HRM 502

Lecture-1
Introduction to Human Resource Management
Human Resource Management (HRM)
• HRM refers to the policies, practices and systems that influence
employees’ behavior, attitudes and performance. Many companies
refer to HRM as involving “people practices” – Raymond A Noe and
others.
• HRM is specifically charged Human with people – the employees.
Human resource management is the functions performed by
organizations that facilitate the most effective use of the people
(employees) to achieve organizational and individual roles- John
Ivancevich.
Four Proficiencies of HR Manager
• HR proficiencies involving traditional knowledge and skills in areas
such as employee selection, training, and compensation.
• Business Proficiencies- must know the company’s strategic planning,
marketing, production and finance so that HR needs are adequately
met.
• Leadership proficiencies. Leaders are needed to drive the required
changes
• Learning proficiencies- to adopt to continuous change, HR manager
needs learning proficiencies
Examples of HRM Specialties

• 1. Recruiters – Human resource development specialists –Job Analysis

(Collect ad examine information about jobs to prepare job
descriptions) –Compensation – Training Specialists
–employment/industrial relations specialists ( all aspects of
union-management specialists) – employee welfare officers ----Gary
Dessler and Biju Vakkey
• 2. Job analysis -- equal employment job opportunity –human
resources planning– employee recruitment, selection, motivation and
orientating – training and development – labor relations --- safety,
health and well-being
Responsibilities of HR Departments
What is Strategic Human Resources
Management
• Strategic human resources management means formulating and executing
human resource policies and practices that produce the employee
competencies and behaviors the company need to achieve its strategic
aims.
• There are two levels:
a) Partnering with top managers in both developing and executing their company’s
strategies.
b) At departmental level: Human resource managers must express their departmental
plans and accomplishments in measurable terms.
• There are three main ways to improve HR:
1) Technology
2) Human resource practices (Such as texting and training)
3) Introducing high performance work systems.
Strategic Human Recourse Management
Leads to Competitive Advantage
There are three competitive advantages:
• Competing through sustain ability. Sustainability refers to a
companies ability to make profit without sacrificing the recourses of it
employees, the community or the environment.
• Competing through globalization
• Competing through technology
The following figure shows competitive challenges influencing
companies.
The HRM function today is concern with much more then simple filing,
house keeping and record keeling. HRM plays a major role in clarifying
the firms human resource problem and develop solutions to them. It is
oriented toward action, the individual, worldwide interdependence and
the future.
Evolution of HRM
1. Before industrial evolution, guilds of various professions regulated
HRM.
2. After industrial evolution, scientific management was introduced by
Federick W. Taylor in the USA.
3. An engineer at Midvale Steel Works in Philadelphia from 1878 to
1890, he studied worker efficiency and attempted to discover the
“one best way” and the one fastest way to do a job. He summarized
scientific management as: (1) science, not rules of thumb; (2)
harmony, not discord; (3) cooperation, not individualism; and (4)
maximum output, not restricted output.
4. In Europe industrial psychology was developed. Particularly conflict arose
between workers and managers. In 1920s, personnel administrators were
appointed in factories and they were designated as welfare secretaries.
5. Human relation movements started in USA. Two Harvard researchers, Elton
Mayo and Fritz Roelthisberger, incorporated human factors into work. This
movement began as a result of a series of studies conducted at the Hawthorne
facility of Western Electric in Chicago between 1924 and 1933. The purpose of
the studies was to determine the effects of illumination on workers and their
output. The studies pointed out the importance of the social interaction and
work group on output and satisfaction. The human relations movement
eventually, around the mid-1960s, became a branch of and a contributor to the
field of organizational behavior. HRM at this stage dealt with only blue collar
works.
6. The focus of HRM shifted from blue collar workers to all employees at this
stage.
Traditional HRM and strategic HRM characteristics

1. Responsibility for Human Resources and

Management
• In traditional HRM specially run it.
• In strategic HRM Line managers are responsible.
2. Objective

• In traditional HRM, better performance is the objective.

• In strategic HRM, better performance isn it enough: Improve
understanding and strategic understanding of human assets needed.
3. Role of HRM Area
• In traditional HRM, respond to need.
• In strategic HRM, the HRM should read, inspire and understand.
4. Time of focus
• In traditional HRM, focus is on short term results.
• In strategic HRM, the focus is on short, intermediate and long term.
5. Control
• In traditional HRM, rules, policies, position and power are
emphasized.
• Strategic HRM is flexible based on human resources.
6. Culture
• In traditional HRM it is bureaucratic, top down, centralized.
• In strategic HRM, it is open, participative and empowered.
7. Major Emphasis
• In traditional HRM, on following the rules.
• In Strategic HRM, developing people.
8. Accountability
• In traditional HRM, the emphasis is on cost centers.
• In strategic HRM, investing in human assets.

• Reference for comparison of Traditional HRM and Strategic HRM:

John M. Ivancevich, Human resource Management. (11th Edition),
Pages 3 -23.
HRM means continuous improvement in individual components as well
as in the whole. The practitioners of HRM must remain alert to the
possibilities of any improvement.