CH.

1: Introduction to Human Resource

Management

The points will be covered:

1- What is HRM?
2- HRM and management process.
3- HR functions and benefits (importance)
for managers.
4- Line HR managers and staff HR
managers.
5- The responsibilities of line and staff HR
managers.
6- HRM role in formulating and executing
company strategy.
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1- What is the HRM?
The policies and practices involved in carrying
out the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.

2- HRM and management process.

Management processes are the five
basic functions of planning, organizing,
staffing, leading, and controlling.

Staffing: determine what type of people should

be hired, recruiting prospective employees,
evaluating performance, selecting employees,
setting performance standards, compensating
employees, evaluating performance, counseling
employees, training and developing employees.

From the previous definition of HRM so we can note

that HRM is the same as staffing , because staffing
is one of the management processes so we can
consider HRM is one of the management processes.

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 3- HR functions and benefits
(importance) for managers.

The personnel aspects in the manager job:

a- Conducting job analyses
(determining the nature of each
employee’s job).
b- Planning labor needs and recruiting
job candidates.
c- Selecting job candidates.
d- Orienting and training new
employees.
e- Managing wages and salaries
(compensating employees).
f- Providing incentives and benefits.
g- Appraising performance.
h- Communicating (interviewing,
counseling, disciplining).
i- Training and developing managers.
j- Building employee commitment.

The benefits of the HRM:

 Hire the right person for the job
 Experience low turnover
 Have your people doing their best
 Waste time with useful interviews
 Have every employee think their salaries is fair
and equitable relative to others in the
organization
 Allow training to undermine your department’s
effectiveness
 Commit fair labor practices

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 4- Line HR managers and staff HR
managers.

a- first what is the meaning of line and

staff HR managers:
-Line manager
A manager who is authorized to direct
the work of subordinates and is
responsible for accomplishing the
organization’s tasks.
-Staff manager
A manager who assists and advises
line managers.

b- Here HR manager have many

functions to do:
Functions of the HR Manager:
 A line function
– The HR manager directs the
activities of the people in his or her
own department and in related
service areas (like the plant
cafeteria).
 A coordinative function
– HR managers also coordinate
personnel activities, a duty often
referred to as functional control.
 Staff (assist and advise) functions
– Assisting and advising line
managers is the heart of the HR
manager’s job.

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 c- So, HR managers have many
authorities:
 Authority
– The rights to make decisions, direct
others’ work, and give orders.

 Implied authority
– The authority exerted by an HR
manager by virtue of others’
knowledge that he or she has access
to top management.

 Line authority
– The authority exerted by an HR
manager by directing the activities
of the people in his or her own
department and in service areas.

d- Cooperative Line and Staff HR

Management:

1. The line manager’s responsibility is to specify

the qualifications employees need to fill
specific positions.
2. HR staff then develops sources of qualified
applicants and conduct initial screening
interviews
3. HR administers the appropriate tests and
refers the best applicants to the supervisor
(line manager), who interviews and selects the
ones he or she wants.

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 5- The responsibilities of line HR
managers.
1- Placing the right person on the right job.
2- Starting new employees in the
organization (orientation).
3- Training employees for jobs new to them.
4- Improving the job performance of each
person.
5- Gaining creative cooperation and
developing smooth working relationships.
6- Interpreting the firm’s policies and
procedures.
7- Controlling labor costs.
8- Developing the abilities of each person.
9- Creating and maintaining department
morale.
10- Protecting employees’ health and physical
condition

6- HRM role in formulating and

executing company strategy.

First, what is the Strategy?

The company’s long-term plan for how it will
balance its internal strengths and
weaknesses with its external opportunities
and threats to maintain a competitive
advantage.

*HR managers today are more involved in

partnering with their top managers in both
designing and implementing their
companies’ strategies.

So, how we can measure this strategic

contribution of HR?
Measuring HR’s Contribution in
organization strategy:

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We will measure this contribution through:
 The HR Scorecard
– Shows the quantitative standards or
“metrics” the firm uses to measure HR
activities.
– Measures the employee behaviors
resulting from these activities.
– Measures the strategically relevant
organizational outcomes of those
employee behaviors.

HR Metrics (quantitative standards):

 Absence Rate
[(Number of days absent in month) ÷ (Average
number of employees during mo.) × (number of
workdays)] × 100

 Cost per Hire

(Advertising + Agency Fees + Employee
Referrals + Travel cost of applicants and staff +
Relocation costs + Recruiter pay and benefits) ÷
Number of Hires

 Health Care Costs per Employee

Total cost of health care ÷ Total Employees

 HR Expense Factor
HR expense ÷ Total operating expense

 Human Capital ROI

Revenue − (Operating Expense − [Compensation
cost + Benefit cost]) ÷ (Compensation cost +
Benefit cost)

 Human Capital Value Added

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Revenue − (Operating Expense −
([Compensation cost + Benefit Cost]) ÷ Total
Number of FTE

 Revenue Factor
Revenue ÷ Total Number of FTE

 Time to fill
Total days elapsed to fill requisitions ÷ Number
hired

 Training Investment Factor

Total training cost ÷ Headcount

 Turnover Costs
Cost to terminate + Cost per hire + Vacancy Cost
+ Learning curve loss

 Turnover Rate
[Number of separations during month ÷ Average
number of employees during month] × 100

 Workers’ Compensation Cost per

Employee
Total WC cost for Year ÷ Average number of
employees

Strategy and the Basic HR

Process

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Chapter quiz:

1- Planning, organizing, staffing, leading and controlling

represent the:
a- HR management function.
b- Globalization movement.
c- Results of competition.
d- Management process

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The bottom line of managing is:

Doing everything
right.

Motivating
subordinates.
Exerting authority.

Getting results.

Which of the following is not a right bestowed by a

manager's authority?

Give orders.

Directing the work of

others.
Make decisions.

None of the above.

A (n) _____ manager is always someone's boss.

Line

Human
resources
Staff

Functional

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HR's employee advocacy role includes all the
following except:

Defining how management should treat

employees.

Implied authority, functional control, line

authority.
Coordinative function, service function, functional
control.
Creating a learning organization.

The tendency of firms to extend sales, ownership

and manufacturing to new markets abroad is:

Non-traditional
trade.

Competition.

Exporting jobs.

Globalization.

Increased globalization results in:

Non-traditional jobs.

Increased competition.

Technological
advancements.
Reduced competition.

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Negative results of increased globalization are:

Reducing costs.

Changing demographics.

Exporting jobs.

Technological
advancements.

The knowledge, education, skills, and expertise of

workers is collectively known as:

Human capital.

Human
resources.
Demographics.

Human
diversity.

A company's _____ is its plan for balancing internal

strengths and weaknesses with external
opportunities and threats.

Strategy.

Diversity.

Demographics.

None of the
above.

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Human resources creates value for the firm by:

Measuring outcomes of employee behaviors.

Measuring employee behaviors.

Engaging in activities that produce needed employee

behaviors.
Utilizing an HR Scorecard.

Planning, organizing, staffing, leading and

controlling are elements of the management
process.

True

False

Failing to motivate subordinates can prevent

getting desired results despite brilliant plans and
building modern production facilities.

True

False

Managers who are in charge of accomplishing the

organization's basic goals are staff managers.

True

False

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HR managers usually exert line authority, staff
authority, and functional control simultaneously in
an organization.

True

False

The heart of an HR manager's job is playing an

employee advocacy role.

True

False

Ensuring that line managers implement HR

objectives, policies and procedures is achieved by
HR managers exerting line authority.

True

False

Globalization is partially responsible for firms

increasingly using non-traditional workers.

True

False

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Human capital refers to the costs incurred in hiring
and compensating qualified workers.

True

False

A plan for balancing internal strengths and

weaknesses with external opportunities and threats
is a firm's strategy.

True

False

An HR Scorecard lists the proficiencies HR needs to

implement the firm's strategic plan.

True

False

What a supervisor can and cannot say and do when

a union is organizing its employees are governed by
equal employment laws.

True

False

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Explain how an HR manager is imbued
simultaneously with line authority, staff authority,
and implied authority.

Describe how workplace environmental changes are

impacting the HR manager's role in the workplace.

Describe the proficiencies needed by today's HR

managers.

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