Dr.

Ohnmar Myint/HRM – 1

HUMAN RESOURCE MANAGEMENT

1.1. HUMAN RESOURCE

• From the national standpoint: human resources are the total knowledge, skills,
creative abilities, talents and aptitudes obtained in the population.
• From the individual enterprise viewpoint: total of the inherent abilities, acquired
knowledge and skills as exemplified in the talents and aptitudes of its employees.
Management—Getting Things done effectively, efficiently and ethically through and with
other people
Functions of Management: Forecasting; Planning; Organizing; Commanding;
Coordinating; Controlling (Henry Fayol)

1.2. HUMAN RESOURCE MANAGEMENT (HRM)

HRM is concerned with the people dimension in management. Since every organization is
made up of people, acquiring their services, developing their skills, motivating them to high
levels of performance and ensuring that they continue to maintain their commitment to the
organization are essential to achieving organizational objectives.
It is true, regardless of the type of organization - government, business, education, health,
recreation, or social action (Decenzo and Robbins)

It is the philosophy, policies, procedures, and practices related to the management of

people within an organization.
HRM is the planning, organizing, directing and controlling of the procurement, training
and development, compensation, integration, maintenance, and separation of human
resources to the end the individual, organizational and social objectives are accomplished.
HRM refers to a set of programmes, functions and activities designed and carried out in
order to maximize both employee as well as organizational effectiveness.
HRM is a series of activities which: first enables working people and the organization which
uses their skills to agree about the objective and nature of their working relationship and,
secondly, ensures that the agreement is fulfilled. (Torrington, Hall and Taylor 2002, p.13)

1.3. SCOPE/ ACTIVITIES OF HRM

• Human Resource Planning
• Job analysis (Job Description & Job/Person Specification), Job design and job
evaluation  Job Grading Pay scale)
• Recruitment and selection or stop hiring Retrenchment
• Orientation and placement
• Training, learning and development
• Performance management and performance appraisal
• Remuneration or compensation or reward management
• Motivation and Communication
• Welfare, safety and health

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• Industrial relations or labour relations and Employee/Employment Relations

1.4. DEVELOPMENT OF HUMAN RESOURCE MANAGEMENT

Development of Human Resource Management

Labor Movement

Industrial Revolution

Scientific Management Movement

Industrial Welfare Movement

Industrial psychology

Human Relations Movement

System Theory, the behavioral sciences,

organizational psychology
1750 1900 1950 2000

Differences between Personnel Management and Human Resource Management

Personnel Management Human Resource Management
1 Time and planning Short term, reactive, ad hoc, Long term, proactive,
perspective marginal strategic, integrated
2 Psychological contract Compliance Commitment

3 Control systems External control Self-control

4 Employee relations Pluralist, collective, low
perspective trust
5 Preferred structures/ Bureaucratic/ mechanistic,
systems centralized, formal defined
roles
Unitarist, individual, high trust
Organic, developed, flexible
roles

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6 Roles Specialist/professional Lately integrated into line

management
7 Evaluation criteria Cost minimization Maximum utilization (human
asset accounting)

1.5. HR PLANNING
It includes the estimation of how many qualified people are necessary to carry out the
assigned activities, how many people will be available, and what if anything, must be done to
ensure that personnel supply equals personnel demand at the appropriate point the future.
HR planning is the process involving the following activities:
1. Forecasting of future human resource requirements.
– Job analysis
– Job specification and job description
2. Analyzing of existing human resources.
3. Implementation of the human resource plan.
4. Evaluation and redesign of the human resource plan.

1.6. RECRUITMENT
Recruitment refers to the process of identifying and attracting job seekers so as to build a
pool of qualified job applicants.
– Internal Recruitment
– External Recruitment
Recruitment Methods
– Advertisements
– Campus recruitment
– Employment agency
– Walk in/talk in/write in applicants
– Radio, television, magazines, journals, ect.

1.7. SELECTION, PLACEMENT AND ORIENTATION

Selection is the process of differentiating between applicants in order to identify and hire
those with a greater likelihood of success in a job.
Selection Tests
– Ability tests
– Personality tests
– Aptitude tests
– Interest test
– Medical tests

1.8. TRAINING AND DEVELOPMENT

Training and development is the process and it is a complex mixture of activities intended to
improve the performance of individuals and groups within the organization.
This process includes skill development programmes, coaching by a supervisor, general
management courses, and training seminars.
Trainings are normally given to the lower level employees to improve their specific skills.

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Development programmers are offered to higher level employees to provide general

knowledge and attitudes which will be helpful for them in their work.
Types of training
• On-the- job training: training is conducted at the work site and in the context of the
job.
• Off- the- job training
Training needs assessments
Training plan
Evaluation of training

1.9. PERFORMANCE APPRAISAL

It is a formal structured system of measuring and evaluating an employee’s job, related
behaviors and outcomes to discover how and why the employee is presently performing on
the job and how the employee can perform more effectively in the future so that employee,
organization, and society all benefits.
Performance Appraisal methods:
– Graphic rating scales,
– Check list,
– Essay,
– Critical incidents,
– Behavioral rating scales,
– Management by objectives
Types of Appraiser:
– Supervisor appraisals
– Self-appraisals
– Peer appraisals
– Subordinate appraisals
– Group or committee appraisals
– 360˙ appraisal

1.10. COMPENSATION MANAGEMENT

Compensation which includes direct cash payments, indirect payments in the form of
employee benefits and incentives to motivate employees to strive for higher levels of
productivity is a critical component of the employment relationship.
Compensation is affected by forces as diverse as labour market factors, collective bargaining,
government legislation and top management’s philosophy regarding pay and benefits.
Components of Compensation
Wages: hourly rates of pay or daily rates of pay
Salary: monthly rates of pay
Incentives: additional to wages and salaries. It is payments by results. Incentives depend
upon productivity, sales, profit, or cost reduction efforts. (individual, group,
organization wide incentives)
Benefits: gratuity, medical care, accident relief, health and group insurance, social
security, etc.
Perquisites: car, house, club membership etc.

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1.11. MOTIVATION
The term motivation derives from the Latin word movere, meaning "to move."
In the present context, motivation represents "those psychological processes that cause the
arousal, direction, and persistence of voluntary actions that are goal directed."
Motivation can be defined as the desire and willingness of a person to expend effort to
reach a particular goal or outcome.
Managers need to understand these psychological processes if they are to successfully guide
employees toward accomplishing organizational objectives.
Importance of Motivation
Motivation of employees is vital important for several reasons.
• Motivated employees are always looking for better ways to do a job.
• A motivated employee is more quality oriented and more participative.
• Highly motivated workers are more productive than apathetic workers.
• Motivated employees hardly violate the rules and regulations of their organizations,
less absenteeism, lateness, accidents, and verbal or physical assaults among workers.

Motivation Model

1 2 3
Need Deficiency Search and choice Goal directed
of strategy behaviour

6 5 4
Re-evaluation of Reward or Evaluation of
needs punishment performance

Theories of Motivation

Early Theories Contemporary Theories

Scientific Human Relations

Management Model

Content Theories Process Theories Reinforcement

Theories
• Maslow’s Need Hierarchy • Vroom’s Expectancy model
Theory 5
• Adam’s Equity Theory
• Herzberg’s Two Factor
• Porter & Lawler’s
Theory
performance satisfaction
Dr. Ohnmar Myint/HRM – 1

Job satisfaction is an affective or emotional response toward various facets of one's job. Job
satisfaction can be defined as the positive feelings an individual may have about his/her
organization. These feelings relates to several aspects of the job such as opportunity for
advancement, job security, opportunity to use ideas, to learn a job, steadiness of employment,
supervision, pay, coworkers, working conditions, working hours, ease at work company
benefits, social relations, remuneration system and amount etc.

1.12. PROTECTION AND REPRESENTATION

Accommodation: the extent to which management listens and responds to or accommodates
the needs, wants, and complaints or grievances of organization members.
Collective bargaining: those events that establish a formal agreement between workers and
management regarding such matters as wages, benefits, working conditions and grievance
procedures.
Health and Safety Management: this process attempts to protect organization members
from illness and physical dangers in the workplace. It includes the protection of the
surrounding community from pollution and toxic substances.
1.13. EMPLOYEE RELATIONS
It consists of all those areas of HRM that involve general relationships with employees.
Industrial relations refer to the relationship between the organization and trade unions.
‘Employee relations’ is concerned with the wider implications of relationships with
employees including their trade union representatives.
Employment relation refers to the relationship between employees and the organization on
both individual level and collective level whether they are represented by the trade union or
External Environment – PESTEL
not.
 Opportunities & Threats
Industry level  5 forces
Internal Envt:  7Ms, 7Ss, Value
Business strategy/
Business plan Chain  Strength & Weaknesses
SWOT
Employee
Relations