HUMAN RESOURCE

MANAGEMENT

HUMAN RESOURCE
MANAGEMENT

CHAPTER NO. 1

AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

Understand the term HRM and importance

of HRM.
Comprehend four functions of HRM .
Describe evolution of HRM.
Identify key roles played by HR managers.
Explain challenges faced by HR managers.
Differentiate
between
HRM
and
international HRM.

We can Divide this Term into Three Parts

HUMAN

RESOURCE

MANAGEMENT

HUMAN

RESOURCE
FINANCIAL
RESOURCES

Means debt, equity,

retain earnings and
selected matters.

ORGANIZATIONAL
RESOURCES

Include the history of

groups in the
organization,
relationship, level of
trust etc.

PHYSICAL
RESOURCES

Means building,
machinery, vehicle
and other material.

HUMAN
RESOURCE
Includes skills, abilities,
experience and other
work related
characteristics of people
associated with the
organization.

MANAGEMENT
Management is the universal process
of getting activities completed with
and through other people to achieve
organizational goals.

HUMAN RESOURCE MANAGEMENT

The design of formal systems in an

organization to ensure effective and
efficient use of talent to accomplish
organizational goals.

Human Resource Management helps in

maximizing productivity & reducing
cost by Putting Right Person At Right
Place.

EVOLUTION OF HRM

EVOLUTION OF HRM Cont . . .

1. The Craft
System
(1600s-1700s)

2. Scientific
Management
(Early 1900s)

3. Human
Relations
(Late 1920s
Early 1930s)

Small level of production

Industrial Revolution
One best way to accomplish the task
Putting the right person on the job with the
correct tools and equipment
Having a standardized method of doing
the job
Providing an economic incentive to the
worker

Hawthorne studies
Employee participation program

EVOLUTION OF HRM Cont . . .

4. Behavioral
Sciences

The study of the actions of people at

work; people are the most important
asset of an organization.

5. Personnel
Management

Involve in operational planning and

decision making & do not incorporate
all HR activities.

6. Human
Resource
Management

Involve in operational as well as strategic

planning and decision making &
incorporate all HR activities(training,
career development, EEO etc.)

7. Intellectual
Capital
Management

Organizations need to be dynamic both in

the context of the management of
individual capabilities and the
management of organizational structure.

FUNCTIONS OF HRM
STAFFING
MAINTENANCE

HRM

MOTIVATION

TRAINING
&
DEVELOPMENT

FUNCTIONS OF HRM Cont . . .

STAFFING

Strategic Human Resource

Planning
Recruitment
Selection
Maintenance

HRM
Motivation

Training &
Development

1. STAFFING
The activities in HRM concerned with
seeking and hiring qualified
employees are called Staffing.

1. STAFFING
The basic objective of the staffing
function is to locate & secure
competent employee.

COMPONENTS OF
STAFFING
a. Strategic Human
Resource Planning
b. Recruitment
c. Selection

a. STRATEGIC HUMAN RESOURCE

PLANNING
Strategic Human Resource Planning is
the process by which an organization
ensures that it has right number and
kind of people capable of effectively and
efficiently completing those task that are
in direct support of companys mission
and strategic goals.

b. RECRUITMENT
The process by which a job vacancy is identified
and potential employees are notified.

OBJECTIVES

To obtain an adequate pool of applicants

there by more choice to the organization.
Providing enough information about the job
such that those who are unqualified will not
apply.

c. SELECTION
Selection is the process by which an
organization chooses from list of applicants
the person or persons who meet the
selection criteria for the position available
considering current environmental
conditions.

c. SELECTION
The primary objective of selection activities is to
predict which job applicant will be suitable if hired,
during the selection process, candidate are also
informed about the job and organization
Proper selection can minimize the cost of replacement
and training resulting in more productive workforce

FUNCTIONS OF HRM Cont . . .

Staffing
Maintenance

HRM

Motivation

TRAINING &
DEVELOPMENT

Orientation
Employee Training
Employee Development
Organization Development
Career Development

2. TRAINING & DEVELOPMENT

Training is the systematic process of altering the behavior
of employees in a direction that will achieve organizational
goals.
Development can be defined as Efforts to improve
employees ability to handle a variety of assignments are.

2. TRAINING & DEVELOPMENT

The basic objective of Training & Development function is
to take competent workforce, adapt them to the
organization, and help them to obtain up-to-date skills,
knowledge, and abilities for their job responsibilities

COMPONENTS OF
TRAINING & DEVELOPMENT
Orientation

Career
Development

Organization
Development

Employee
Training

Employee
Development

COMPONENTS OF
TRAINING & DEVELOPMENT Cont . . .
a. Orientation

It covers the activities involve in

the introducing a new employee
to organization and to his or her
work unit.

b. Employee
Training

Employee training is designed to

assist employee acquiring better
skill for the current job.

c. Employee
Development

The focus of employee development

is on a future position with in the
organization for the which
employee require additional
competencies.

d. Career
Development
e.
Organizational

Development

The focus of career development

is to provide the necessary
information and assignment in
helping employees realize their
career goals.
Organizational Development is
the part of HRM that deals with
facilitating system wide change
in the organization.

FUNCTIONS OF HRM Cont . . .

Staffing
Maintenance

HRM

Motivation

Training
&
Development

Motivation and Job Design

Performance management
Reward & Compensation
Employee Benefits

3. MOTIVATION
MOTIVATION

An inner force that impels human

beings to behave in a variety of ways.

3. MOTIVATION

The basic objective of motivation

function is to retain good staff and
to encourage them to give of their
best.

COMPONENTS
OF MOTIVATION
A job should be designed in a such a way
that it
should facilitate the achievement of the
1.
organizational objective, stimulate
Job
performance
Design
and recognize the capacity and needs
of those
who are
to perform
Process
which
is usedit.to identify,
encourage,
2.
measure, evaluate and improve
Performance
employees through
Management
Compensation is what employee
performance appraisal.
receives in
exchange for their contribution to the
3.
organization.
Compensation
Compensation management help the
Management
organization
to obtain, maintain and retain a
Employees benefit are generally
productive
membership
Workforce.
4.
based ,non financial reward offered to
Employee
attract
and
Benefit
keep the employees, regardless
their

FUNCTIONS OF HRM Cont . . .

Staffing

Maintenance
Health & safety
Communication
Employee relations

HRM
Motivation

Training &
Development

4. MAINTENANCE FUNCTION
MAINTENANCE

Activities in HRM concerned with maintaining

employees commitment and loyalty to the
organization.

4. MAINTENANCE FUNCTION
The last phase of HRM process is called
maintenance function. The main objective of this
function is to do such HRM activities that maintain
employees commitment and loyalty with the
organization.

COMPONENTS OF MAINTENANCE
Health and
Safety

Employees/
Labor Relation

Serving as an intermediary
between the organization and its
union.
Designing discipline and
grievance handling systems.

Designing and
implementing programs to
ensure employee health
and safety.

Communication

Designing and
implementing employee
communication system.

ROLES OF HR MANAGER
Serve as
Morale
Officer

Clerical
Administratio
n

HR
Activities

Administrative
Role

Employee
Advocate
Role

Operational
Role

Strategic
Role

Business
Contributo
r

1.
Administrative
Role

Clerical and administrative support

operations (e.g., payroll and benefits
work).

2.
Employee
Advocate Role

Champion for employee concerns

Employee crisis management
Responding
to
employee
complaints

3.
Operational
Role

Identification and implementation of

HR programs and policieshiring,
training, compensating and other
activities
that
support
the
organization.

ROLES OF HR MANAGER Cont . . .

ROLES OF HR MANAGER Cont . . .

Focusing on developing HR
4.
activities that enhance
Strategic Role organizational
performance.
Involvement in strategic planning.
Participating in decision making on
mergers, acquisitions, and
downsizing.
Accounting and documenting the
financial results of HR activities.

HR MANAGEMENT CHALLENGES
Economic and Technological
Changes

Workforce Availability and

Quality

Growth in Contingent
Workforce
Demographics and Diversity
Issues
Balancing Work and Family

Organizational Restructuring,
Mergers, and Acquisitions

HR MANAGEMENT CHALLENGES Cont . . .

1. Economic & Technological
Changes
Shift in jobs for manufacturing and agriculture
to service industries and telecommunications.
Pressures of global competition causing firms to
adapt by lowering costs and increasing
productivity.
Growth of information technology.
2. Workforce Availability and
Quality
Inadequate supply of workers with needed skills
for knowledge jobs
Education of workers in basic skills

HR MANAGEMENT CHALLENGES Cont . . .

3. Growth in Contingent
Workforce
Increases in temporary workers, independent
contractors, leased employees, and part-timers caused
by:
Need for flexibility in staffing decisions
Increased difficulty in firing regular employees.
4. Organizational Restructuring,
Mergers, and Acquisitions
Right-sizingeliminating of layers of management,
closing facilities, merging with other organizations, and
out placing workers.
Intended results are flatter organizations, increases in
productivity, quality, service and lower costs.
HR managers must work toward ensuring cultural
compatibility in mergers.

HR MANAGEMENT CHALLENGES Cont . . .

5. Balancing Work & Family
Dual-career couples
Single-parent households
Decline in the traditional family
Working mothers and family/childcare
Single employee backlash against familyoriented programs.
6. Demographics and
Diversity Issues
More diversity of race, gender, age etc.

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INTERNATIONAL
HRM (IHRM)
International HRM (IHRM) is the process of
procuring, allocating , and effectively utilizing
human resources in a multinational corporation.

HRM vs. IHRM

Encompasses more functions.
Has more heterogeneous functions.
Involves constantly changing perspectives.
Requires more involvement in employees
personal lives.
Influenced by more external sources.
Involves greater level of risk than typical domestic
HRM.

THE CONCEPT OF
TRANSNATIONALITY
Each of these definitions, depending upon how the
organization perceives itself , has implications for
the role of international HRM.
Refers to companies that have developed a
Multinationa strategic posture and organizational capability
l Companies that allow them to be very sensitive and
responsive
to
differences
in
national
environments around the world.
Global
Companies

Refers to companies that have developed

international operations that are much more
driven by the need for global efficiency and
centralized
in
strategic
and
operational
decisions.

Internation
al

Based on Transferring and adapting the parent

companys knowledge or expertise to foreign

FUNCTION OF
INTERNATIONAL HRM
Highlighting the broad functions of HRM,
Morgan (1986) has presented a model
that consist of three dimensions which
are:

1.

The Three broad Human Resource activities:

Procurement

2.

Utilization

The Three major Country categories involved in

International HRM activities:
Host country

3.

Allocation

Home Country

Other Country

The Three type of Employee of an International Firm:

Host country
Nationals
(HCNs)

Parent Country
Nationals
(PCNs)

Third Country
National
(TCNs)

APPROACHES TO IHRM
APPROACHES

DEFINITIONS

ETHNOCENTRIC

MNC simply exports HR practices and policies

used in the home country to the foreign
subsidiaries. It Emphasizes consistency and
integration across all subsidiaries.

POLYCENTRIC

HR policies are adapted to meet

circumstances in each foreign location.

REGIOCENTRIC

Represents
a
regional
grouping
of
subsidiaries. HR policies are coordinated and
integrated within the region.

GEOCENTRIC

HR policies are developed to meet the goals

of the global network of home country
locations and foreign subsidiaries.

the

Evolution
of
HRM
Craft
System

Goals of
HRM

Scientific
Manageme
nt

Human
Relations

Promoting
Individual
Growth &
Development

Enhancing
Productivity &
Quality

Personnel
Manageme
nt

Behavioral
Sciences

Complying with
Legal & Social
Obligations

Scientific
STAFFING
Management

TRAINING
Scientific
&
Management
DEVELOPMENT

Strategic Human
Resource planning
Recruitment
Selection

Orientation
Employee Training
Employee
Development
Organizational
Development
Career
Development

Roles of HR
Manager
HR
Management
Challenges

Internation
al
HRM

Administrative

Economic &
Technologic
al Changes

HRM Vs. IHRM

Facilitating
Organizational
Effectiveness

Scientific
MOTIVATION
Management
Motivation & Job
Design
Performance
Management
Reward &
Compensation
Benefits

Employee
Advocate

Workforce
Availability
& Quality

Intellectual
Capital
Management

CHAPTER : 1

Functions
of
HRM

Human Resource
Management

HRM

Health & Safety

Communication
Employee
Relations

Operational

Growth in
Contingent
Workforce

The Concept
Of
Transnationalit
y

Scientific
MAINTAINCE
Management

Demographi
cs &
Diversity
Issues

Function Of
International
HRM

Strategic

Balancing
Work &
Family

Mergers &
Acquisition

Approaches to
IHRM

THOUGHT OF THE DAY

People are definitely a companys realest asset. It

doesn't make any difference whether the product
is cars or cosmetics. A company is only as good
as the people it keeps.
Mary Kay Ash