Human Resource Management

Lecture 2: Introduction to HR Functions

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Explain how HR practices align with organizational strategy

“HR’s mediating role
between employee and
organization leads to
positive relationship
between two parts.
Because both sides
achieve their demands,
needs, and goals from the
exchange relationship.
Thus, HR practices can be
an infrastructure in
developing organizational
commitment.” [Uysal, G.
(2007]
Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Explain how HR practices align with organizational strategy

❏ In 2008, when housing market was facing struggle, the drop in
“Globalization of individual companies
and capital markets over the past two
sales caused laying off of hundreds of workers. decades has changed the business
landscape. Many firms have expanded
❏ Home Depot’s human Resource Department cut itself in half by operations overseas, and even strictly
laying off 50% of HR staff in 2008. domestic businesses are facing
competition from abroad. To respond to
global competition, firms are using new
❏ Home Depot founders Arthur Blank and Bernie Marcus were
technologies to provide better,
advocates of upside -down pyramid type organization structure. lower-cost solutions for their
Customers in top and management in bottom. customers, but these technological
innovations have led to constant
❏ HR strategy complimented the organization structure to recognize movement of customers and
the sales performance and compensation plan including bonuses competitors. At the same time, global
capital markets are pressuring firms to
from top sales and stock benefits.
innovate and reduce costs—not an easy
feat. All of these trends are pushing
❏ In 2001, Robert Nardelli who became CEO of Home Depot made companies to manage their assets as
the company structure as traditional top down type structure where effectively as possible—especially their
top managers firmly in charge. human assets.” [Patrick M. Wright, 2008]
Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Explain how HR practices align with organizational strategy

❏ Nardelli had such experience in General Electric (GE), where strict controls and measurement
metrics were used to practice.

❏ Cost cutting led to more profits but at cost of customer satisfaction and association of low morale
among employees who will serve the customers.

❏ HR’s role turned into more efficient system to support management. Nardelli left in 2006.

❏ Next Chairman Frank Blake turned the pyramid back to upside down with focus to customers
and store associates. He announced an initiative known as “Aprons on the floor”. The goal was
to increase quantity and quality of store associates. Also he encouraged senior management in
cost cutting strategies for raising money to spend on keeping additional associates.

❏ HR reduced staffs by taking off HR professionals from individual stores. Instead they combined
HR functions with district teams, which looked over six to ten stores.These teams consisted of a
district HR manager and three HR generalists with responsibilities of staffing, development,
associate relations, performance management. Target and Walmart follow similar services for
their HR functions.
Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Few example of HR Metrics:

“For at least the last decade, HR
departments around the world have
been pouring tons of time and money
into developing HR metrics.
Unfortunately, that effort has largely led
to continued levels of frustration and, at
best, a large number of what I call
“so-what” metrics with little strategic
impact. It doesn’t matter whether your
HR metrics were provided as part of the
software that you purchased or if they
came from a major HR consulting firm;
the results have been the same: dismal
at best. After three plus decades of
thought leadership and research in HR
metrics, I’ve concluded that the current
approach is an abject failure and that
HR simply can’t continue on this current
painful path.” [Dr. John Sullivan, 2012]

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Few example of HR Metrics:

Example of FTE (Full Time

Equivalent)

If you have 10 full-time

employees, a bookkeeper
who works 2 days each
week, and a student who
currently only works 3 days
a week, the calculation
would be as follows: 10
full-time employees + 2/5
for the bookkeeper + 3/5 for
the student = 11 FTE

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Few example of HR Metrics:

Example: A workers’
compensation rate is
represented as the cost per
$100 in payroll.

For example:
A rate of $1.68 means that a
business with $100,000 in
payroll would pay $1,680
annually in work comp
premiums.

A rate of $0.35 means that a

business with $100,000 in
payroll would pay $350
annually in work comp
premiums.

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

Few example of HR Metrics:

Time and Financial Cost Investment

HR scorecard systems require a significant investment. This
is a long-term rather than a short-term solution. A company
must manage its system actively and constantly. All
employees need to understand how the system works, which
may increase training expenses. If you don't have internal
expertise, you may have to hire external consultants to help
you implement the system and learn how to use it. These all
increase maintenance costs.

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 1. It helps in managing, preparing and
Lecture 2: Introduction to HR Functions
completing all personnel policies or
programs.
Why HRM is important to an organization: 2. Through a systematic and scientific
process, HR supplies the best, skilled
❏ Prior to mid 1960s Personnel departments in organizations were often and required workforce to the business
and organization.
primarily involved in health and happiness of the employees, company 3. It increases the benefits of any
picnics, scheduling vacations, doing retirement plans etc. organization through training and
development of human resources.
4. Change management is one of the main
❏ Now Job nature has been changed. Similarly, employer requirements, and necessary factors of organization to
employee requirements, requirements for employees with greater skills, develop and compete in the market. So
workers performance span for working simultaneously with various the HR Managers prepare and train a
workforce for change management.
departments, etc has been changed. Global competition has been increased. 5. HRM motivates people and encourages
Importance for improving workforce productivity has been increased. them to enable short & long term goals
However, organizations need HRM specialists trained in leadership, of companies and organizations.
6. It helps in cost reduction through
motivation, employee training, organization and job design and law and etc. innovative and experimental values in an
organization.
❏ Employees are now required to train up with in the functions of the 7. For the workers’ safety, health and future
benefits, HR plays important roles.
organization and its culture effectively. HRM now are more focused to work on 8. Workers’ career management and
employee’s continuous personal development. HRM need to monitor the reward system with best compensation,
all are the responsibilities of HR
employees’ productive affiliation with the organization goal. The work
Managers, through which they can get
environment must be structured to encourage current employees retention as the best work and energies from them.
well as attracting the newcomers.

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.
 Lecture 2: Introduction to HR Functions

The Strategic Nature of HRM:

❏ Effective Projects begin with a Plan.

❏ Strategic Planning concept is to make a comprehensive analysis of an

organization’ goals for future and establish the best way to accomplish
those.

❏ Typical HRM department has responsibilities in three major areas:

❏ Transactional Work: This is administrative works on individuals.

❏ Tactical Work: Works that involves developing employee benefit,

resolves work conflict etc.

❏ Strategic work: This benefits the entire organization by aligning

services that are linked to long term goals.

Prepared for Army IBA, for lecturing on Management and Organizational Behaviour, Prepared by Rizwana Islam, Architect, Business Consultant, Lecturer Army IBA, Graduated from BUET, Graduated from
IBA.DU, Research Fellow, IBA.DU, Source: Internet Based Resources, Robbins, S. P., Judge, T. A., & Vohra, N. Organizational Behaviour by Pearson 18e. Pearson Education India.