Introduction to Human

Resource Management

1
Learning Objectives

1. Explain what human resource management is and how it

relates to the management process.
2. Briefly discuss and illustrate each of the important trends
influencing human resource management.
3. List and briefly describe important traits of today’s human
resource managers.
4. Describe four important human resource manager
competencies.
What human resource management
is and how it relates to
the management process
 Human Resource Management

• Linking of HRM with strategic goals and objectives

• HR objectives affect the business performance
• Develop organizational cultures that foster innovation
and flexibility.
• Formulating and executing HR systems—HR policies and
activities— that produce the employee competencies and
behaviors the company needs to achieve its strategic
aims.
 Human Resource Management

• The design of formal systems in an organization to ensure

effective and efficient use of human talent to accomplish
organizational goals.
• It is the process of
• Acquiring,
• Training and development,
• Appraising, Compensating Employees and
• Attending to their labor relations, health and safety, and
fairness concerns.
 Human Resource Management: Scope

The scope of HRM is very wide:

• Personnel aspect-This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
• Welfare aspect-It deals with working conditions and
amenities such as canteens, creches, rest and lunch rooms,
housing, transport, medical assistance, education, health
and safety, recreation facilities, etc.
• Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, grievance
and disciplinary procedures, settlement of disputes, etc.
 Human Resource Management: Objectives

• To help the organization reach its goals.

• To ensure effective utilization and maximum development of human
resources.
• To ensure respect for human beings. To identify and satisfy the
needs of individuals.
• To ensure reconciliation of individual goals with those of the
organization.
• To achieve and maintain high morale among employees.
• To provide the organization with well-trained and well-motivated
employees.
• To increase to the fullest the employee's job satisfaction and self-
actualization.
• To develop and maintain a quality of work life.
• To be ethically and socially responsive to the needs of society.
UlRICH HR model
HR role s
 Human Resource Management

Human resource management is the process of

acquiring, training, appraising, and compensating
employees, and attending to their labor relations,
health and safety, and fairness concerns.
 Functions of HR
HRM department regardless of the organization’s size must
perform following human resource management functions.
1. Human resource or manpower planning.
2. Recruitment, selection and placement of personnel.
3. Training and development of employees.
4. Appraisal of performance of employees.
5. Taking corrective steps such as transfer from one job to
another.
6. Remuneration of employees.
7. Social security and welfare of employees.
 Why Is Human Resource Management
Important to All Managers?
No manager wants to:
o Hire the wrong person for the job
o Experience high turnover
o Have your people not doing their best
o Have some employees think their salaries are unfair relative to
others in the organization
o Allow a lack of training to undermine your department’s

effectiveness
 Human Resource (HR)
Responsibilities of Line and
Staff Managers
 Line and Staff Aspects of Human Resource
Management

Authority is the right to make decisions, to direct the

work of others, and to give orders. Managers usually
distinguish between line authority and staff authority.
 Line and Staff Managers

• Line authority gives you the

right to issue orders

• Staff authority gives you the

right to advise others in the
organization
 Line mangers’Human Resource Duties

• Orientation & Training

• Improving job Performance
• Cooperation
• Interpreting the company policy and procedures
• Controlling Labor costs
• Developing the ability of each person
 Human Resource managers’ Duties
Staff Managers
• Line function inside of HR department
• Coordination : functional authority , HR insures that line
manager are implementing the firm’s human resource
polices and practices
• Staff function (Assist and advise) : the heart of HR
managers’job
 Organizing the Human Resource Department’s
Responsibilities
Size of HR reflects the company’s size
Examples of human resource management specialties include:
● Recruiters. Search for qualified job applicants.
● Equal employment opportunity (EEO) coordinators. Investigate and
resolve EEO grievances, examine organizational practices for potential
violations, and compile and submit EEO reports.
● Job analysts. Collect and examine information about jobs to
prepare job descriptions.
● Compensation managers. Develop compensation plans and handle
the employee benefits program.
● Training specialists. Plan, organize, and direct training activities.
● Labor relations specialists. Advise management on all aspects of
union-management relations.
Megatrends determine future challenge in HR
List and briefly describe important
traits of today’s human resource
managers.
 The New Human
Resource Manager
 The New Human Resource Managers
• Focus More on Strategy
• Focus on Improving Performance
• Measure HR Performance and Results
• Use Evidence-Based Human Resource Management
• They Use New Ways to Provide HR Services
• They Take a Talent Management Approach
• They Manage Employee Engagement
• They Manage Ethics
• They Have New Competencies
 Describe four important Human
Resource Manager competencies.
 Human Resource Manager’s Competencies

• Strategic positioners
• Credible activists :by exhibiting the leadership and other
competencies that make them “both credible (respected,
admired, listened to) and active
• Capability builders :by creating a meaningful work
environment and aligning strategy, culture, practices, and
behavior , by initiating and sustaining change.
Human Resource Manager’s Competencies ,
Cont.

HR innovators and integrators : by developing

talent, and optimizing human capital through
workforce planning and analytics.

Technology proponents : by connecting people

through technology.
2
Do you agree with the following statement:

“It is important for a human resource

manager to be a strategic partner in an
organization.”
The Strategic Management
Process

Copyright © 2015 Pearson Education Ltd. 3-28

 The Management Planning Process

The Hierarchy of Goals :

the goals from the top of the firm down to the front
line employees.

Policies and Procedures :

provide the day-to-day guidance and policy
employees need to do their jobs in a manner that is
consistent with the company's planning goals.

Copyright © 2015 Pearson Education Ltd. 3-29

Copyright © 2015 Pearson Education Ltd. 3-30
Strategic Planning
A strategic plan is the company’s plan for how it
will match its internal strengths and weaknesses
with external opportunities and threats in order
to maintain a competitive advantage.

Copyright © 2015 Pearson Education Ltd. 3-31

 The strategic management model

Mission and goals

STEP 1 Management philosophy
Values

Environmental analysis
Internal scan
STEP 1 External scan

Strategic formulation
Strategic choice
Corporate
STEP 1 Business
Functional

Strategy implementation
Leadership
STEP 1 Structure
Control systems
Human resources

Strategy evaluation
STEP 1 Operating performance
Financial performance
 Contextual
factors
Corporate-level strategy
Product market Corporate management
What business are we in?
Capital market

Labour market

Business Business Business Business-level strategy

Technology
unit 1 unit 2 unit 3
How do we compete?
Government
policies

Union
policies

Functional-level
Trade strategy
R&D Marketing Human Manu- Finance
Agreement resources facturing
policies How do we support
the business-level
competitive strategy?
Stakeholder
interests

Human resource management : philosophy , polices :

practices , processes . Trade unions , relationship with
managers and non- mangers

Hierarchy of strategic decision making

Linking Company Wide and HR Strategies
 How HRM Relates to the Strategies

• Linking of HRM with strategic goals and objectives

• HR objectives affect the business performance
• Develop organizational cultures that foster innovation and
flexibility.
• Formulating and executing HR systems—HR policies and
activities— that produce the employee competencies and
behaviours the company needs to achieve its strategic
aims.
 HR’s Strategic Roles
• HR professionals should be part of the firm’s strategic planning
executive team.
• The HR department’s strategies, policies, and activities must make
sense in terms of the company’s corporate and competitive
strategies, and they must support those strategies.
• HR helps top management formulate strategy in a variety of ways by
o Supplying competitive intelligence that may be useful in the
strategic planning process.
oSupplying information regarding the company’s internal human
strengths and weaknesses.
oBuild a persuasive case that shows how—in specific and
measurable terms—the firm’s HR activities can and do contribute
to creating value for the company.
Linkage of organizational and HR strategies
 Managers’ Roles in Strategic Planning
Devising a strategic plan is top management’s responsibility. In practical
, devising the overall strategic plan involve frequent discussion among
and between top and lower level managers The top managers then use
this information to hammer out their strategic plan
Example : Improving Mergers and Acquisitions
Critical human resource M&A tasks include:
o Choosing top management
o Communicating changes to employees
o Merging the firms’ cultures
o Retaining key talent
o Due diligence
Strategic human resource management is the
process of linking the human resource function
with the strategic objectives of the
organization in order to improve performance.