Fundamentals

of
Human Resource
Management
(HRM)
 Personnel Management
&
Human Resource Management

The terms ‘Human Resource Management’

(HRM) and ‘Human Resources’ (HR) have
largely replaced the term ‘Personnel
Management’ as a description of the processes
involved in managing people in organizations.
 Introduction to HRM

The term HR has taken over the term personnel management which took over
that of labor management in the 1940s which took over that of welfare in the
1920s. HRM largely replaced the human relations approach to managing people
founded by Elton Mayo (1933) who based his beliefs on the ‘ Hawthorne
studies.’ His approach was that productivity was directly tied to job satisfaction
and that employees’ output would be high if they were recognized by someone
they respected.
 Introduction to HRM

Welfare management – late 19 and early 20th century. Larger employers began
to appoint welfare officers to manage a series of initiatives designed to make
life less harsh for their employees. These initiatives were –unemployment
benefits, sick leave pay, subsided housing etc.
Personnel management – moving away from the sole focus of employees’
welfare towards meeting other various organization’s objectives such as
staffing, training, organizational structures etc.
 Introduction to HRM
Industrial relations – personnel managers began adding expertise in
bargaining to their skill sets. Following the second World War within the period
of full employment labor was scarce thus leading to the growth in trade unions
membership.
Human resource management – personnel managers moving away from
dealing specifically with employees on behalf of management towards
management itself and the integration of management activities such as
promotion, career paths, employees’ personal growth etc.
 Human resource management (HRM) is a
complete and rational approach to the
employment and development of people.
Introduction to
Human Resource HRM can be viewed as a philosophy
Management about how people should be managed,
which is supported by several theories
relating to the behavior of people and
organizations.
 It seeks to contribute to the improvement of
organizational effectiveness through people.
It is also in some instances although it
should be in all instances seeking to ensure
that all persons are treated in accordance
Introduction to with a set of moral values.
Human Resource HRM involves the application of policies and
Management practices in the areas of organizational
design & development, employee
resourcing, learning and development,
performance and reward and the provision
of services that enhance the well-being of
employees.
 • Job analyses (determining the nature of
each employee s job)
• Planning labor needs and recruiting job
Components of candidates
Human Resource • Selecting job candidates
Management • Orienting and training new employees
• Managing wages and salaries (compensating
employees)
• Providing incentives and benefits
• Appraising performance
 • Communicating (interviewing, counseling,
disciplining)
Components of • Training and developing managers
Human Resource • Building employee commitment
Management • Equal opportunity and affirmative action
• Employee health and safety
• Handling grievances and labor relations
Introduction to HRM

What is the
importance/relevance of
HRM?
 No manager wants to:
• Hire the wrong person for the job
Why is HRM • Experience high turnover
Important to • Have your people not doing their best
Managers • Waste time with useless interviews
• Have your company taken to court because of
your discriminatory actions
 • Have their company cited for occupational
safety laws for unsafe practices
Why is HRM • Have some employees think their salaries are
unfair relative to others in the
Important to
organization
Managers
• Allow a lack of training to undermine your
departments effectiveness
• Commit any unfair labor practices
 Improve Profits And Performance
• effective human resource management can help
ensure that you get results through people.
Why is HRM • Remember that you can do everything else right
Important to as a manager lay brilliant plans, draw clear
organization charts, set up world-class assembly
Managers lines, and use sophisticated accounting controls
but still fail, by hiring the wrong people or by not
motivating subordinates.
Line and Staff Aspects of Human Resource Management

Authority is the right to make decisions, to direct the work of

others, and to give orders. Managers usually distinguish
between line authority and staff authority.
In organizations, having what managers call line authority
traditionally gives managers the right to issue orders to other
managers or employees.
 Why is HRM
important to
organizational
success ?
Line and Staff Aspects of Human Resource Management

Line authority therefore creates a superior (order giver)

subordinate (order receiver) relationship.
When the vice president of sales tells her sales director to get
the sales presentation ready by Tuesday, she is exercising her
line authority.
Staff authority gives a manager the right to advise other
managers or employees. It creates an advisory relationship.
When the human resource manager suggests that the plant
manager use a particular selection test, he or she is exercising
staff authority.
Line and Staff Aspects of Human Resource Management

On the organization chart, managers with line authority are line

managers. Those with staff (advisory) authority are staff
managers.
People tend to associate line managers with managing
departments (like sales or production) that are crucial for the
company s survival. Staff managers generally run departments
that are advisory or supportive, like purchasing, and human
resource management.
Human resource managers are usually staff managers. They
assist and advise line managers in areas like recruiting, hiring,
and compensation
 Human Resource Manager Duties

A line function. The human resource manager directs the

activities of the people in his or her own department.

A coordinative function. The human resource manager also

coordinates personnel activities, a duty often referred to as
functional authority (or functional control). Here he or she
ensures that line managers are implementing the firm’s human
resource policies and practices (for example, adhering to its
sexual harassment policies).
 Human Resource Manager Duties

Staff (assist and advise) functions.

Assisting and advising line managers is the heart of the human
resource manager s job. He or she advises the CEO so the CEO
can better understand the personnel aspects of the company’s
strategic options. HR assists in hiring, training, evaluating,
rewarding, counseling, promoting, and firing employees.
 Human Resource Manager Duties

Examples of human resource management specialties include:

• Recruiters. Search for qualified job applicants.
• Equal employment opportunity (EEO) coordinators. Investigate
and resolve. Examine organizational practices for potential
violations
• Job analysts. Collect and examine information about jobs to
prepare job descriptions.
• Compensation managers. Develop compensation plans and
handle the employee benefits program.
 Human Resource Manager Duties

• Training specialists. Plan, organize, and direct training

activities.
• Labor relations specialists. Advise management on all aspects
of union management relations.
 Introduction to HRM
Human resource management operates through human resource
systems that bring together in a logical way the following:

HR philosophies
these describes the overarching values and guiding principles
in managing people.

HR strategies
these define the direction in which HRM intends to go

HR policies
these are the guidelines that define how the values, principles
and strategies should be applied and implemented in specific
areas of HRM.
 Introduction to HRM (cont’d)
HR processes
consisting of the formal procedures and methods used to put HR strategic
plans and policies into effect.

HR practices
comprising the informal approaches used in managing people.

HR programmes
which enable HR strategies, policies and practices to be implemented
according to plan.
 HRM Philosophy

Human Resource Philosophy

This is a statement of how the organization regards its human resources,

what role the resources play in its overall success of the business and
how they are treated and managed.

A company’s HR philosophy can be in its statement of its business

values.

Instead of using HR philosophy or HR values to describe how human

resources are considered, some organizations use the term ‘culture.’
Objectives of HRM
References

McDaniel, C. & Gitman, L.J. (2008). The future of business (6th ed.). Thomas
South-Western, USA.
Amstrong, M. (2006).A handbook on human resource management practice
(10th ed.). London ,Kogan Page Limited