HUMAN RESOURCE

MANAGEMENT

HUMAN RESOURCE
MANAGEMENT

CHAPTER NO. 1
AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

 Understand the term HRM and importance of

HRM.
 Comprehend functions of HRM .
 Describe evolution of HRM.
 Identify key roles played by HR managers.
 Explain challenges faced by HR managers.
 Differentiate between HRM and international
HRM.
We can Divide this Term into Three Parts

HUMAN

RESOURCE

MANAGEMENT
HUMAN

?
 RESOURCE

FINANCIAL PHYSICAL
RESOURCES RESOURCES

Means debt, equity, retain Means building,

earnings and selected machinery, vehicle and
matters. other material.

ORGANIZATIONAL HUMAN
RESOURCES RESOURCE

Include the history of Includes skills, abilities,

experience and other work
groups in the
related characteristics of
organization, people associated with the
relationship, level of trust organization.
etc.
 MANAGEMENT

Management is the universal process of

getting activities completed with and
through other people to achieve
organizational goals.
HUMAN RESOURCE MANAGEMENT

The design of formal systems in an

organization to ensure effective and efficient
use of talent to accomplish organizational
goals.

Human Resource Management helps in

maximizing productivity & reducing cost
by Putting Right Person At Right Place.
EVOLUTION OF HRM

?
?
 EVOLUTION OF HRM Cont . . .

1. The Craft  Small level of production

System  Industrial Revolution
(1600s-1700s)

 One best way to accomplish the task

 Putting the right person on the job with the
2. Scientific correct tools and equipment
Management  Having a standardized method of doing the job
(Early 1900s)  Providing an economic incentive to the worker

3. Human  Hawthorne studies

Relations  Employee participation program
(Late 1920s –
Early 1930s)
 EVOLUTION OF HRM Cont . . .

4. Behavioral The study of the actions of people at work;

Sciences people are the most important asset of an
organization.

5. Personnel Involve in operational planning and decision

Management making & do not incorporate all HR
activities.

Involve in operational as well as strategic

6. Human planning and decision making & incorporate all
Resource HR activities(training, career development, EEO
Management
etc.)

Organizations need to be dynamic both in the

7. Intellectual
context of the management of individual
Capital
capabilities and the management of
Management
organizational structure.
FUNCTIONS OF HRM
External factors important for HR
External factors
 Today’s Question

1. State arguments for and against the following statement: there are
other things more valuable in an organization besides the people who
work there.
2. Of the seven tasks an HR manager does, which do you think is the most
challenging? Why?
 1. STAFFING

The activities in HRM concerned with

seeking and hiring qualified employees are
called Staffing.
 1. STAFFING

The basic objective of the staffing function

is to locate & secure competent employee.

COMPONENTS OF
STAFFING

a. Strategic Human
Resource Planning

b. Recruitment

c. Selection
 a. STRATEGIC HUMAN RESOURCE
PLANNING

Strategic Human Resource Planning is the

process by which an organization ensures that
it has right number and kind of people capable
of effectively and efficiently completing those
task that are in direct support of company’s
mission and strategic goals.
 b. RECRUITMENT
The process by which a job vacancy is identified and
potential employees are notified.

OBJECTIVES

 To obtain an adequate pool of applicants there by

more choice to the organization.
 Providing enough information about the job such
that those who are unqualified will not apply.
 c. SELECTION

Selection is the process by which an organization

chooses from list of applicants the person or
persons who meet the selection criteria for the
position available considering current
environmental conditions.
 c. SELECTION

• The primary objective of selection activities is to predict

which job applicant will be suitable if hired, during the
selection process, candidate are also informed about the
job and organization
• Proper selection can minimize the cost of replacement
and training resulting in more productive workforce
 FUNCTIONS OF HRM Cont . . .

Staffing TRAINING &

DEVELOPMENT
•Orientation
•Employee Training
Maintenance
HRM •Employee Development
•Organization Development
•Career Development
Motivation
 2. TRAINING & DEVELOPMENT

 Training is the systematic process of altering the behavior of

employees in a direction that will achieve organizational
goals.
 Development can be defined as “Efforts to improve
employees’ ability to handle a variety of assignments are.”
 2. TRAINING & DEVELOPMENT

The basic objective of Training & Development function is to

take competent workforce, adapt them to the
organization, and help them to obtain up-to-date skills,
knowledge, and abilities for their job responsibilities
 COMPONENTS OF
TRAINING & DEVELOPMENT

Orientati
on

Career
Employee
Developme
nt Training

Employee
Organization
Development
Developme
nt
 FUNCTIONS OF HRM Cont . . .

Staffing

Training
Maintenance
HRM &
Development

Motivation
 Motivation and Job Design
 Performance management
 Reward & Compensation
 Employee Benefits
 3. MOTIVATION

MOTIVATION

An inner force that impels human beings to

behave in a variety of ways.
 3. MOTIVATION

The basic objective of motivation

function is to retain good staff and to
encourage them to give of their best.
 COMPONENTS OF MOTIVATION
A job should be designed in a such a way that it
1. should facilitate the achievement of the
Job organizational objective, stimulate performance
Design and recognize the capacity and needs of those
who are to perform it.

Process which is used to identify, encourage,

2. measure, evaluate and improve employees
Performance through
Management performance appraisal.

Compensation is what employee receives in

3. exchange for their contribution to the organization.
Compensation Compensation management help the organization
Management to obtain, maintain and retain a productive
Workforce.
Employees benefit are generally membership
4.
Employee based ,non financial reward offered to attract and
Benefit
keep the employees, regardless their
FUNCTIONS OF HRM Cont . . .

Staffing

Maintenance
•Health & safety
•Communication HRM Training &
Development
•Employee relations
Motivation
4. MAINTENANCE FUNCTION

MAINTENANCE

Activities in HRM concerned with maintaining

employees commitment and loyalty to the organization.
4. MAINTENANCE FUNCTION

The last phase of HRM process is called maintenance

function. The main objective of this function is to do such
HRM activities that maintain employees commitment and
loyalty with the organization.
COMPONENTS OF MAINTENANCE
Health Designing and implementing
and programs to ensure employee
Safety health and safety.

Employee
Communi
s/ Labor
cation
Relation

 Serving as an intermediary between

Designing and implementing
the organization and its union.
 Designing discipline and grievance employee communication
handling systems. system.
 ROLES OF HR MANAGER
Serve as
Clerical “Morale
Administration
Officer”

Administr Employee
ative Advocate
Role Role

Operation
Strategic
al
Role
Role

HR Business
Activities Contributor
HR MANAGEMENT CHALLENGES

Economic and Technological

Changes

Workforce Availability and

Quality
Growth in Contingent
Workforce

Demographics and Diversity

Issues

Balancing Work and Family

Organizational Restructuring,
Mergers, and Acquisitions
 m a n
l H u nt
i o na e m e
n a t n ag
t e r M a
In rc e
e so u
R
 INTERNATIONAL
HRM (IHRM)
International HRM (IHRM) is the process of procuring,
allocating , and effectively utilizing human resources in a
multinational corporation.

HRM vs. IHRM

 Encompasses more functions.

 Has more heterogeneous functions.
 Involves constantly changing perspectives.
 Requires more involvement in employees’ personal lives.
 Influenced by more external sources.
 Involves greater level of risk than typical domestic HRM.
 THE CONCEPT OF
TRANSNATIONALITY
Each of these definitions, depending upon how the
organization perceives itself , has implications for the role
of international HRM.

Refers to companies that have developed a strategic

Multinational
posture and organizational capability that allow them
Companies
to be very sensitive and responsive to differences in
national environments around the world.
Refers to companies that have developed international
Global operations that are much more driven by the need for
Companies global efficiency and centralized in strategic and
operational decisions.
International Based on Transferring and adapting the parent
Companies company’s knowledge or expertise to foreign markets.
 FUNCTION OF
INTERNATIONAL HRM
Highlighting the broad functions of HRM,
Morgan (1986) has presented a model that
consist of three dimensions which are:

1. The Three broad Human Resource activities:

Procurement Allocation Utilization

2. The Three major Country categories involved in International

HRM activities:

Host country Home Country Other Country

3. The Three type of Employee of an International Firm:

Host country Parent Country Third Country

Nationals Nationals National
(HCNs) (PCNs) (TCNs)
 STAFFING APPROACHES

APPROACHES DEFINITIONS
MNC simply exports HR practices and policies used
in the home country to the foreign subsidiaries. It
ETHNOCENTRIC
Emphasizes consistency and integration across all
subsidiaries.
HR policies are adapted to meet the circumstances
POLYCENTRIC
in each foreign location.
Represents a regional grouping of subsidiaries. HR
REGIOCENTRIC policies are coordinated and integrated within the
region.
HR policies are developed to meet the goals of the
GEOCENTRIC global network of home country locations and
foreign subsidiaries.
 Evolution of
HRM

Scientific Human Behavioral Personnel Intellectual Capital

Craft System Management Relations Sciences Management
HRM Management

Goals of Enhancing Promoting Complying with Facilitating

Productivity & Individual Growth Legal & Social Organizational
HRM Quality & Development Obligations Effectiveness

CHAPTER : 1
Functions of
HRM

Human Resource
Scientific TRAINING
Scientific Scientific Scientific
Management STAFFING & MOTIVATION MAINTAINCE
Management Management Management Management
DEVELOPMENT

• Motivation & Job

• Orientation
Design
• Strategic Human • Employee Training
• Performance • Health & Safety
Resource planning • Employee Development
Management • Communication
• Recruitment • Organizational
• Reward & • Employee Relations
• Selection Development
Compensation
• Career Development
• Benefits

Roles of HR Administrative Employee

Operational Strategic
Manager Advocate

HR Management
Challenges Economic & Workforce Growth in Demographics Balancing
Mergers &
Technological Availability & Contingent & Diversity Work &
Acquisition
Changes Quality Workforce Issues Family

International The Concept Of Function Of Approaches to

HRM Vs. IHRM
HRM (IHRM) Transnationality International HRM IHRM
 THOUGHT OF THE DAY

People are definitely a company’s realest asset. It doesn't make

any difference whether the product is cars or cosmetics. A
company is only as good as the people it keeps.

“Mary Kay Ash”