Kabul University

Economics Faculty
MBA Program

Human Resource Management

Lecturer: Dr. Ahsanullah Barakzai

 In this Chapter…..
 Introduction
 Objectives
 What is Human Resource Management?
 Nature of HRM
 Scope of HRM
 Objectives of HRM
 Functions of HRM
 Role of HRM
 Introduction
Since mid 1980’s Human Resource Management (HRM) has gained acceptance
in both academic and commercial circle. HRM is a multidisciplinary
organizational function that draws theories and ideas from various fields such as
management, psychology, sociology and economics.

There is no best way to manage people and no manager has formulated how
people can be managed effectively, because people are complex beings with
complex needs. Effective HRM depends very much on the causes and conditions
that an organizational setting would provide. Any Organization has three basic
components, People, Purpose, and Structure.
In 1994, a noted leader in the human resources (HR) field made
the following observation:

Yesterday, the company with the access most to the capital or the
latest technology had the best competitive advantage;
Today, companies that offer products with the highest quality are
the ones with a leg up on the competition;

But the only thing that will uphold a company’s advantage

tomorrow is the caliber of people in the organization, That
predicted future is today’s reality.
Most managers in public- and private sector firms of all sizes would
agree that people truly are the organization’s most important asset.
Having competent staff on the payroll does not guarantee that a firm’s
human resources will be a source of competitive advantage.
However in order to remain competitive, to grow, and diversify an
organization must ensure that its employees are qualified, placed in
appropriate positions, properly trained, managed effectively, and
committed to the firm’s success.
The goal of HRM is to maximize employees’ contributions in order to
achieve optimal productivity and effectiveness, while simultaneously
attaining individual objectives (such as having a challenging job and
obtaining recognition), and societal objectives (such as legal
compliance and demonstrating social responsibility).
What is Human Resource Management?

HRM is the study of activities regarding people working in an

organization. It is a managerial function that tries to match an
organization’s needs to the skills and abilities of its employees.

Human resources management (HRM) is a management function

concerned with hiring, motivating and maintaining people in an
organization. It focuses on people in organizations.
Human resource management is designing management systems to
ensure that human talent is used effectively and efficiently to
accomplish organizational goals.
According to the Invancevich and Glueck, “HRM is concerned with the
most effective use of people to achieve organizational and individual
goals. It is the way of managing people at work, so that they give
their best to the organization”.

According to Dessler (2008) 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 comprises of HRM.

In short Human Resource Management (HRM) can be defined as the art

of procuring, developing and maintaining competent workforce to achieve
the goals of an organization in an effective and efficient manner.
Nature of HRM
HRM is a management function that helps manager’s to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in organizations.

The following constitute the core of HRM

 HRM Involves the Application of Management Functions and Principles.

 Decision Relating to Employees must be Integrated.
 Decisions Made Influence the Effectiveness of an Organization.
 HRM Functions are not Confined to Business Establishments Only but applicable
to nonbusiness organizations such as education, health care, recreation and like.

HRM refers to a set of programs, functions and activities designed and carried out in order
to maximize both employee as well as organizational effectiveness.
Scope of HRM
The scope of HRM is indeed vast. All major activities in the working life of a
worker – from the time of his or her entry into an organization until he or she
leaves the organizations comes under the purview of HRM.

The major HRM activities include HR planning, job analysis, job design,
employee hiring, employee and executive remuneration, employee motivation,
employee maintenance, industrial relations and prospects of HRM.

The scope of Human Resources Management extends to:

 All the decisions, strategies, factors, principles, operations, practices,
functions, activities and methods related to the management of people as
employees in any type of organization.

 All the dimensions related to people in their employment relationships, and

all the dynamics that flow from it.
American Society for Training and Development (ASTD) conducted
fairly an exhaustive study in this field and identified nine broad areas of
activities of HRM.
a) Human Resource Planning: The objective of HR Planning is to
ensure that the organization has the right types of persons at the right
time at the right place.
b) Design of Organization and Job: This is the task of laying down
organization structure, authority, relationship and responsibilities.
c) Selection and Staffing: This is the process of recruitment and
selection of staff.
d) Training and Development: This involves an organized attempt to
find out training needs of the individuals to meet the knowledge and
skill which is needed not only to perform current job but also to
fulfill the future needs of the organization.
e) Organizational Development: This is an important aspect whereby
“Synergetic effect” is generated in an organization i.e. healthy interpersonal
and inter-group relationship within the organization.
f) Compensation and Benefits: This is the area of wages and salaries
administration where wages and compensations are fixed scientifically to
meet fairness and equity criteria.
g) Employee Assistance: Each employee is unique in character, personality,
expectation and temperament.
h) Union-Labor Relations: Healthy Industrial and Labor relations are very
important for enhancing peace and productivity in an organization.
i) Personnel Research and Information System: Knowledge on behavioral
science and industrial psychology throws better insight into the workers
expectations, aspirations and behaviour.
Objectives of HRM
The primary objective of HRM is to ensure the availability of competent and
willing workforce to an organization.
The specific objectives include the following:
1) Human capital : assisting the organization in obtaining the right number and
types of employees to fulfill its strategic and operational goals.
2) Developing organizational climate: helping to create a climate in which
employees are encouraged to develop and utilize their skills.
3) Helping to maintain performance standards and increase productivity through
effective job design; providing adequate orientation, training and development;
providing performance-related feedback; and ensuring effective two-way
communication.
4) Helping to establish and maintain a harmonious employer/employee relationship
5) Helping to create and maintain a safe and healthy work environment.
6) Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the productive
employees.
7) Ensuring that the organization is in compliance with provincial/territorial
and federal laws affecting the workplace (such as human rights, employment
equity, occupational health and safety, employment standards, and labor
relations legislation). To help the organization to reach its goals.
8) To provide organization with well-trained and well-motivated employees.
9) To increase the employees satisfaction and self-actualization
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior.
The above stated HRM objectives can be summarized under four
specific objectives: Societal, Organizational, Functional and Personnel.

1) Societal Objectives: seek to ensure that the organization becomes socially

responsible to the needs and challenges of the society while minimizing the
negative impact of such demands upon the organization.
2) Organizational Objectives: it recognizes the role of HRM in bringing
about organizational Effectiveness.
3) Functional Objectives: is to maintain the department’s contribution at a
level appropriate to the organization’s needs.

4) Personnel Objectives: it is to assist employees in achieving their personal

goals, at least as far as these goals enhance the individual’s contribution to
the organization.
 Functions of HRM
The functions are responsive to current staffing needs, but can be proactive in
reshaping organizational objectives.
All the functions of HRM are correlated with the core objectives of HRM (Table
1.1). For example personal objectives is sought to be realized through functions
like remuneration, assessment etc.
HR management can be thought of as seven interlinked functions taking
place within organizations, as depicted in Figure 1.3 Additionally, external
forces—legal, economic, technological, global, environmental,
cultural/geographic, political, and social—significantly affect how HR
functions are designed, managed, and changed.

The functions can be grouped as follows:

1. Strategic HR Management:
2. Equal Employment Opportunity:
3. Staffing:
4. Talent Management and Development:
5. Total Rewards:
6. Risk Management and Worker Protection
7. Employee and Labor Relations:
 1. Strategic HR Management: As a part of maintaining organizational
competitiveness, strategic planning for HR effectiveness can be increased
through the use of HR metrics and HR technology.
2. Equal Employment Opportunity: Compliance with equal employment
opportunity (EEO) laws and regulations affects all other HR activities.
3. Staffing: The aim of staffing is to provide a sufficient supply of qualified
individuals to fill jobs in an organization. Job analysis, recruitment and
selection are the main functions under staffing.
4. Talent Management and Development: Beginning with the orientation of new
employees, talent management and development includes different types of
training.
5. Total Rewards: Compensation in the form of pay, incentives and benefits are
the rewards given to the employees for performing organizational work.
6. Risk Management and Worker Protection: HRM addresses various workplace
risks to ensure protection of workers by meeting legal requirements and being
more responsive to concerns for workplace health and safety along with disaster
and recovery planning.

7. Employee and Labor Relations: The relationship between managers and their
employees must be handled legally and effectively. Employer and employee
rights must be addressed.
Role of HRM
The role of HRM is to plan, develop and administer policies and
programs designed to make optimum use of an organizations human
resources.
It is that part of management which is concerned with the people at
work and with their relationship within enterprises.
Its objectives are:
(a) effective utilization of human resources,
(b) desirable working relationships among all members of the
organizations.
(c) maximum individual development.
According to Dave Ulrich HR play’s four key roles:

1. Strategic Partner Role-turning strategy into results by building

organizations that create value.
2. Change Agent Role- making change happen, and in particular, help it
happen fast.
3. Employees Champion Role—managing the talent or the intellectual
capital within a firm.

4. Administrative Role—trying to get things to happen better, faster and

cheaper.
According to R.L Mathis and J. H. Jackson (2010) several roles can be
fulfilled by HR management. The nature and extent of these roles depend
on both what upper management wants HR management to do and what
competencies the HR staff have demonstrated.
Three roles are typically identified for HR. The focus of each of them, as
shown in Figure 1.
1. Administrative Role of HR
The administrative role of HR management has been heavily oriented to
administration and recordkeeping including essential legal paperwork and
policy implementation. Major changes have happened in the administrative
role of HR during the recent years. Two major shifts driving the transformation
of the administrative role are: Greater use of technology and Outsourcing.
2. Operational and Employee Advocate Role for HR
HR managers manage most HR activities in line with the strategies and
operations that have been identified
by management and serves as employee “champion” for employee issues and
concerns.
3. Strategic Role for HR
The administrative role traditionally has been the dominant role for HR.
However, as Figure 1.4 indicates that a broader transformation in HR is needed
so that significantly less HR time and fewer HR staff sare used just for clerical
work.
 Reference books
 Michael Armstrong (1999), A Handbook of Human Resource Management Practice
(7th edition), Kogan Page Limited, 120 Pentonvelle Road, London.

 Biswajeet Pattanayak (2001), Human Resource Management, Prentice Hall of India

Pvt. Ltd., New Delhi.
 Aswathappa. K. (2008), Human Resource and Personnel Management (5th edition),
Tata McGraw-Hill Publishing Company Ltd., New Delhi.

 Lloyed L. Byers and Leslie W. Rue (1997), Human Resource Management (5th
edition), The McGraw-Hill Companies, USA.