Chapter One: Introduction to HRM

Introduction

 People are at the core of every organization.

Without staff organizations cannot exist.
 Human: People, us..
 Human Resource: people with their experience, skills,
knowledge and personal qualities
Definition of HRM

 HRM: it is the management of HR in an

organization to ensure the effective and
efficient use of human talent to accomplish
the organizational goals.
 HRM is defined as the performance of all
managerial functions involving planning,
recruiting, selecting, developing, utilizing,
rewarding and maximizing the potential of
the HR to the best achievement of the
organizations objective.
Con’d

 Good Human Resource Management

depends on the organization having a
clear vision, mission, and values.
– Vision: It is needed to motivate staff
– Mission: It is the reason for existence
– Values: Show how the organization will do its
work and what kind of staff are needed to do it.
Vales often make an organization different from
other organization
HRM VS Personnel Management

 Both differ in scope and orientation. HRM is the

modern way of calling Personnel Management.
 HRM is wider in scope and views HR as an
important asset or resource in an organization.
 Personnel Management is narrow in scope
and views HR as a tool for the achievement of
the goal of the organization
 PM viewed employees from the owners perspective whereas; HRM views and treats
employees as an asset.
 HRM with time has come a long way in promoting mutuality( we will be
dealing that too in later part.) HRM is more strategic in nature, more
integrated with the rest of the sub systems of the organization.
 Human resource management is the subsystem of the total management system. This is the
responsibility of all managers, irrespective of their functions, disciplines and levels. HRM is
primarily concerned with management of people, individuals or groups at work., as also their inter-
relationship.
 It is not the sole responsibility of personnel specialists. Indeed line managers are equally and
directly responsible for managing human resources working with them.

 Human Resource Development

“ Human resource development refers to the process whereby the employees are continuously helped
in a planned way
.
HRD

Thus HRD is needed by every organization that is interested in:

Stability
 Growth
 Review and development
 Styles

Dynamic activity
 Effectiveness, and
 Leadership
HRD vs HRM

.
 What Organizations Do

HR

Products
Product [Goods or Service]
Capital
Services Raw Materials
Information
Views of Human Resources Management

1. View #1 -- HRM is a Separate

Department .i.e One of the major
organizational subsystems.
 In an organizational settings, there
are a number of organizational
subsystem as it is indicated in the
next slid
 Major
Organizational
Subsystems
Human
Resources

Research &
Finance Development,
Engineering
Management
Materials,
Production,
and/or
Services Marketing
Management
Why a Separate Department is
Useful

1. Importance of Human Resources:

Competitive Advantage
 Increasing Complexity: Global
workforce
 External Influences: Legal
Requirements
 Consistency in Treatment
Responsibilities of
Advice and Counsel
the HR Department

Service

Policy Formulation
and Implementation

Employee
Advocacy

Strategic Partner
View #2 -- Every Supervisor or Manager is
an HR Manager

 Every supervisor or Manager is an

HR Manager. i.e. anyone who deals
with subordinates plays a Human
Resource Management role
 The “Line” perspective
 Open Discussion
OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

 The objectives of Human Resource

Management is to provide with efficient and
effective work force that is to provide the right
people with the right talent , knowledge and
experience that are able to contribute
towards the achievement of objectives. The
objective includes:
Owners’ objectives

  Owners objective of private and public organizations require

that the objective of which the organization has been
established should be fulfilled through the contribution of HR
 Owners of business require their employees to contribute to the
profitability of their organization through the satisfaction of
customers. Owners of non-business require that the human
resource attribute to the satisfaction of the client or user
through economic operation.
Employee’s objective

  Employees of organizations require the

HRM to assist them in achieving personnel
goals such as
– Adequate income
– Security
– Pleasant working condition
– Room for growth and development , and
– Better quality of work life
Social objectives

  The society provides challenges to HRM.

They require the HRM to contribute the
product quality of a high value by promoting
fair
 Promotion and healthy environment, etc.
 Legal objectives (legal requirement)

 Governments require HRM to comply with

government laws and regulations such as:
– Avoid discrimination based on sex, age, disability etc.
– Allow equal employment opportunities
– Fair treatment
– Minimum pay
– Affirmative action
– Fair working conditions ,
– Avoid negligent hiring claim
– Avoid Sexual harassment etc.

OBJECTIVES OF HRM FUNCTION (to an enterprise)

 The contributions of HRM makes to

organizational effectiveness include the
following
  Helping the organizations reach goals
  Efficiently employing the skills and abilities
of the work force
Cont’d

  Providing the organization with well- trained and well – motivated

employees
  Developing and maintaining a quality of work life that makes
employment in the organization desirable.
 Communicating HRM policies to all employees
  Helping to maintain ethical policies and socially behavior
  Managing Change to the mutual advantage of individuals, groups,
the enterprise, and the public
Evolution of HRM

 The origin of HRM is unknown. But, it is possible to say that HRM is

properly stated in the industrial revolution of capitalism. This is because
during capitalism, there was a harsh management system.
 During this period, Human Relation Moment was made with the help of
Robert Owen. R. Owen was not happy about the relationship between
workers and owners.
 He was known as the father of HRM/Personnel Management.

Stages of Evolution
 Industrial Revolution
 Labour Movements
 Human Relations
 Behavioural Sciences
 Human Resource!
 People Management
Four Major HRM Activities

The Acquisition The Development

of of
Human Resources Human Resources

The Rewarding The Maintenance

of of
Human Resources Human Resources
Specific HRM Functions

 Human Resource Planning

 Job Analysis
 Recruiting
 Selecting
 Induction
 Placement
 Performance Appraising
 Training
 Developing
 Compensating
 Benefits
 Work Environment
How HR Functions Relate to HR
Activities

The Acquisition of
Human Resources

HR Planning
Analyzing Jobs
Recruitment The Development of
Selection Human Resources

Appraising
Training
Developing
How HR Functions Relate to HR
Activities, continued

The Maintenance of
Human Resources

Employee Benefits
The Rewarding of Safety & Health
Human Resources Labor Relations
Compensating
(Wages & Salaries)
(Incentives)
Goals of Human Resource Management

Facilitating Enhancing
organizational productivity and
competitiveness quality

The human resource

function in contemporary
organizations

Complying with Promoting

legal and social individual growth
obligations and development
 Core Values of HRM
 Human beings are the crucial aspects of every
organization. The greater is the commitment of
the human resources the more successful is the
organization.
 An individual is a whole person. He/she brings all
aspects of his/her personality, attitudes, traits
and behavior to the work place. All people
represents the organization.
 People are different from each other. They vary
in abilities, nature, personality; religion
 Core Values of HRM

 Human resources have to be acquired, developed and

motivated to give higher performances.
 The success of an organization depends upon the
satisfaction of organizational needs and employees
needs. The effective coordination and commitment
between managers and subordinates is essential for
organizational success.
 Human relations enable people to work effectively in an
organization with other people in organization.
Competitive Challenges for HRM

 Managing Change
 Cultural Diversity
 Work & Family Issues
 Developing Human Capital
 Globalization
 Quality & Teamwork
 Advances in Technology
 Continuous Quality Improvement
New Trends in the workplace

 The past two decades have witnessed a

dramatic transformation in how firms are
structured. Tall organizations that had many
management levels are becoming flatter as
companies reduce the number of people
between the chief executive officer (CEO) and
the lowest-ranking production employee in an
effort to become more competitive. This
transformation has had enormous implications
for the effective utilization of human resources
New Trends in workplace

 Education: Now a day organizations are available with

the opportunity of having more knowledge and skilled
workers, increase in the education level of society’s
continuously providing the highly educated work force
in the organizations.
 Work time: Flextime—the practice of permitting
employees to choose, with certain limitations, their own
working hours. Compressed Workweek—any
arrangement of work hours that permits employees to
fulfill their work obligation in fewer days than the typical
five-day workweek. This approach adds many highly
qualified individuals to the labor market by permitting
both employment and family needs to be addressed.
 New Trends in the workplace

 Standard of living: High employment rate, low inflation

and Steady economic growth provide opportunity and
rising living standards. Technological advance improved
living standards for most.
 Expectations & demand: People's expectations that their
employers will behave ethically are increasing, so much
that many firms and professional organizations have
created codes of ethics outlining principles and standards
of personal conduct for their members. For different
associations, there’re ethical codes. Unfortunately, these
codes often do not meet employees' expectations of ethical
employer behavior. These negative perceptions have
worsened over the years.
New Trends in workplace

 Diversity and gender issues at work place: Managing

diversity means planning and implementing
organizational systems and practices to manage people
so that the potential advantages of diversity are
maximized while its potential disadvantages are
minimized. Managers are striving for racial, ethnic, and
sexual workplace balance as a matter of economic self-
interest. A study found that cultural diversity contributes
to improved productivity, return on equity, and market
performance.
Assignment

1. How do our staff fit within our organization’s vision,

mission and values?
2. Identify at least four major HR challenges currently
facing organizations and managers. How they affect
organizations?
3. More effective management of human resources (HR)
increasingly is being seen as positively affecting
performance in organizations, both large and small.
Do you agree? why or why not?
4. What are the new trends in the workplace