Human Resource Management

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 ANSWER

• HUMAN RESOURCE MANAGEMENT

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 Introduction to HRM

• Two questions:
– Does it matter?
– Why does it matter?
• What is HRM?
– Organization’s methods and procedures for managing
people to enhance skills and motivation
– Activities to enhance the organization’s ability to
attract, select, retain and motivate people
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 Definitions

According to Donnelly and Gibson

HRM is the process of accomplishing
organizational objectives by acquiring, retaining,
terminating, developing and properly using the human
resources in an organization.
According to Gary Dessler
HRM refers to 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.

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 Outsourcing HR
• Would it just make more sense to outsource
HR functions?
• Many organizations are doing just this
– Recordkeeping and administrative, perhaps
– Basic functions…..
 Approaches to Revitalizing HR
• Accounting for human resources
• Managing people for competitive advantage
 Costing HR: Example
• The costs of turnover per individual:
– Exit interviews
– Unemployment tax
– Recruitment advertising Calculated
– Staff time to interview applicants per person,
– Reference checking, medical exams then
– Training new employees totaled
• Costs of reducing turnover
– Additional training
– Realistic job previews
• Net savings

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 Human Resources and Competitive
Advantage
• The basic idea: establishing and maintaining
competitive advantage through people.
• Competitive advantage:
Valuable, rare, inimitable, non substitutable

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 Objectives of HRM
 Societal Objectives:
To be ethically and socially responsible to the
needs and challenges of the society while
minimizing the negative impact of such
demands upon the organization.
 Organizational Objectives:
To recognize the role of HRM in bringing about
organizational effectiveness.

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 Objectives of HRM
• Functional Objectives:
To maintain the department’s contribution at a
level appropriate to the organization’s needs
• Personal Objectives:
To assist employees in achieving their personal
goals, at least insofar as these goals enhance
the individual’s contribution to the
organization

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

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

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 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 that are 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
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Human Resource Managers’ Duties
Line Function Coordinative
Line Authority Function
Implied Authority Functional Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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Human Resource Specialties
Recruiters

Labor Relations EEO

Specialists Coordinators
Human
Resource
Specialties
Training
Job Analysts
Specialists

Compensation
Managers

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 FIGURE 1–1
HR Organization Chart
for a Large Organization

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FIGURE 1–2 HR Organizational Chart (Small Company)

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Scope of HRM

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 Functions of HRM

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HR Functions: What We’ll Be Looking At
Planning
Employee and
Legal
Labor Relations
Compliance

Training
and
Staffing
Development

Reward
Systems
Fall 2008 Management 412 / Intro to HRM Page 27
The link between HRM and firm performance
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 Emerging trends of Human Resource
Management in globalized economy
• TALENT MANAGEMENT
• ABSCONDING EMPLOYEES

• BALANCE SCORE CARD:A balanced scorecard is a performance metric used in strategic management to identify
and improve various internal functions of a business and their resulting external outcomes. It is used to measure
and provide feedback to organizations. Data collection is crucial to providing quantitative results, as the
information gathered is interpreted by managers and executives, and used to make better decisions for the
organization.

• OUT SOURCING

• SIX SIGMA: Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. The method uses a
data-driven review to limit mistakes or defects in and process. Six Sigma emphasizes cycle-time improvement
while at the same time reducing manufacturing defects to a level of no more than 3.4 occurrences per million
units or events. In other words, the system is a method to work faster with fewer mistakes.

• HUMAN RESOURCE DEPARTMENT

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 Trends for HR in the 21st Century

 Becoming the employer of choice

 Winning the war for talent
 Contributing to the organization as a strategic business
partner
 Cultivating leadership through e-learning and development
 Recognizing the workforce as a profit center
 Thinking globally while complying locally
 Incorporating flexibility and adaptability into the
organization
 Embracing technology as the underlying facilitator

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 ROLE OF HR MANAGER

• PERSONAL ROLE- Advising, Training, selection etc.

• WELFARE AND COUNSELOR ROLE- Maintenance, Group Dynamics, Motivation,

leadership

• ADMINISTRATIVE ROLE- Salary &wages, maintenance of records, human engineering

• FIRE FIGHTING AND LEGAL ROLE- Grievance handling, settlement of dispute, Handling

discipline, joint consultation.

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 Qualities of HR Manger

• Insight in human nature

• Freedom from bias

• Passion for Anonymity

• Communication skill

• Leadership and Organisational skills

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