Human Resource Management:

Finding and Keeping the Best

Employees

By:
Heema Rani

By: Ali Mustafa

What is
HRM?
•HRM is concerned with the people’s dimension
in the organization
•Facilitating the competencies and retention of
skilled force
•Developing management systems that
promote commitment
• Developing practices that foster team
work
• Making employees feel valued and
rewarded.
By: Ali Mustafa
Def i ni t i o n
Human resource management (HRM or HR) is
the strategic approach to the effective management
of people in a company or organization such that
they help their business gain a competitive
advantage. It is designed to maximize employee
performance in service of an employer's strategic
objectives.

Human resource management is primarily

concerned with the management of people within
organizations, focusing on policies and systems.

By: Ali Mustafa

 Scope of
HRM Prospects
of HRM
Nature of
HRM
 Very Vast
 Covers all major
activities in the
Industrial working life of a
Relations
Employee
Hiring worker
HRM
-from time an
individual enters
Employee Employee
into an
Maintenance &
Executive
organization until
Remuner
ation
he or she
Employee leaves
Motivation
comes under the
purview of HRM
By: Ali Mustafa
 Functions
Functions of HRM include:
• Facilitating the retention of skilled and competent
employees
• Building the competencies by facilitating
continuous
learning and development
•Developing practices that foster team work and
flexibility
• Making the employees feel that they are valued and
rewarded for their contribution
• Developing management practices that expose
high
commitment
• Facilitating management of work force diversity and
By: Ali Mustafa
 Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing Motivation
Controlling Maintenance
Integration
Emerging Issues
By: Ali Mustafa
 Operative functions of HR

STAFFING Job analysis, HRP, Recruitment,

Selection, Placement,
Induction, Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

COMPENSATION Job design, Work scheduling, Job

evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
By: Ali Mustafa
Operative functions of HR (contd.)

Health, Safety, Welfare,

MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining

EMERGING HRIS, HR audit, HR scorecard,

ISSUES International HRM,
Workforce Diversity
By: Ali Mustafa
HRM and 3
P’s
• People – core strength of an organization

Any resource can be replaced but not HR

• Processes – evolve over a period of time
IT enabled environment facilitates engineering
effortlessly
• Performance – the pillars of
performance are people and IT
Organizational performance in terms of value
creation and return on investment

By: Ali Mustafa

The Manager’s Human Resource
Management Jobs

• Management process
• The five basic functions of planning, organizing,
staffing, leading, and controlling.
• Human resource management (HRM)
• The policies and practices involved in carrying out the
“people” or human resource aspects of a management
position, including recruiting, screening, training,
rewarding, and appraising.

1–10
Basic HR Concepts
• Getting results
• The bottom line of managing
• HR creates value by engaging
in activities that produce
the employee behaviors
the company needs to
achieve its strategic
goals.

1–11
Line and Staff Aspects of HRM
1. Line manager
• A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks.
2. Staff manager
• A manager who assists and advises line managers.

1–12
Line Managers’ HRM
Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
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
10. Protecting employees’ health and physical condition

1–13
Functions of the HR Manager
1. A line function
• The HR manager directs the activities of the people in
his or her own department and in related service areas
(like the plant cafeteria).
2. A coordinative function
• HR managers also coordinate personnel activities, a
duty often referred to as functional control.
3. Staff (assist and advise) functions
• Assisting and advising line managers is the heart of the
HR manager’s job.

1–14
HR and Authority
• Authority
• The right to make decisions, direct others’ work, and
give orders.
1. Implied authority
• The authority exerted by an HR manager by virtue of
others’ knowledge that he or she has access to top
management.
2. Line authority
• The authority exerted by an HR manager by directing
the activities of the people in his or her own
department and in service areas.
1–15
Examples of HR Job Duties
1. Recruiters
• Search for qualified job applicants.
2. Equal employment opportunity (EEO)
coordinators
• Investigate and resolve EEO grievances, examine
organizational practices for potential violations, and
compile and submit EEO reports.
3. Job analysts
• Collect and examine information about jobs to prepare
job descriptions.

1–16
Examples of HR Job Duties
(cont’d)
4. Compensation managers
• Develop compensation plans and handle the
employee benefits program.
5. Training specialists
• Plan, organize, and direct training activities.
6. Labor relations specialists
• Advise management on all aspects of union–
management relations.

1–17
HR Organizational Chart (Small Company)

Figure 1–2
1–18
*
 JOB
• A paid position of regular employment.

•  Task or piece of work, especially one that is

paid.
 *
 Job Analysis
“Job Analysis is the process of studying and collecting
information relating to the operations and responsibility of a
specific job”.

Job Design
“Job Design involves systematic attempt to organize tasks ,duties
and responsibilities into a unit of work to achieve certain
objective”.

 Job Evaluation
“Job Evaluation is a systematic and orderly process of
determining
the worth of a job in relation to other jobs”.
*
*
JOB DESCRIPTION
• Job Identification
• Job summary
• Job duties and responsibilities
• Working conditions
• Machines tools and
equipment's
• Social environment
• Supervision
• Related to other job.
*
• Qualifications
• Experience
• Physical characteristics
• Psychological characteristics
• Social characteristics
*
1. Facilitates proper publicity of job

2. Selection of psychological test

3. Facilitates purposeful interviews

4.Facilitates appropriate medical

examination

5.Facilitates scientific selection

placement and orientation

6.Facilitates scientific promotions and

transfers
*
 The process of defining how work will be
performed and what tasks will be required in a
given job.

 Factors affecting job designing

 Organizational factors
 Environmental factors
 Behavioral factors
*
 The process of determining how much a job should
be paid, balancing two goals
 Internal Equity
 External Competitiveness
*
Performs 3 main functions:
*Identifies 10-15 key benchmarks
*Selects some compensable factors
*Evaluate the worth of each job via
one of the methods.
 *
Employee Satisfaction is Organization’s Success