Focus More on Strategic, Big Picture Issues (Strategic HR)
Strategic human resource management means formulating and executing
human resource policies and practices that produce the employee
competencies and behaviors the company needs to achieve its strategic aims
2. They Use New Ways to Provide Transactional Services
Outsource more benefits administration and safety training to outside
vendors.
 They use technology, for instance, company portals that allow employees to
self-administer benefits plans
LinkedIn for recruitment and hiring job applicants,
 Online testing to prescreen job applicants,
 Centralized call centers to answer HR-related inquiries from supervisors
 THE NEW HUMAN RESOURCE MANAGERS
3. They Take an Integrated, Talent Management Approach to Managing
Human Resources
With employers competing for talent, no one wants to lose any high-potential
employees, or to fail to attract or fully utilize top-caliber ones
Talent management is the goal-oriented and integrated process of planning,
recruiting, developing, managing, and compensating employees.

4. They Manage Ethics

 Ethics means the standards someone uses to decide what his or her conduct
should be
Every human resource manager needs to understand the ethical implications of his
or her employee-related decisions.
 THE NEW HUMAN RESOURCE MANAGERS
6. They Manage Employee Engagement

7. They Measure HR Performance and Results

 In today s performance-based environment, employers expect their human
resource managers to take action based on measurable performance-based
criteria
 THE NEW HUMAN RESOURCE MANAGERS
8. They Use Evidence-Based Human Resource Management
• evidence-based human resource management is the deliberate use of the best
available evidence in making decisions about the human resource management
practices
The evidence may come from:
Actual measurements (such as, how did the trainees like this program?).
Existing data (such as, what happened to company profits after we
installed this training program?).
 THE NEW HUMAN RESOURCE MANAGERS
9. They Add Value:

 They add value by boosting profitability and performance in measurable

ways.
Adding value means helping the firm and its employees to achieve higher
profitability
THE HUMAN RESOURCE MANAGER S COMPETENCIES

• Talent Managers/Organization Designers,

• There are different definitions of talent management.
• Set of integrated organizational human resource processes designed to attract
acquiring, develop, engage productive engaged employees
• Goal is to create high performance sustainable practices that meets strategic
goals
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• Culture and Change Stewards, able to create human resource practices
that support the firms cultural values

• Strategy Architects, with the skills to help establish the company s

overall strategic plan, and to put in place the human resource practices
required to support accomplishing that plan.

• Operational Executors, able to anticipate, draft, and implement the

human resource practices (for instance in testing and appraising) the
company needs to implement its strategy
• Business Allies, competent to apply business knowledge (for
instance in finance, sales, and production) that enable them to help
functional and general managers to achieve their departmental goals

• Credible Activists, with the leadership and other competencies

that make them both credible (respected, admired, listened to) and
active (offers a point of view, takes a position, challenges
assumptions.)

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Basic Themes
• HRM is the responsibility of every manager.
• The workforce is becoming increasingly diverse.
• Current economic challenges require that HR managers develop new
and better skills to effectively and efficiently deliver and manage HR
services.
• The intensely competitive nature of business today means human
resource managers must defend their plans and contributions in
measurable terms.

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Inc. publishing as Prentice Hall
Discussion questions
• The HR manager’s most basic responsibility is to focus employees
towards performance of work activities to achieve desired outcomes?
What is your interpretation of this statement? Do you agree or disagree
with this statement? Why or why not?
• Why do you think skills of job HR candidates have become so
important ? What are the implications for (a) manager’s job in general,
and to you personally?
• In today’s environment, which is more important to organizations –
efficiency or effectiveness? Explain your choice?