Lecture 1

Human Resource Management

MGT 351 - UHM

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Learning Objectives

 Be able to explain the management process.

 Understand what Human Resource Management (HRM) stands for.
 Recognize the growing importance of HRM at all levels.
 Identify the difference between line and staff authority.
 Trends shaping the New HRM.
 Briefly familiarize with STRATEGIC HRM.

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The Management Process

Planning

Controlling Organizing

Leading Staffing
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What is HRM?

 Human resource management (HRM) is defined as a system of

activities and strategies that focus on successfully managing
employees at all levels of the organization to achieve organizational
goals (Byars and Rue, 2006).

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The HRM Process

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 Importance of HRM

 GETTING RESULTS!
 Helps attract and retain competent employees
 Assists employees and managers in adapting to organizational change and fosters an embracing and
engaging culture.
 Facilitates the use of technology.
 Train and develop employees for changing organizational and market demands.
 Effective means of compensation and motivation of employees.
 Maintaining employee relations.
 Optimum utilization of human capital.
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Differentiating LINE and STAFF Aspects

 Authority: Right to make decisions, give orders and direct the work of others.
 Line Authority: Right to issue orders to other managers or employees;
Authoritative relationship; Line Managers.
 Staff Authority: Right to advise other managers or employees; Advisory
relationship; Staff Manager.

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Trends shaping the NEW HRM

 Globalization
 Workforce Demography and Diversity
 Economic changes
 Contribution of technology
 Increasing emphasis in Human Capital Development and High Performance
Work System (HPWS).

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Strategic HRM

 Strategic human resource management (SHRM) involves a future-oriented

process of developing and implementing HR programs that address and solve
business problems and directly contribute to major long-term organizational goals.
 SHRM goes beyond traditional HR to proactively drive ROI and long-term
organizational success.
 The primary principle of strategic human resource management is to improve
business performance and uphold a culture that inspires innovation and works
unremittingly to gain a competitive advantage. 

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