Bangladesh University of Professionals

A Summary of Human Resource and Management

in a Changing Environment And Introduction to HR Functions

Human Resource Management - ALD 2104

(Chapters 1 and 2)

Submitted to

Barnali Nandi
Assistant Professor
Department of Marketing
Faculty of Business Studies
Bangladesh University of Professionals

Submitted by

Name ID
Fariha Mehreen 2225171033
Farhan Feroj 2225171041
Tazwar Fardous 2225171049
Sadman Sakib 2225171069
Irfanul Haq 2225171081
Shairee Raiyana Zain 2225171117
Kaif Noor Hasan 2225171133
(Chapter 1) - Introduction:

Human Resource Management is a subset of the study of management that focuses on how to
attract, hire, train, motivate, and maintain employees. The HRM department must be prepared to
deal with the effects of rapid changes, which means understanding the implications of everything
starting from globalization to dealing with labor shortages, decentralized work sites and more. In
these scenarios a competent and strong workforce can be a source of competitive advantage.

Understanding the Cultural Environment:

As organizations are no longer constrained by national borders, employees are facing the effects
of globalization. Multinational corporations, which maintain operations in multiple countries
have become widespread so understanding diverse cultural environments is crucial as each
country has distinct values, ethics, and societal norms which affect HR practices. Research helps
categorize countries based on cultural variables like status differentiation (ascribed or achieved)
or how the people view themselves (individualistic or collective), guiding HR strategies and
promoting adaptability for employees navigating different work cultures.

The Impact Of Technology -

Technology has profoundly impacted our daily lives, shaping both leisure and work activities.
Globalization 3.0, starting around 2000, is characterized by technology. Supported by
inexpensive internet and transportation, the world has become a smaller place, leveling the
playing field for countries, individuals, and businesses. This has allowed individuals to compete
globally regardless of their geographical location. Organizations must recognize these changes
and ensure proper training to deal with the various impacts of technology in the workplace.

What is a Knowledge Worker? - Knowledge workers use technology to acquire and apply
information for decision-making like doctors, engineers, lawyers, accountants and many more.
Knowledge workers also include information technologists, people who work with their hands
and with theoretical knowledge, for example computer programmers and software designers.

How Technology Affects HRM Practices: Technology like intranets, e-mail, social media has
revolutionized HRM and made it possible for information to be communicated rapidly with ease.
HR professionals utilize Human Resource Information Systems (HRIS) for HR planning,
performance evaluation, quicker decision-making and various other critical HR functions. Let's
look at some examples of how technology is affecting HRM.

1. Recruiting: Online job postings and electronic resumes have largely replaced traditional
methods to allow the organizations to reach a broader pool of potential job seekers.
 2. Employee Selection: Using various technologies, companies are able to filter through
hundreds of candidates to ensure the ones selected will have all the desirable qualities.
3. Training and Development: The Internet has allowed companies to provide web-based
training to their employees. This helps the HR department to maximize budget efficiency.
4. Ethics and Employee Rights: Surveillance of employees using technology to ensure
productivity raises questions about ethics and the rights of the employees.
5. Motivating Knowledge Workers: Knowledge workers appear to be more vulnerable to
distractions,so monitoring technology is used to ensure productivity and efficiency.
6. Paying Employees Market Value: Due to the increased demand of technical and
professional employees, companies offer various attractive incentives and benefits.
7. Communications: Technology has allowed for employees regardless of their position or
location to communicate with anyone anytime using various types of social media.
8. Decentralized Work Sites: Decentralized work sites require HR managers to prioritize
outcomes over work hours and reconsider compensation policies for remote workers.
9. Skill Levels: As technology gets more advanced, skill requirements for jobs also
increase. So companies will need to provide adequate training to ensure competitiveness.
10. A Legal Concern: Organizations must properly communicate their policies about the
appropriate uses of technology in the workplace and let employees be aware of the fact
that they are being monitored and that they will face potential discipline for any breaches.

Workforce Diversity -

Workforce diversity is the varied personal characteristics that make the workforce
heterogeneous.The workforce is evolving with growing diversity, increased female employees,
an aging baby boomer generation continuing to work, presents a challenge for managers.
Employers adopt practices to hire, promote, and retain minorities, encouraging vendor diversity
and providing training to employees to recognize and address diverse values and needs.
Recognizing and respecting individual differences is crucial in managing a diverse workforce.

Work-Life Balance: While recruitment is just the start; retaining employees is vital, especially
for those seeking flexibility due to global operations. Communication tech enables remote work,
and with longer hours, flexibility is key for balancing professional and personal lives.
Dual-career couples emphasize the need for work-life balance in today's workplaces.

Other HRM challenges:

● Recession: Due to a contraction in economic activities, organizations lay off employees

which causes employees to face morale suffering,survivor guilt and increased workload.
● Offshoring: The process of moving jobs out of one country and into another country.
Many employers see offshoring as a necessity in order to compete in the global economy.
● Mergers: Joining ownership of two organizations. Mergers are a common way to enter
new or global markets. HR professionals can help by addressing employee concerns.
(Chapter 2) - Why is HRM Important to an Organization?

Human Resource Management is vital to an organization as it ensures effective utilization of

human capital, aligning individual goals with organizational objectives. It plays a critical role in
talent acquisition, retention, and development, fostering a skilled and motivated workforce.
Ultimately, a well-managed HR function enhances productivity, fosters a positive work culture,
and contributes to the overall success and growth of the organization.

The Strategic Nature of Human Resource Management:

When discussing the strategic nature of HRM, it can be primarily put into 3 categories:
1) Transactional work - on individuals, involves payrolls, and administering employee benefits.
2) Tactical work - benefits employee work groups, resolves performance issues or conflicts.
3) Strategic work - benefits the entire organization by aligning services to long term goals.

How Strategic HR aligns with Organizational Strategy -

Different strategies look after different aspects of an organization, here’s a brief overview of 4
primary ones:

1) Cost Differentiation: Provide value and low cost by designing programs for cost
efficiency, structuring jobs to allow knowledge sharing and selecting versatile employees.
2) Product Differentiation: Deliver differentiating features by designing compensation
systems to reward creativity, educating employees about the feature and marketing it.
3) Customer Intimacy: Focusing on personalized service to enhance relationships by
employing and rewarding people with strong customer service and relation skills.
4) Customer/Market Focus: Giving importance to target market needs and standards by
using market research and emphasizing adaptability.

Human Resource Management: Primary Activities

Staffing: Includes hiring people who will carry out the responsibilities in various roles and also
includes strategic HR planning which determines the labor demand of the organization.Then
comes recruiting, whose goal is to give enough information about the job to attract applicants.
And lastly the selection phase picks out the candidates who have the desired skill sets and are a
good fit culturally for the organization.
Training and Development Function: Assists employees in becoming fully productive and
helps them grasp their new surroundings through various training and development programs.
HRM works on four areas of training development - employee training, employee development,
career development, and organization development.
Motivation: Functions that encourage employees to engage in high levels of energy, like
performance appraisals, rewards and compensations, and employee benefits. Some other
motivating factors for employees in an organization can be proper job design, implementation of
the latest technology and mutual levels of respect between employees and the managers.
Maintenance: Activities that are focused on preserving employee’s commitment and loyalty
towards the company, like ensuring a safe and healthy workplace and maintaining a good
communications program that ensures employees can voice out any grievances or suggestions.

External factors that affect HRM:

● Labor unions: Determine employment conditions, controlling employee relations,

imposing particular practices, and affecting numerous aspects of workforce management.
● Management practices: It shapes leadership, communication, decision-making, and
organizational culture, which establish the backdrop for HRM activities.
● Government Legislation: Influences HRM process by setting legal requirements and
standards in areas like employment, labor relations, safety, equal opportunity and privacy.
● Globalization: Introduces a diverse, globally distributed workforce that develops new
strategies and competencies to manage talent, compliance, and cultural dynamics.

Structure of the HR Department:

Here’s a small outlook at the main 4 parts that make up the structure of a HR department -

● Employment: Promote staffing activities by advertising the job to attract those with
appropriate knowledge, skills and properly coordinating efforts with line management.
● Training And Development: Helping employees maximize their potential, and helping
new recruits enhance their skills that allows them to cope with the dynamic environment.
● Compensation and Benefits: Compensating employees and administering their benefits,
balancing the employees' needs and benefits all while keeping cost-effectiveness in mind.
● Employee Relations: Concerned with effective communication with organizational
members, ensures policies and disciplinary actions are being enforced properly.
○ Top Management Commitment: CEO and top management must fully back all
communications programs, this will motivate employees to do the same.
○ Effective Upward Communication: Ensuring top management is aware of the
general outlook of employees toward the company and all other vital information.
○ Determining What to Communicate: Not all information is necessary, only
information concerning the job at hand should be communicated.
○ Allowing for Feedback: HR managers must take the feedback of employees to
ensure that communication programs are effective.
○ Information Sources: We must train employees’ immediate supervisors to
communicate properly so that they can effectively answer all front line questions.