Semester: Spring 2022

Chapter 1: Introduction and Strategic Role of Human

Resource Management
Concept of organization, manager and HRM
The management process
Functions and importance of HRM
Line and Staff Aspects of HRM
HR Manager’s functions
Types of human resource management specialties
The contemporary trends shaping HRM
The new human resource managers
 consists of people with formally assigned roles who
 Organization:
work together continuously to achieve predefined goals
Have several departments and structure to accomplish objectives

 Managers:people responsible for accomplishing the organization’s

goals by managing the people and resources of the organization

 HRM: The process of acquiring, training, appraising, and

compensating employees, and of attending to their labor relations,
health and safety, and fairness concerns
https://www.youtube.com/watch?v=8ciAnHfIiFA
 Personnel Mistakes
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your firm in court because of discriminatory actions
Have some employees think their salaries are unfair and inequitable
relative to others in the organization
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labor practices
 Avoid personnel mistakes: Having proper knowledge will help to hire
right person for the job and avoid legal costs and save expensive resources
 Improve profits and performance: hiring right people for the right jobs
and motivating, appraising, and developing them will ensure they perform
best and bring profits
 You too may spend some time as an HR manager!: having prior knowledge
of HRM will enable you as a manager to take a more strategic approach
towards achieving objectives
 HR for entrepreneurs: managing HR is a crucial element in managing the
overall business
 Line and Staff
 Authority is the right to make decisions, to direct the work and to
give orders to others
Managers usually distinguish between line authority and staff
authority
 Line authority traditionally gives managers the right to issue orders
to other managers or employees whereas Staff authority gives a
manager the right to advise other managers or employees
Managers with line authority are line managers. Those with staff
(advisory) authority are staff managers
Staff managers generally run departments that are advisory or
supportive, like purchasing and human resource management.
Human resource managers are therefore usually staff managers
 A Line Manager’s HR Duties

1. Placing the right person in the right job

2. orienting new employees in the organization
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining cooperation and developing smooth working relationships
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
Human Resource Manager’s Duties
There are three distinct authority and functions of a HR manager:
 A line function: directing the activities of the people in his/her own
department
 A coordinative function: coordinating personnel activities, a duty also
known as functional authority through which he or she ensures that
line managers are implementing the firm’s human resource policies
and practices
 Staff (assist and advise) functions: Assisting and advising line managers,
assist in hiring, training, evaluating, rewarding, counseling, promoting,
and firing employees. Administers the various benefit that helps other
line managers to comply with different occupational laws
 Types of human resource management specialties:

 Recruiters: Search and create profiles for qualified job applicants.

 Equal employment opportunity (EEO) coordinators: Investigate and resolve
EEO grievances; examine organizational practices for potential violations and
work on EEO reports
 Job analysts: Collect and examine information about jobs to prepare job
descriptions and job specifications
 Compensation managers: Develop compensation plans and handle the
employee benefits and rewards program
 Training specialists: Plan, organize, and arrange training activities based on
employee needs
 Labor relations specialists: manage and coordinate all aspects of union
management relations
 Trends Shaping Human Resource Management

Globalization
and Competition Trends

Workforce and Demographic

Trends Technological Advancement
Trends affecting HR
Management

Economic Trends

Copyright © 2011 Pearson Education

 Globalization:the process by which businesses or other
organizations develop international influence or start
operating on an international scale
 Competition: globalization brings more competition, and
more pressure to improve quality
For consumers it means lower prices and higher quality
products but workers have to work hard and jobs are less
secured
 Technological advancement: new technologies are increasingly
been used for many human resource management applications,
such as Facebook & Linkedin recruitment, online screening tests,
online payroll system, human resource information system
 Online training platforms are used to provide training to
employees
 Mobile applications are being used to track employee locations
and employee health
 Economic factors affecting HRM: Unemployment rate, Inflation,
Tax rate, Aggregate demand/supply
 Trends Affecting Demographic Trends
Human Resources

Copyright © 2011 Pearson Education

 So, the new human resource managers should……..

focus more on strategic, big picture issues

manage ethics
manage employee engagement
use evidence-based human resource management to
measure HR performance and results
add value
have new competencies
 Strategic HRM helps the company to achieve it’s overall
long-term objectives (it’s vision and mission)
 Today’s human resource managers are more involved in
longer term, strategic big picture issues, so human resource
management has now become more strategic
 formulating and executing human resource policies and
practices that produce the employee competencies and
behaviors the company needs to achieve its strategic aims
 Ethics
◦ Standards that someone uses to
decide what his or her conduct
should be
 HRM-related Ethical Issues
◦ Workplace safety
◦ Maintaining employee laws and
regulations
◦ Employee privacy rights

Copyright © 2011 Pearson Education

 Engaged employees have a sense of energetic and effective connection
with their work, and instead of being stressed they look upon their
work as challenging
 engaged employees are generally more motivated and more likely to
deliver improved business performance.
  more engaged the employees are, the higher are profit, revenue
growth, customer satisfaction, productivity, innovation, staff retention,
efficiency and health and safety performance
 Engaged employees boost up profitability and performance of the
company
Human resource managers nowadays need performance
measures (or metrics) to measure skill and talent
Human Resource (HR) metrics are measurements used to
determine the value and effectiveness of HR initiatives
Improving performance through HRIS such as Applicant
tracking systems (ATS), Payroll management tools
 Managers focus on performance, measurement, and
evidence
 It has become necessary that HR managers must add value,
particularly by boosting profitability and performance in
measurable ways
 High-performance work system: a set of human resource
management practices that together produce superior
employee performance
 The human resource manager’s
 Leadership and Navigation The ability to direct and contribute to initiatives and
processes within the same organization
 Ethical Practice The ability to integrate core values, integrity and accountability
throughout all organizational and business practices
 Business Acumen The ability to understand and apply information with which to
contribute to the Organization’s strategic plan
 Relationship Management The ability to manage interactions to provide service
and to support the organization
 Consultation The ability to provide guidance to organizational stakeholders
 Critical Evaluation The ability to interpret information with which to make
business decisions and recommendations.
 Global and Cultural Effectiveness The ability to value and consider the
perspectives and backgrounds of all parties

 Functional areas of HR
According to SHRM, HR managers must have command of the basic knowledge in
the following functional areas of HR:

 Functional Area #1: Talent Acquisition & Retention

 Functional Area #2: Employee Engagement
 Functional Area #3: Learning & Development
 Functional Area #4: Total Rewards
 Functional Area #5: Structure of the HR Function
 Functional Area #6: Organizational Effectiveness & Development
 Functional Area #7: Workforce Management
 Functional Area #8: Employee Relations
 Functional Area #9: Technology & Data
 Functional Area #10: HR in the Global Context
 Functional Area #11: Diversity & Inclusion
 Functional Area #12: Risk Management
 Functional Area #13: Corporate Social Responsibility
 Functional Area #14: Employment Law & Regulations
 Functional Area #15: Business & HR Strategy
 An organization consists of people who work together to achieve particular goals and it has several
departments and structures; a Manager manages the people and resources to achieve the objectives of
the organization
 Human resource management is the process of managing and looking after all the core activities
related to human assets so that organization’s goals can be accomplished
 There are five core managerial activities and seven main functions of human resource management
 Human Resource Management is important to avoid personnel mistakes, improving profits and
performance, to take a more strategic approach towards achieving objectives and managing HR is a
crucial element in managing the overall business
 HR managers are usually staff managers with line function, coordinative function and staff function
 There are six different types of HR specialties
 Trends such as globalization, competition, economic factors, technological advancement, workforce
and demographic changes are affecting human resource management
 The new HR managers are more strategic, manage ethics, measure performance, and focus on evidence
and measurements to take actions
 The new HR managers have a set of competencies which enable them to manage resources effectively
Further reading
Chapter 1 & 3, Dessler, G. (2017), Human
Resource Management. Pearsons.
Employee engagement and motivation; CIPD
factsheet [given in canvas]
Hults, B. (2011), Why HR Really Does Add
Value, Harvard Business Review. [retrieved
from
https://hbr.org/2011/12/why-hr-really-does-ad
d-value
]
Strategic HRM:
https://peoplemanagingpeople.com/topics/strat
egic-human-resource-management/