MASTER OF BUSINESS ADMINISTRATION

INTRODUCTION TO HRM

Chaminda Ramasundara
Management Skill Levels Matrix
40% 20%

50%

Introduction to HRM
 HRM Defined
• Human Resources Management (HRM) is a
strategic, integrated and coherent approach to the
management of an organisation’s most valued
assets – the people working there who individually
and collectively contribute to the achievement of
its objectives, (Armstrong, 2007).

• Human Resources Management comprises is the

management of work and people towards desired
ends, (Boxall, 2007).

Introduction to HRM
 Evolution of HRM
 SCIENTIFIC MANAGEMENT
◦ Frederick Taylor, Henry Gantt, Frank & Lillian Gilbreth

 INDUSTRIAL PSYCHOLOGY
◦ Munsterberg, Scott, Cattell

 HUMAN RELATIONS MOVEMENT

◦ Hawthorne Studies, Mayo, Follett, Lewin

 GROWTH OF INTERNATIONAL INSTITUTIONS /

REGULATIONS/MULTINATIONAL COMPANIES
◦ ILO

 PROFESSIONALIZATION OF HR MANAGEMENT
◦ Professional HR Societies

Introduction to HRM
 Evolution of HR Manager’s Role
Period HR Role played Tasks
1790 Operations / Line Manager Recruitment
Economic Man Discipline
Fredrick Taylor Working Hours
Wages
Working Conditions
1870 Accountant Wages
Economic Man Working Hours
Fredrick Taylor
1900 Administration Officer Discipline
Employee Records
Policy / Procedures
1920 Personnel Officer Discipline
Employee records
Policy / Procedures
Labour Legislation
1930 – 1950 Personnel Manager Social Welfare focus
Social Man
Elton Mayo – 1927
Introduction to HRM
Evolution of HR Manager’s Role (Contd.)

Period HR Role played Tasks

1965 Human Resources Manager Considered People as the

Greatest Resource
Achieving Man

1975 Human Talent Manager Considered more than a

resource
Complex Man

Introduction to HRM
HR Influence

Introduction to HRM
Human-Job Compatibility

Job
Deman
d

Introduction to HRM
HRM in Practice

HR
Cycle

Introduction to HRM
Human Resource Management in Practice

HRM practice is concerned with all aspects of

how people are employed and managed in
organisations

Key HR functions cover:

• Organisation development
• Corporate social responsibility
• Human capital management (KSA)
• Resourcing

Introduction to HRM
Human Resource Management in Practice (Contd.)

• Performance management
• Learning and development
• Reward management
• Employee relations
• Employee engagement
• Employee well-being
• Health and safety

Introduction to HRM
HR Cycle

Fombrun et al, 1984

Introduction to HRM
 Human Resource Cycle

• Selection – designed to match available

human resources to jobs
• Performance management – designed to
match performance to objectives and
standards
• Rewards – reinforcing short and long term
achievements
• Development – matching the skill quality of
the human resource to future requirements

Introduction to HRM
 Characteristics of HRM
• Diverse
• Strategic, with an emphasis on integration
• Commitment-oriented
• Based on belief that people should be treated as
human capital
• Unitratist rather than pluralist; with regard to
employee relations
• A management driven activity
• Focused on business values
Armstrong, (2007)

Introduction to HRM
 HRM and its Uniqueness

• People drive Businesses

• Human resource is more complex and
unpredictable in its behaviour
• Each individuals has distinct background
hence all cannot be treated alike
• Human resource is a resource which gets
appreciated day by day

Introduction to HRM
 Aims of HRM

• Organisational effectiveness
• Improve human capital
• Knowledge management
• Reward management
• Employee relations

Armstrong, (2007)

Introduction to HRM
HR Functional Diversity

Ulrich, (1997)

Introduction to HRM
 HRM Functional Diversity
• Administrative role for HR-Clerical administration

• Employee advocate role - Serve as a moral officer

• Operational role - Managing the HR activities

• Strategic role - As business contributor

 Enhancing organizational performance

 Strategic planning

 Decision making on mergers and acquisitions

 Redesigning organization and work process

 Ensuring financial responsibility

Ulrich, (1997)

Introduction to HRM
HR Functional Delivery

There is a dual responsibility

• HR manager

• Line manager

Introduction to HRM
Human Resource Functions in a Small Firm

CEO

HR & Admin
Manager

Introduction to HRM
 Human Resource Functions in a Large Firm

CEO

Director
Director Director Director
Human
Marketing Operations Finance
Resources

Manager, Manager,
HRD Manager
HR Manager Safety and Labor
Manager, Administration
Health Relations

Introduction to HRM
 HRM Functional Categorization

Vice President, Human Vice President,

Resources Industrial Relations

Manager, Training and

Manager, Development Manager, Staffing
Compensation

Executive:

Benefits Analyst Generalist:

Specialist:

Introduction to HRM
 HRM Objectives

• Achieve high performance through people

• Enhance commitment, job involvement and
organizational citizenship behaviour
• Develop good employee relations
• Meet the talent demand of the business
• Retain the skilled, committed and motivated talent

Introduction to HRM
 HRM Objectives (Contd.)

• Continuously motivate employees

• Enhance job satisfaction of the employees
• Control the cost of the employees
• Ensure employee development
• Increase quality of work life
• Ensure legal compliance

Introduction to HRM
 HR Challenges
• Manage with economic and technological business enhancement

• Ensure talent availability and quality

• Growth in contingent work force

• Handle demographic / diversity issues

• Ensure work/family balancing

• Handle organizational restructuring and mergers and acquisitions

• Be a strategic partner to the business process

Introduction to HRM
 HR Competencies
• Personal credibility

• Ability to manage change

• Ability to manage culture

• Delivery of Human Resource Practice

• Understanding of the business

Introduction to HRM
 Current Trends in HR
• EMPHASIS ON STRATEGIC PLANNING & SUCCESSION
– HR as a Strategic Business Partner , Management Succession Planning

• EMPHASIS ON COST-RELATED ISSUES / COST CONTROL

– Global Competition, Outsourcing and Downsizing

• NEW SPECIALTIES EMERGING IN HR

– HR Planning, International HR, Employee Assistance Programs, Work place
dialogue.

• PROFESSIONALIZATION OF HR MANAGEMENT
– Professional HR Societies.

• THE INTERNET REVOLUTION

– Electronic Recruiting, Records Management, and HRIS

Introduction to HRM
HRM and its Integration

Introduction to HRM
HR Transformation

Introduction to HRM
Thank you and Good Luck with
your Studies