Human Resource

Management

LECTURE ONE
Chapter Outline……..

Concept & Evaluation of HRM.

Nature of HRM.

Functions of HRM.

Importance of HRM.

Line and Staff Functions of HRM.

Objectives of HRM.
History Roles Model
 INNOVATION

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Organization = Profit & Social Commitments

Individuals = Development & Achievement

Goals of HRM
 HRM
Human Resource Management (HRM) is the field of
management involves, planning, organizing, directing &
controlling the functions of procuring, developing,
maintaining and utilization of labor forces.

HRM is to make the most productive use of human

resource to the greatest benefits of the organization
and individuals
 Functions of HRM
HR Planning
Recruiting
Acquisition Selection
Orientation

Safety Training

Health Maintenance Development Managerial

Development
Labor Relation Career
Development

Design
Performance Evaluation
Motivation Job Evaluation
W & S Structure
Compensation
 Functions of HRM
Managerial functions Operative function
 Planning  Employment
 Organizing
 Human resources development
 Directing
 Compensation
 Controlling
 Human relations
 Industrial relation
 Recent trends in HRM
 Managerial functions

➢ Planning – Determine the personnel program regarding

recruitment, selection, & training to achieve desired
objectives.

➢ Organizing – design structure of relationships b/w jobs,

personnel and physical factors.

➢ Directing – Getting people to do work willingly &

effectively through supervision and guidance, motivation &
leadership.

➢ Controlling – ensure accomplishment of plans correctly-

measure performance thro review reports, records etc.
 Operative functions

Employment- employment is concerned with securing and

employing the people possessing the required kind and level
of human resource necessary to achieve organization
objective
I. Job analysis
II. Human resource planning
III. Recruitment
IV. Selection
V. Placement
VI. Induction and orientation
Human resource development –it is process of improving
and changing the skill knowledge creative ability value etc.
1. Performance appraisal
2. Training
3. Management development
4. Career planning and development
5. Internal mobility
6. Transfer
7. Promotion and demotion
 Compensation-it is process of providing adequate
equitable and fair remuneration to the employees
1. Job evaluation
2. Wage and salary
3. Incentives
4. Bonus
5. Fringe benefits
6. Social security measures
➢ Human relations- practicing various human resource
policies and programmes like employment, development
etc.
➢ Industrial relations- industrial relation refers to the study
of relation among employees, employer, government and
trade union
➢ Recent trends in HRM-quality of work life, HR
accounting, HR audit
 Advantages through HRM

✓ Employment Security
✓ Selective Recruitment
✓ High & Lucrative Wages
✓ Incentive Pay
✓ Employee Ownership
✓ Employee Empowerment
✓ Information Sharing
✓ Training and Development
✓ Treat People with Respect and
Dignity
✓ Wages compression
 Nature of HRM

Broader Function
People Oriented
Action Oriented
Development Oriented
Continuous Function
Future Oriented
 Line Managers’
HRM Responsibilities

Placing right people in right place

Orienting new employees

Advice on HR choices

Offer on the job training to the new hires

Interpret company policies & procedures

Ensure safety and health to employees

 staff Managers’
HRM Responsibilities

Line Function – Directing and managing people in the HRM department .

Coordinating Function – Coordinating HRM functions throughout the

organization.

Staff Function - Same as the HRM functions plus labor relations and
collective bargaining with the trade union.
HR manager – A line or Staff ?
 objectives of hrm

Personal Objectives

Functional Objectives

Organizational Objectives

Societal Objectives
 Factors influence
HRM!
❖ Size of the workforce.
❖Recruitment Cost ❖ Rising employees' expectations
❖Labor productivity ❖ Drastic changes in the technology as well
❖Employee Turnover as Life-style changes.
❖Discipline ❖ Composition of workforce. New skills
required.
❖Employee Morale
❖ Environmental challenges
❖Welfare Provision
❖ Lean and mean organizations.
❖Employee Satisfaction
❖ Impact of new economic policy. Political
❖Cost Effectiveness ideology of the Government.
❖Timeliness ❖ Downsizing and rightsizing of
❖Adhere to Policy the organizations
❖Industrial Relations ❖ Culture prevailing in the organization
etc.
❖Profitability
 Meaning of personnel
management
➢ It is phase of management which deals with the
effective control and use of manpower as
distinguished from other sources of power

➢ The personnel management is the process of

attracting, holding and motivating people
involving all managers–line and staff
 Difference between PM and HRM

➢ Personnel management views the man as economic

man who work for money and salary

➢ HRM treats the people as a human beings having

economic, social and psychological needs
 PERSONNEL MGT HRM

Mgmt of people employed Mgt of KSA, abilities, attititudes..

Man is an economic resource/service

exchanged for wage / salary Man is an economic, social & psychological

Commodity that can be purchased & used Treated as a valuable resource

Employees are cost centers, mgt. Profit centre- invest capital for
controls cost development & future use

Used organizational benefit Used for organization, individual & family

benefit

Auxiliary function Strategic management function

 ORGANIZATION OF HRM(HR)
DEPARTMENT
➢ 2 Issues become relevant in a discussion on organization of an HR
department.
Place of the HR dept. in the overall set-up
Composition of the HR department itself

➢ Status of the HR dept. depends on whether the unit is small or large.

➢ In small organizations there is no separate dept. to coordinate

the HR activities

➢ A large scale unit will have a Manager/Director heading the HR

dept.
 Organization for HRM
▪ Size of the Firm
Size of the Firm

▪ Nature of Business

▪ Senior Management Philosophy Nature of

Business

▪ Multinational/ Global Presence

Senior
Management
philosophy

Multinational/
Global presence
 ORGANIZATION OF HR
DEPARTMENT
HRM in a small scale unit:
Owner/Propreit
or

Production Sales Office

Accountant
Manager Manager Manager

Personnel
Assistant
 ORGANIZATION OF HR
DEPARTMENT

HRM in a large scale unit:

Chairman /
MD

Director Director Director Director Director

Production Finance HRM Marketing R&D
Organizational Structure
Personnel Department
 Line and staff
responsibility/relationships
Meaning of line relationship
The relationship existing between two manager due to
delegation of authority responsibility and giving or receiving
instructions or orders is called line relationship

Meaning of staff relationships

Relationship between two manager is said to be staff relation
when it is created due to giving and taking advice, guidance,
information ……
 Role of personnel
manager
➢ Personnel role

➢ Welfare role

➢ Administrative role

➢ Fire –fighting legal role

 Role of Human resources
manager
➢ The Conscience role
➢ The Counsellor
➢ The Mediator
➢ The Spokesman
➢ The Problem-solver
➢ The Change agent
 Qualities of HR Manager

➢ Personal Attributes ➢ Experience

▪ Intelligence skills
➢ Professional attitudes
▪ Educational skills
➢ Qualification

▪ Discriminating skills

▪ Executing skills
 Opportunities of HRM

On the basis of the various issues and challenges the following

suggestions will be of much help to the philosophy of HRM with
regard to its futuristic vision:
➢ Defined recruitment policy
➢ Decision-making process
➢ Opportunity and comprehensive framework
➢ 360 degree feedback
➢ Total Quality Management
➢ job rotation
➢ proper utilization of manpower
➢ The capacities of the employee
➢ Career of the employees
 Challenges in HRM

The most pressing competitive issues facing by

hrm:
• Going global
• Embracing technology
• Managing change
• Developing human capital
• Responding to the market
• Containing costs
Going global
Identifying capable expatriate managers. Developing foreign
culture and work practice training programs. Adjusting
compensation plans for overseas work.

Embracing new tech

The Spread of E-commerce The Rise of Virtual Workers
INFLUENCE OF TECH IN HR
Human Resources Information System (HRIS) Computerized
system that provides current and accurate data for purposes of
control and decision making

MANAGING CHANGES
Formal change management programs help to keep employees
focused on the success of the business
DEVELOPING HUMAN CAPITAL
Is based on company-specific skills.
Is gained through long-term experience.
Can be expanded through development.

CONTAINING COSTS
I. Downsizing
II. Employee Leasing
III. Hidden Costs of Layoff
SOCIAL ISSUES
RESPONDING TO MARKET
➢ Total Quality Management (TQM)
Doing things right the first time, and striving for
continuous improvement

➢ Six Sigma
A process used to translate customer needs into a set of
optimal tasks that are performed in concert with one
another.
HRM Models
The Harvard Model
The Guest Model
The Warwick Model
 The Ulrich Model

Future/Strategic
Focus

Strategic Partner Change Champion

Process People

Employee Champion Administration Expert

Day-to-day
operation Focus
 Trends Shaping Human Resource
Value Change Management
-gender
-importance
-communication
Globalization
-relationship
and Competition
Trends

Indebtedness
(“Leverage”) and Technological
Deregulation Trends
Trends in HR
Management
Workforce and
Trends in the
Demographic
Nature of Work
Trends

Economic
Challenges and
Trends
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TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016

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1–48
 Workforce and Demographic Trends

Demographic Trends

Generation “Y”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

Wahidul Sheikh Shemon, Assistant 16

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Professor, BSMRMU
FIGURE 1–4 Trends Shaping Human Resource Management

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 High-Performance Work Systems
• Increase productivity and performance by:
– Recruiting, screening and hiring more effectively
– Providing more and better training
– Paying higher wages
– Providing a safer work environment
– Linking pay to performance

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