Chapter 1

Overview of Human

Resource Management

“People, not buildings, make a

company successful”

References

DeCenzo, David A., Stephen

Robbins and Susan L. Verhulst.

Human Resource Management. 11th

Edition. 2013.

Dessler, Gary. Human Resource

Management. 15th Edition. 2017.

References

Noe, et. al. Human Resource

Management: Gaining a

Competitive Advantage . 11th

Edition. 2019.

Philips, J. & Gully, S. (2018).

Human resource management.

LEARNING OUTCOMES
At the end of the lesson, students will

be able to:

Define Human Resource

Management

Identify HRM Goals and Activities

Differentiate HRM’s different units

LEARNING OUTCOMES

At the end of the lesson, students will

be able to:

Identify the accountability of an HR

manager and its functions in an

organization.

Explain the different managers

involve in HRM in implementing

policies and procedures.

LEARNING OUTCOMES

At the end of the lesson, students will

be able to:
Explain the organization of the HR

Department.

Human Resource Management

Human Resources Management

Refers to the process of acquiring,

training, appraising, and

compensating employees, and of

attending to their labor relations,

health and safety, and fairness

concerns (Dessler, 2017).

Human Resource Management

Human Resources Management

Refers to the organizational function

responsible for attracting, hiring,

developing, rewarding and retaining

talent (Philips and Gully, 2018).

Human Resource Management

Human Resources Management

Refers to the policies, practices, and

systems that influence employees’

behavior, attitudes and performances

(Noe, et.al, 2019).

Involving “people practices”.

Importance of Human

Resource Management

Human Resource Management is

responsible for ...

1. The people dimensions of the

organization

2. Hiring competent people

3. Training employees

Importance of Human

Resource Management

Human Resource Management is

responsible for ...

4. Helping employees perform at high

levels,

5. Providing mechanisms to ensure

that these employees maintain their

productive affiliation with the

organization.

Importance of Human

Resource Management

HRM is the part of the organization

concerned with “people” dimension.

HRM can be viewed in one of two ways:

1. HRM is a staff or support function in

the organization.

Its role is to provide assistance in HRM

matters to line employees, or those

directly involved in producing the

organization’s goods and services.

Importance of Human

Resource Management

2. HRM is a function every

manager’s job.

Whether or not one works in a

formal HRM department, the fact

remains that to effectively

manage employees; all

managers must handle the

activities.

Human Resource Management

Manager

Someone who is responsible for

accomplishing the organization’s

goals, and who does by managing

the efforts of the organization’s

people (Dessler, 2018).

Personnel Aspects of a

Manager’s Job

Conducting job analyses (determining

the nature of each employee’s job)

Planning labor needs and recruiting job

candidates

Selecting job candidates

Orienting and training new employees

Managing wages and salaries

(compensating employees)
Personnel Aspects of a

Manager’s Job

Providing incentives and benefits

Appraising performance

Communicating (interviewing,

counseling and disciplining)

Training employees and developing

managers

Building employee relations and

engagement

Personnel Aspects of a

Manager’s Job

What a manager should know about:

Equal Opportunity and Affirmative

Action

Employee Health and Safety

Handling Grievances and labor

relations
1–#

Avoid Personnel Mistakes

Some of the personnel mistakes

managers don’t want to make while

managing.

To hire the wrong person for the job

To experience high turnover

To have your employees not doing

their best

1–#

Avoid Personnel Mistakes

Some of the personnel mistakes

managers don’t want to make while

managing.

To waste time with useless

interviews

To have your company in court due

to your discriminatory actions

1–#

Avoid Personnel Mistakes

Some of the personnel mistakes

managers don’t want to make while

managing.

To have your company cited by for

unsafe practices

To have some employees think their

salaries are unfair and inequitable

relative to others in the organization

1–#

Avoid Personnel Mistakes

Some of the personnel mistakes

managers don’t want to make while

managing.

To let a lack of training to undermine

your department’s effectiveness

To commit any unfair labor practices

1–#
Line and Staff Aspects of HRM

Authority

The right to make decisions, direct

other’s work and give orders.

1–#

Line and Staff Aspects of HRM

Line Authority

Traditionally gives managers the

right to issue orders to other

managers or employees.

Creates a superior (order giver) -

subordinate (order receiver)

relationship.

1–#

Line and Staff Aspects of HRM

Example:

When the Vice President of Sales

tell her Sales Director to “get” sales

presentation by Tuesday, she is

exercising her line authority.

1–#

Line and Staff Aspects of HRM

Line Manager

A manager who is authorized (has line

authority) to direct the work of

subordinates and is responsible for

accomplishing the organization’s tasks.

Line managers manage operational

functions that are crucial for the

company’s survival.

1–#

Line and Staff Aspects of HRM

Staff Authority

Gives a manager the right to advise

other managers or employees.

Example: When the HR manager

suggests that the Plant manager

use a selection test, he or she is

exercising staff authority.

1–#

Line and Staff Aspects of HRM

Staff Manager

Those with staff (advisory) authority

Run departments that are advisory

or supportive, like purchasing, HRM,

and quality control.

1–#

Line and Staff Aspects of HRM

Staff Manager

Assists and advises line managers in

areas of recruiting, hiring and

compensation.

Human Resource Managers are

usually staff managers.

1–#

Line Managers’ HRM

Responsibilities

Every line manager’s duties from the

president down to first-line

supervisors:

Placing the right person on the right

job

Starting new employees in the

organization (orientation)

1–#

Line Managers’ HRM

Responsibilities

3. Training employees for jobs that are

new to them

4. Improving the job performance of

each person

5. Gaining creative cooperation and

developing smooth working

relationships
1–#

Line Managers’ HRM

Responsibilities

6. Interpreting the firm’s policies and

procedures

7. Controlling labor costs

8. Developing the abilities of each person

9. Creating and maintaining department

morale

1–#

Line Managers’ HRM

Responsibilities

10. Protecting employees’ health and

physical condition

HRM is a subset of management. It

has five main goals:

Strong employees = competitive advantage.

Goals

of

HRM

hire

emplo

yees

attract

emplo

yees

retain

emplo

yees

motiva

te

emplo

yees

train
emplo

yees

Human Resource Management

Competitive Advantage

Refers to doing something

differently from the competition

that lead to outperformance and

success (Philips and Gully,

2018).

HRM Functions

HRM creates the system that

acquires, motivates, develops, and

retains talent and is a key source of

competitive advantage.