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HRM Defined
Management is responsible for maintaining order; leadership is responsible for producing change.

Concerns the personnel policies, managerial practices and system

that influence the workforce by influencing employees’:
-behavior -attitudes -performance
HRM plays a major role in:
•Clarifying an organization’s human resource problems
•Developing solutions for them
Two groups normally perform HRM activities:
•HR manager-specialists
•Operating managers
HRM strategies must reflect the organization’s strategy regarding
people, profit, and effectiveness
An investment in people effects organizational effectiveness more
than money, materials, or equipment
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HRM and Organizational Effectiveness

For a firm to survive and prosper, reasonable goals must be
achieved in:
 Performance
 Legal compliance
 Employee satisfaction
 Absenteeism
 Turnover
 Training effectiveness and ROI
 Grievance rates
 Accident rates
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Objectives of the HRM Function

HRM Contributions to Effectiveness

Help the organization reach goals

Provide trained, motivated employees

Employ workforce skills/abilities efficiently

Increase satisfaction, self-actualization, quality of work life

Communicate HRM policies to all employees

Maintain ethical policies, socially responsible behavior

Manage change to the mutual advantage of individuals,

groups, the enterprise, and the public
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Impact of Human Resource Management

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HRM Activities
Five major domains of HRM
1. Organizational design: the interaction of people, technology and tasks
performed in the context of the mission, goals, and strategic plan of the
organization.
2. Staffing: recruitment, orientation, selection, promotion and termination.
3. Performance Management & Appraisal: assessments of individual, unit
or other aggregated levels of performance to measure, and improve work
performance.
4. Employee Training & Organizational Development: establishing,
fostering, and maintaining employee skills based on organizational and
employee needs.
5. Reward Systems, Benefits, & Compliance: any type of reward or
benefits available to employees

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HR Competencies

Business Professional &

Competence Technical
Knowledge

HRProfessional
HR Professional

Integration Ability to Manage

Competence and/or Lead Change
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A Brief History of HRM

English Masons, carpenters, leather workers,

Guilds other craftspeople

Industrial Changing work conditions and

Revolution social patterns

Scientific management, welfare work,

World Wars
industrial psychology
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Strategic Importance of HRM

Traditional HRM = focus Strategic HRM = all
on specialists managers are responsible
Responsibility for Specialists Line managers
human resources
Objective Better performance Improved understanding and
use of human assets
Role of HRM Respond to needs Lead, inspire, understand

Time focus Short-term results Short, intermediate, long

term
Control Rules, policies, position Flexible, based on human
power resources
Culture Bureaucratic, top-down, Open, participative,
centralization empowerment
Major emphasis Following the rules Developing people

Accountability Cost centers Investment in human assets

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Skills of HRM Professionals

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Median Salaries for HRM Positions

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Organization of an HR Department

ChiefHR
HR Typically
Typicallyreports
reportsto
tothe
the
Chief
Executive top
topmanager
manager
Executive

Small/Medium HRM
HRMand
andanother
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functionmay
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Small/Medium be
Firms bein
inaasingle
singledepartment
department
Firms

HRM
HRMisistypically
typicallyaaunit
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Nonprofits
Nonprofits business
businessoffice
office

HR specialists are usually located at the

headquarters of an organization
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HRM’s Place in Management

To educate others about the HR implications of

decisions, HR executives must understand

Production Marketing R&D

Investments IT Advertising
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Changes in the Professional World

• Work in small groups and identify five changes in the

professional world in the past 5 to 10 years.
• Identify one positive and one negative implication of
each change from an HR perspective.
• Record your changes and select a speaker from your
group to present your findings to the large group.