PART 1

Introduction to
Human Resource
Management
Name : Ms. Helenah Abdul Hatta
Learning Objective
1) Explain what human resource management is and how it relates to the
management process.
2) Show with examples why human resource management is important to all
managers.
3) Illustrate the human resources responsibilities of line and staff (HR) managers.
4) Briefly discuss and illustrate each of the important trends influencing human
resource management.
5) List and briefly describe important traits of today human resource managers.
6) Define and give an example of evidence-based human resource management.

Fundamental of Human Resource Management (HRM 2100) H.A.H

What is HRM and Why it is Important?
• A company is an organization. An organization consists of people with formally
assigned roles who work together to achieve the organizations goals.
•A manager is the person responsible for accomplishing the organizations goals,
who does so by managing the efforts of the organizations people.
•Most experts agree that managing involves five functions: planning, organizing,
staffing, leading, and controlling. In total, these functions represent the management
process.
HRM

Planning Organizing Staffing Leading Controlling

Fundamental of Human Resource Management (HRM 2100) H.A.H

Management Process
• Planning. Establishing goals and standards; developing rules and procedures; developing
plans and forecasting.
• Organizing. Giving each subordinate a specific task; establishing departments; delegating
authority to subordinates; establishing channels of authority and communication;
coordinating subordinates' work.
• Staffing. Determining what type of people you should hire; recruiting prospective
employees; selecting employees; training and developing employees; setting performance
standards; evaluating performance; counseling employees; compensating employees.
• Leading. Getting others to get the job done; maintaining morale; motivating subordinates.
• Controlling. Setting standards such as sales quotas, quality standards, or production levels;
checking to see how actual performance compares with these standards; taking corrective
action, as needed.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Why HRM important to all managers?
• Avoid personnel mistakes
• Hire the wrong person for a job
• Waste time with useless interviews
• Have people not doing their best
• Improve profits and performance
• Hire the correct person to hit the target and goals with the suitable appraisal,
motivating and development.
• Spend too much time as and HR Manager
• Learning the skills and speciality
• HR For Enterpreneur
• You be your own boss

Fundamental of Human Resource Management (HRM 2100) H.A.H

Line and Staff aspect of HRM
• All manager = HR Manager. This because they involved on recruiting,
interviewing, selecting and training their employee.

Line Staff
Authority Authority

• Authority = right to make decision, to direct the work of others and to give order
• Line Authority = traditionally give the managers the right to issue order to
another managers/employees.
• Staff Authority = give managers the right to advise others manager or
employees. Advisory relationship concept.
Fundamental of Human Resource Management (HRM 2100) H.A.H
Line Manager HR Duties
1) Placing the right person in the right job
2) Starting new employees in the organization (Orientation)
3) Training employess for job that are new to them
4) Improving the job performance of each person
5) Gaining cooperation and developing smooth working relationships
6) Interpreting the company's policies and procedures
7) Controlling labor costs
8) Developing the abilities of each person
9) Creating and maintaining department morale
10) Protecting employees' health and physical condition

Fundamental of Human Resource Management (HRM 2100) H.A.H

Human Resource Manager Duties
Line Function Coordinative Function Staff Function

• A Line Function
• direct and manage in own department
• A Coordinative Function
• Also referred as Functional authority. Ensure Line Manager implimenting the
firm's HR Policies & Practice

Fundamental of Human Resource Management (HRM 2100) H.A.H

Human Resource Manager Duties
Line Function Coordinative Function Staff Function

• Staff (assist & advice) Function

• Assist and advicing the Line Manager is the heart of the HR manager job.
He/She advise the CEO so CEO will have a clear understanding from the
personnel aspect. HR assist in hiring, training, evaluating, rewarding,
counseling, promoting and firing company & etc.
• Play as an employee advorcacy role

Fundamental of Human Resource Management (HRM 2100) H.A.H

Did you know....
• Size of the HR department reflect the size of the company and the
employees. For some big company, special speciality HR Manager
includes:-
• Recruiters
• Equal Employment Opportunity (EEO) Coordinator
• Job Analysts
• Compensation Managers
• Training Specialists
• Labor relation specialists

Fundamental of Human Resource Management (HRM 2100) H.A.H

New Approach in Organizing HR
Day to Day
Transactional HR transaction activities
such counseling

Assist Top
Corporate HR Management such as
company LT plan
New Approach
Also known as
Embedded HR Relationship
Manager. Direct to
department to assist.

Specialize HR
Centers of Expertise Consulting firm
within the company

Fundamental of Human Resource Management (HRM 2100) H.A.H

Trend Shaping HRM
Trends

•Globalization
•Incresed Competition
•Technologies Innovation
•More Knowledge Work
•More Service Job
•An aging workforce
•Slower economic growth in many countries
•Nontraditional Works (PT)

So Companies MUST BE

•More competitive
•Faster and responsive
•Downsizing
•Quality conscious
•Organized flatter
•More cost-effective
•Organized around emplowered teams

Employer will therefore EXPECT from HR Management that they

•Focus more on big picture issue such as helping company achieve goal
•Create high performance work system
•Take steps to help yhe employee ebyyer manage challenging time
•Manage ethically

Fundamental of Human Resource Management (HRM 2100) H.A.H

 Strategic Role of
Human Resource

Helenah Abdul Hatta

Learning Objective
1) Explain why strategic planning is important to all managers.
2) Explain with example each of the 7's step in strategic planning process.
3) List with example the main generic types of corporate strategics and
competitive strategics.
4) Define strategic human resource management and give an example of
strategic human resource management in practice.
5) Briefly describe three important strategic human resource management
tools.
6) Explain with examples why metrics are important for managing human
resources.
Fundamental of Human Resource Management (HRM 2100) H.A.H
Why Strategic Planning Important?
Goal-Setting and the Planning Process
• It involves
i. Setting objectives
ii. Making basic planning forecasts
iii. Reviewing alternative courses of action
iv. Evaluating which options are best, and then
v. Choosing and implementing your plan.

A plan shows the course of action for getting from where you are to where you
want to go in other words, to the goal. Planning is always goal-directed.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Example : Hierachy of Goal Diagram

Fundamental of Human Resource Management (HRM 2100) H.A.H

Strategic Planning
Strategic plan
• The company s plan for how it will match its internal strengths and
weaknesses with external opportunities and threats to maintain a
competitive advantage.
Strategy
• A course of action the company can pursue to achieve its strategic aims.
Strategic Management
• The process of identifying and executing the organization s strategic plan,
by matching the company s capabilities with the demands of its
environment.
Fundamental of Human Resource Management (HRM 2100) H.A.H
7's Step Strategic Planning Process

Fundamental of Human Resource Management (HRM 2100) H.A.H

Step 1: Define the Current Business
• What to sell? Where to sell? How to sell?
• What product to sell?
• How to benchmark our goods with?
• How our product and services differ from our competitor's?
• Example: Rolex and Casio watch.
•Both selling watch. But Rolex for limited expensive line while
for Casio more variety and inexpensive watch with innovative
features such as compasses and altimeter.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Step 2: Perform External & Internal
Audits
• " Are we heading to the right direction?"
• Managers that need scan the Environment condition for latest trends,
threat and etc.
• Question that manager to scan upon, such as:-
i. Economic Trends
ii. Competitive and Market Trends
iii. Political Trends
iv. Technological Trends
v. Social Trends
vi. Geographical Trends
Fundamental of Human Resource Management (HRM 2100) H.A.H
SWOT Martix (Generic Example)

Fundamental of Human Resource Management (HRM 2100) H.A.H

Step 3: Formulate A New Direction
• Question to ask after the Environmental scanning and SWOT
analsyis.
• Where do we stand and what to do next ?

Fundamental of Human Resource Management (HRM 2100) H.A.H

Step 4: Translate the Mission into Strategic Goals
•Manager changing the mission into a strategic goal that must be achieve with
margin on 1% defect.

• Step 5: Formulate Strategies to Achieve the Strategic Goals

•Manager to choose what strategies to fulfill and the course of the actions.
•Enable the company to achieve the strategic goal.

Fundamental of Human Resource Management (HRM 2100) H.A.H

• Step 6: Implement the Strategies
•Strategy execution= translating strategies into action.
•Manager do this by hiring/ firing peoples, building/ closing plants, adding/
eliminating products and products lines.
• Step 7: Evaluate Performance
•Things not always come out as planned.
•For example, Ford bought Jaguar and Land Rover as a way to reduce reliance
on lower-profit cars. With auto competition brutal, Ford announced in 2009 it was
selling Jaguar and Land Rover (to Tata, a company in India). Ford wants to focus
its scarce resources on modernizing and turning around its North American
operations. Like all companies, Ford continually needs to assess its strategic
decisions.

Fundamental of Human Resource Management (HRM 2100) H.A.H

 Business 1 Functional Strategy

Types of Strategies Level Sales Department (How do we

support the
business's competitive
strategy?)

Business 1 Functional Strategy

Business 1/ Competitive Production Department (How
Strategy (How will we do we support the
compete?) business's competitive
strategy?)

Business 1 Functional Strategy

Business 1/ Competitive Human Resource
Corporate Level Strategy (What Department (How do we
Strategy (How will we support the
business are we in?) compete?)
business's competitive
strategy?)

Business 1/ Competitive
Strategy (How will we
compete?)

Fundamental of Human Resource Management (HRM 2100) H.A.H

Types of Strategies

3 Strategies to
use and consider

Functional /
Corporate Wide Strategic Departmental
Strategic Plan Planning Strategic
Planning

Fundamental of Human Resource Management (HRM 2100) H.A.H

Managers Roles in Strategic Planning
Top Managers Roles in Strategic Planning
• Devising a strategic plan is top management s responsibility. Top
management must decide what businesses the company will be in and
where, and on what basis it will compete.

Departmental Managers Strategic Planning Roles

• Company's Departmental Manager (as Sales, Manufacturing, HRM &
etc) also play important roles in strategic planning.
• They help Top Management in formulation functional, departmental
plan to support overall strategic plan & execute the plan.
Fundamental of Human Resource Management (HRM 2100) H.A.H
 Strategic Human
Resource
Management

Helenah Abdul Hatta

Define Strategic Human Resource
Management (SHRM)
• SHRM = Formulating and executing human resource policies and
practice that produce the employee competencies and behaviours the
company need to achieve its strategic goals.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Human Resource Strategies & Policies
• Managers call the specific HRM policies and practices they used to
support their strategic aim in Human Resource Strategies.
• For example, Ritz Carlton company human resource system:-
• Having Top Management personally interview each candidate
• Selecting candidate who care for and respect others
• Human resource team effort help in reduce cost and boost customer service by
hiring and motivating customer focus applicants.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Strategic Human Resource Management
Tools
• Managers use several tools to translate the company s broad strategic
goals into human resource management policies and activities.
• Three important tools include the:-

Fundamental of Human Resource Management (HRM 2100) H.A.H

HRM Tools: Strategy Map
• A strategic planning tool that
shows the big picture of how
each department s performance
contributes to achieving
the company s overall strategic
goals.

Fundamental of Human Resource Management (HRM 2100) H.A.H

HRM Tools : HR Score Card
• A process for assigning financial and nonfinancial goals or metrics to
the human resource management related chain of activities required
for achieving the company s strategic aims and for monitoring results.
• To check and see what are the turnover, percentage of accomplishment
and etc.
• HRM Manager used scorecard to quantify the relationship between
i. HR activities (amount of testing, training & etc)
ii. Employee behaviours (customer service, feedback & etc)
iii. Firm-wide strategic outcome & performance (Customer satisfaction &
profitability)
Fundamental of Human Resource Management (HRM 2100) H.A.H
HRM Tools : Digital Dashboard
• Presents the manager with desktop graphs and charts, and so a
computerized picture of where the company stands on all those metrics
from the HR Scorecard process.

Fundamental of Human Resource Management (HRM 2100) H.A.H

Question?

Next Week
Topic!

Fundamental of Human Resource Management (HRM 2100) H.A.H