Lecture 1 & 2..

HUMAN
RESOURCE
MANAGEMENT
LECTURE 1 &2
WHAT IS HUMAN RESOURCE
MANAGEMENT?
Organization
■ People with formally assigned roles who work together to achieve the
organization’s goals.
Capital
■ Capital includes cash, valuables, or goods used to generate income for a business.
■ People is one of the most important capital in a business.
WHAT IS HUMAN RESOURCE
MANAGEMENT?
■ Human resource management (HRM) is the process of employing people,
training them, compensating them, developing policies relating to them, and
developing strategies to retain them. (Lura Portoloese Dias)
■ “Human resource management is the function performed in organizations’ that

facilitate the most effective use of people (employees) to achieve organizational and
individual goals”. (Ivancevich and Glueck)
■ “Human resource management encompasses those activities designed to provide for

and coordinate the human resources of an organization Human resource functions
refer to those tasks and duties performed in organizations to provide for and
coordinate human resources”. (Byars and Rue )
ROLE OF HUMAN RESOURCE
MANAGEMENT
 Human resource management plays an integral part in the organization.
 HR department is known as the backbone of the organization.
 Every manager has some role relating to human resource management.

For example, most managers deal with compensation, motivation, and
retention of employees.
MANAGEMENT
Following are the main roles that HRM plays in organizations.
1. Staffing
 Major tasks in HRM is staffing.
 Organization need people to perform tasks and get work done in the organization.
Even with the most sophisticated machines, humans are still needed.
 Staffing involves the entire hiring process from posting a job to negotiating a salary
package.
MANAGEMENT
o Development of a staffing plan:
To see how many people they should hire based on revenue expectations.
o Development of policies to encourage multiculturalism at work:
Multiculturalism in the workplace is becoming more and more important, as
we have many more people from a variety of backgrounds in the workforce.
o Recruitment:
This involves finding people to fill the open positions.
o Selection:
In this stage, people will be interviewed and selected, and a proper
compensation package will be negotiated.
MANAGEMENT
2. Training and development
 Once organization hire new employees, they make sure they are not only
trained to do the job but also continue to grow and develop new skills in their
job.
 Employees who feel they are developing their skills tend to be happier in their
jobs, which results in increased employee retention.
 This results in higher productivity for the organization.
 Training is also a key component in employee motivation.

MANAGEMENT
3. Compensation and Benefits Administration
 HRM professionals need to determine that compensation is fair.
 Is high enough to entice people to work for the organization.
 Meets industry standards.
 HRM professionals need to make sure the pay is comparable to what other people
performing similar jobs are being paid.
MANAGEMENT
Examples of employee compensation include the following:
Health Benefits
Retirement plans
Insurance plan
Sick leave
Bonuses
Tuition reimbursement
MANAGEMENT
4. Development of work policies
 Every organization has policies to ensure fairness.
 HRM and head of departments are involved in the process.
 HR departments do not and cannot work alone. Everything they do needs to

involve all other departments in the organization.
MANAGEMENT
Some examples of workplace policies might be the following:
o Discipline process policy

o Vacation time policy
o Dress code
o Ethics policy
o Internet usage policy
MANAGEMENT
5. Updating existing company policies
 updating the existing policies of the company is the primary responsibility of HR.
 If the policy is complex, then the HR needs to update the policies.
 HR needs to have a consistent check and analyze which plans are working and
how many people are following the norms.
MANAGEMENT
6. Employment relations
 It is HR’s responsibility to conduct some activities that bring a good interaction
between employees with different departments.
 Good employment relations helps in generating innovative ideas and good plans
to accomplish targets.
 It also enhances the productivity of employees.

MANAGEMENT
7. Retention
 Human resource people must be aware of all the laws that affect the workplace.
 Compensation is a major factor in employee retention
 Retention involves keeping and motivating employees to stay with the organization.
MANAGEMENT
Ninety percent of employees leave a company for the following reasons:
The job they are performing
 Challenges with their manager
 Poor fit with organizational culture
 Poor workplace environment
 Poor salary package

MANAGEMENT
8. Worker Protection
 Safety is a major consideration in all organizations.
 Oftentimes new laws are created with the goal of setting federal or state standards
to ensure worker safety.
 Human resource manager should be aware of worker protection requirements.
 HR should ensure the workplace is meeting both federal and union standards.
MANAGEMENT
Worker protection issues might include the following:
o Chemical hazards
o Heating and ventilation requirements
o Use of “no fragrance” zones
o Protection of private employee information
o Fire safety measurements
MANAGEMENT
9. Dealing with Laws Affecting Employment
 Human resource people must be aware of all the laws that affect the workplace.
 HRM must always be aware of changes taking place and then communicate
those changes to the entire management organization.
 An HRM professional might work with some of these laws:
o Discrimination laws
o Health-care requirements
o Compensation requirements such as the minimum wage
o Worker safety laws
o Labor laws
MANAGEMENT
10. Processing company payroll
 The Human Resources team needs to look after the company’ payroll activities to
keep the records transparent.
 HR executive has to calculate the appraisals and bonuses added to the gross pay
of an employee.
MANAGEMENT

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HUMAN

■ “Human resource management is the function performed in organizations’ that

■ “Human resource management encompasses those activities designed to provide for

 HR department is known as the backbone of the organization.

 Every manager has some role relating to human resource management.

 This results in higher productivity for the organization.

 Training is also a key component in employee motivation.

 Is high enough to entice people to work for the organization.

 Meets industry standards.

 Every organization has policies to ensure fairness.

 HRM and head of departments are involved in the process.

 HR departments do not and cannot work alone. Everything they do needs to

o Discipline process policy

 If the policy is complex, then the HR needs to update the policies.

 It also enhances the productivity of employees.

 Compensation is a major factor in employee retention

 Challenges with their manager

 Poor fit with organizational culture

 Poor workplace environment

 Poor salary package

 Human resource manager should be aware of worker protection requirements.

Worker protection issues might include the following:

 An HRM professional might work with some of these laws:

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