Chapter 1

Human Resource
Management: An
Overview

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 Human Resource Management (HRM)

 It is the process of managing people in the

organizations in a structured manner to
achieve organizational objectives.

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Human Resource Management Functions

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 Staffing
Process of ensuring the organization always
has the required number of employees with
the right skills at the right time
To conduct proper staffing, you must start
with:
 Job analysis, and Job Description.
 Human Resource Planning
 Recruitment, and Selection
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 Job Analysis

 Systematic process of determining skills,

duties, and knowledge required for
performing jobs in an organization.
 Proper Job Analysis should result in a Job
Description.

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 Human Resource Planning
(Manpower Planning)
 Matching internal and external supply of
people with anticipated job openings over
a specified period of time
 Sets the stage for recruitment and other
HR actions

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 Human Resource Planning
(Manpower Planning – Example)

Budgeted
            Total Q1 Q2 Q3 Q4
Salary
Division Department Position Grade Male Female Staff Count Payroll Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Branch Banking Division New Branches Branch Manager 11 3 2 5 1,200 2     2         1      

Branch Banking Division New Branches Operations Manager 9 3 0 3 900       1 1       1      

Branch Banking Division New Branches Operations Officer 7 3 3 6 800 2     2         2      

Branch Banking Division New Branches Head Teller 6 3 2 5 600 2     2         1      

 Recruitment and Selection
Recruitment: the process of attracting
individuals to apply for jobs.
Selection: The process of choosing
individual who is best suited for a particular
job and the organization.

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 Performance management
It is a Goal Oriented Process that includes:
KPI’s Development (must be SMART)
Appraisals and evaluation (Informal and
Formal)
Rewards (Tangible and Intangible)
 Performance management
(Cont.)
 Performance Management – The
process of ensuring employees’ activities
and outputs match the organization’s
goals.
 Performance appraisal – Formal system
of review and evaluation of individual or
team task performance.
 Human Resource Development
 Major HRM functions include:
 Training
 Development
 Career planning
 Career development
 Organization development

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 Training and Development
 Training: Providing learners with
knowledge and skills needed for their
present jobs
 Relatively short-term focus

 Development: Offering learning that goes

beyond present job
 Relatively long-term focus

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 Career Planning and Development

 Career planning: Ongoing process

Individual sets career goals
Identifies means to achieve them
 Career development: Formal approach
used by the organization
Ensures a pipeline of people with proper
qualifications and experiences

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 Organization Development

Planned and systematic attempt to:

Make the organization more
effective
Create a positive behavioral
environment

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 Compensation
All rewards that individuals receive as a
result of their employment
 Financial compensation
 Nonfinancial compensation

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 Financial Compensation
 Direct (Core Compensation): Pay
employee receives in form of wages,
salaries, bonuses, or commissions
 Indirect (Employee Benefits): Benefits
employee receives such as paid
vacations, sick leave, holidays, medical
insurance

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 Nonfinancial Compensation
Satisfaction that employees receive from:
Job itself
Psychological and/or physical environment

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 Employee and labor relations
 Businesses are required by law to recognize
Unions.
 Example by Industry:
 Oli and Gas: KOC union, KNPC Union…etc.
 Banking: KBA
 Or by Profession:
 Lawyers
 Engineers
 Doctors
 Internal Employee Relations
Internal Labor Relations: Movement of
employees within the organization
Examples:
Promotions
Demotions
Terminations
Resignations

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