HR MANAGEMENT

Dr. Nora Mashhour

Course grading & admin issues

Attendance 5%
Class Participation 10%
Midterm Exam 35%
Final Exam 50%
Divide yourselves into Groups: A, B, . . .
You will stay in these groups till the end of the course
Rules for the Teams for the Project
• You will be divided into groups (from Group A, B, ….).
• The group will be graded as ONE entity and not per person.
• People that will not participate will not be Graded.
• Each group will have set minutes to present their case ( around 15
Min)
Each Chapter will have one Reference or
more
It is advisable to read them. They are quite informational.
Introduction to Human Recourse
Management
LEARNING OUTCOMES
• Explain what is management.
• Understand the management process.
• Understand What is Human Resources Management.
• Illustrate Evolution of HR
• Illustrate HRM primary activities
• Understand The Strategic Nature of HRM
• Briefly discuss and illustrate the important trends influencing human resource management
What is Management?
Management is a process that brings scarce human and
material resources together and motivates people to achieve
common organizational goals. It is not a one-time act but an
ongoing progression of complementary activities.

we can say that good management includes both being

effective and efficient.

Being effective means doing the appropriate task .Being

efficient means doing the task correctly, at least possible cost
with minimum wastage of resources.
Management Essentials
Managing involves performing five basic functions: planning, organizing, staffing,
leading, and controlling. In total, these functions represent the management
process:-
• Planning. Establishing goals and standards; developing rules and procedures;
developing plans and forecasts Planning
• Organizing. Giving each subordinate a specific task; establishing departments;
delegating authority to subordinates; establishing channels of authority and
communication; coordinating the work of subordinates
Controlling Organizing
• Staffing. Determining what type of people should be hired; recruiting
prospective employees; selecting employees; setting performance standards;
compensating employees; evaluating performance; counseling employees;
training and developing employees
• Leading. Getting others to get the job done; maintaining morale; motivating
subordinates Leading Staffing
• Controlling. Setting standards such as sales quotas, quality standards, or
production levels; checking to see how actual performance compares with
these standards; taking corrective action as needed
As a process, management consists of three aspects :

• Management is a social process

Since human factor is most important among the other factors, therefore
management is concerned with developing relationship among people. It is the
duty of management to make interaction between people - productive and
useful for obtaining organizational goals.

• Management is an integrating process

Management undertakes the job of bringing together human physical and
financial resources so as to achieve organizational purpose. Therefore, is an
important function to bring harmony between various factors.

• Management is a continuous process

It is a never ending process. It is concerned with constantly identifying the
problem and solving them by taking adequate steps. It is an on-going process.
Level of management
The level of management determines a chain of command, the amount of authority & status enjoyed
by any managerial position. The levels of management can be classified in three broad categories:

Top Level of Management

It consists of board of directors, chief executive or

managing director. The top management is the
ultimate source of authority and it manages goals and
policies for an enterprise. It devotes more time on
planning and coordinating functions.

Middle Level of Management

The branch managers and departmental

managers constitute middle level. They are
responsible to the top management for the
functioning of their department. Lower Level of Management
They execute the plans of the organization in Lower level is also known as supervisory / operative level of
accordance with the policies and directives of management.
the top management.
Importance of Management
•Helps in Achieving Goals
By defining objective of organization clearly there would be no wastage of time, money
and effort. Management converts disorganized resources of men, machines, money etc.
into useful enterprise.

Optimum Utilization of Resources

Management provides maximum utilization of scarce resources by selecting its best
possible alternate use in industry from out of various uses.

• Reduces Costs
Management uses physical, human and financial resources in such a manner which results
in best combination. This helps in cost reduction.

• Establishes Sound Organization

No overlapping of efforts (smooth and coordinated functions),  it establishes effective
authority & responsibility relationship . Management fills up various positions with right
persons, having right skills, training and qualification. All jobs should be cleared to
everyone
• Establishes Equilibrium
It enables the organization to survive in changing environment. It keeps in touch with the
changing environment. With the change is external environment
Human Recourses Are The Most Important Asset

• The quality and effectiveness of the organization is

determined by the quality of the people that are
employed.

.
• Success for most organization depends on finding the
employees with the skills to successfully perform the
tasks required to achieve the company’s strategic goals

• Organizational goals cannot be done Without human

resources.
 What is Human Recourse Management ?
              
• Human Resources Management is about the optimum usage of the
most valuable resource in an organization

• HRM is the function performed in organizations that facilitates the

most effective use of people to achieve organizational and individual
goals

• The real sources of competitive leverage are the culture and

capabilities of your organization that derive from how you manage
your people.
Why Is Human Resource Management Important to All Managers?
AVOID PERSONEL MISTAKES
First, having this knowledge will help you avoid the personnel mistakes you don’t want to make while managing. For
example, you don’t want
• To have your employees not doing their best.
• To hire the wrong person for the job.
• To experience high turnover.
• To have your company in court due to your discriminatory actions.
• To have an employee hurt due to unsafe practices.
• To let a lack of training undermine your department’s effectiveness.

IMPROVING PROFITS AND PERFORMANCE

• Remember that you could do everything else right
as a manager—lay brilliant plans, draw clear
organization charts, set up modern assembly
lines, and use sophisticated accounting controls—
but still fail, for instance, by hiring the wrong
people or by not motivating subordinates
• On the other hand, many managers—from generals to
presidents to supervisors—have been successful even
without adequate plans, organizations, or controls. They
were successful because they had the knack for hiring the
right people for the right jobs and then motivating,
appraising, and developing them
Evolution of the HR function 

 
HRM primary activities are:

1. Staffing (hiring people).

2. Training and development (preparing them).
3. Motivation (stimulating them).
4. Maintenance (keeping them).
1. Staffing (hiring people):

• Staffing: Activities in HRM concerned with seeking and hiring

qualified employees.
• It starts with employment planning which requires knowing the
organization strategic plans.
• Job analysis is required to identify the KSAs the job applicant
must possess to succeed.
• Then the recruiting process begins. The goal of recruiting is to
give enough information about the job to attract a large
number of qualified applicants and simultaneously discourage
the unqualified from applying.
• Followed is the selection process. It attempts to thin out the
large set of applications and to select an applicant(s) who will
be successful on the job.
 2. Training and development (preparing people)

• Training and development: Activities in HRM

concerned with assisting employees to
develop up-to-date skills, knowledge, and
abilities.
3. Motivation (inspiring people):

• Motivation: Activities in HRM concerned with helping

employees exert at high energy levels.
• A level of respect is required between management and the
workers; this involves employees participation in the decisions
affecting them, listening to them, and implementing their
suggestions where appropriate.

• Clear Performance standards must be set and performance

evaluation system is designed to provide feedback to employees
and address any performance weaknesses.  Performance
evaluation must also be easy for managers to use.

• Employee compensation must be established in light of

performance.
4. Maintenance (Keeping people):
• Maintenance: Activities in HRM concerned with
maintaining employee’s commitment and loyalty to
the organization.

• Maintenance aims to retain productive employees.

• This requires HRM to ensure a safe and healthy

working environment; caring for employees well-
being; applying employee assistance programs and
communication programs (designed to provide
information to employees).
Strategic HRM

• There is a need to align organizational goals with that of the HR

strategy to ensure that there is alignment of the people policies
with that of the management objectives.

• Recently, organization consider the HR Department as playing

the a major role in staffing, training and helping to manage
people so that the people and the organization are performing
at maximum capability in a highly fulfilling manner

• This means that the HR department can no longer be viewed as

an appendage of the firm but instead is a vital organ in ensuring
organizational success.
The Strategic Nature of HRM
HRM must balance two primary responsibilities:

1. Assisting the organization in its strategic direction.

It involves working with line managers in analyzing organizational
designs, the culture,  performance systems, and recommending
and implementing changes where necessary.

2. Representing and advocating for the organization’s employees.

Setting HRM policies and practices that attract and keep
employees.
STARBUCKS Casestudy
 The HRM Function and its Role in
Organizational Processes
The Changing Role of the HR Function
The HRM Function have undergone tremendous change over years.

• Prior to the mid-1960s, personnel departments in the organizations

were often perceived as the “health and happiness” crews.  Their
primary job activities involved planning for company picnics,
scheduling vacations, enrolling workers for health-care coverage, and
planning retirement parties.

• Now, Jobs have changed; more technical employees with greater

skills are required, job boundaries become blurred; and global
competition has increased the importance of improving workforce
productivity and looking globally for the best qualified-workers. 
Thus, organizations need HRM specialists
 HR professionals

Change in Conception from Reactive to Proactive

Many people think of the HR manager as someone who attends to complaints

from employees, appears at the time of appraisals, and generally is useful only
when there is a genuine need for him or her. This is the classic old world thinking.
 However, times have changed and in the recent decades, the HR function has
emerged as a key function in itself wherein the HR professionals are
proactive and preemptive in nature.

• HR professionals have evolved to a point where they have moved from reactive
mode to proactive mode. This means that in many multinationals, the HR
professionals regularly have what are known as one-on-ones or individual
meetings with the staff to try and understand their grievances, seek feedback,
and overall focus on how to prevent any kind of crisis from happening.
HR Department
In small organizations, line managers may carry out all these personnel duties unassisted. Or
small-business human resource departments are staffed with one individual and possibly a full-
time secretary.  Hence, they are forced to be HRM generalists, handling all HR activities. There is
no specialized staff; there may be a tendency to use outside consultants to assist in performing all
HRM activities.

But as the organization grows, line managers usually need the assistance, specialized knowledge,
and advice of a separate human resource staff. In larger firms, the human resource department
provides such specialized assistance. Typical positions include compensation and benefits
manager, employment and recruiting supervisor, training specialist, and employee relations
executive.
HR and Corporate Ethics
• HRM’s role is to ensure that ethics exist in an organization and are adhered to.

• As keepers of corporate policies and employee documents, HRM must make

sure that employees know about corporate policies and train employees and
supervisors on how to act ethically in organizations.
Trends Shaping Human Resource Management
1.Globalization and Competition Trends:

Definition: the tendency of firms to expand their Sales, Ownership and

Manufacturing to new markets abroad  influencing Organizations to use
resources from around the world taking the advantages of cheaper labor
and expansion.

• Companies expand abroad for several reasons :

• Sales Expansion thus invading new markets as Dell building plants in
china.
• Seek new products and services to sell.
• Cut labor costs: ex. Volks wagan Parati follows German Volks but its spare
parts is manufactured in Germany and it is gathered in Brazil.
• Forming Partnership: ex. IBM sold its PC division to Chinese firm Lenovo
to penetrate the booming Chinese market.
 
Globalization and Competition Trends
(cont.):
More globalization means more competition and more competition means
more pressure to present world class service in lower costs which requires
employees to be more productive and to do things better and less expensively.

Globalization Benefits:
• Lower Prices
• Better quality
• Working harder and more competent.

Globalization Threats:
• Jobs will become less secure ( depending on competencies/ skills/
Knowledge and continuous development).
Workforce and Demographic Trends:
Demographic trends are making finding, hiring and supervising employees more
challenging.

“Generation Y “: (fresh graduates and newly hired)

     many younger workers may have different work values than did older
employees who are more likely to be work centric (focusing more on work
than on family with respect to career decisions). Younger workers tend to be
more family centric or dual centric ( balancing family with work life)

Retirees : ( the aging workforce )  

the biggest demographic trend affecting employers is that there aren’t enough
younger workers to replace the projected number of older worker retirees
• 41 %  of Employers : bring retirees back into workforce.
• 34 % conduct studies to determine projected retirement rates in Organization
• 31 % are offering options to attract and retain semi retired workers
 Technological Trends:
• Technology changed the nature of everything we do and thus changed
what business Do and how they Do it.

• Internet based communication allowed organizations as Dell and

Vodafone worldwide to offshore their call centers to India and Egypt.

• Employers use social media tools such as Twitter, Facebook, and LinkedIn
(rather than, say, employment agencies) to recruit new employees.
•
• Employers use mobile applications, for instance, to monitor employee
location

• Internet- and network-monitoring software Used to track employees’

Internet and e-mail activities or to monitor their performance 

• Electronic signatures Legally valid e-signatures that employers use to

more expeditiously obtain signatures for applications and record keeping
What Trends Mean for Human Resource Management
• One big consequence of globalized competition, demographic trends,
and the shift to high-tech and service jobs is the growing need for
employers to get the best from their “human capital,” in other words,
from their workers’ knowledge, education, training, skills, and
expertise.

• This requires, among other things, using human resource methods to

improve employee performance and engagement

• Thanks to digital devices and social media, employers are shifting

(distributing) more HR tasks from central human resource departments
to employees and line managers.

• This gives many line managers more human resource management

responsibilities.

• And this means that many human resource managers can refocus their
efforts from day-to-day activities like interviewing candidates to
broader efforts, such as formulating strategies for boosting employee
performance and engagement.