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AN INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

OBJECTIVES
Upon the completion of this session participants should be able:
1. To describe the activities of human resource management and the relationship between this and other organizational functions 2. To explain the concept and the philosophy of strategic human resource management 3. To assist in the implementation of strategic roles of human resource management

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Basic Functions of Organizations

PRODUCTION

MARKETING

HUMAN RESOURCE

FINANCE

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Organizational Resources

MONEY

PHYSICAL

MAN

MARKET

INFORMATION

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Human Resources are the most important resource among all the organizational resources for the reason.

It is men and women in the organization who will determine how the other resources are to be used

Through the qualities they have

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Qualities of Human Resources


Relevant knowledge Relevant skill Positive attitude Suitable physical and socialpsychological traits

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Human Resource Management

The process of acquiring, training, appraising, compensating, integrating, and separating human resources to help achieve both the organizational and individual objectives

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Human Resource Management Activities


ACQUISITION TRAINING APPRAISAL COMPENSATION

INTEGRATION
SEPARATION
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Managing human resource activities should not just be solely the responsibility of those in the human resource department

Every manager, irrespective of his or her function, must collaboratively implement all the human resource management activities

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All Managers are a Human Resource Manager

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Strategic HRM

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Organization and Strategy

Every organization must formulate appropriate strategies for itself in order to remain in existence (relevant)

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Hierarchy of Strategies

Corporate Business Functional

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Relationship Between HRM and Organizational Strategy

An organization needs to formulate and institutionalize all its human resource activities in order to develop core competencies to gain competitive advantage

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Core Competency
A unique capability that creates high value and differentiates the organization from its competitors

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An organization will be able to gain competitive advantage through its human resource, if this resource is:
1. Valuable

2. Scarce
3. Difficult to copy 4. Organized

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HR Areas for Core Competencies


Outstanding Service

Innovation

Productivity

Human Resources

Unusual Quality

Special Skills

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Strategic Human Resource Management

The process of linking human resource management with the organizational goals and objectives to create a culture (shared belief and behavior) that enables the organization to enhance its effectiveness

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ORGANIZATIONAL GOALS AND OBJECTIVES

HUMAN RESOURCE PRACTICES

ORGANIZATIONAL CULTURE

ORGANIZATIONAL EFFECTIVENESS

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Organizational Culture
Beliefs and practices that are shared by all or at least the majority of members in an organization

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Organizational culture is directly related to the Qualities of Human Resources

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An Example
Culture of excellence can happen only when the majority of employees have with them the relevant knowledge and skill, positive attitude towards their jobs and organization, and suitable physical and social-psychological attributes.

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An Example
Customer-focused culture can happen only when most or all employees have with them the human capital (knowledge, skill, attitude, and other attributes) that enables them to provide excellent services to their customers

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HUMAN RESOURCE PRACTICES

HUMAN CAPITAL

Acquisition

Knowledge Skill

Training
Appraisal Compensation Integration Separation
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Attitude
Physical traits Sociopsychological traits
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The Roles of Human Resource Management

TRADITIONAL ROLES

STRATEGIC ROLES

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The Traditional Roles of HRM


Focusing more on administration of employees Short-term orientation Separated from organizations strategy Focusing more on employee acquisition and compensation

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The Strategic Roles of HRM

STRATEGY IMPLEMENTATION

STRATEGY FORMULATION

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Strategy Implementation Role


Matching human resource strategies (eg. training and compensation) with organizations strategy Ensuring that every human resource practice helps the organization achieve its goals and objectives

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Strategy Formulation Role


Human Resource Manager is regarded

as a partner in the strategic planning process HR is involved in every step of strategic planning HR provides information on external environment and internal situation
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