Human Resource Management

Atikur Rahman
MBA (HRM), BBA (Mgts), RU
Senior Lecturer Business Administration
Faculty of Business Studies
Port City International university
Email: [email protected]

1–2
 Justification of HRM to be here

Human capital theory

Human capital is defined as "productive wealth embodied in

knowledge, talents, skills, abilities, experience,
intelligence, training, judgment, and wisdom" (OECD,
2001).

In fact, the investment in people is not only crucial for individuals

but it is also the key to the economic growth of a country.

As Alfred Marshall (1920) put it, "The most valuable of all capital
is that invested in human beings" (p. 564).
Human Capital in Transition
LET’S ADD VALUE AT HRM

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Human Resource Management at Work

• What Is Human Resource Management (HRM)?

 The process of acquiring, training, appraising, and compensating employees, and of
attending to their labor relations, health and safety, and fairness concerns.
• Organization
 People with formally assigned roles who work together to achieve the organization’s
goals.
• Manager
 The person responsible for accomplishing the organization’s goals, and who does so
by managing the efforts of the organization’s people.

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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 Human Resource Management Processes

Acquisition

Fairness Training

Human Resource
Management (HRM)
Health and Safety Appraisal

Labor Relations Compensation

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Personnel Aspects of a Manager’s Job
• Conducting job analyses
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment
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Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your firm in court because of discriminatory actions
• Have your firm cited by Occupational Safety and Health administration
(OSHA) for unsafe practices
• Have some employees think their salaries are unfair and inequitable
relative to others in the organization
• Allow a lack of training to undermine your department’s effectiveness
• Commit any unfair labor practices

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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 organization needs to
achieve its strategic goals.
• Looking ahead: Using evidence-based HRM to measure
the value of HR activities in achieving those goals.

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Line and Staff Aspects of HRM
• Line Manager
 Is authorized (has line authority) to direct the work of subordinates and is
responsible for accomplishing the organization’s tasks.
• Staff Manager
 Assists and advises line managers.
 Has functional authority to coordinate personnel activities and enforce
organization policies.

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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

Functions of
HR Managers

Line Function Coordinative Staff Functions

Line Authority Function Staff Authority
Implied Authority Functional Authority Innovator/Advocacy

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 Why is HRM important?

 Selecting, compensating, and retaining the talents

 Profitable employees’ satisfaction
 Employees’ engagement
 Enhancement of morality and spirituality
 It makes the job interesting and joyous
 Ensuring a sound and healthy workplace
 Facilitating team work
 Human Resource Specialties

Recruiter

Labor relations
specialist EEO coordinator

Human Resource
Specialties

Training specialist Job analyst

Compensation
manager
Trends Shaping Human Resource Management

Globalization
and Competition
Trends

Indebtedness
(“Leverage”) and Technological Trends
Deregulation
Trends in HR
Management
Trends in the Nature Workforce and
of Work Demographic Trends

Economic Challenges
and Trends
 Workforce and Demographic Trends
White is dropping
Asian is rising
Younger peopling is dropping
Aging are increasing
Workforce and Demographic Trends

Demographic Trends

Generation “Y” (1982-2004)

Trends Affecting
Human Resources
Retirees

Nontraditional Workers
Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work and

Jobs Jobs Human Capital
 Globalization and Competition Trends
More globalization meant more competition, and more competition meant more
pressure to be “world class”—to lower costs, to make employees more productive,
and to do things better and less expensively.

NAFTA, SAFTA, GCC, ASEAN, SAARC, BRICS, G8

Globalization causes to expand sales (Apple iPhone), acquire resources (Toyota),
sharing risks (Unilever) and extending ownership (Skyline).

HR Challenges: Apple in China, Toyota in USA, GE in France, and Dell in India

 Economic Trends

Human Resource Challenge:

Economic Boom (Labor force trends)
Great Depression (Labor force trends)
 Technological Advancements
Technology replaces human
Adamjee, RMG, KODAK, NOKIA et cetera

Automation replaces HR Professional

Social media
New mobile applications
Gaming supports
Cloud computing
Data analytics

Changes of work-processes:
Google and Apple
 Trends Shaping Human Resource Management

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 Important Trends in HRM

The New HR
Managers

Strategic High-Performance
HRM Work Systems
Human Resource
Management
Trends
Managing
Evidence-Based HRM
Ethics

HR
Certification
 New HR Managers
Society for Human Resource Management (SHRM) introduced a new “competency
model,” and it itemizes the competencies, skills, and knowledge and expertise human
resource managers need. SHRM says today’s HR manager should be able to exhibit:

Leadership & Navigation

Ethical Practice
Business Acumen
Relationship Management
Consultation
Critical Evaluation
Global & Cultural Effectiveness
Communication

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 The New
HR
Managers

HR and Strategy Strategic

HRM
High-
Performance
Work
Human
Systems
Resource
Manage
ment
Trends
Evidence- Managing

The New Human Resource Based HRM Ethics

Managers HR
Certificatio
n

Acquire broader
Find new ways to
Focus more on business
provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies

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 The New
HR
Managers

Evidence-Based HRM Strategic

HRM
High-
Performance
Work
Human
Systems
Resource
Manage
ment
Trends
Evidence- Managing
Based HRM Ethics

HR
Certificatio

Providing Evidence for HRM n

Decision Making

Actual Existing Research

measurements data studies
 The New
HR
Managers

High-Performance Work Systems Strategic

HRM
Human
High-
Performance
Work
Systems
Resource
Manage
ment
Trends
Evidence- Managing

HPWS sets of human resource management practices that Based HRM Ethics

together produce superior employee performance HR

Certificatio
n

• Increase productivity and performance by:

 Recruiting, screening and hiring more effectively
 Providing more and better training
 Paying higher wages
 Providing a safer work environment
 Linking pay to performance
 The New
HR
Managers

Managing Ethics Strategic

HRM
Human
High-
Performance
Work
Systems
Resource
Manage

• Ethics Evidence-
ment
Trends
Managing
Based HRM Ethics
 Standards that someone uses to decide what his or her conduct should be
HR
 Ethics refers to fundamental principles of right and wrong; ethical behavior is n
Certificatio

behavior that is consistent with those principles. Business decisions, including

HRM decisions, should be ethical, but the evidence suggests that is not always
what happens.
• HRM-related Ethical Issues
 Workplace safety
 Security of employee records
 Employee theft
 Affirmative action
 Comparable work
 Employee privacy rights
 Employees’ Rights
Ethical Standards Right of free consent
Right of privacy
Right of freedom of conscience
Right of freedom of speech
Right to due process

Ethical Standards:
Successful companies act
according to four principles.
First, in their relationships with
customers, vendors, and clients, ethical
and successful companies emphasize
mutual benefits.
Second, employees assume responsibility
for the actions of the company.
Third, such companies have a sense of
purpose or vision that employees value
and use in their day-to-day work.
Finally, they emphasize fairness; that is,
another person’s interests count as much
 The New
HR
Managers

HR Certification/Career Strategic
HRM
Human
High-
Performance
Work
Systems
Resource
Manage

• HR is becoming more professionalized. Evidence-

ment
Trends
Managing
Based HRM Ethics

• Bangladesh Society for HRM (BSHRM) HR

Certificatio
n

• Federation of Bangladesh Human Resource Organizations (FBHRO)

• Society for Human Resource Management (SHRM)
 SHRM’s Human Resource Certification Institute (HRCI)
 SPHR (Senior Professional in HR) certificate
 GPHR (Global Professional in HR) certificate
 PHR (Professional in HR) certificate

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