Human Resource Management

BS in Psychology 4th Year Credit Hours 3

Semester : Spring 2020

Lecture # 1

Institute of Professional Psychology

Bahria University – Karachi Campus
 Human Resource Management
• COURSE OBJECTIVES
• Basic principles of HRM to diverse audience/students, including those
who are studying this as a supporting subject for their bachelor
degree program.
• Foundations of HRM, whether you intend to work in HRM or not,
most of these elements will affect you at some point in your career.
• Either you will be working with some organizations or having people
working for you, in both cases you will be dealing with people.
• The most important - basic skills required to succeed in today’s
environment; must be able to communicate, think creatively, plan
effectively and deal with people.
 Human Resource Management
• COURSE OBJECTIVES
• Student’s responsibility in this course is not to memorize material to
be repeated back on examinations. Rather, it is to be an active
participant and observer in the ongoing learning processes inside and
outside the classroom.
• My preference - highly interactive class with the students, who are
encouraged to participate for better understanding and mutual
learning.
 GUIDELINES FOR ASSIGNMENT
• The students should look upon the assignments as a test of
knowledge, management skills, and communication skills. When you
write an assignment answer, you are indicating your knowledge to
the teacher:
• Your level of understanding of the subject;
• How clearly you think;
• How well you can reflect on your knowledge & experience;
• How well you can use your knowledge in solving problems,
explaining situations, and describing organizations and management;
• How professional you are, and how much care and attention you
give to what you do.
RECOMMENDED TEXT AND REFERENCE BOOKS
• “Human Resource Management”, by Gary Dessler. (Latest Edition)

• “Human Resource Management”, by WayneMondy (Latest Edition)

• “Human Resource Management”, by David Decenzo and Stephen

Robbins. John Wiley & Sons, Inc. (10th Edition)
RECOMMENDED TEXT AND REFERENCE BOOKS
• “Human Resource Management”, by Raymond A. Noe, John
Hollenbeck (Latest Edition)

• “Managing Performance through Training and Development” by Alan

Saks and Robert Haccoun( 4th Edition)

• Course notes/Slides, Case studies and relevant academic handouts

Reference Text Book
 Students Assessment Scheme
  Assessment … to assess Total Remarks
Marks
1
Quizzes Intellectual and analytical 15
skills
2
Assignments Knowledge and 10 Student’s
understanding participation
3
Presentations Professional and practical 10 in class
skills activities
4
Mid Term Professional skills 25 counted in
5
Final exam Professional skills 40 assignments
etcetera.
• IMPORTANT NOTE:

• Attendance: - Maximum absences allowed is 20%.

• More than 20% will earn the student a failing grade.

So how was the WINTER?
 WORK FORCE VIZ SAILING CREW
• The sailing crew faces many of the same goals and challenges as
any organization in our unpredictable business environment.
• Success and survival depend on a well designed boat with a
carefully selected and thoroughly trained crew that understands
the strategy of the race, and adapt quickly to the unpredictable
environment.
• They must be able to quickly adjust the sails, rigging, and rudder
to keep moving forward and gain a competitive advantage.
Firm’s HR policies and practices
should produce the employee skills and
behaviors the company needs to achieve
its strategic aims.
 Human Resource Management
• Process of recruiting, selecting, inducting employees,
• Providing orientation, imparting training and development,
• Appraising the performance of employees,
• Deciding compensation and providing benefits,
• Motivating employees,
• Maintaining proper relations with employees and their trade
unions,
• Ensuring employees safety, welfare and healthy measures in
compliance with labour laws of the land.
 Human Resource Management
• Involves management functions like planning, organizing, directing
and controlling,
• Also involves procurement, development, maintenance of human
resource
• It helps to achieve individual, organizational and social objectives
• Multidisciplinary subject.
• Includes the study of management, psychology, communication,
economics and sociology.
• It involves team spirit and team work.
• It is a continuous process.
 HRM Definitions by Authors
• Many great scholars had defined human resource management
in different ways and with different words, but the core meaning
of the human resource management deals with how to manage
people or employees in the organisation.
• Edwin Flippo defines- Human Resource Management as
“planning, organizing, directing, controlling of procurement,
development, compensation, integration , maintenance and
separation of human resources to the end that individual,
organizational and social objectives are achieved.”
 HRM Definitions by Authors
• According to Decenzo and Robbins, “Human Resource
Management is concerned with the people dimension” in
management. Since every organization is made up of people,
acquiring their services, developing their skills, motivating them
to higher levels of performance and ensuring that they continue
to maintain their commitment to the organization is essential to
achieve organsational objectives. This is true, regardless of the
type of organization – government, business, education, health
or social action”.
 Importance of Human Resource
• Behind production of every product or service there is a human
mind, effort and man hours (working hours).
• No product or service can be produced without help of human
being.
• Human being is the fundamental resource for making or
construction of anything.
• Desire of every organisation is to have skilled and competent
people to make their organisation competent and best.
 Importance of Human Resource
• Among the five Ms of management, i.e., men, money,
machines, materials, and methods, HRM deals about the first
M, which is men.
• It is believed that in the five Ms, "men" is not so easy to
manage. "every man is different from other" and they are
totally different from the other Ms in the sense that men
possess the power to manipulate the other Ms.
• Whereas, the other Ms are either lifeless or abstract and as
such, do not have the power to think and decide what is good
for them.
 Why do we call it as Human Resource
Management?
• Human: refers to the skilled workforce in an organization.
• Resource: refers to limited availability or scarce.
• Management: refers how to optimize and make best use of
such limited or scarce resource so as to meet the organization
goals and objectives.
• HRM is meant for proper utilisation of available skilled
workforce and also to make efficient use of existing human
resource in the organisation.
• Technology is replacing human resource and minimizing their
role.
 Why do we call it as Human Resource
Management?
• However, machines and technology are built by the humans only
and they need to be operated or at least monitored by humans
and this is the reason why companies are always in hunt for
talented, skilled and qualified professionals for continuous
development of the organization.
• Therefore humans are crucial assets for any organisation,
although today many tasks have been handed over to the
artificial intelligence but they lack judgment skills which cannot
be matched with human mind.
 Why is HRM important to all Managers?
• Mistakes you don't want to make while man­aging:
• Hire the wrong person for the job.
• Experience high turnover
• Your people not doing their best
• Waste time with useless interviews
• Company taken to court because of discriminatory
actions.
 Why is HRM important to all Managers?
• Mistakes you don't want to make while man­aging:
• Company cited under federal occupational safety
laws for unsafe practices
• Some employees think their salaries are unfair and
inequitable relative to others in the organization
• Allow a lack of training to undermine your
department's effectiveness
• Commit any unfair labor practices
 Factors Affecting Human Resource Management:
• Political, Economic, Social, Cultural, Regulatory and Technological Factors

• Political factors include areas such as:

• i. Tax policy

• ii. Labour law

• iii. Environmental law

• iv. Regional blocks

• v. Trade restrictions & Tariffs

• vi. Political stability

2. Economic Factors Influencing HRM
• 1. Globalization
• 2. Monetary Policies
• 3. Explosion in Stock Markets
• 4. Trade in Commodities
• 5. Growth of Unemployment in Developed Countries &
Employment in Developing Countries
• 6. Growth of Inflation in Developing Countries
• 7. Great Divide (GDP Growth Rate)
• 8. World Economy is more Powerful than Individual Nations
3. Social Factors Influencing HRM
• Social Relations – Social relations focus on the behaviours and needs, those
that primarily concern themselves with how people organise and make
meaning of their world and their relationships within it.

• II. Social Institutions – A social institution is a complex, integrated set of

social norms organized around the preservation of a basic societal value. In
short-hand, the five basic institutions are called the family, government,
economy, education and religion.

• III. Social Behaviour – It is behaviour directed towards society, or taking

place between, members of the same species.

• IV. Social Networking – It is the practice of expanding the number of one’s

business and/or social contacts by making connections through individuals.
4. Cultural Factors Influencing HRM
1. Mindset Change – People have become more broad minded and
more acceptable in nature and also more tolerant towards different
cultures.
2. Woman Participation – Being encouraged in organizations, taking
up important roles, their contribution is being recognized.
3. Diversity in Terms of Work Force – The organizations are
employing people from all over the globe to ensure, they have the
best talent onboard, rather than restricting themselves to a
particular location.
4. Orientation (Collective to Individualistic) – The workforce is now
self-oriented more than collective.
5. Multilingual Acceptance – Acceptance towards other languages
has increased.
4. Cultural Factors Influencing HRM
6. Emergence of Online Communities – Various online communities
have emerged primarily due to the social media revolution. Such
communities are transnational and virtual.
7. Emergence of Aspirational Culture – The Gen Y especially is an
aspirational generation. It aspires for better quality of life, better
amenities, better technology & gadgets, better standard of living, better
jobs & career, financial freedom, and no- nonsense culture.
8. Decrease of Shelf-life of Relationship – The lifelong relationship
culture is fast losing its sheen and it is replaced by a culture where every
relationship comes with a shelf-life.
9. Increase of ‘Other’ Cultural Influence – With communities becoming
more and more virtual and global, the influence of the ‘other’ culture
can be felt more and more. The emergence of the metro-sexual breed is
a result of such influence.
 Successful HRM
• One of the most important human resource management skills
you must have to successfully work in HR is organization.
• Everyone who works in HR must be:
• well-organized,
• must have strong time management and
• be personally efficient in order to succeed.
• This means that their office cannot be in shambles
 Challenges/Issues of Managing Human
Resources
1. Compliance with Laws and Regulation:
• No matter how large or small your business, it’s important to
make sure you’re in compliance with local, state, and federal
labor laws.
• There are regulations on everything from hiring practices, to
wage payment, to workplace safety. Take a few minutes to read
through the Country’s Labor’s Employment Law Guide.
 Challenges/Issues of Managing Human
Resources
2. Management Changes:
• Business owners should focus on communicating the benefits of
the change for everyone.
• Regular staff meetings are a good place to start.
• When your team understands the why, how, and when of the
change, they’ll be more likely to get on board.
 Challenges/Issues of Managing Human
Resources
3. Leadership Development:
• Leadership development is critical in keeping your management
team engaged and motivated, and prepares them to take on
more responsibilities in the future.
• Make it part of the culture.
• Create opportunities for them to use their strengths every day.
• Accomplishing goals will motivate them and give them a chance
to develop their skills.
 Challenges/Issues of Managing HR
4. Workforce Training and Development:
• Training and development doesn’t have to take a lot of time or
money. Recruit managers and senior leadership in mentoring
their subordinate employees.
• Online training courses so people can go at their own pace.
• Invest in your workforce and you will have a loyal, productive
team.
 Challenges/Issues of Managing Human
Resources
5. Adapting to Innovation:
• Communication is critical. With any change, make sure your
team understands the why, when, and how.
• Set clear goals for the adoption of initiatives, provide employees
with the training they need to get comfortable with it.
 Challenges/Issues of Managing HR
6. Compensation:
• Even though salary is important, it isn’t always the most
important factor for job candidates.
• Creating a system to reward employees for excellent
performance is one way to make up for a lower salary.
• Consider offering incentive programs such as profit sharing or
bonuses, a win-win for the employee and the company.
 Challenges/Issues of Managing Human
Resources
7. Understanding Benefits Packages:
• Benefits such as:
• Flex time
• Free snacks
• Wellness programs
• Commuter benefits
• These benefits are affordable ways to offer extra perks—and
they’re extremely popular with today’s workforce!
 Challenges/Issues of Managing HR
8. Recruiting Talented Employees.
9. Retaining Talented Employees:
10. Workplace Diversity