ARSI UNIVERSITY

HRM INDIVIDUAL ASSIGNMENT

Q.1 CONCEPTS, SIMALARITIES AND DIFFERENCE BETWEEN HRM AND HRD

A. HUMAN RESOURCE CONCEPTS

The term human resources management coined by an American institutional economist Johns
Commons in his book called “The Distribution wealth” published in 1983. The human resource
was evolved first 1950 in American organization as personnel management and since 20 th
century the term human resource management replaced.

On the surface, human resource management may seems straightforward, simply involving the
oversight of employees within the company. It often encompasses different responsibilities of the
organization related to the mission and culture of an organization.

Generally HRM is defined as the creation of system that organize people within the organization
such as staffing ,compensation ,benefit and defining or designing work.it consider employees as
the most valuable asset of the organization. Thus human resource management seeks to build,
maintain and improve the relation between an organization and its employees to retain and foster
their talents. HRM deals with management function such as planning, organizing, staffing and
controlling through creating procurement, training and development and maintenance of human
resource to the end support organization, personnel and societal objectives. It is multidisciplinary
subject which includes all organization. Even though in today’s world globalization had changed
the business in different aspects. Technologies had replaced the work of human in many
situation. However, the peoples had still an indispensable role in the organization. Therefore
human resources are the most important and critical part of the organizational resources.

B. HUMAN RESOURCE DEVELOPMENT (HRD) CONCEPTS

HRD is refers to the development of people working in the organization. It’s part of HRM that
aims at improving skill, knowledge, competencies, attitude and behavior of the employees of the
organizations. The main purpose of HRD is to empower and strengthen the abilities of the
employees so that their performance will get better than before.
 HRD provides opportunities such as training and development, career development, talent
management, coaching and monitoring, succession planning and so on.

FUNCTION OF HRD

1. Training and development: improving the knowledge, skill and attitude of the employees for
the short term. Such as coaching and counselling

2. Organizational development: improving organizational effectiveness and member’s wellbeing

through application of behavioral science concept.

3. Career development: is an ongoing process by which individual progress through series

change until they achieve their personal level of maximum achievement.

SIMILARITIES AND DIFFERENCE BETWEEN HRM AND HRD

HRM is management function and HRD is the sub branch of human resource management. Both
deal with people within the organization and their ultimate objectives is ensuring organizational
goal achievement through people. The end result would be seeing the improved productivity of
the work of the employees and the organization.

Basic comparison HRM HRD

Meaning Refers to the application of the Is continuous development function that

principle of management intends to improve the performance of people
function to manage people working in the organization?

What is it? Management function Subset of HRM.

Objective To improve performance of the Develop skill, knowledge ,and competency of

employees the employees

process Routine Ongoing

Dependency Independent It is subsystem

Concerned with People Development of the entire organization

Q2. List and describe the challenges in HRM of organizations in Ethiopian context

The rapidly transforming business landscape mean that there are a number of human resource
challenges that are continue to evolve for a year to come. As the human resource management is
critical to the success of any organization, one of the most important success factors in today’s
competitive environment an energetic, competent, motivated and highly committed and
innovative human resources are needed. Therefore as compared to other countries the Ethiopia
HRM system is differ. It is highly influenced by culture, politics and ethnicity background. As
my views some of the big challenge of human resource management in Ethiopia are the
following one but not limited to only this.

1. Poor HRM system: from the very beginning to an end, even from HRP to selection of
potential candidate in most case it is not transparent enough.in effective recruitment and
selection and lack of effective system of performance evaluation and reward system
2. Lack of clear human resource strategies and policies in some organization. Particularly in
public service organization.
3. Shortage of experts and institutes that provide training in general
4. Existence of political interference in public servant which could lead to employee
disengagement and dissatisfaction.

Q3. How organizations conduct Job design? (Describe theoretically and from practical case
you know).
Job design is a conscious efforts to organize tasks, duties and responsibilities in to unit of work
to achieve certain objectives. A human resource manager should have a keen interest in design
and specification of individual jobs within the organization. Job design is about the way tasks are
arranged and combined to form complete job in the work place. It determine the responsibility of
employees, authority he or she enjoys over his work.

Through job design organization try to raise productivity levels by offering non-monitory
rewards such as greater satisfaction from sense of personal achievement in meeting the increased
challenge and responsibility of ones work. Basically organization conduct job design in four
ways. These are job simplification, job rotation, job enlargement and job enrichments.

Practical example Job design in CBE

In commercial bank of Ethiopia the job design responsibility accompanied by HRM and
the task, profession, department
Q4. Human capital management and human resource management similarities and
difference

In the field of HR most of the time the two term are used interchangeably .however the
two concepts are somehow similar and overlap in many ways. Therefore it’s important to
know and understand the two term conceptually and identify their distinction.
Human capital management is strategic approach to people management that focus on the
knowledge, skill, abilities and capacity to develop and innovate possessed by people in an
organization. It is the new way of thinking about employees and emerged in 1960 during
the age of automation. It view employees as one of the valuable assets of the organization
and assumes if the employees are provided with adequate resources, skill, reward and
compensation they can provide more economic value to the firm. It is the bridge between
human resource management and business strategies of an organization. Is concerned
with obtaining, analyzing and reporting on data that inform the direction of value added
people management, strategic, investment and operational decision at corporate level and
at level of front line management.
The aim of human capital management
To determine the impact of people on the business and their contribution to value
To demonstrate that HR practices procedure value for money (ROI)
Provide guidance on the future business strategy and HR
Provide data to improve effectiveness of HR in the organization
Similarities between HCM and HRM
Both HCM and HRM are methods of supporting daily HR operations and achieving long
term strategic goal of an organization. They are people centric that can help to define new
workforce strategies and deploy them effectively and managing the existing human
resources of the organization by applying different HR strategies. Both system use
modern automation tools to streamline responsibilities and assist in decision making.
Other similarities of them are:
Automation: labor intensive work like payroll and time keeping are automated for better
efficiency
Integration; both integrated to business strategies to improve performance
Moreover HCM and HRM are very similar and typically differ in scope than
responsibilities.
Difference of HRM and HCM
HRM focus on developing and managing system and processes that enable employees to
effectively perform their jobs. It’s also a comprehensive approach to managing the
employees in the organization and providing them with support they need to thrive.
While HCM focus on maximizing employee economic value to an organization. Human
capital management is larger and comprehensive than HRM.