What is Human Resource Management?

 is the study of activities regarding

people working in an organization.
It is a managerial function that tries
to match an organization’s needs to
the skills and abilities of its
employees.
Human resources management (HRM)
 is a management function concerned
with hiring, motivating and maintaining
people in an organization. It focuses on
people in organizations. Human resource
management is designing management
systems to ensure that human talent is
used effectively and efficiently to
accomplish organizational goals
Human resources management (HRM)
 Personnel Management
 is the operational arm of human resources.
Key administrative responsibilities include:
 Recruiting
 Maintaining new and current employee
files
 Determining compensation
 Administering benefits
 Training and development
 Employee orientation
 Personnel Management
VS. Human Resource Management
Comparison Chart
BASIS FOR HUMAN RESOURCE
PERSONNEL MANAGEMENT
COMPARISON MANAGEMENT

The branch of management that

The aspect of management that is
focuses on the most effective use of
concerned with the work force and
Meaning the manpower of an entity, to achieve
their relationship with the entity is
the organizational goals is known as
known as Personnel Management.
Human Resource Management.

Approach Traditional Modern

Treatment of manpower Machines or Tools Asset

Type of function Routine function Strategic function

Basis of Pay Job Evaluation Performance Evaluation

Management Role Transactional Transformational
Communication Indirect Direct
Labor Management Collective Bargaining Contracts Individual Contracts
Initiatives Piecemeal Integrated
Management Actions Procedure Business needs
Decision Making Slow Fast
Job Design Division of Labor Groups/Teams
Primarily on mundane activities like Treat manpower of the organization as
employee hiring, remunerating, valued assets, to be valued, used and
Focus
training, and harmony. preserved.
 Human Resources and Company
Performance
 HRM is a management function that
helps manager’s to recruit, select, train
and develop members for an organization.
HRM is concerned with people’s
dimension in organizations.
 The following constitute the core of HRM:
 Nature of HRM
 1. HRM Involves the Application of
Management Functions and Principles. The
functions and principles are applied to acquiring,
developing, maintaining and providing remuneration
to employees in organization.
 2. Decision Relating to Employees must be
Integrated. Decisions on different aspects of
employees must be consistent with other human
resource (HR) decisions.
 Nature of HRM
 3. Decisions Made Influence the
Effectiveness of an Organization.
Effectiveness of an organization will result in
betterment of services to customers in the form
of high quality products supplied at reasonable
costs.
 4. HRM Functions are not Confined to
Business Establishments Only but applicable
to non-business organizations such as
education, health care, recreation and like.
 Human Resources and Company
Performance
How can HR improve the performance of a
company?
 By optimizing company structures, developing
and flexibly deploying company resources, and
thus ensuring that the company has the right
human capital in place, HR can help it meet its
business objectives and improve both financial
and operational performance.
 Human Resources and Company
Performance
What is the value of the HR division within an
organization?
 The value of the Human Resources (HR) division
within an organization resides in its capacity to fulfill its
role as the primary enabler for human capital
development and sustainability. Long term
performance and market leadership have seldom
been achieved without retaining loyal, hardworking
and motivated employees.
 FUNCTIONS OF HRM
1. HRM department regardless of the organization’s size must perform
following human resource management functions.
2. Human resource or manpower planning.
3. Recruitment, selection and placement of personnel.
4. Training and development of employees.
5. Appraisal of performance of employees.
6. Taking corrective steps such as transfer from one job to another.
7. Remuneration of employees.
8. Social security and welfare of employees.
9. Setting general and specific management policy for organizational
relationship.
 FUNCTIONS OF HRM
10. Collective bargaining, contract negotiation and grievance handling.
11. Staffing the organization.
12. Aiding in the self-development of employees at all levels.
13. Developing and maintaining motivation for workers by providing
incentives.
14. Reviewing and auditing manpower management in the organization
15. Potential Appraisal. Feedback Counseling.
16. Role Analysis for job occupants.
17. Job Rotation.
18. Quality Circle, Organization development and Quality of Working
Life.
 Skill of Human Resource Development
Management (HRDM) Professionals

Skill #1: Organization

 HR management requires an orderly
approach. Organized files, strong time
management skills, and personal efficiency
are key to HR effectiveness.
 Skill of Human Resource Development
Management (HRDM) Professionals
Skill #2 - Multitasking
 On a typical HR day, an HR professional will deal
with an employee’s personal issue one minute, an
intermittent leave question the next, and a recruiting
strategy for a hard-to-fill job the minute after. And
that’s to say nothing of social media, wage/hour,
engagement, retention, and a whole host of other
things, every one critical to someone.
 Skill of Human Resource Development
Management (HRDM) Professionals
Skill #3 - Dealing with Grey
 A surprisingly large percentage of the issues HR managers
face are in “the grey area.” Is it discrimination? Is it
harassment? What’s a “reasonable” accommodation? How
far over backward do you have to lean to approve intermittent
leave? HR managers have to be able to act with incomplete
and “best available” information, and they have to know when
to seek the professional help of colleagues, attorneys, and
other experts.
Skill of Human Resource Development
Management (HRDM) Professionals

Skill #4 - Negotiation
 Along with grey comes the need to negotiate—there
are often two or more opposing views, and the
successful HR pro can find an acceptable middle
ground. Remember, the goal of negotiation is to end
up with two parties that are satisfied with the
outcome, and that’s not often easy to achieve
Skill of Human Resource Development
Management (HRDM) Professionals
Skill #5 - Communication
 HR professionals have to communicate up to
management, over to managers, out to potential
employees, and down to all levels of current
employees. And they have to do it in writing, while
speaking to large and small groups and, increasingly,
through social media. They have to be convincing,
caring, and believable.
Skill of Human Resource Development
Management (HRDM) Professionals
Skill #6 - Discrete and Ethical
 HR professionals are the conscience of the
company, as well as the keepers of confidential
information. As you serve the needs of top
management, you also monitor their actions toward
employees to be sure that policies and regulations
are followed. You need to be able to push back when
they aren’t in order to keep the firm on the straight
and narrow. Not an easy responsibility!
Skill of Human Resource Development
Management (HRDM) Professionals

Skill #7 - Dual Focus

 Employees expect human resources professionals
to advocate for their concerns, yet you must also
enforce top management’s policies. The HR
professional who can pull off this delicate balancing
act wins trust from all concerned.
 Skill of Human Resource Development
Management (HRDM) Professionals
Skill #8 -Conflict Management and Problem
Solving
Everyone doesn’t always get along with everyone
else. High productivity demands that people work together
at least civilly. HR has to find ways to allow that to happen.
And that’s to say nothing of the myriad other problems that
hit HR’s in-box—you can’t be effective without problem-
solving ability.
 Skill of Human Resource Development
Management (HRDM) Professionals
Skill #9 - Change Management
Most companies today are in a constant state of flux.
Task forces, matrices, and teams spring into being, do
their jobs, and disband as others form. Hierarchies have
been squashed, and companies have four or five
generations working side by side. A lot of people are
freaked out by what’s going on. HR has to help everyone
cope with the constant changes.
 KEY RESPONSIBILITIES OF HR
MANAGER
1. To maintain and develop HR policies, ensuring compliance and to
contribute the development of corporate HR policies.
2. To develop the HR team, to ensure the provision of a professional HR
service to the organization .Manage a team of staff. Responsible for
mentoring, guiding and developing them as a second line to the current
position.
3. To ensure timely recruitment of required level / quality of Management
staff, other business lines staff, including non-billable staff with
appropriate global approvals, in order to meet business needs, focusing
on Employee Retention and key Employee Identification initiatives.
4. Provide active support in the selection of Recruitment agencies which
meet the corporate standard. Ensure Corporate Branding in recruitment
webs and advertisements.
 KEY RESPONSIBILITIES OF HR
MANAGER
5. Develop, refine and fine-tune effective methods or tools for
selection / or provide external consultants to ensure the right people
with the desired level of competence are brought into the organization
or are promoted.
6. Prepare information and input for the salary budgets. Ensure
compliance to the approved salary budget; give focus on pay for
performance and salary benchmarks where available. Ensure
adherence to corporate guideline on salary adjustments and
promotions. Coordinate increments and promotions of all staff.
7. To develop the HR business plan
8. Ensure appropriate communication at all staff levels.
 KEY RESPONSIBILITIES OF HR
MANAGER
9. To maintain and develop leading edge HR systems and processes
to address the effective management of people in relation to the
following in order to maintain competitive advantage for:
1. Performance Management.
2. Staff Induction.
3. Reward and Recognition.
4. Staff Retention.
5. Management Development / Career Development.
6. Succession Planning.
7. Competency Building / Mapping.
8. Compensation / Benefit programs.
 KEY RESPONSIBILITIES OF HR
MANAGER
10. To facilitate / support the development of the Team members
11. To facilitate development of staff with special focus on Line
Management
12. To recommend and ensure implementation of Strategic directions for
people development within the organization.
13. Ensure a motivational climate in the organization, including adequate
opportunities for career growth and development.
14. Administer all employee benefit programs with conjunction with the
Finance and Administration department.
15. Provide counsel and assistance to employees at all levels in
accordance with the company's policies and procedures as well as relevant
legislation
 KEY RESPONSIBILITIES OF HR
MANAGER
16. Oversee the central HR Administration – employee offer letters
salary letters and employment contracts. Approve updated
organizational charts on a monthly basis and maintain
complete/accurate personnel records.
17. Co-ordinate the design, implementation and administration of
human resource policies and activities to ensure the availability and
effective utilization of human resources for meeting the company's
objectives.
18. Responsible for Corporate HR function
19. Responsible for overall centralized HR admin function
20. Counseling and Guidance cell - provide support to Managers in
case of disciplinary issues.
 Definition of business ethics

Ethics can be defined as a set of values and

principles that guide acceptable behavior
within organizations and go beyong legal
requirements
 Ethics in HRM
 Ethics in HRM indicates the treatment of
employees with ordinary decency and distributive
justice. The ethical business contributes to the
business goals as the employees will feel
motivated and they will work with efficiency and
effectiveness. Ethics in HRM basically deals with
the affirmative moral obligations of the employer
towards employees to maintain equality and equity
justice.
 Areas of HRM Ethics
 Basic human rights ,civil and employment
fight.(Job security, feedback from the tests)
 Safety in the workplace
 Privacy
 Justifiable treatment of employees(Eg:-Equity and
equal opportunity)
 Respect, fairness and honestly based process in
the workplaces.
 Role of HR in promoting ethics
 The Role of Human Resource in Promoting
Ethical Workplace Traditionally, the role of Human
Resource department is to ensure the organization
is filled with sufficient and capable people, with the
right skill set, who are continuously motivated to
carry out their duties and functions in the
organization, hence contribute towards achieving
organization's vision and mission.
 10 Best Careers for Human Resources
Professionals
1. Chief HR Officer
2. Human Resources Manager or Director
3. International Human Resources Manager
4. Training and Development Manager
5. HR Consultant
6. Executive Recruiter
7. Labor Relations Manager
8. HR Analytics Specialist
9. Employment Manager
10. Compensation and Benefits Manager
 10 Best Careers for Human Resources
Professionals
1. Chief HR Officer
 A Chief HR Officer requires you to develop HR strategies, policies,
and goals for your company. Some of the duties of a Chief HR
Officer include:
• Leading and supervising managers in the HR division
• Communicate HR efforts to support and implement the strategic vision of the
company
• Function as a business advisor to the CEO and other C-level executives and
managers
• Develop strategies for recruiting and retaining employees, managers, and
executives
• Develop compensation and benefit plans
• Provide career development, training, leadership development, and retention
guidance
 10 Best Careers for Human Resources
Professionals
2. Human Resources Manager or Director
 HR managers and directors get the benefit of directly
interacting and helping employees. They also work with the Chief
HR Officer to plan, coordinate, execute, and manage HR
activities. They are involved in guiding employees through the
hiring process, explaining benefit programs, training employees,
handling labor disputes, and other administrative tasks that are
important to workers within a company. HR managers and
directors are also called upon to serve as consultants on various
issues such as equal employment opportunities, labor laws, and
sexual harassment.
 10 Best Careers for Human Resources
Professionals
3. International Human Resources Manager
 This HR position involves the same types of duties that a domestic
human resources manager would conduct. The main difference is that
you will work in different locations around the world. Some of these duties
include:
 Recruiting candidates into positions around the world where the organization has
offices
 Implement training and professional employee development standards across an
international organization
 Implementing compensation and benefit plans according to the laws of countries
where the organization has offices
 Provide guidance to the international organization on local labor laws and
employee rights
 10 Best Careers for Human Resources
Professionals
4. Training and Development Manager
Training and development managers may design the most
effective coursework for employees that their organization
wants to emphasize. Some of their other duties include:
• Assess employees’ training needs
• Review training materials from outside vendors
• Teach and supervise other instructors
•Update training programs to meet current organizational
standards
 10 Best Careers for Human Resources
Professionals
5. HR Consultant
 Human resources consultants charge companies an
hourly rate to provide them with much-needed services.
HR consultants may specialize in one or more fields like
workplace harassment, labor laws, employee acquisition,
retainment, compensation and benefits, employee
incentives and rewards programs, company culture after
mergers and acquisitions, or employee motivation.
 10 Best Careers for Human Resources
Professionals

6. Executive Recruiter
 Executive recruiters are tasked with finding
candidates to fill job openings for C-level
executives, senior executives, corporate
officers, and directors.
 10 Best Careers for Human Resources
Professionals
7. Labor Relations Manager
 Labor relations managers act as a mediator between the employees and
employer on behalf of a labor union that represents the employees. When there
is a dispute between management and a labor union, the labor relations
manager helps both sides come to an agreement on issues such as wages,
pensions, health benefits, work environment, and management practices.
Some of the other duties a labor relations manager will encounter include:
• Draft proposals on rules and regulations for collective bargaining agreements
• Conduct meeting and be a line of communication between management and labor
• Advise and train management on labor relations, labor grievances, and disciplinary
procedures
• Ensure human resource policies comply with union agreements
 10 Best Careers for Human Resources
Professionals
8. HR Analytics Specialist
 HR analytics specialists provide data that is used by the HR
department. Some of the duties of an HR analytics specialist
include:
• Researching the amount of revenue generated per employee
• Helping to improve a company’s talent acquisition strategy
• Monitoring training expenses and efficiency
• Measuring voluntary and involuntary turnover to improve recruiting and
workplace environment
• Making recommendations to HR managers Your analytical, business,
critical thinking, and communication skills will come in handy as an HR analytics
specialist.
 10 Best Careers for Human Resources
Professionals

9. Employment Manager
 employment managers in a small business may
have all the duties of an HR manager, while an
employment manager in a large corporation
may only focus on recruiting, hiring, and
staffing.
 10 Best Careers for Human Resources
Professionals
10. Compensation and Benefits Manager
As a compensation and benefits manager, you are
responsible for establishing a pay and benefits structure
for employees. Other duties include:
• Oversee the distribution of pay and benefits
• Choose and work with insurance companies, investment
managers, and other benefit partners
• Provide pay and benefits information to employees
• Monitor the pay and benefits the competitors provide their
employees
 Trends in HRDM
1. Globalization and its implications
2. Workforce Diversity
3. Changing skill requirements
4. Corporate downsizing
5. Continuous improvement programs
6. Re-engineering work processes for improved
productivity
7. Contingent workforce
8. Decentralized work sites
9. Employee involvement
 What is technological change in HRM?
 Technology is changing every sector of the
economy at a rapid pace. One of the biggest
changes is in the way that information is
shared. When human resources managers are
seeking to recruit staff members, post jobs or
keep track of applicants, technology is
interwoven throughout every process.
 Technological Change in HRDM
 Globalization
 Workforce Diversity
 Changes in political and legal environment
 Changes in the Economic Environment
 Mobility of Professional Personnel
 Revolution in Information Technology.
 Technological advances
Challenges of Information technology
on HR Function
 New skills required
 Downsizing
 Collaborative work
 Telecommuting :
 Internet and intranet revolution
 Business environmental change
 Development of technology
 Service improvement
 The Labor Force

Internal Labor Force External Labor Market

An organization’s workers
– Its employees
Individuals who are actively
–The people who have seeking employment.
contracts to work at the
organization
 Changes in the labor force
 The changes in the labor force participation rates over the past
couple of decades have been different among the various race and
ethnicity groups. The overall labor force participation rate of each
race and ethnicity group is a result of the age distribution of the
population in each of those groups and the labor force participation
rate of each age group.
 Two intertwined changes have affected the growth of the labor
force over the past several decades: changes in the
demographic composition of the population and changing
labor market choices. The projected labor force growth over the
2014–24 period will be affected by the aging of the baby-boom
generation, those born between 1946 and 1964.
 Changes in the labor force
 Changes in population growth and labor
force participation rates over the next
several decades will impact the growth of
the labor force. Even though the size of the
population will grow, its annual growth rate
is projected to slow down in the coming
decades.
 High-Performance Work Systems

 Instead of looking at people or the

effectiveness of individual HR functions,
the HPWS idea focuses on the SYSTEM
of HR functions
 High-Performance Work Systems
Low Turnover Satisfied Customers
Satisfied Workers High Quality

Lower Costs Higher Sales

High Innovation
Interesting Jobs
Greater Productivity
Low Absenteeism
Knowledge Sharing
Higher Profits
Conditions that Contribute to High
Performance
Teamwork and Empowerment

Knowledge Sharing

Job Satisfaction

And Ethics
 Conditions that Contribute to High
Performance
Teamwork and Empowerment
 A popular way to empower employees is to establish self managing work
teams

 Bring together a variety of knowledge

 Feeling of being part of a team may improve job satisfaction and output
quality

 Managers need to provide support, open communication, and resources

 Conditions that Contribute to High
Performance
Knowledge Sharing
 Learning organization an organization in which people continually
expand their capacity to achieve the results they desire.
 Continuous learning refers to each employees and each groups
efforts to gather information and apply the information to their
decisions.
 A learning culture is an organizational culture in which learning is
rewarded, promoted, and supported by manager and organizational
objectives.
 Conditions that Contribute to High
Performance

 Test Your Knowledge

 Opening lines of communication between the team and other groups
within the organization.
 Directing the team and monitoring their day-to-day activities.
 Ensure the team has the resources they need.
 Keep the team informed as new, relevant information becomes
available.
 Conditions that Contribute to High
Performance
Job Satisfaction
 People are satisfied with their jobs when they find them fulfilling and
allow them to fulfill important values
 Occupational intimacy occurs when employees
 Are fully engaged in their work
 Care about their coworkers
 Find their work meaningful
 Strategic Human Resource
Management
Strategic Human Resource Management

The linking of HRM with strategic goals and objectives in order to

improve business performance and develop organizational
cultures that foster innovation and flexibility.
Formulating and executing HR systems - HR policies and
activities that produce the employee competencies and behaviors
the company needs to achieve its strategic aims.
Strategic Human Resource
Management
 Types of Strategies
 Corporate-level strategy
 Identifies the portfolio of businesses that, in total, comprise the
company and the ways in which these businesses relate to each
other.
 Diversification strategy - implies that the firm will expand by adding
new product lines.
 Vertical integration strategy - means the firm expands by, perhaps,
producing its own raw materials, or selling its products direct ( a Vertical
integration consists of companies that acquire a company that operates
either before or after the acquiring company in the production process).
 Consolidation strategy - reduces the company’s size
 Geographic expansion strategy - takes the company abroad
 Types of Strategies
 Business-level/competitive strategy
 Identifies how to build and strengthen the business’s
long-term competitive position in he market place.
 Cost leadership: the enterprise aims to become the low-cost leader in
an industry.
 Differentiation: a firm seeks to be unique in its industry along
dimensions that are widely valued by buyers.
 Focus: a firm seeks to carve out a market niche, and compete by
providing a product or service customers can get in no other way.
 Types of Strategies

 Functional strategies

 Identify the basic courses of action that each department

will pursue in order to help the business attain its
competitive goals
 The Concept of Employment Relations
 Employment relations is the study of the
regulation of the employment relationship
between employer and employee, both
collectively and individually, and the
determination of substantive and procedural
issues at industrial, organisational and
workplace levels.
 The Concept of Employment Relations
 Employment relations is concerned with the
‘determination, conduct and regulation of the
employment relationship’ and is ‘shaped by legal,
political, economic, social and historical contexts’(Salamon,
2000: 5, 35, cited in Dibben, Klerck and Wood (2011).

 The employment relationship is where the employee

sells their capacity for work in exchange for a wage and
other benefits, while the employer hires the employee so
that they can produce goods or services, Dibben Klerck and
Wood, (2011, Chapter 1).
 The Relevance of Employment
Relations
 The study of employment relations is relevant to union
and non-union, public, private and voluntary sector
organization's because…
–Employment Relations is a process of management.
–collective relationships exist (works councils, JCCS)
–employee grievances have to be resolved
–negotiation and the management of conflict are important
–fairness and equity within the workplace are essential
–it is important to have good practices and not be known for bad
practices.
END….