Human Resource

Management:
An Asian Perspective
(Second Edition)

Chapter 1

Introduction to
Human Resource
Management

Gary Dessler and Chwee Huat Tan

2009 Pearson Education South Asia Pte Ltd.
All rights reserved.
 The Managers Human Resource
Management Jobs

Management process
The five basic functions of planning,
organizing, staffing, leading, and
controlling.

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 The Managers Human Resource
Management Jobs

Human resource management (HRM)

The policies and practices involved in
carrying out the people or human resource
aspects of a management position, including
recruiting, training, appraising and
rewarding.

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 HR Aspects Of A Managers Job

Conducting job analyses (determining the

nature of each employees job)
Planning manpower needs and recruiting job
candidates
Selecting job candidates
Orienting and training new employees

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 HR Aspects Of A Managers Job

Managing wages and salaries

(compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling,
disciplining)
Building employee commitment

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 HR Aspects Of A Managers Job

Understanding employment laws

Knowing employee health and safety issues
Handle grievances and employment relations

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 Personnel Mistakes

Hire the wrong person for the job

Experience high turnover
Your people not doing their best
Waste time with useless interviews
Have your company sued for discriminatory
actions

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 Personnel Mistakes

Have your company fined for unsafe

practices
Some employees think their salaries are
unfair and inequitable relative to others in the
organization
Allow a lack of training to undermine your
departments effectiveness
Commit any unfair employment practices

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 Basic HR Concepts

Getting results
The bottom line of managing

HR creates value by engaging in

activities that produce the employee
behaviors the company needs to
achieve its strategic goals.

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 Line and Staff Aspects of HRM

Authority
The right to make decisions, direct others
work, and give orders.
Staff authority (Advisory)
The authority gives right to the HR manager
to advise other managers or employees.
Line authority (Superior-Subordinate)
The authority of managers to direct people in
his or her own department.

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 Line and Staff Aspects of HRM

Line manager (Line Authority)

A manager who is authorized to direct the
work of subordinates and is responsible for
accomplishing the organizations tasks.
Staff manager (Staff Authority)
A manager who assists and advises line
managers.

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 Line Managers HRM
Responsibilities
1. Place the right person on the right job
2. Orientate new employees
3. Train employees for jobs new to them
4. Improve the job performance of each person
5. Gain creative cooperation and developing
smooth working relationships

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 Line Managers HRM
Responsibilities
6. Interpret the companys policies and
procedures
7. Control costs
8. Develop the abilities of each person
9. Maintain morale
10. Protect employees health and physical
condition

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 Functions of the HR Manager

Carries out 3 distinct functions:-

1. Line function
2. Coordination function
3. Staff function

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 Functions of the HR Manager

A line function
The HR manager directs the activities of
the people in his or her own department
and in related service areas (like the plant
cafeteria).

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 Functions of the HR Manager

A coordinative function
HR managers also coordinate personnel
activities, a duty often referred to as
functional control.

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 Functions of the HR Manager

Staff (assist and advise) functions

Assisting and advising line managers is the
heart of the HR managers job.

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 Size of HR Department

Depends on company size

Small Company:
Only a few personnel
Large Company:
Full range of HR specialist for each different
function

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 Size of HR Department

Example of HR department in a small

company:

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 Size of HR Department

Example of HR department in a large company:

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 Duties of HR Specialists

Training Specialist
Plan, organize and direct training
Advise managers on training
Job Analyst
Collect information about jobs
Prepare job description

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 Duties of HR Specialists

Recruiter
Collect information about jobs
Interview and recommend suitable
candidates
EEO (Equal Employment Opportunity)
Coordinator
Investigate EEO grievances
Examine HR practices for potential
violations

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 Duties of HR Specialists

Compensation Manager
Develop compensation plans
Handle employee benefits program
Employment relations specialist
Advise managers on ER issues
Negotiate with unions

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 Cooperative Line and Staff HR
Management
Differentiating HR duties to be carried out
by line managers and HR managers:
No standard rule for all organizations

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 The Changing Environment Of
HR Management
HR managers must be able to respond to
changes that are happening every day
Major changes or trends as follows:
Globalization
Technological advances
Changes in nature of work
Changes in workforce demographics

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 The Changing Environment Of
HR Management
Globalization
Tendency of companies to extend sales,
ownership, or production to other
countries
More competition more pressure to be
world class Lower costs and to
increase productivity of employees
E.g. Toyota produces cars in China,
Thailand and many other countries.

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 The Changing Environment Of
HR Management
Technological Advances
Use of internet and information
communication technology (ICT) to
increase competitiveness in business
Enabled businesses to outsource their
non-core activities to other countries
where costs are lower
Causes changes in nature of work

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 The Changing Environment Of
HR Management
Changes in nature of work
Caused by technological advances as well
From manufacturing jobs to service jobs
Usage of non-traditional workers staff
holding multiple jobs, or part-time staff

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 The Changing Environment Of
HR Management
Changes in workforce demographics
Diversified workforce staff employed
are of different race, religion, nationality,
gender, age and culture
Challenge for HR managers
E.g. Workers from Bangladesh, China,
India, Indonesia, Pakistan and Thailand in
Singapores construction sector

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 The Changing Role Of
HR Management
Changes in environment HR managers to
take on new responsibilities
HR functions more strategic

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 The Changing Role Of
HR Management
Strategic Planning
The companys long-term plan for how it
will balance its internal strengths and
weaknesses with its external opportunities
and threats to maintain a competitive
advantage.
3 questions in strategic planning
Current business position
Future business position expected to be
How to get to expected future business
position

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 The Changing Role Of
HR Management
Strategic HRM
Formulating HR policies and introducing
practices that produce staff competencies
and behaviors that the company needs to
achieve its strategic goals.

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 The Changing Role Of
HR Management
Strategic HRM
HR managers today are more involved in
partnering with their top managers in
both designing and implementing their
companies strategies
Top management wants to see, precisely,
how the HR managers plans will make
the company more valuable.

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 The Changing Role Of
HR Management
Outsourcing HR Activities
Computer-based systems easy to
outsource HR activities by providing
access to service providers to the
companys HR information database
E.g. Payroll, Benefits, Wellness Programs
and Employee Training

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 The Changing Role Of
HR Management
High Performance Work Systems (HPWS)
Integrated set of HRM policies and
practices that together produce superior
staff performance
Need to focus on performance
No fixed rule of items that comprises
HPWS but should include:
Employment security

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 The Changing Role Of
HR Management
High Performance Work Systems (HPWS)
No fixed rule of items that comprises
HPWS but should include (cont):
Selective hiring
Extensive training
Self managed teams and decentralized decision
making

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 The Changing Role Of
HR Management
High Performance Work Systems (HPWS)
No fixed rule of items that comprises
HPWS but should include (cont):
Reduced status distinctions among managers and
workers
Information sharing among managers
Pay-for-performance rewards
Emphasis on high quality work

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 The Changing Role Of
HR Management
High Performance Work Systems (HPWS)
Benefits of HPWS
Generate more job applicants
Screen candidates more effectively
Provide more and better training
Link pay more explicitly to performance
Provide a safer work environment

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 The Changing Role Of
HR Management
High Performance Work Systems (HPWS)
Benefits of HPWS (cont)
Produce more qualified applicants per position
More employees are hired based on validated
selection tests
Provide more hours of training for new employees
Higher percentages of employees receiving regular
performance appraisals.

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
Employees expect HR teams to provide
measurable proof of the effectiveness of
their programs
Require quantitative measures
Metrics and HR Scorecard are used

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
Metrics
A set of quantitative performance measures that
HR managers use to assess their operations
E.g. of HR Metrics
Absence Rate
[(Number of days absent in month) (Average
number of employees during mo.) (number of
workdays)] 100

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
Metrics
E.g. of HR Metrics (cont)
Cost per Hire
(Advertising + Agency Fees + Employee Referrals
+ Travel cost of applicants and staff + Relocation
costs + Recruiter pay and benefits) Number of
Hires

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
Metrics
E.g. of HR Metrics (cont)
Health Care Costs per Employee
Total cost of health care Total Employees

HR Expense Factor
HR expense Total operating expense

Sources: Robert Grossman, Measuring Up, HR Magazine, January 2000, pp. 2935; Peter V. Le Blanc, Paul Mulvey, and Jude T.
Rich, Improving the Return on Human Capital: New Metrics, Compensation and Benefits Review, January/February 2000, pp. 13
20;Thomas E. Murphy and Sourushe Zandvakili, Data and Metrics-Driven Approach to Human Resource Practices: Using Customers,
Employees, and Financial Metrics, Human Resource Management 39, no. 1 (Spring 2000), pp. 93105; [HR Planning, Commerce
Clearing House Incorporated, July 17, 1996;] SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
HR Scorecard
Measures the HR functions effectiveness and
efficiency in producing employee behaviors
needed to achieve the companys strategic goals
Concise and simple measurement system

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 The Changing Role Of
HR Management
Measuring HRM Teams Performance
HR Scorecard
Use to measure:
HR activities (testing, training, compensation and
safety)
Employee behaviors resulting from such
activities
Organizational outcomes of those employee
behaviors (higher performance, and company
profit)

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 The New HR Manager

New Proficiencies
HR proficiency
Business proficiency
Leadership proficiency
Learning proficiency

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 The New HR Manager

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 Strategy and the Basic HR
Process

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