Chapter 1

UNIT ONE
INTRODUCTION AND OVERVIEW

Slide 1.2
Objectives
After studying this unit, you should be able to
Understand the need for the study of HRM.

Identify and explain the major characteristics of
HRM.
Identify some major functions of HRM.
Identify some career paths in HRM.
Eugene McKenna and Nic Beech, Human Resource Management , 2 nd Edition, © Pearson Education Limited 2008
Slide 1.3
Definition
HRM endorses the view that people are a key

resource; that it is important to involve them in
key activities and communicate well with them,
to encourage their commitment and
engagement with the organisation and adopt a
strategic approach to the acquisition,
management and motivation of employees.
Slide 1.5
Definition of HRM
O The
effective management of people at work is
Human Resource Management (HRM)
O Human resource management (HRM) is a strategic,

integrated and coherent approach to the employment,
development and well-being of the people working in
organizations (Armstrong, 2009).
Slide 1.6
O Human resource
management involves all
management decisions and actions that affect the
nature of the relationship between the organization
and its employees – its human resources. (Beer et al,
1984)
O HRM comprises a set

of policies designed to
maximize organizational integration, employee
commitment, flexibility and quality of work. (Guest,
1987)
Slide 1.7
HRM IN PICTORIAL FORM
HRM Functions / Activities
Slide 1.8
Slide 1.9
Human Resource Planning

O deciding on the human resources the
organisation needs
Slide 1.10
Recruitment and Selection /

Staffing
O Staffing is the process of planning,
acquiring, deploying, and retaining
employees that enables the organisation
to meet its talents needs and to execute
its business strategy.
O Brings in the talents responsible for

executing the organisational strategy
O Organisation’s people are central to its
development of a competitive advantage
Slide 1.11
Training and Development

(T & D)
O Training and development focuses on
developing employees capabilities.
O T&D improve performance by remedying

deficiencies and nurture the human resource
with the future in mind
O T & D is responsible for career planning,

organisational development and legal
compliance
Slide 1.12
Performance Management
O It involves aligning employees goals and
behaviours with organisational goals and
strategies.
O Specific goals/ targets and feedback are

given to employees
O Compensation is tied to performance

management rating (objective)
Slide 1.13
Rewards and Benefits
Slide 1.14
3 Types of Total Rewards –

Phillips and Gully (2013)
Slide 1.15
Employee-Management
relations
O The relations between employees and the capital
owners and or their agents of the organisation.
Importance:
improve communication
problem solving and
performance
Slide 1.16
Health and Safety

OIncludes:
OWellness
OFire safety
OInjury management
ODisaster preparedness
OIndustrial hygiene
Slide 1.17
Health and Safety

OSafety is the absence of danger
and avoidance of injury
OHere, the Concern is for good
health, defined as physical and
mental wellness with body and
mind in excellent working order
Slide 1.18
Personnel records
OHR department centrally
keeps the personnel records.
OHRIS
Slide 1.19
Current issues in HRM

O Flexibility and diversity
O Information technology
O Human capital
O Added value
O Knowledge workers
Distinctive features of HRM:
Alignment of corporate strategy and HR strategy.
Key role of line managers.
Seeks commitment of employees rather than compliance
Harmonise interests of stakeholders into ‘common

interest – profitability’
Integration, coherency and consistency with respect to a

set of HR policies
Competitive advantage through people (BSC, Hard and

Soft HRM)
Slide 1.21
Cont.
• Unitarist and Pluralist approaches to
management-employee relations
• HR policies are supportive of organisational

culture.
• HR techniques (e.g. rewards, training) support a

performance-oriented culture.
• Managers are more powerful, unions are less

powerful.
• Participative management; open communication.

Cont.
• Competencies; multi-skilling
• Flexibility: tasks, structure, employment contracts
• Management of change
• Accepts job insecurity; lack of traditional career

paths
Slide 1.23
HRM and Organisational

Performance
O HRM policies and practices add value to
organisations and influence organisational
performance by either improving efficiency or
contributing to revenue growth. – Becker and
Gerhart(1996)
O Effective HRM system increases:

O Organisation’s ability to meet its goals
O Enhance the organisation’s ability to grow
O Increases employees engagement, effort and performance

Eugene McKenna and Nic Beech, Human Resource Management , 2 Edition, © Pearson Education Limited 2008
nd
Slide 1.24
WHO IS RESPONSIBLE FOR HRM?

HRM professional
The Line Manager

O The most effective supervisors are skilled in using HRM
The employee
Shared service center (centralises the routine

HRM activities like payroll, benefits, employee exit surveys
etc)
Outside Vendors
Outsourcing: hiring an external vendor to do work rather than
doing it internally. Eugene McKenna and Nic Beech,Human Resource Management , 2 Edition, © Pearson Education Limited 2008
nd
Slide 1.25
CAREERS IN HRM
Slide 1.26
Careers in HRM
O Director of HRM
O HR Specialist / HR Generalist
O HR Consultant or HR Business
Partner
O Recruitment specialist
O Compensation Analyst
O Employee benefits manager

O Work-life manager
Slide 1.27
O THE END OF UNIT

ONE

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UNIT ONE

INTRODUCTION AND OVERVIEW

Understand the need for the study of HRM.

HRM endorses the view that people are a key

O Human resource management (HRM) is a strategic,

O HRM comprises a set

HRM IN PICTORIAL FORM

Human Resource Planning

Recruitment and Selection /

O Brings in the talents responsible for

Training and Development

O T&D improve performance by remedying

O T & D is responsible for career planning,

O Speciﬁc goals/ targets and feedback are

O Compensation is tied to performance

Rewards and Beneﬁts

3 Types of Total Rewards –

Health and Safety

Health and Safety

Current issues in HRM

Key role of line managers.

Seeks commitment of employees rather than compliance

Harmonise interests of stakeholders into ‘common

Integration, coherency and consistency with respect to a

Competitive advantage through people (BSC, Hard and

• HR policies are supportive of organisational

• HR techniques (e.g. rewards, training) support a

• Managers are more powerful, unions are less

• Participative management; open communication.

• Flexibility: tasks, structure, employment contracts

• Accepts job insecurity; lack of traditional career

HRM and Organisational

O Effective HRM system increases:

O Enhance the organisation’s ability to grow

O Increases employees engagement, effort and performance

WHO IS RESPONSIBLE FOR HRM?

The Line Manager

Shared service center (centralises the routine

O Employee beneﬁts manager

O THE END OF UNIT

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