Lesson 1

Nature of Human
Resource
Management

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 What is Human Resource?

Human resources is used to describe both the people who work

for a company or organization and the department responsible for
managing resources related to employees.

Human Resource Management involves overseeing all things

related to managing an organization’s human capital.

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 HR
Manage
ment
Activiti
es

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 HRM Activities

• Human resource activities support organizational

efforts focusing on Productivity, Service, and quality
• That requires changes in corporate culture, leadership
styles, and HR policies.
• 1- HR planning and analyses
• 2- Equal employment opportunity
• 3- Staffing
• 4- HR development
• 5- Compensation and Benefits
• 6- Health, safety, and security
• 7- Employee and Labor relations
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 • Human Resource Management
• Is the direction of organizational systems to ensure
effective and efficient use of human talent to accomplish
organizational goals.
• HR in Organization
• Every manager in an organization is an HR manager,
however, it’s unrealistic to expect all operation managers
like sales managers, nursing supervisor to know about
employment regulations, union contracts….etc.
• Corporation of HR with operating managers:
• HR specialists design processes and systems that operating
managers help implement.

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• Management of Human Capital in Org;
Organization must manage four types of assets:
1- Physical : building, land, furniture, vehicles…
2- Financial: cash, stocks, securities…..
3- Intangible: brand name, researches…..
4- Human: talents employees, experience,
professionals, capabilities…..
All these assets are crucial in varying degrees. However, the
human assets are the ‘glue” that holds all other assets
together and guides their use to achieve organizational
goals.

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• Management of Human Capital in Org;
Human Capital: Is the collective value of the
capabilities, knowledge, skills, life-experiences, and
motivation of the workforce. Human capital is not the
people in the company- It’s what those people bring
and contribute in the success of that company.
HR as a Core competency: HR should be part of
organizational strength. Because those strengths are the
foundation for creating a competitive advantage, core
competency is a unique capability that creates high value and
differentiates an organization from its competitors.

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 HR Management Challenges

• Globalization of Business
• Economic and technological changes
• Workforce demographics and diversity
• Organizational cost pressures & restructuring

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• Globalization of Business
- Global companies across nations. Pepsi, Microsoft, Hp, GE,
Sony, Toyota, Nokia, McDonalds…..
- Shift from investment to operate, and produce products
and services across the boards and the effect of security.
• Economic and Technological Changes
• Shift in jobs for manufacturing and agriculture to service
industries and telecommunications.
• Workforce availability and quality concerns: Lack of skilled
employees.
• Growth in contingent workforce: contractors, part time…
• Growth of information technology (Internet).

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• Workforce demographics and diversity
– More diversity of race, gender, and ethnicity. People
from different background, women in the workplace,
and growing of minorities.
• Organizational cost pressures & restructuring
“Right-sizing", eliminating of layers of management,
closing facilities, merging, and outplacing workers.
• Intended results are flatter organizations, increases in productivity, quality,
service and lower costs.
• Costs are survivor mentality, loss of employee loyalty, and turnover of valuable
employees

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 HR Management Roles

• Administrative Role
The administrative support operations (e.g., payroll
and benefits work) shifted to technology ( internet) and
outsourcing. The reasons are to save money, time, and
to focus on strategic plans.
• Operational and Employee Advocate Role
Traditionally HR is the “Champion” for employee concerns,
and respond to employees complaints and crises.
• Strategic Role
Long-term implications, ethics bookkeeping, and provide
competitive advantage.

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 HRM shifts from operational to strategic
Traditional HR Function
• Reactive
• Collecting HR data
• Responding to goals and
objectives set by executives
• Complying with laws, policies,
and procedures
• Administering employees
benefits programs
• Designing training programs
• Staffing
• Applying compensation plans
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Emerging HR practice
• Proactive
• Measuring HR with metrics
• Setting strategic HR goals and
objectives
• Developing and revising policies
and procedures
• Evaluating benefits strategically
• Identifying training needs
• HR planning and linking with
external staffing needs
• Developing compensation plans
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 Strategic Role for HR

• HR becomes a strategic business partner by:

- Evaluating mergers and acquisitions for staffing needs
- Conducting workforce planning : from employees retirements to workforce
expansion
- Leading site selection efforts for new facilities, and for international
outsourcing.
- Applying new HR systems to reduce time and staff
- Working with executives to develop compensating plans
• Collaborative HR: when group of companies from different
industries establish HR hop to share information and benefit for
their experiences.

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 HR Technology

Firms have developed and implemented information systems to

simplify use of the vast amounts of HR data
• Human resource management system( HRMS)
Is an integrated system providing information used by HR
management in decision making.
• Purpose of HRMS:
1- administrative and operational efficiency
2- strategic and HR planning

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 Ethics and HR
Organizations with high ethical standards are more likely to meet
long –term strategic objectives and profit goals.
• Ethics and global differences: Different laws, politics, cultural
values usually raises ethical issues for global employers.( what
is prohibited here is allowed there)
• HR’s role in organizational ethics
HR management plays a key role as the “ keeper and voice”
of organizational ethics.
Ethical issues like: misrepresenting hours and time worked,
employee lying to managers, hiring and promoting the
favoritism.

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Responding to Ethical Situations
– Guided by values and personal behavior “codes” that
include:
• Does response meet all applicable laws,
regulations, and government codes?
• Does response comply with all organizational
standards of ethical behavior?
• Does response pass the test of professional
standards for ethical behavior?

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 Job satisfaction leads to
Competition advantage
through Human capital
How can we increase Productivity and quality
Productivity?
Job satisfaction The Employee
Individual abilities/skills

How can we Key Retention Management

manage our Job performance
support/technology
Culture/ motivation
costs?
HR Strategic
•Vision/Mission,\/Goals We should value
What can we do to •Plan for people Our customers and
•Revising Rules
Survive in the •Comply with Labor Law
Our employees
Market place? •Design
Policies/procedures Demands for
•Design jobs
•Recruiting /Selecting Productivity/ quality/
Increasing competition •Employee retention service

HR Traditional View
•-Responding to goals and objectives
set by executives
•Complying with laws,
•policies, and procedures
•Administering employees benefits HR
programs
•Staffing Tree
•Applying compensation plans
 Talent Manage Staffing HR
•Orientation •Job analysis Labor Relation
•Training •Labor Law Tree
•Recruiting
•Career planning •Selecting •Workers –Rights
•HR Development Lea •Unions
Equal d
•Performance Sup ership
ment erv
Employ s isor
y
Total Rewards Fairnes Risk Manage
ty
•Compensation Diversi •Safety
•Incentives •Health
•Benefits •Security

Employee Emplo
Global Retention ymen
t
law
HRM

Survey Exit
-Satisfaction Job Interviews
Performance

HR
Planning

HR
Strategic
 Case Analysis
• Analyze human resource management strategy
implemented by multinational companies as listed
below :
✔ Amazon
✔ Facebook
✔ Google
✔ Microsoft
Each group should choose one company and analyze
about the HRM strategies and upload the
information in the google classroom.
AQIDAH AKHLAQ ADAB AMANAH AMALAN