HUMAN RESOURCE MANAGEMENT

CHAPTER ONE
 WHY IS HUMAN RESOURCE IMPORTANT?
• Affects the quality of goods and service produced
• Is the driving force in organizational life cycle
• Is responsible for managing other resources of an organization
• Prerequisite for organizational learning
• Employees are scarce resources that should be acquired effectively, utilized,
developed and retained.
• Provides an organization with competitive advantage
 DEFINITION OF HUMAN RESOURCE MANAGEMENT
• Human resource management refers to the management of an organization’s
most valued assets – the people working there who individually and
collectively contribute to the achievement of its objectives.
• Human Resource Management is the process of achieving organizational goal
by attracting, developing, and retaining and properly using talented human
resource.
• Human resource management can be defined as a strategic, integrated and
coherent approach to the employment, development and well-being of the
people working in organizations.
• Is about having the best human resources who are best utilized to produce
cheaper and better quality goods and services
• The process of managing human talent to achieve an organization’s objectives
EVOLUTION OF HUMAN RESOURCE MANAGEMENT
EVOLUTION OF HUMAN RESOURCE MANAGEMENT
….EVOLUTION OF HUMAN RESOURCE MANAGEMENT
Personnel management Human resource management
Short term ,routine, reactive Strategic, proactive
Compliance Commitment
Pluralist, collective, low trustUnitarist, individual, high trust
Bureaucratic Organic
Activity based Solution based
Internally focused Externally focused
Specialized/professional Largely integrated into line
management
Cost minimization , human’s are Maximum utilization (human asset)
seen as liabilities
 PHILOSOPHIES OF HUMAN RESOURCE MANAGEMENT
1. Human resource management is and has to be owned and driven by the top management in
the interests of the key stakeholders. The top management owns and drives the agenda for
effective people management in an organization.
2. Business or organizational strategies form the basis for human resource strategies, and there
should be a strategic fit.
3. Investment in people, like any other capital investment, is necessary for better returns in the
future.
4. Employees are capable of producing added value. It is the role of the management to obtain
such added value through human resource development and performance management
systems.
5. Organizational success comes from the employees’ total commitment to the organizational
mission, goals, objectives, and values.
6. Building a strong organizational culture that gives managers an advantage in stimulating
employees’ commitment through effective communication, training, coaching, mentoring and
performance management processes
 OBJECTIVE OF HUMAN RESOURCE MANAGEMENT
• The overall objective of human resource management is to
ensure organizational success through people.
• Ensure that the organization has competent people it needs
• Support the organization achieve its goal
• Contribute to the development of high-performance culture
• Create a positive employment relationship between
management and employees
• Encourage the application of an ethical approach to manage
human resource.
 Major HRM functions
• Procurement functions
– Focus on availing the right type and number of employees required for
achieving organizational goals.
• Development functions
– Focus on enhancing knowledge , skill and values of employees to perform their current
and future responsibilities competently.
• Integration functions
– Focuses on reconciling organizational goals with individual goals.
• Maintenance functions
– Focuses on maintaining physical and mental health of employees.

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 PROCUREMENT FUNCTIONS
• Job analysis- is the process of obtaining information about jobs by
determining their duties, tasks, or activities, skills and qualifications
needed to perform it successfully
• Human resource planning- is the process by which an organisation
attempts to ensure that it has the right number of qualified people in the
right jobs at the right time.

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 …PROCUREMENT FUNCTIONS
• Employee recruitment and selection
– Recruitment - is the process of seeking and attracting a pool of applicants
from which qualified candidates for job vacancies within an organisation can
be selected.
– Employee selection- involves choosing from the available candidates the
individual predicted to be most likely to perform successfully in the job.
– Placement- on the other hand, is the assignment of an employee to a new or
different job.
– Orientation- is the formal process of familiarizing new employees with the
organization, their jobs, their work units and employees.

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 DEVELOPMENT FUNCTIONS
• Career development – involves Planning careers and managing
individuals careers.
• Training and development- activities help employees learn how to
perform their jobs, improve their performance and prepare themselves
for more senior positions.
• Performance appraisal- is concerned with determining how well
employees are doing their jobs, communicating that information to the
employees and establishing a plan for performance improvement.

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 INTEGRATION FUNCTIONS
• Employee disciplining

• Compensation refers to all types of rewards that employees receive in

return for their services.

MAINTENANCE FUNCTIONS
 Safety- involves protecting employees from injuries caused by work-related
accidents.
 Health- devising schemes that enhance employees' physical and mental well
being.
 Creating conducive working environment
 Promoting smooth working relationship between management and employees
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 STRATEGIC IMPORTANCE OF HUMAN RESOURCE
MANAGEMENT
• If managed strategically HRM can bring organizational excellence through:-
– Becoming partner with top and line managers of an organization in strategy
execution
– Organizing work efficiently to ensure costs are reduced without compromising
quality
– Becoming representative of employees by representing employees concern to
top management and by working on ways to increase employee commitment.
– Become an agent of continuous change by shaping process and organizational
culture.
THE LINK BETWEEN HRM AND FIRM PERFORMANCE

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HRM ROLE IN DELIVERING RESULT( DAVE ULRICH MODEL)
DEFINITION OF HR ROLES
 ….HRM ROLE IN DELIVERING RESULT
• The strategic HR role
– Focuses on aligning HR strategies and practices with business strategy.
– Requires to conduct organizational diagnosis to identify the strength
and weakness of organizations.
• Management of firm infrastructure role
– Focuses on designing and delivering efficient HR process for attracting,
retaining , developing, promoting, appraising and other HR process to
ensure administrative efficiency.
– Administrative efficiency comes from continues improvement of HR
processes and from ensuring HR professional’s have the right
competency.
 ….HRM ROLE IN DELIVERING RESULT
• Management of employee contribution role
– Encompasses involvement in the day to day problems, concerns and needs
of employees.
– Required understanding employees needs and working to met those needs
in order to increase employees contributions.
– Focuses on developing employees competences to deliver results.
• Management of transformation and change role
– HR professionals are expected to play cultural guardian's and cultural
catalyst role.
– Help employees let go of the past way of doing things and adapt to the
new way of doing things.
– Ensure the change occurs as intended by defining value and behavioral
requirements of the change.
READING ASSIGNMENT
• Read models of human resource management (Armstrong human resource management
practice page 4-8)
 THE MICHIGAN/MATCHING MODEL

oEmphasizes more on “tight fit” between the HR strategy and the

business strategy.
oBusiness strategy is the main focus
oHuman resources are taken like any other resource which must be
fully utilized together with the other resources to achieve
organizational objectives.
oThis model emphasizes more on the hard side of HRM
• HR systems and the organization structure should be managed in a
way that is congruent with organizational strategy

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THE MICHIGAN/MATCHING MODEL
THE HUMAN RESOURCE CYCLE

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 HARVARD MODEL OF HRM
oThe Harvard model acknowledges the existence of multiple stakeholders
within the organization.
• Shareholders
• Management
• Employees,
• Government and
• The community at large
oInterest of the various groups must be fused and factored in the creation
of HRM strategies and ultimately the creation of business strategies.
oThis model emphasizes more on the human/soft side of HRM
oEmphasizes the importance of employees like any other stakeholder in
influencing organizational outcomes.
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THE HARVARD FRAMEWORK

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 CHARACTERISTICS OF HRM IN HARVARD
FRAMEWORK

• Line managers accept more responsibility for ensuring

the alignment of competitive strategy and HRM policy
• HRM has the mission of setting policies that govern how
HR activities are developed and implemented in ways
that make them more mutually reinforcing
• HRM is the concern of management in general rather
than the HRM function in particular.

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 GUEST MODEL OF HRM
o This model is a fusion of hard and a soft approach of HRM.
o Guest proposes 4 crucial components that underpin organizational effectiveness.
1. Strategic Integration
This is the ability of organizations to maintain a fit between the HRM strategy and the
business strategy. In other words, there must be congruence between business strategy and the
HR strategy for the organization to achieve its goals.
2. Flexibility
The ability of the organization and its people to adapt to the changing business and work
environment.
3. High Commitment
Attitudinal commitment- which is reflected through a strong identification with the
organization.
Behavioral commitment- the ability to go an extra mile, and
4. Quality
Quality is based on the assumption that provision of high quality goods and services results
from a quality way of managing people.
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