INTRODUCTION

TO HRM
CHAPTER 1
When you finish studying this chapter, you should
be able to:
1. Answer the question “What is human resource management?”
2. HRM function
3. Explain what is meant by “the changing environment of human
resource management.”
4. These trends for human resource managers.
What is Human Resource
Management?
• Organization
 Consists of people with formally assigned roles who work
together to achieve its goals
• Manager
 Someone who is responsible for accomplishing the
organization’s goals, and who does so by managing the efforts of
the organization’s people
What is Human Resource Management?
Human resource management
∟ The process of acquiring, training, appraising, and
compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns
Human Resource Management Practices and Policies
1. Conducting job analyses
2. Planning labor needs and recruiting job candidates
3. Selecting job candidates
4. Orienting and training new employees
5. Managing wages and salaries DISTINGUISH???
6. Providing incentives and benefits
7. Appraising performance
8. Communicating (interviewing, counseling, discipling)
9. Training employees and developing Managers
10. Building employee commitment
What a Manager Should Know:
 Equal opportunity, ethics, and affirmative action
 Employee health and safety and ethical treatment
 Grievance and labor relations
Focus of International HRM
1. Managing human resources in global companies
2. Managing expatriate employees
3. Comparing human resources management practices in a
variety of different countries
International Human Resource Management
HRM is more complex in international business because of
differences between countries in labor markets, culture, legal
systems, economic systems, etc.
- The need to adapt personnel policies and procedures to
differences among countries complicates human resource
management in multinational companies.
Why is HR Management Important to

All Managers?
Impact of HRM
Personnel mistakes you don’t want to make:
Having employees who are not performing at peak capacity
Hiring the wrong person for the job
Experiencing high turnover
Finding that employees are not doing their best
Having your company taken to court because of your
discriminatory actions
Personnel mistakes you don’t want to make: (cont.)
 Having your company cited under federal occupational safety
laws for unsafe practices
 Allowing a lack of training to undermine your department’s
effectiveness
 Committing any unfair labor practices
Authority
∟ The right to make decisions
∟ The right to direct the work of others
∟ The right to give orders

THE DIFFERENCE BETWEEN LINE

AUTHORITY AND STAFF
AUTHORITY??
 LINE AUTHORITY
- Gives managers the right (or
authority) to issue orders to other
managers or employees.
 It creates a superior-subordinate
relationship
- Line managers have line authority
STAFF AUTHORITY
- Gives a manager the right (authority)
to advise other managers or
employees.
 assist and advise line managers in
areas like recruiting, hiring, and
compensation.
- Staff managers have staff authority.
- Human resource managers are staff
managers.
Line managers:
∟ Managers who are authorized to direct the work of subordinates
and are responsible for accomplishing the organization’s tasks
∟ Line managers are associated with managing functions (like sales
or production) that the company needs to exist.
Staff managers:
∟ Assist and advise line managers in accomplishing these goals
∟ Staff managers generally run departments that are advisory
or supportive, like purchasing, human resource management,
and quality control.
Line Managers’ HR Responsibilities
1. Placing the right person in the right job
2. Starting new employees in the organization
3. Training employees for jobs that are new to them
4. Improving the job performance of each employee
5. Gaining creative cooperation and developing smooth working
relationships
Line Managers’ HR Responsibilities (cont.)
6. Interpreting the company’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each employee
9. Creating and maintaining departmental morale
10. Protecting employees’ health and physical conditions
 Typical Job Duties
 Recruiters
 Equal employment opportunity (EEO) representatives or
affirmative action coordinators
 Job analysts
 Compensation managers
 Training specialists
 Labor relations specialists
HR in Small Business
 Small firms (e.g., those with less than 100 employees)
generally can’t afford a full-time human resource manager.
 Their human resource management tends to be ad hoc
and informal.
Human Resource Function
Responsibilities of HR’s Department
1. Job Analysis

Job Analysis Job Design

Process of getting Process of defining
detailed information the way work will be
about jobs performed and the
tasks that a given job
requires
2. Recruitment and Selection

Recruitment Selection
The process through which The process by which the
the organization seeks organization attempts to
applicants for potential identify applicants with the
employment necessary knowledge, skills,
abilities, and other
characteristics that will help
organization achieve its goals
3. Performance Management
- The process of ensuring that employees’ activities and
outputs match organization’s goals
- HR may be responsible for developing or obtaining
questionnaires and other devices for measuring performance.
4. Rewards

Rewards Planning Rewards Management

How much salary, wages System for keeping track of
bonuses, commissions, and employees’ earnings and
other performance-related benefits are needed
pay for offer Employees need information
abut their benifits plan
5. Maintaining positive employee relations
- Preparing and distributing employee handbooks and company
publications
- Dealing with and responding to communications from employees’
question
- Negotiating union contracts and maintaining communication with
union representatives
6. Establishing and Administering personnel policies
- Hiring
- Discipline
- Promotions
- Benefits
7. Managing and Using HR data
Workforce Analytics – use of quantitative tools and scientific
methods to analyze data from human resource databases and
other sources to make evidence-based decisions that support
business goals.
Ensuring compliance with Labor Laws
- Government requirements include avoiding unlawful
behavior
- Managers depend on HR professionals to help them keep
track of these requirements
- HR personnel keep watch over a rapidly changing legal
landscape
Trends Influencing Human Resource
Management
 Globalization
∟ Firm’s tendency to extend their sales, ownership,
and/or manufacturing to new markets abroad
 Indebtedness (“leverage”) and deregulation
 Technological advances
 Nature of work
∟ Service jobs, human capital
 Growing emphasis on “knowledge workers” and
human capital
 Human capital
∟ The knowledge, education, training, skills, and expertise of a
firm’s workers
2. Demographic and Workforce Trends
Demographic Trends:
 Generation Y and Z
 Retirees
 Workers from abroad
Generation Y
 Maybe the most high-maintenance workforce in the
history of the world.
 This generation’s capacity for using information
technology will also make it the
most high-performing.
HOW IS GENERATION Z?
3. Economic Challenges and Trends
 All these trends are occurring within the context of economic
upheaval.
 Challenging times mean that employers will have to be more
frugal and creative in managing their human resources.
 Regulatory Changes
Structural changes to organizations:
 Downsizing
 Outsourcing
 Rightsizing
 Reengineering
Reengineering affects HRM in two ways:
• How HR accomplishes its goals may change.
• Change requires HR to help design and implement
change so that all employees will be committed to the
reengineering organization’s success.
4. More on HR Technology Trends
There are many types of digital technologies driving HR professionals’
automation:
∟ Social media (face, zalo, Instagram,…)
∟ Mobile applications
∟ HR Information System(HRIS)
∟ E-HRM
∟ Cloud computing
∟ Data mining
∟ Telecommuting (example: Gg meet, Microsoft Team, Cisco Webex,…)
TALENT MANAGEMENT
 Talent Management
∟ The end-to-end process of planning, recruiting, developing,
managing, and compensating employees throughout the
organization.
 Empowerment
∟ Form of decentralization that involves giving subordinates
substantial authority to make decisions
 High-performance work system
∟ An integrated set of human resource management
policies and practices that together produce superior
employee performance
Sample Metrics: IBM
 Human resource managers need access to the performance
measures (or “metrics”) as well as to comparable, benchmarkable
figures from similar firms.
 For example, median HR expenses as a proportion of companies’
total operating costs average about 0.8%.
 There tends to be between 0.9 and 1.0 human resource staff
persons per 100 employees.
 HR Scorecard: Shows the metrics the firm uses
to measure:
∟ HR activities
∟ The employee behaviors resulting from these activities
∟ The strategically relevant organizational
outcomes of these employee behaviors