HUMAN

RESOURCE
MANAGEMENT

1
Dr. Alemayehu Shiferaw
May, 2021
 Definition and Background
01
2

Responsibility of Human
02 Resource Department

HRM Function, Role and

CONTENT 03 Careers

Evolution and Development

04 of HRM

Goal of Human Resource

05 Management

06 Competitive Challenges of
HRM
 1.1. Definition and Background
3

1960-1970 –large staffs, with heavyweight,

hierarchical bureaucracies and stagnant
businesses.
1970- measuring company success in terms of
profitability and the number of employees – the
more the better
By the end of the twentieth century- ‘downsizing’
or reducing the number of people employed to
create businesses that were lean, fit and flexible.
 1.1. Definition and Background (cont’d…)
4

By the beginning of the twenty-first century

the problems of the scales being tipped so
considerably towards rationalization were
beginning to show. Businesses became more
than slim
There is now a move towards redressing that
balance in search for an equilibrium between
the needs for financial viability and success in
the marketplace on the one hand and the need
to maximize human capital on the other.
 1.1. Definition and Background (cont’d…)
5

Human resource management is designing

management systems to ensure that human talent
is used effectively and efficiently to accomplish
organizational goals.
“HRM is concerned with the most effective use
of people to achieve organizational and
individual goals. It is the way of managing
people at work, so that they give their best to
the organization”. - Invancevich and Glueck
 1.1. Definition and Background (cont’d…)
6

“Policies and practices involved in carrying out

the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising
comprises of HRM.”- Dessler

Generally, HRM refers to the management of

people in organizations.
 1.1. Definition and Background (cont’d…)
7

"Human resource management is responsible for

how people are treated in organizations. It is
responsible for bringing people into the
organization, helping them perform their work,
compensating them for their labors, and solving
problems that arise" (Cherrington, 1995, p. 5).
HRM means employing people, developing their
resources, utilizing, maintaining and compensating
their services in tune with the job and
organizational requirement. Armstrong(2006).
 1.1. Definition and Background (cont’d…)
8

The goal of HRM is to maximize employees’

contributions in order to achieve optimal
productivity and effectiveness, while simultaneously
attaining individual objectives ( such as having a
challenging job and obtaining recognition), and
societal objectives (such as legal compliance and
demonstrating social responsibility).
 1.1. Definition and Background (cont’d…)
9

It is valid-and perhaps more honest-

to refer to HRM as ‘people
management’
Human beings in an organization:
Represent a greater assets
Perceived as major generators of
cost
 1.1. Definition and Background (cont’d…)
10

HRM is combination three concepts:

Human - people (i.e. employees and managers)
Resource - assets/costs for organizations
Management - co-ordination and control to achieve
set goals but humans, unlike other resources in the
context of work and management, cause problems.
Importance of HR
People is the key factor of production.
Productivity is the key to measure a nation’s
economic growth potential, and labor quality is the
key to improving productivity.
Competition today is the competition for talents.
 1.2. Responsibility of HRM Department
11

The goal of HRM is to maximize employees’

contributions in order to achieve optimal
productivity and effectiveness, while simultaneously
attaining individual objectives ( such as having a
challenging job and obtaining recognition), and
societal objectives (such as legal compliance and
demonstrating social responsibility).
 Responsibilities of HR Departments
12
13 Who is Responsible for HRM?

HR Line
Professionals Managers
 HR Professionals’ Responsibilities
14

➢ Establish HRM procedures

➢ Develop/choose HRM methods

➢ Monitor/evaluate HRM practices

➢ Advise/assist managers on HRM- related

activities
15 Line Managers’ Responsibilities

➢ Implement HRM practices

➢ Provide input for HRM practices

16
HRM Conducted by Line Managers

Interview job Discipline employees

applicants Investigate
Provide orientation, accidents
coaching, & OJT Settle grievance
Evaluate job issues
performance
Recommend pay
increases
 Who is responsible for HRM Practices?
17
View #1: A Separate Department is
Useful
HR Professional (specialists) perform the
Job
Importance of Human Resources
Competitive Advantage
Increasing Complexity
Global workforce
External Influences
Legal Requirements
Consistency in Treatment
 Who is responsible for HRM Practices?...
18
View #2 - Every Supervisor or Manager is an
HR Manager

Anyone who deals with subordinates plays a HRM

role
The “Line” perspective
Tasks Completed by Line Managers
Interview job applicants
Provide orientation, coaching, and on-the-job
training
Provide and communicate job performance ratings
Recommend salary increases
Carry out disciplinary procedures
Investigate accidents
Settle grievance issues
19
HR Responsibilities of Supervisors
 1.3. Specific HRM Functions
20
Human Resource Planning
Analyzing Jobs
Recruiting
Selecting
Appraising
Training
Developing
Compensating
Benefits
Work Environment
21
Human Resource Management Function

Four Major Categories of Activities

The Acquisition The Development

of of
Human Resources Human Resources

The Rewarding The Maintenance

of of
Human Resources Human Resources
 How HR Functions Relate to HR Activities
22

The Acquisition of Human The Development of

Resources Human Resources
Planning
Analyzing Jobs Performance Management
Recruitment Training
Selection Developing
 How HR Functions Relate to HR Activities…
23

The Rewarding of
The Maintenance of
Human Resources
Human Resources

Compensating
Wages & Salaries Safety & Health
Incentives Labor Relations
Employee benefit
24 Role of HR Manager

 Fully Fledged Business Partner

 Attraction and retention of talents
 Empowering people
 HR services and HR administration
 Internal customer relationships
 Preparation of “wish lists” for companies
 Managing complexity and building capabilities
 General welfare of employees
25 Role of HR manager (cont’d…)

Focus on Mentoring (in modern mgt

the mentor plays a vital role)
Expanded role in media exposure
Advice on stress, harassment and
bullying
 Why is HRM Important to an Organization?
26

The role of human resource managers

has changed. HRM jobs today require
a new level of sophistication.
Employment legislation has placed new
requirements on employers.
Jobs have become more technical and skilled.
Traditional job boundaries have become
blurred with the advent of such things as
project teams and telecommuting.
Global competition has increased demands for
productivity.
 Why is HRM Important to an Organization?
27
(cont’d…)

The Strategic Nature – HRM must be

a strategic business partner and represent
employees.
forward-thinking, support the business
strategy, and assist the organization in
maintaining competitive advantage.
concerned with the total cost of its function
and for determining value added to the
organization.
 HR Management as a Career Field
28
HR Generalist
A person with responsibility for performing a
variety of HR activities.
HR Specialist
A person with in-depth knowledge and expertise in
a limited area of HR.
Professional Organization
Society for Human Resource Management (SHRM)
 Overall Framework for
Human Resource Management
29

COMPETITIVE HUMAN EMPLOYEE

CHALLENGES RESOURCES CONCERNS
• Globalization • Planning • Background
• Recruitment
• Technology diversity
• Staffing
• Managing • Age distribution
• Job design
change •Training/developme • Gender issues
• Human capital nt • Educational levels
• Responsiveness • Appraisal • Employee rights
• Cost • Communications • Privacy issues
containment • Compensation • Work attitudes
• Benefits • Family concerns
• Labor relations
 HRM Objectives
30
To help the organization reach its goals.
To ensure effective utilization and maximum development of
HR.
To ensure respect for human beings.
To identify and satisfy the needs of individuals.
To ensure reconciliation of individual and organizational goals.
To provide the organization with well-trained and well-
motivated employees.
To increase employee's job satisfaction, motivation and self-
actualization.
To develop and maintain a quality of work life.
To be ethically and socially responsive to the needs of society.
To enhance employee's capabilities to perform the present
job.
 General Goals of Human Resource
31 Management

Facilitating Enhancing
organizational productivity and
competitiveness quality

The human resource

function in contemporary
organizations

Complying with Promoting

legal and social individual growth
obligations and development
 1.5. Evolution and Development of HRM
32
Traditions Period Description
Welfare Up to 1920s Personnel management as a personal service to employees,
who are the ‘clients’ of the personnel or welfare officer. Major
concerns were the provisions of canteens, sick visiting, the
supervision of moral welfare in anticipation of a reciprocal
sense of service from the employee

Employment Up to 1930s Emphasized the control of numbers and budget and placed
Management stress on economic efficiency plus a high value on
performance investigation by organization and method type
studies. Employees have not always shared these beliefs, thus
leading to a ‘Theory X’ view of workers by managers

The ‘personnel administrator’ typical of many large

organizations operates a comprehensive set of rules based on
1914 to a belief in
Bureaucratic
present order and rationality, and on the intrinsic merit of the
organization’s internal status system, to which employees are
expected to subscribe
 1.5. Evolution and Development of HRM (cont’d…)
33
Traditions Period Description
Professional 1945 to A belief in specialization sustained by personnel application of
Personal present techniques applied for the benefit of the ‘client’, who is the line
manager manager, and is supported by a general social acceptance of
‘expertise’.
Employment 1945 to Emphasized the control of numbers and budget and placed stress
Management present on economic efficiency plus a high value on performance
investigation by organization and method type studies. Employees
have not always shared these beliefs, thus leading to a ‘Theory X’
view of workers by managers
This personnel manager sees their role as improving
communications and leadership. Approach is that of a radical
1930s to
Liberal radical liberal, a belief in individualism and the need to participate with
present
employees, anticipating agreement and enthusiasm from those at
work
Accent on development and utilization of people as assets.
Human
1980s to Employment costs and the return on these costs are central
resource
present concerns, leading to desire for adaptability, fixability of the people
manager
and to use outsourcing arrangements to reduce costs.
 1.5. Evolution of HRM (cont’d…)
34

Human
Capital
Human Management
Resource
Management
Employment regards them as

Management assets and

emphasizes
Labor that competitive
Management -Human is treated
advantage is
as a precious
achieved by strategic
-Systematic labor resource of the
investments in those
management business
assets
-Standardized -Human resource
-Manual through employee
labor Employment management is
management engagement and
system become a profit
-Employee works as retention, and others
-High center instead of
slave -Human capital
performance cost center.
-Low performance management was
-Employee works
-Low proactive enhanced to business
like a machine
-Low morale management
 1.6. Competitive Challenges of Human
35
Resources Management
The most pressing competitive issues facing
firms:
Going global
Embracing technology
Managing change
Developing human capital
Responding to the market
Containing costs
 Business Strategy: Issues Affecting HRM
36
37
Desired Outcomes of HRM

Attraction
Retention
Job Performance
Productivity
Employee Safety and Health
Attendance
Job Satisfaction
Competitive Advantage
Company Performance
 Impact of Human Resource Management
38
 Group Assignment 1 (30%)
39
Submission date: May 16, 2021 (for Group 1)
1. Group yourself into a team of not more than 5 people.
Each member has to demonstrate active engagement
in the assignment.
2. Explain the concepts in detail by giving appropriate
examples (including international experience): on
strategic human resource management
a) High performance management
b) High involvement management
c) High commitment management
d) Organization learning
3. Each group will present its findings in the class by
which each member’s contribution will be evaluated
as per his/her performance. (45’ for presentation)
Any Questions