Introduction to Human

Resource Management
(HRM)

What Is Management?

Managers perform 5 basic

functions:
Planning,
Organizing,
Staffing,
Leading, and
Controlling.
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Managers Perform 5 Basic

Functions

Planning

Because organizations exist to achieve some

purpose, someone has to define that purpose
and find ways to achieve it. A manager is that
someone and does this by planning.
Planning includes:
Defining goals
Establishing strategy
Developing plans to coordinate activities
To ensure that:
work to be done is kept in proper focus
organizational members keep their attention on
what is important.
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Organizing

Managers are also responsible for

arranging and structuring work to
accomplish the organizations goal. This
function is called organizing.
It includes:
Determining what tasks are to be done
and by whom, how tasks are to be
grouped, who reports to whom, and
where decisions are to be made.
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Leading

Part of a managers job is to direct and

coordinate the work activities of
employees. This is the leading function.
Leading includes:
Motivating employees
Directing the work activities of others
Selecting the most effective
communication channel
Resolving conflicts among employees.
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Controlling

Controlling involves monitoring, comparing,

and correcting work performance.
After the goals are set, the plans formulated,
the structural arrangements determined, and
the people hired, trained, and motivated,
there has to be some evaluation to see if
things are going as planned.
Any significant deviations will require that
the manager get work back to track.
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Staffing

Staffing involves HR activities in creating and

maintaining a workforce.
It involves:
Evaluating organizations needs and develop
plans to meet those needs (HR planning).
Analyzing job requirements to develop a picture
of the jobs that people will be doing and the
competencies required to do those jobs well (job
analysis).
Recruiting people to fill jobs and maximizing the
retention rates of those who perform well in the
jobs (attracting, selecting, placement, and
retaining).
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What Is HRM?

Heavily involves in the staffing

function
It is about the utilization of
employees to achieve
organizational objectives.

What Is HRM?

Definition:
The policies and practices involved
in carrying out the people or
human resource aspects of a
management position, including
recruiting, training, appraising and
rewarding employees.
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HR Activities or Functions

Human resource planning

Staffing (recruitment, selection, placement, and
retaining employees)
Human resource development (training)
Performance management (performance appraisal
or evaluation)
Compensation and benefits (rewards)
Grievances and disciplines (employment relations)
Employee safety and health (well-being)
Industrial relations (management-employee
relations)
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Interrelationships of HRM
Functions

Examples:
Recruitment and selection (staffing)
will have an impact on training (HR
development) and vice versa.
Training will have an impact on
performance appraisal (performance
management), which in turn, will
affect compensation of the
employees.
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Questions

Are managers of various functional

areas (production, marketing,
finance, and others) involved in HR
activities?
Or, just the HR managers involve
in HR activities?

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HR Aspects of A Managers
Job

HRThe people aspects of the

management job:
Conduct job analysis.
Plan manpower needs, recruit, and
select job applicants.
Place the right people on the right
job.
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HR Aspects of A Managers
Job

Orient new employees.

Train employees for jobs that are new to
them, upgrade the skills and develop
the abilities of the existing employees.
Manage wages, incentives, and benefits.
Appraise performance to maintain or
improve employees performance.

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HR Aspects of A Managers
Job

Interpret companys HR policies and

procedures.
Control employee costs.
Maintain employee morale.
Build employee motivation and
commitment.
Protect employees health and safety.
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HR Aspects of A Managers
Job

Interview, counsel, and discipline

employees.
Understand employment laws.
Handle grievances and employee
relations.
Develop good working
relationships among employees.
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HR Aspects of A Managers
Job

All managers are, to some extent,

HR managers.
All managers at every level must
concern themselves with human
resource management.
They recruit, train, appraise, and
reward their employees.
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Line and Staff Aspects of

HRM

Yet, many companies also have a

HR dept. with a HR manager.
Are the duties of HR managers
different from those of line
manager?
We can answer this question by
discussing the difference between
line authority and staff authority.
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Line and Staff Aspects of

HRM

Authority--The right to make decisions, direct

others work, and give orders.
Line Authority--The authority of managers to
direct people in his or her own department.
It creates a supervisor-subordinate
relationship.
Staff Authority--The authority gives right to a
manager (such as the HR manager) to
advise other managers or employees. It
creates an advisory relationship.
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Line and Staff Aspects of

HRM

Line Manager (has line authority)--A

manager who is authorized to direct the
work of subordinates and is responsible
for accomplishing the organizations tasks.
Staff Manager (has staff authority)--A
manager who assists and advises line
managers.
Staff managers have staff authority but
they also have line authority within their
own departments.
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Line and Staff Aspects of

HRM

HR managers are staff managers.

They assist and advise line managers in
areas like recruiting, training,
appraising, and rewarding.
However, HR managers have line
authority within their own departments.
And other line managers also have HR
duties, as described in the HR aspect of
a manager previously.
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Line Managers HR Duties

In small organizations, line

managers may carry out all these
HR duties.
In large organizations, line
managers need the specialized
knowledge and advice of a
separate HR dept.
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HR Managers Duties
In sum, a HR manager carries out 3
distinct functions:

Line function

Coordination function

Staff function

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HR Managers Duties

Line Function:
The HR manager directs the
activities of the people in his or her
own department and in related
service areas (such as the
cafeteria facilities in a plant).

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Line Function

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HR Managers Duties

Coordination Function:
HR managers also coordinate
personnel activities, a duty often
referred to as functional control.

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Coordination Function

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HR Managers Duties

Staff Function:
Assisting and advising line
managers is the heart of the HR
managers job.

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Staff Function

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HR Cooperation with Line

ManagersAn Example

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Why is HRM Important to

Managers?

Ask yourself these questions before you

answer the above question:
Do you want to:
Hire the wrong person for the job?
Have a high employee turnover?
Waste time with useless interviews?
Find that your people are not performing?
Commit any unfair employment practices?
Have your company sued for
discriminatory actions or unsafe practices?
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Why is HRM Important to

Managers?

You may do everything right as a

manager, but you may fail as a manager
because you have hired the wrong people
or you do not know how to motivate your
employees to perform their best.
Managers can be successful if:
They have hired the right people for the
right jobs.
They motivate, appraise, and develop
these people.
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Why is HRM Important to

Managers?

Another reason why HRM is

important is that it deals with human
capital in organizations, which can be
a strength for creating competitive
advantage for an organization.
There are many resources that affect
organizational performance, and
human capital is one of them.
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Organizational Resources

Basically, four types of assets in organizations:

Physical, financial, intangible, and human.
Physical--buildings, land, computers, vehicles,
equipment, etc.
Financialcash, stocks, loans, funds, etc.
IntangibleR & D, patents, information
systems, designs, know-how, etc.
Human capitalindividuals with talents,
capabilities, experience, professional expertise,
relationships, etc.
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Human Capital in
Organizations

Human capital is defined as the collective

value of the capabilities, knowledge,
skills, life experiences, and motivation of
an organizational workforce.
Sometimes it is called intellectual capital
to reflect the thinking, knowledge,
creativity, and decision making that
people in organizations contribute.

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HR as a Core Competency

Human capital is not solely the

people in organizations--it is what
those people bring and contribute
to organizational success.
HR can be a core competencya
unique capability that creates high
value and differentiates an
organization from its competitors.
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Environment of HRM

A HR consultant once said: HR

professionals need to scan the
environment everyday whether by the
Internet, newspaper, or magazines.
Everything has the potential to impact
everything we do.
This implies that many elements of an
organizations external and internal
environments can influence HRM.
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Environment of HRM

External Environment:
It encompasses local, national, and
multinational conditions that confront an
organization.
Elements of the external environment
include: economic conditions, the legalpolitical landscape, industry dynamics,
labor markets (economic), country culture
and societal values, and technology.
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Environment of HRM

Internal Environment:
It refers to conditions within the
organization itself.
Sometimes it refers to as the
organizational environment.

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Environment of HRM

Effective organizations seek to create an

internal organizational environment that fits
its current external environment yet is
flexible enough to change as new conditions
arise.
Because the external environment changes
constantly, changes in the organizational
environment often are needed.
Example: the change in labor laws will call
for a change in the hiring policy.
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The Changing Environment of

HRM
Changes are happening everyday. HR
managers must be able to respond to
these changes.
The major changes or trends are as
follows:
Globalization
Technological advances
Changes in nature of work
Changes in workforce demographics
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Globalization

Tendency of companies to extend sales,

ownership, or production to other
countries.
Companies are globalizing their production
by taking advantage of local facilities.
E.g. Toyota produces cars in China,
Thailand and many other countries.
Why companies go international or global?

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Globalization

More competition more pressure to be

world class Lower costs, to increase
productivity of employees, and to improve
quality further.

For business owners, globalizing means

benefits like reaching millions of new
consumers.
But globalization also poses the threat of
facing new global competitors in their
home countries.
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Technological Advances

Use of the Internet and information

communication technology (ICT) to increase
competitiveness in business.
Enabled businesses to outsource their non-core
activities to other countries where costs are
lower.
Managers can manage, communicate, and do
business online.
Employees can also work from home and
communicate with the office and customers via
the Internet.
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Changes in Nature of Work

Caused by technological advances as well.

Many factories have been automated.
There is a shift from manufacturing jobs to
service jobs.
There is also a shift to use non-traditional
workers staff holding multiple jobs, or parttime staff.
Many people work under alternative work
arrangements such as teleworking or
telecommuting (work at home regularly), and
fexitime.
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Changes in Workforce
Demographics

Diversified workforce staff employed

are of different race, religion,
nationality, gender, age and culture
A challenge for HR managers
E.g. Workers from Bangladesh, China,
India, Indonesia, Pakistan and Thailand
in Singapores and Malaysias
construction and agriculture sectors.

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The Changing
Environment of HRM-Implications
Examples:

Globalization staffing international

operations for sustained global growth.
Technological Advances training and
development.
Changes in Nature of Work compensation of
non-traditional workers.
Changes in Workforce Demographics
motivation and fringe benefits to employees
with different cultural backgrounds.

END

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