Topic 1

The Nature of Human

Resource Management
Objectives
1. Describe contemporary human resource
management perspectives.
2. Trace the evolution of the human resource
function in organizations.
3. Identify and discuss the fundamental goals of
human resource management.
4. Describe the job of human resource managers
from the perspective of professionalism and
careers.
What are Human Resources?

The people an organization

employs to carry out various
jobs, tasks, and functions in
exchange for wages, salaries,
and other rewards.
What is Human Resource Management?

The comprehensive set of

managerial activities and tasks
concerned with developing and
maintaining a qualified workforce
—human resources—in ways
that contribute to organizational
effectiveness.
What are Some Contemporary
HRM Perspectives?

 Recognizing the importance of people as a

source of competitive advantage
 Hiring, rewarding, and managing people
effectively within the limits of the law
 Balancing legal and ethical concerns with the
needs of the organization
How has HRM Evolved?

Evolution of the Human Resource Function

Scientific Management The Human Relations Era

Was concerned with how to Emphasized keeping workers
structure jobs to maximize happy, since “happy workers
efficiency and productivity. were productive workers.”

HR Specialists Personnel Management

The 1964 Civil Rights Act and Organizations grew and
other legal regulations made created personnel
hiring and promoting departments to work with
employees more complex employees.
What are the Goals of HRM?
What are the Goals of HRM?

Facilitating Organizational Competiveness

• Firms gain competitive advantage by effectively
managing their human resources.
• Competitive advantage is a status achieved by a
company when gaining a superior marketplace
position relative to its competition.
• This is accomplished through cost leadership or
product differentiation.
What are the Goals of HRM?

Enhancing Productivity and Quality

Studies have indicated:
• A strong link between HRM effectiveness and
productivity.
• The impact of a broad range of HRM practices on
shareholder return; 15–30 percent of the total
value of a company could be attributed to the
quality of its HRM practices.
What are the Goals of HRM?

Enhancing Productivity and Quality

Jeffrey Pfeiffer identified these 16 HRM practices as
contributing to productivity and quality:
What are the Goals of HRM?

Complying with Legal and Social Obligations

• Impact of anti-discrimination laws
• The impact of government intervention
• Impact of social obligations
What are the Goals of HRM?

Promoting Individual Growth and Development

 Education
 Skills training
 Career development
Who is Responsible for Developing and
Implementing HRM Practices?

• Human resource professionals (staff):

– Establish HRM procedures and methods.
– Monitor and evaluate HR practices.
– Advise and assist managers on HRM-related matters.
• Line managers:
– Direct employees’ day-to-day tasks.
– Implement HRM practices.
– Provide HR professionals with needed inputs for
developing effective practices.
How is HRM Handled in Smaller Companies?

 Small organizations use operating managers to

handle basic HR functions.
 Small independent businesses generally operate
in the same way as small organizations.
 Very small organizations are exempt from many
legal regulations.
How is HRM Handled in Larger Companies?

• As an organization grows, a separate HR unit

becomes a necessity.
– At 200 to 250 employees, it establishes
a self-contained HR department.
– As growth continues, the HR department
develops into specialized department.
How is HRM Handled in Larger Companies?

An Example of HRM Function in a Company