Human Resource

Management

Theories,Techniques and
Applications
Chapter 1 The Strategic Role of
Human Resource Management
Behavioral Objectives
When you finish studying this chapter, you should
be able to:
Answer the question, “What is Human Resource
Management?”
Discuss the components of the changing
environment of Human Resource Management.
Present examples of the new management
practices that are changing Human Resource
management.
Give examples of human Resource management’s
role as a strategic business partner.
Chapter Outline
 Human Resource Management at Work
 The Changing Environment of Human
Resource Management
 Tomorrow’s HR Today
 Strategic Planning and HR
Management
 The Plan of This Book
Key Words :
management process
The five basic functions of planning,
organizing, staffing, leading, and controlling.

human resource management

The policies and practices one needs to carry
out the “people” or human resource aspects
of a management position, including
recruiting, screening, training, rewarding, and
appraising.
Key Words :
authority
The right to make decisions, direct others’ work,
and give orders.

ling manager
A manager who is authorized to direct the work of
subordinates and responsible for accomplishing the
organization’s goals.

staff manager
A manager who assists and advises line managers.
Key Words :
line authority
The authority exerted by a personnel manager
by directing the activities of the people in his or
her own department and in service areas (like
the plant cafeteria).

implied authority
The authority exerted by a personnel manager
by virtue of others’ knowledge that he or she
has access to top management (in areas like
testing and affirmative action).
Key Words :
functional control
The authority exerted by an HR manager as
coordinator of personnel activities.

employee advocacy
HR must take responsibility for clearly defining
how management should be treating employees,
make sure employees have the mechanisms
required to contest unfair practices, and
represent the interests of employees within the
framework of its primary obligation to senior
management.
Key Words :

globalization
The tendency of firms to extend their sales
or manufacturing to new markets abroad.

competitive advantage
Any factors that allow an organization to
differentiate its product or service from
those of its competitors to increase market
share.
Key Words :
cost leadership
The enterprise aims to become the low-
cost leader in an industry.

differentiation
A firm seeks to be unique in its industry
along dimensions that are widely valued
by buyers.
 The Strategic Roles of HRM

1. What is human resource management?

2. Functions and divisions of human resource
management.
3. Evolution of human resource management
in the west.
4. Human resource management in China.
1. What is human resource management?

Definition of HRM:
Human resource management is to make
the most productive use of human resource
to the greatest benefits of the organization
and individuals.
Organization: profits and social
commitments.
Individuals: development and achievement.
The importance of HRM
(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s
economic growth potential, and labor quality is
the key to improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and
unpredictable variable of all production variables,
organizational success depends on the
management of people.
Organization and individual

(1) Organization needs: Profits, productivity and

markets.
(2) Individual needs: Maslows Need Hierarchy
Physiological needs, security, belonging, self-
respect and self-actualization.
(3) Coordinating organization and individual needs:
goal of HRM.
People and productivity
(1) Productivity: the measurement of economic
growth potential.
(2) Productivity formula: input : output
(3) Measurement of productivity:
a. Productivity of worker is the output per hour.
b. Productivity of equipment is the output per every
dollar invested.
c. Productivity of energy is the output per every unit
of energy consumed.
Employee quality and productivity

(1) Employee skill determines productivity.

Man and tools.
(1) Employee motivation affects productivity.
Willingness to perform.
(1) Employee creativity and initiatives improve
productivity.
innovation is the key to improvement.
6. Functions and divisions of HRM

(1) Management process

a. Planning.
b. Organizing.
c. Staffing.
d. Leading.
e. Controlling.
(2) Functions of HRM
a. Conducting job analysis.
b. Planning future needs and supplies.
c. Recruiting and selecting employees.
d. Orienting and training employees.
e. Managing wages and benefits.
f. Performance appraisal.
g. Communicating (discipline and services).
h. Building employee commitment
(incentives).
(3) Line managers’ HRM responsibilities

a. Job placing.
b. Orienting new employees.
c. On-job training of employees.
d. Interpreting company policies and procedures.
e. Conducting job appraisals.
f. Controlling labor costs.
g. Labor protection and disciplines.
(4) Staff managers’ HRM responsibilities

a. A line function: directing and managing people in

the HRM department.
b. A coordinating function: coordinating HRM
activities across the organization.
c. Staff functions:
Same as the HRM functions plus labor relations
and collective bargaining with the trade unions.
3. Evolution of HRM in the west

(1) Industrial Revolution:

a. Adam Smith: specialization and division of labor.
b. Robert Owens: Pioneer of HRM, performance
appraisal and pay for performance (fair treatment
of employees)
(2) Scientific management

Frederic Taylor: Father of scientific management

a. Definition:
Systematic analysis and breakdown of work
into the smallest mechanical components
and rearranging them into the most efficient
combination.
b. Steps:
Job analysis—selection—training—rewards.
(3) Industrial psychology

a. Hneri Fayol’s management functions:

Planning, organizing, communicating, coordina-
ting and controlling.
b. F. & L. Gilbreth’s principles of work simplification
(time and motion studies).
c. Henry Gantt’s principles of work scheduling.
d. Continuation of scientific management.
(4) Human behavior and relations

a. The Hawthorne Studies by Westing House

The happy workers are the most productive
workers. (The Pet Milk theory)
b. Max Weber: the Ideal Bureaucracy.
c. Chris Argyris: Individual and organization—
mutual adjustment.
d. Affected by the theories of behavioral science
and system theory.
(5) Three stages of growth of HRM

a. File Management (1900-1964):collecting and

storing data of each employee.
b. Government Accountability (1964-1980):
Compliance to government regulations.
c. Human Resource Management:
 Treating human resource as an asset.
 Emphasizing joint responsibilities of line
managers and staff managers.
5. HRM in China

(1) Administration:
a. Ministry of Labor
b. Ministry of Organization of the Central
Committee.
(2) Worker participation in China:
a. Worker Innovation and Workers’ Congress.
b. Stock sharing and voluntary grouping.
(3) Trade Union and its functions.
(4) Types of organizations and their HRM activities