Chapter 1 An Overview
Chapter 1 An Overview
Chapter 1 An Overview
Management
First Semester- 2024-25
Simply, HRM is the use of individuals to achieve organizational objectives (Mondy &
Martocchio, 2016).
Dessler (2020) sees HRM as the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health and
safety, and fairness concerns.
HRM Functions
Training Development
Focus Current job Current and future jobs
Scope Individual employees Work group or organisations
Job itself
Psychological and/or physical environment
5. Internal Employee Relations
Internal employee relations are the HRM activities associated
with the movement of employees within the organization, such
as:
Promotion: The movement of a person to a higher-level position in
the organization.
Demotion: The process of moving a worker to a lower level of
duties and responsibilities, which typically involves a reduction in
pay.
Termination: The most severe penalty that an organization can
impose on an employee.
Resignation: The employee’s decision to end his/her employment
relationship.
6. Safety and Health
Safety: Protecting employees from injuries caused by work-
related accidents.
Health: Employees' freedom from illness and their general
physical and mental well-being.
o Employees who work in a safe environment and enjoy good
health are more likely to be productive. The higher
productivity, coupled with lower long-term healthcare costs,
benefits the organization.
Interrelationships of HRM
Functions
All HRM functions are interrelated so that each function
affects the others. For example:
1. A pay-for-performance compensation plan depends upon reliable
and valid performance appraisal practices.
3. When a firm pays below-market wages, the firm will always be hiring
and training new employees, only to see the best leave for a
competitor’s higher wages.
HRM vs Personnel Management
Personnel Management HRM
Employee focused Business partner
Operational and administrative Strategic
Reactive Proactive
Fragmented and ad hoc Integrated and coordinated
policies and practices policies and practices
Focus on Administrative Focus on adding value
related work
Source: Crawshaw et al., 2014, p.33
Operational HRM
Operational HR encompasses the highly visible, daily
tactical operations essential to maintaining a
workforce.
Line managers
HR outsourcing