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Course Objectives
1. Understand and describe the major human resource
management theories and concepts
2. Identify the major environmental factors under
which human resource management operates
3. Understand how to analyze jobs and plan human
resource requirement
4. Understand human resourcing methods
(recruitment, selection and placement, training and
development)
5. Understand how to manage and evaluate
performance, reward system
6. Understand how to manage health and safety
7. Understand how to deal with labor union, diversity
management and harassment in the work place
8. Understand how to manage discipline, Movement
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Chapte Lecture Topics

rOne Introduction to Human Resource

Management

Two Job Analysis and Design

Three Human Resource Planning

(HRP),Recruitment and Selection,
Employee Orientation and placement

Four Training and Development

Five Performance Appraisal

Six Compensation and Benefit

Administration
Chapter Group Work Assignment
Topics/Seminar
Seven Employee Relation

Eight Work force Diversity

Nine International Human Resource

Management (IHRM)
Ten The future of Human resource
Management

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Chapte Individual Assignment /Article
Review
r
FIVE Visit any organization in your locality,
assess the overall performance
appraisal practices and prepare a
short report on it

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1. HRM Definition
2. HRM Roles and Importance
3. HRM: Evolution & Development
4. Management Theories and Influence
on HRM
5. Different Views on HRM
6. Objective of HRM
7. HRM:A Profession
8. HRM Models
9. HRM & Personnel Management
10.HRM Activities
11.The HR Environment
 1.Human Resource Management
Definition
HRM is the management of one of the
most important resources of
organizations the-people

Human Resource Management

+
•Plan
•Organize
People •staff
•Direct
•Control
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Human Resource Management
Definition
HRM could be defined in many ways:
•HRM is a series of integrated decisions that
govern employer-employee relations.
•HRM deals with the human element in the
organization, people as individual and groups,
their recruitment, selection, assignment,
motivation, empowerment, compensation,
utilization, training and development,
promotion, and retirement.
•Human resource Management refers to the
management of the abilities, knowledge,
skills, attitudes (KSA) to the best use of
8organizational objectives
Human Resource Management
Definition
Human Resource Management is the
process of planning, organizing, directing
and controlling of the acquisition, utilization
and maintenance (preservation) of human
(people) resource in organizations in order
to achieve objectives.

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 2. HRM: Importance & Roles
Importance
One of the definition of Management is the
definition of HRM. “Getting things done through
people.”
•Human resource management is the key resource
•Compared with other resources of organizations,
human resource is the most challenging and
unpredictable, and the largest ongoing cost factor in
any organization.
•It is a capital or asset which is a major competitive tool
•People at work provide pool of knowledge, skills,
creative, abilities, talents, and attitudes .
•People design, operate and repair the technology,
• people control the finance, and
10 • people use the material, 10
• people mange information
 HRM: Importance…
With good human resource management employee
objectives, organizational objectives and societies
objectives will be met
• Employee enjoy their work
• Employees have a sense of accomplishment in and
through their work
• Employees have a high sense of belonging to their
organization and work place
• Employees feel that they are respected as
individuals and their contributions are recognized
and valued
• Employees have a feeling to enhance their
competence and perform more challenging and
satisfying task
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• Organizational needs are fulfilled because satisfied
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employees contribute to the at most of their
 HRM roles
1. Strategic partner:
Aligning HRM strategies to business strategies is
important to help the company execute its business
strategy
2. Administrative expert:
Designing and delivering efficient and effective HRM
systems, processes, and practices. Such as systems for
selections, training, developing, appraising and
rewarding employees.
3. Employee Advocate:
Entails managing the commitment and contributions of
employees. No matter how skilled an employee is, if he
is angry or alienated, he will not contribute his efforts to
the firms’ success, nor will he stay with the firm for long.
4. Change agents:
HRM must help in transforming organizations to meet
the new competitive conditions. You need to change and
develop a capacity for change, communicate, manage
 3. HRM History: Evolution &
• The origins ofDevelopment
managing people can be
traced back to the existence of man as a
social animal.
• HRM as a practice is as old as the human
society itself.
• Think of the Egyptian pyramid, the Wall of
China, the Obelisk of Axum and the
church of Lalibela
• The most documented beginnings were
as a result of the Industrial Revolution,
where the mass production of goods had
significant implications for the
‘employees’ operating different activities.
 Managing People at the beginning of
Industrial Revolution
At the beginning of the Industrial Revolution, so as to
maximize profit factories were using :
• Long hours of work
• Minimum pay
• Poor working condition (often overcrowded, little
or no sanitation and clean water, disease,
accidents and death were common place as a
result of the poor sanitary conditions)
• Unsafe working conditions and hazards.
• Women and children were often ‘employed’ in
these factories, often receiving no wage but
received shelter and food in return for their labor.
This time marked the beginning of trade unions, and
the concept of Marxism and Leninism.
 Robert Owen (1771-1855) and Human Resource
Management
Robert Owen an owner of a textile mill in Scotland made an
attempt to improve the relationship between workers and owners.
He tried to improve the relationship in his own factory by
undertaking the following:
• Improved working conditions

• Reduced hours of work

• Allowed workers to buy the product of the factory at cost

• Opened school for the children of the factory

• Work place entertainments

• Provided meal

• Provided bathroom facilitates

For the contribution he has made to HRM he is referred to as the

father of modern personnel management
 4. Management Theories and Influences
on HRM

A range of management theories have had

direct application to the development of
human resource practices. These include:
• Classical Management theory: Scientific
Management (Taylor)
• Classical Organizational Theory (Fayol,
Weber
• Behavioral School (industrial Psychology)
• Management Science (Quantitative)
• Integrative Approaches: Systems theory
• Contingency Approach: Vroms,Fidler
Classical Management theory (Scientific
management Frederick Winslow
Taylor)
• Analyze jobs scientifically, find one
best way of doing a job,
• Select employees scientifically
• Training ensures employee and job
fit
• Use accounting and control system
• Provide Incentives
Taylor’s work has been developed by:
Frank and Lillian Gilbreth who have
included productivity, time and motion
1. Classical Organizational Theory
Henry Fayol identified:
• Major management functions
planning, organizing, commanding,
coordinating and controlling and
fourteen principles

Max Weber (Bureaucracy) suggested:

• Bureaucracy as rational, legal, ideal
method of administration with its
characteristics (Division of labor,
rules, impersonality, subordination
of individual interest, merit)
2.Behavioral School (industrial
Psychology)
Applied psychological research.
•Elton Mayo initiated the human relations from
Hawthorne studies.
•It identified that employees react positively to
management concern, communication and
participation
•Subsequent studies of Abraham Maslow,
Frederic Herzberg supplement his findings
3.Management Science (The quantitative
School)
•Focus on measuring the outcome of jobs and
work systems.
•Applications include production schedule,
productivity strategies and consequent
 4. Integrative Approaches: Systems theory
Systems approach sees organizations as unified
systems with specific inputs, process and outputs.
Important features include interaction's between
jobs, technology, environment (Internal and external)
and control mechanisms.
HR aspect include communication between the
various subsystems, the coordination of inputs and
outputs, and effective interaction between
employees and technological systems.
5. Contingency Approach
Contingency approach contends that every
organization and environment is different and
therefore requires a different approach.
Victor Vroom and Fiedler among others have
successfully applied this theory to leadership and
management of behavior.
 Which Theory and Principles to
use in Human Resource
Management?
Application of human resources management theory
differ from the view of scientific management of ‘
one best way’ hard model of practice to organic soft
model of self control practice.
Diverse national and industrial relations
environmental demand different HRM applications.
Thus , an HRM theory derived from one country such
as the United States experience may not be suitable
for Ethiopia or other countries or Japan
Application of Human Resource Management need
to be contingent on specific situations
 5. Different Views on HRM
Unitarist Versus Pluralist
• Unitarist: is inclusive, emphasizes the common
interest between employers and employees and
attempt to encourage commitment by both
(communication, consultation, reward systems
etc.) and exclusive (discouragement of union
membership etc.)
Unitarist may be effective in situations where
there is low rate of union membership,
authoritarian management tradition, high
unemployment levels.
• Pluralist: view believes that employers and
employees will experience conflicts of interests
which HRM will need to negotiate
Hard or Soft HRM View?
• ‘Hard’ human resource management has a
strategic and managerial focus, emphasizing
the effective utilization of human resources
towards broad organizational objectives and
goals
• ‘Soft’ HRM refers the involvement of employees
through such means as consultation,
empowerment, commitment and
communication.
This approaches are also characterized a s ‘tough
minded’ versus ‘tender minded’, ‘tough love’
versus ‘soft love’, the ‘hard stuff’ versus the ‘soft
stuff’
 6. Human Resource Management
Objectives
Human resource management pursue several
objectives. The primary objective of HM is to
ensure a continuous flow of competent workforce
to an organization.
Three categories of objectives include owners
objectives, societal/legal objective, and employee
objectives
• Owners objectives- Human resource
management contributes to the objectives of
the owners. Profit for business organizations.
Satisfy users and owners for non business
organizations. Ensure the continuous flow of
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competent work force and their contributions to
Employee objectives- Satisfy employee
needs, achieve quality work life (QWL) , by
creating job satisfaction and by providing less
work and more leisure time
Social/legal Objectives_ satisfy customers
needs, fair competition, keep societies
welfare including safe products and healthy
environment.
Political legal objectives-comply with
government laws and regulations, avoid
descrimation, allow equal employment
opportunities, fair treatment, minimum pay,
working hours, Affirmative actions, etc.
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7. HRM: A Profession
• HRM as a profession developed itself through
research and experimentation as an organized
body of knowledge.
• The knowledge of HRM is usually exchange
through conferences, seminars, and workshops
sponsored by professional associations
• The latest information in the field of HRM is
communicated through the literature published
by professional associations, industry,
organizations and educational institutions
• HRM profession has also a code of conduct or
ethics and accreditation requirement for its
members
 What skills do HRM Professionals Need?

Change agent Strategic partner

•Transform Change
•Aligning HRM with
•Negotiations
•Conflict Management Strategy
•Communications •Decision- making
•Overcoming •Data-base
resistance to change

Administrative
Expert Employee Advocate
•HRM Policies & •Employee welfare
functions •Quality work life
•Legal compliance •Win commitment
•Contract •Counseling
•Admin. HRM & •Developing Teams
•HR info. systems
 Competencies of HR
Professionals
Business capabilities: Human resource professionals will
need to know the business of their organizations
thoroughly. This requires an understanding of its economic
and financial capabilities
Management of change: HR professionals will have to be
able to manage change process so that HR activities are
effectively merged with the business needs of the
organization. This require skills such as environmental
analysis, conflict management, communication etc.
State of the Art HRM Practice: HRM practitioners are
organizations’ behavioral science experts, in areas such as
staffing, developing, appraisal organizational design and
communication. They need to strive to keep abreast of
contemporary issues and practices related to this areas.
 8. HRM Models
There are several models of human resource
management. Two of the several models
are:
•General systems model of HRM with
environment, inputs, transformation process
and outputs.
•The Harvard HRM model

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 General Systems HRM Model

Environment

i c a Econ Satisfaction
li t omi
• P o c • Organizational
Knowledge Objectives
• Skills l Human Resource • Employee
• Attitudes Management Activities Objectives
• Talents • Societies
• Information (Stakeholders
Te c h n a l
ologic c i Objectives)
l a So

Feedback

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The Harvard Model of Human
Resource Management
 10. HRM Activities

Several activities in HRM that

professionals need to learn.
However, many do not feel that
HRM is a profession one need to be
trained in order to manage people.

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1. Job Analysis (Job 7. Encouraging
Description, Specification) teamwork
2. Human Resource 8. Rewarding
Planning employees
3. Recruitment and (Compensation)
Selection 9. Benefits and
4. Orientation Services
5. Training and 10.Counseling
Development employees
(Coaching)
11.Labor Relations
6. Performance
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Appraisal 12.Discipline and 33
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 Human Resource
Management Environment

After completing this part, participants

will be able to understand:
1.HRM Environment
2.The External Environment
3. The Internal Environment

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The Context of HRM
 1. Human Resource Management
Environment
Human Resource management as a system is affected by
several factors including external and internal
environment.
• External Environment are those factors that are
outside the organization, they are largely
uncontrollable and provide opportunities and
threats (OT) to the organization. The analysis of
external environment is some times called PEST
analysis
• Internal environment are factors within the
organization, they constitute the strengths and
weaknesses (SW) of the organization.
• The analysis of the internal and external
environment together is called SWOT analysis
External Internal
Environment Environment
1. Political/legal 1. Vision, mission,

2. Organizational
2. Economic
styles,
3. Social leadership
3. Organizational
4. Technological
Structure
4. Nature of the
task
5. Work groups
 2.The External Environment
1. Political/Legal-

Governments make different laws that require

human resource management to respect.
Laws include:
• Equal employment opportunities,
• Affirmative actions
• Compensation and benefits
• Safety and health,
• Hours of work, holidays,
• Industrial relations etc.
 The Legal Environment of
HRM
Equal Employment Opportunity vs.
Discrimination
• Forbids discrimination in all areas of
the employment relationship.
• Employment based on age, sex,
disabilities, national origins
(ethnicity), religion, compensation
(payment on similar jobs) etc.
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 The Legal Environment of HRM
(cont’d)
Equal Employment Opportunity Vs.
Affirmative Action
• Governments encourage Affirmative
action the commitment of employers to
proactively seek out, assist in
developing, and hire employees from
groups that are underrepresented in the
organization.
• Various executive orders, require
employers to develop affirmative action
plans and engage in affirmative action in
40 hiring female, veterans and the disabled.
 The Legal Environment of HRM
(cont’d)
Compensation and Benefits
– Fair Labor Standards
 Sets a minimum wage and requires
overtime pay for work in excess of 40
hours per week. For non exempt
employees
 Executive, and political leaders
employees are exempt employees
who are not paid overtime provisions

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 The Legal Environment of HRM
(cont’d)
Compensation and Benefits
• Employee Retirement Income
Security
• Family and Medical Leave
• Pension security

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 The Legal Environment of HRM
(cont’d)
Health and Safety
Occupational Safety and Health
Act (OSHA) requires that
employers:
• Provide a place of employment that is
free from hazards that may cause
death or serious physical harm.
• Obey the safety and health standards
established by Occupational Safety
and Health Administration
43 (OSHA).
 The Legal Environment of HRM
(cont’d)
Labor Relations
Sets rules on how
employers and employees
relationship is governed
• Joining union
• Establishing union
• Bargaining in good faith etc.
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2. Ethical HR practices:
–HRM practices must result in the
greatest good for the largest
number of people
–Employment practices must
respect basic human rights of
privacy, due process, consent, and
free speech
–Managers must treat employees
and customers equitably and fairly
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 3.Economic Environment-
Such as the business cycle ,
inflation, income level,
competition, etc.
4.Social Environment-
such as demographic factors,
culture, religion, belief on work
etc.

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 5. The Technology Challenge
Advances in technology have:
– Changed how and where we work
– Resulted in high-performance work systems
– Increased the use of teams to improve
customer service and product quality
– Changed skill requirements
– Increased working partnerships
– Led to changes in company structure and
reporting relationships

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 The Technology Challenge

 Advances in technology have:

– increased the use and availability of
Human Resource Information Systems
(HRIS)
– increased the use and availability of e-
HRM
– increased the competitiveness in high
performance work systems

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 The Global Challenge

 To survive companies must compete in

international markets
 Be prepared to deal with the global economy.
 Off-shoring – exporting of jobs from developed
countries to less developed countries
 On-shoring – exporting jobs to rural parts of
the country

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 3. The Internal Environment
• Vision mission objectives and
strategies- HRM require to align its
activities to these requirements.
• Styles of Management- the styles of
management whether it is autocratic,
democratic or laissez fair
• Nature of the task- whether the job is
attractive or repulsive
• Organizational Structure- Number of
positions and relationships
• The work group- Whether the work group
is supportive
Thank you!!!!