HUMAN RESOURCE

MANAGEMENT

LECTURE 1
OVERVIEW OF ORGANISATION & HRM

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• Organization
• An organization is a group of people who
consciously and formally come together to
accomplish certain goals that its members would
be unable to reach individually
• HR and its relationship with organisation
• HR management involves the policies and
practices needed to carry out the staffing (or
people) function of organisation.
• HRM can help to manage the following factors in
the organization.
• Productivity
• Operations
• Relationships
• Conflict
• Stress
• Reward systems

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The Definitions of HR Management

• HRM is the use of several activities to ensure that human

resources are managed effectively for the benefit of the
individual, society and the business (Schuler, 1995)

• HRM is the management function that is concerned with

getting, training, motivating, and keeping competent
employees (Robbin & De-Cenzo, 1998)

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 Cont’d

• HRM is a function performed in an organization that

facilitates the most effective use of people (employees) to
achieve organizational and individual goals (Ivancevinch,
2004)

• HRM is the policies and practices involved in carrying

out the “people” or “human resource” aspect of a
management position including recruiting, screening,
training, rewarding and appraisal (Dessler, 2006)

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 Cont’d

• HRM is a strategic and coherent approach to managing

the organization’s most valued assets – the people who
individually and collectively contribute to the
achievement of its objectives (Armstrong, 2006).

• Human Resource Management is the process of

attracting, developing, appraising, rewarding, and
retaining competent human resources in an organization
so that the goals of an organization are achieved in an
effective and efficient manner

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The Objectives of Human Resource Management

– To achieve high performance through people

– To enhance motivation and commitment of employees

– To achieve human capital advantage

– To attract and retain skilled and motivated employees

– To increase capabilities and potential

– To value people according to their contribution

– To develop a cooperative and productive employee

relations climate
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 The Importance of Human Resource Management

• HRM plays strategic role in organizational performance

by using available human capital

• HRM creates organizational capacity that can be a major

source of competitive advantage

• HRM helps organizations to cut cost in its operations

by employing right employees

• HRM ensures the growth and development of employees

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 Cont’d

• HRM enhances employee motivation and commitment

by drafting policies, processes, and programmes within
the organization

• HRM creates the necessary organizational climates

where harmonious and sound relationships can be
promoted

• HRM promotes national development through talent

management

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• Functions of HR
• Operative functions of HR
• Staffing - Job analysis, HRP, Recruitment, Selection,
Placement, Induction.

• Development- Training and development,

Performance management, Career management.

• Compensation & motivation- Job design, Job evaluation,

Compensation administration, Incentives and benefits

• Maintenance- safety and welfare

• Integration – employment relation, grievance,

discipline, trade unions, participation

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 The Challenges of Human Resource Management

These challenges include:

– Globalization

– Lack of qualified personnel/skills deficit

– Technological Advancement

– Cost (recruitment, training and labour turnover)

– Industrial relation challenges/trade union activities

– Difficulties in meeting individual needs

– Interference – nepotism and favoritism

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• HR Management Competencies and Careers
• As HR management has become more and
more complex, greater demands are placed on
individuals who make the HR field their career
specialty. It is important to know about the
competencies required for those choosing HR
as a career field. Changes in the HR field are
leading to changes in the competencies and
capabilities of individuals concentrating on HR
management. A study by SHRM found that HR
professionals must have core competencies,
level-specific competencies, and role specific
competencies. Based on these and other
studies and surveys, it appears that three sets
of capabilities are important for HR
professionals: l Knowledge of business and
organization; Influence and change
management and Specific HR knowledge and
expertise

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• Knowledge of Business and Organization
• HR professionals must have knowledge of the
organization and its strategies if they are to
contribute strategically. This knowledge also
means that they must have understanding of
the financial, technological, and other facets
of the industry and the organization.
• Influence and Change Management
• Another key capability that HR professionals
need is to be able to influence others and
guide changes in organizations. Given the
myriad HR-related changes affecting today’s
organizations, HR professionals must be able
to influence others. One study at Eli Lilly and
Company found that influencing through
relationship building, leadership, and effective
communication are important HR
competencies.

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• Specific HR Knowledge and Expertise
• Depending on the job, HR professionals may
need considerable knowledge about tax laws,
finance, statistics, or computers. In all cases,
they need extensive knowledge about equal
employment opportunity regulations and
wage/hour regulations. Additionally, those
who want to succeed in the field must update
their knowledge continually.

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• PROFESSIONAL INVOLVEMENT The broad
range of issues faced by HR professionals has
made involvement in professional associations
and organizations important. For HR
generalists, the largest organization is the
Society for Human Resource Management
(SHRM). Public-sector HR professionals tend
to be concentrated in the International
Personal Management Association (IPMA).
Other major functional specialty HR
organizations exist, such as the International
Association for Human Resource Information
Management (IHRIM), the American
Compensation Association (ACA), and the
American Society for Training and
Development (ASTD).

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