International Master of Business Administration

Asia University

Introduction to
Human Resource Management

Angela 98221006
Tsendsuren 98183023
Learning objectives

 Identify differences of HR and HRM

 Understand the evolution of the human resource
function
 Explain what human resource management is and
how it relates to the management process
 Illustrate the human resource responsibilities of
line and staff HR managers
 Understand the changing environment of HRM
 Understand the changing role of HRM
 Find out human resource managers proficiencies
 Context
• Evolution of the Human Resource Function
• Human resource Management at work
• The changing environment of HRM
• The changing role of HRM
• The Human resource Managers Proficiencies
• Conclusion
• Reference
Evolution of the Human Resource Function
Human Resource Management at work

Differences of HRs and HRM

 are the people an organization employs to
carry out various jobs, tasks and functions in
exchange for wages, salaries, and other rewards
 Human resource management is the policies and
practices involved in carrying out the “people” or
human resource aspects of a management positioning
including recruiting, training, evaluating, rewarding
and appraising.
Basic tasks of Human Resource Management include:
 Why is HRM important to all managers?

Managers do not want to:

 Hire the wrong person for the job

 Experience high turnover

 Have the people not doing their best

 Waste time with useless interviews

 Have their companies taken to court because of discriminatory actions

 Have some employees think their salaries are unfair

 Commit any unfair labor practices

Line and Staff aspects of Human Resource Management
 Line authority to issue orders to other managers or
employees
 Staff authority to advise other managers or employees
 Line managers associated with sales and production
 Staff managers purchasing, HRM and quality control

 Human resource managers are staff managers

 They assist and advise line managers in areas like recruiting,

hiring and compensation
 Line Managers’ Human Resource Duties
 Placing the right person on the right job

 Starting new employees in the organization

 Training employees for jobs that are new to them

 Improving the job performance

 Developing smooth working relationships

 Controlling labor cost

 Protecting employees; health and physical condition

 Interpreting the company’s policies and procedures

Examples of Human Resource Management Specialties
The changing environment of human
resource management
 Globalization Trends
 Tendency of firms to extend their sales, ownership and
manufacturing to new markets abroad
 More globalization means more competition, and more
competition means more pressure to be ”world-class”- to
lower costs, to make employees more productive, and to do
things better and less expensively
 Globalization brings both benefits and threats
 Technological Trends
 Technology has huge impact on how people work, and on skills
and training today’s workers need
 More and more traditional factory jobs are going high-tech
Example: U.S. workforce
 The key to effectively using all that new technology is usually
not the technology but the people (Human resource managers)
 Workforce Demographic Trends
 Workforce demographic trend has been making finding and
hiring good employee more of a challenge. Why?
 Labor force growth is not expected to keep pace with job growth

 The labor force is getting older due to the decrease of baby

boomers born between 1946 and 1960, thus labor shortage is
about to take place
THE CHANGING ROLE OF
HUMAN RESOURCE MANAGEMENT
“ Personnel departments”
– Took over hiring and firing
from supervisors,
– Ran the payroll department,
– Administered benefit plans
The Changing Role of the
Human Resource Management

Today : HUMAN RESOURCE MANAGERS

Globalization new
Technological trend responsibilities
Nature of work trend
Strategic
Human Resource Management

Strategic Human Resource Management :

HR managers today are more involved in partnering with their
top managers in both designing and implementing their
companies’ strategies.

Top management wants to see, precisely, how the HR manager’s

plans will make the company more valuable.
Strategy of
Human Resource Management

The Organization of the future

requires a focus on new human
resource strategy. To compete
effectively, businesses must
attract, retain, motivate, and
utilize effectively the most of
human capital.
Creating High-Performance Work
Creating High Performance Work
Systems
System (HPWS)
 High-Performance Work System
-is an integrated set of HRM policies and practices that together
produce superior employee performance.

Most of the HRM practices can improve performance in through

• Use of Technology (electronic signature, internet monitoring
software etc,)
• Human resource Practices (testing, training etc, )
 Benefits of a
High-Performance Work System

• Generate more job applicants

• Screen candidates more effectively
• Provide more and better training
• Provide a safer work environment
• Produce more qualified applicants per position
• Hiring based on validated selection tests
• Provide more hours of training for new employees
 Human Resource Metrics
• Absence Rate
[(Number of days absent in month) ÷ (Average number of employees during mo.) × (number of
workdays)] × 100
• Cost per Hire
(Advertising + Agency Fees + Employee Referrals + Travel cost of applicants and staff + Relocation
costs + Recruiter pay and benefits) ÷ Number of Hires
• HR Expense Factor
HR expense ÷ Total operating expense
• Time to fill
Total days elapsed to fill requisitions ÷ Number hired
• Turnover Rate
[Number of separations during month ÷ Average number of employees during month] × 100

Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,”
Compensation and Benefits Review, January/February 2000, pp. 13–20;Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using
Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;]
SHRM/EMA 2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org.
THE HUMAN RESOURCE MANAGER’S
PROFICIENCIES
HR proficiencies

Leadership
proficiencies

Business
proficiencies

Learning
proficiencies
 Human Resource Certification

As Human Recourse Manager’s tasks grow more

complex, Human Resource is becoming more
professionalized.
Society for Human Resource Management
(SHRM)
– SHRM’s Human Resource Certification Institute
(HRCI)
 ‘SHRM’
– SHRM’s Human Resource Certification Institute offers
these exams.
• SPHR (senior professional in HR)
• PHR (professional in HR)
Including -Management practices
-Staffing
-Development
-Compensation
-Labor relations
-Health and safety
 Managing within the LAW
Human Resource Managers must be proficient in
applying employment law to employment decision.
– Equal employment laws (select candidates)
– Occupational safety and health laws (safety
practice at work )
– Labor laws
 Managing Ethics
Ethic refers to the standards someone uses to decide what his or
her conduct should be. Managing ethically is respects most
crucial, HR managers proficiency.

Most serious ethical issues

• Workplace safety

• Security or employee records

• Employee theft

• Affirmative action

• Comparable work

• Employee privacy rights

 Conclusion
• Staffing, human resource management includes activities like recruiting,
selecting, training, compensating, appraising and developing employees
• HRMs responsibilities include placing the right person in the right job, and
then orienting, training, and compensating to improve his or her job
performance
• HRM advises line managers in areas like recruiting, hiring and compensating
• There are three main changes that affects HRM which are globalization,
technological trend and workforce trend
• A strategic plan is the company’s plan for how it will match its internal
strengths and weaknesses with external opportunities and threats to
maintain a competitive advantage
• Strategic human resource management means formulating and executing
human resource policies and practices that produce the employee
competencies
• Four Proficiencies are HR proficiencies, business proficiencies, leadership
proficiencies and learning proficiencies

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 References
DeNisi Griffin (2001), Human Resource Management
Gary Dessler (2008), Human Resource Management
www.google.com
www.illustrationsof.com
 Thanks for your attention
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