10/20/2019

Introduction to
Human Resource
Management

Dr. Ismiriati Nasip, SE., MM.

Learning Objectives
• Explain the basic concept of HRM
• Identify how firms gain a sustainable competitive
advantage through people
• Explain how globalization is influencing HRM

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What is 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

Why should we study HRM?

Staffing the organization, allocating jobs and teams,

developing skillful employees, identifying approaches to
improve their performance, and rewarding employees’
successes - all typically labeled HRM issues - are as
relevant to line managers as they are to managers in the
HR department

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HRM should be able to help company to face

competitive challenges by its people

Why HRM is important for all managers?

• All managers desires to avoid personnel mistakes
• All managers aims to improve profits and performance
through their people

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HRM Responsibilities
• Placing the right person in the right job
• Induction of new employees in the organization (orientation)
• Training employees for jobs that are new to them
• Improving the job performance of each person
• Gaining creative cooperation and developing smooth working
relationships
• Interpreting the company’s policies and procedures
• Controlling labor costs
• Developing the abilities of each person
• Creating and maintaining departmental morale
• Protecting employees’ health and physical conditions

Forms of Human Resources Department

• Centralized HR
• Shared serviced HR
• Corporate HR
• Embedded HR
• Centers of expertise

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Trends Shaping HRM Practice

• Workforce demographic and diversity trends
• Trend in how people work
• Globalization trends
• Economic trends
• Technology trends

The New HRM Competencies

• Leadership & business navigation
• High understanding of ethical practice
• Business acumen
• Relationship management
• Consultation
• Critical evaluation
• Global & culture effectiveness
• Communication
• High understanding of the HRM activities

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Competitive Issues Facing Firms

• Globalization trends which resulted in competition,
recruitment and staffing globally
• The new technology disruption
• Managing changes in organization (human capital
changes, organization changes, and market changes)
• Firm’s needs to contain its cost efficiently

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Globalization and HRM

• Globalization pushes HR to do their practices within
different geographies, cultures, laws, and business
practices
• Issues:
Identifying capable managers and workers
Developing foreign culture and work practice
training programs
Adjusting compensation plans for overseas work

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HR on Managing Changes
• Types of Change
Workers whose responsibilities extend beyond the
physical execution or work to include planning,
decision making, and problem solving
• Knowledge Based Training
Online instruction
‘Just-in-time’ learning via internet within company’s
intranets
Virtual learning

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Technology & HRM

• Knowledge Workers
 Reactive change – change that occurs after
external forces have already affected performance
 Proactive change – change initiated to take
advantage of targeted opportunities
• Managing Change through HR
Formal change management programs help to keep
employees focused on the success of the business

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Why changes effort fail?

• Not establishing a sense of urgency
• Not creating a powerful coalition to guide the effort
• Lacking leaders who have a vision
• Lacking leaders who communicate the vision
• Not removing obstacles to the new vision
• Not systematically planning for and creating short-term
‘wins’
• Declaring victory too soon
• Not anchoring changes in the corporate culture

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HR & Demographic Changes

• Demographic Changes
 More diverse workforce (ethnic and cultural
challenges)
 Aging workforce
 More educated workforce
• Managing Diversity
Being aware of characteristics common to employees,
whilst also managing employees as individuals

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The challenge to manage talents & HC

• The knowledge, skills, and capabilities of individuals that
have economic value to an organization.
• Valuable because capital:
Is based on company specific skills
Is gained through long-term experience
Can be expanded through development

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Managing talent & human capital is one of today’s HR

challenge due to lack of skilled workers and high
competition among employers

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Containing Cost in HR
• Downsizing
 The planned elimination of jobs (head count)
 Layoffs
• Outsourcing
 Contracting outside the organization to do work formerly
done by internal employees
• Offshoring (global sourcing)
 The business practice of sending jobs to other countries

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Hidden Cost of Layoff

• Severance and rehiring costs
• Accrued vacation and sick day payouts
• Pension and benefits payoffs
• Potential lawsuits from aggrieved workers
• Loss of institutional memory and trust in management
• Lack of staffers when the economy rebounds
• Survivors who are risk-averse, paranoid, and political

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Benefits of No layoff policies

• A fiercely loyal, more productive workforce
• Higher customer satisfaction
• Readiness to snap back with the economy
• A recruiting edge
• Workers who aren’t afraid to innovate, knowing their
jobs are safe

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HR Competency • Business acumen

Business • Customer orientation
Mastery • External relations

Personal • Staffing
Credibility • Performance
• Trust HR appraisal
• Personal Mastery • Rewards system
relationships • Communication
• Lived values
• Courage • Organization design

• Interpersonal skills
and influence
Change • Problem-solving skills
Mastery • Rewards system
• Innovativeness and
creativity

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Thank You

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