Introduction to HRM

1. Introduction to Human resource
Management
Chapter 1

2. Chapter Contents
• What is HRM?
• Why is HRM Important to all managers
• Line and Staff Aspects of HRM

3.  Management process includes the planning,
organizing, staffing, leading, and
controlling activities that take place to
accomplish objectives.
 Human Resource Management (HRM) is
concerned with the “people” dimension in
management.

4.  Human resource management (HRM)
o Human Resource Management (HRM): The process of
accomplishing organizational objectives by acquiring,
training, apprising, and compensating employees,
and attending to their labor relations, health and
safety, and fairness concerns.
.
“People are not your most important asset, the
right people are” Jim Collins, Good To Great

5. People or Personnel Aspects Of A Management Job
 Conducting job analyses (determining the nature of each employee’s
job)
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries (compensating employees)
 Providing incentives and benefits
 Appraising performance
 Communicating (interviewing, counseling, disciplining)
 Training and developing managers
 Building employee commitment

6. A good HR manager don’t want to-
1. Hire wrong person for the job
2. Experience high turnover
3. Have people not doing their best
4. Waste time with useless interview
5. Have company taken to court because of discriminatory
actions, violating safety rules
6. Have some employees think their salaries are unfair and
inequitable relative to others
7. Allow a lack of training
8. Commit any unfair labor practices
HR creates value by engaging in activities that produce the
employee behaviors the company needs to achieve its
strategic goals.
Why is HRM important to all managers?

7. Line and Staff Aspects of HRM
• Authority: he right to make decisions, direct
others’ work and give orders.
• Line Authority: The authority practiced by the
managers by directing the activities of the people
in his/her own department and in service areas.
• Staff Authority: It gives the manager the right
to advise other managers or employees.

8. Line and Staff Aspect of HRM
• Line managers are authorized to direct the work of subordinates-
they are always someone’s boss. In addition, line managers are in
charge of accomplishing the organization’s basic goals.
▫ Line Authority: right to issue orders
• Staff managers are authorized to assist and advise line mangers in
accomplishing the basic organizational goals
▫ Staff Authority: right to advise
In small organizations, line manager may carry out all the personnel/HRM duties
unassisted. But as the organization grows, they need the assistance, specialized
knowledge, and advice of separate human resource staff.

9. 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

10. Functions of HR Manager
1. Line Function
 Exerts line authority within HR department and perhaps in related
areas.
2. Coordinative Function
 Functional control/authority – to ensure that line managers are
implementing the firm’s HR policies and practices
3. Staff (assist and advise) Function
 Assists in the hiring, training, evaluating, rewarding, counseling….
 Innovator role-updating on current trends and new methods of
solving problems
 Employee advocacy role
 Implied authority outside HR department (e.g. testing)

11. HR Organizational Chart (Small Company)

12. HR Department Organizational Chart (Large Company)

13. The Trends Shaping Human Resource Management
 Technological Trends
 Globalization and Competition Trends
 Indebtedness (Leverage) and Deregulation
 Trends in the Nature of Work
 Workforce and Demographics Trends
 Economic Challenges and Trends

14.  Technological Trends
◦ Job listings and advertisement through different social media
◦ HR Portals
◦ Internet / E&M Commerce /Enterprise Applications (e.g. Zara, DELL..)
 Globalization and Competition Trends
Globalization refers to tendency of firms to extend their sales,
ownership, and/or manufacturing to new markets abroad.
 WHY?
◦ Extend sales,
◦ Cut labor costs, manufacturing (Low wage countries),
◦ Forming partnerships
 Implications
◦ Both benefits and challenges
◦ For Business people: More competitions, pressure to be world class, lower costs.
Employees more productive: do things better and less expensively
◦ For Consumers – lower prices, higher quality
◦ For Owners- potentially millions of new consumers, and global competitions
◦ job offshoring (Back office/Support Service..)

15.  Indebtedness (Leverage) and Deregulation
◦ Relaxing regulation by government
◦ More debt by the business and consumers
 Trends in Nature of Work
◦ High Tech jobs blue collars-automated / trained
◦ Service Jobs- Shift from manufacturing to service Jobs
◦ Emphasis on Knowledge Workers and on Human Capital

16. Demography is the statistical study of human populations that
encompasses the study of the size, structure, and distribution of
these populations, and spatial and/or temporal changes in them in
response to birth, migration, aging, and death
 Workforce and Demographics Trends
◦ Median Age: USA, UK, Germany: 39 ~45 years
◦ Bangladesh, India: 23 -27 years
◦ Retirees / Young Workforce
◦ Baby Boomers, Generation X
◦ Generation Y: Work centric vs. Family centric, diverse race

17.  Economic Challenges and Trends
◦ GNP fell down and Unemployment Rate increased.
◦ Lots of money was in worthless loans
◦ Employers will be more creative in managing their HR.

18. Important Trends in Human Resource Management
The New Human Resource Managers
 Evolution of HR
◦ Took over hiring and firing from supervisors, payroll, and benefit
plans administration. (Transactional work)
◦ In the 1930s added “protecting the firm in its interaction with unions”
responsibilities (labor relations).
◦ Assumed organizational responsibilities for equal employment and
affirmative action. (HR legal issues)

19. How HR managers deal with challenges today?
1. They Focus on Big Picture Issues
 Grown broader and more strategic
 Internal Consultants – Inform and Support TOP Management
2. They focus on improving performance
3. They measure HR Performance and result
4. They use evidence based HRM
5. They add value
6. They Find New ways to provide Transactional Services
 Outsource ( such benefits administration)
 Use of Technology (Intranet-based Web sites, Table 1-2, page 19)
7. They take Talent Management Approach to Managing HR
8. They Manage Employee engagement

20. How HR managers deal with challenges today?
9. They Manage Ethics
10. They understand HR Philosophy
11. They Have New Proficiencies
 In addition to transactional Skills, require Business Knowledge &
Proficiencies
 Familiar with Strategic, Production,, Marketing , Finance (speak
like CFO) Planning

21. Employers Expectation:
 Strategic HRM
 High-Performance Work Systems (HPWS)
◦ Is a set of human resource management policies and practices that
together produce superior employee performance
 Evidence-Based HRM
◦ Use of data, facts, analytics, scientific rigor, critical evaluation…to
support HRM proposals, decisions, practices and conclusions.
◦ HR Metrics (Absence Rate, Cost per Hire, Health Care Costs per Employee ..) HR Score
Cards
 Managing Ethics
◦ Six of the ten most serious workplace issues were HRM related
 HR Qualifications

22. New Approaches to Organizing HR
1. Transactional HR Group
2. Corporate HR Group
3. Embedded HR unit
4. Centers of expertise
EXAMPLE: IBM’s 330,000 employees into three sets of “customers”:
 Executive and Technical employees
 Managers
 Rank and File
Focusing on talent, learning, and compensation for each segment