Chapter 1

INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT

Prepared by : Ly Sokcheu
: 1st September, 2012
1 Updated

Chapter
After
studying this chapter, you
Objectives
should be able to:

Describe the brief history of HRM.

Define human resource management.
Identify the human resource management

functions.
Explain who performs the HRM functions.
Discuss the objectives of the HRM Functions.
Discuss the roles of HRM.
Explain the HR department.
Discuss the HR responsibilities.

I. A Brief History of HRM

HRM can be traced to England, where
craftspeople organized themselves into guilds.
- They used unity to improve working conditions.
The Industrial Revolution in the 18th century
laid the basis for a new, complex industrial
society.
- Changing work conditions, social patterns, and
labor created a gap between workers and owners.
During the world wars era, scientific
management, welfare work, and industrial
psychology merged.
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I. A Brief History of HRM (Cont.)

Frederick W. Taylor, the father of scientific
management, summarized scientific
management as:
Science, not roles of thumb
Harmony, not discord
Cooperation, not individualism
Maximum output, not restricted output
Industrial psychology, initiated in 1913,
focused on:
The worker
Individual differences
The maximum well being of the worker
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I. A Brief History of HRM (Cont.)

Personnel departments were created to deal
with:
Drastic changes in technology
Organizational growth
The rise of unions
Government intervention concerning working
people
Around the 1920s, more organizations
noticed and acted on employee-management
conflict.
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I. A Brief History of HRM (Cont.)

The Hawthorne studies (1924 to 1933):

Were to determine the effects of
illumination on workers and their output
The studies pointed out the importance of
social interaction on output and satisfaction

Until the 1960s, the personnel function

was concerned only with blue-collar
employees.
File clerk, house-keeper, social worker,
firefighter, and union trouble defuser
Source: John M. Ivancevich, Human Resource Management,
Management, 8 edition , p6

II. Definitions of HRM

Is the activities designed by manager to

provide for an ordinate human resources of
an organization. (Rick Colow, 1991)
Refers to the policies, practices, and systems
that influence employees behavior, attitudes,
and performance. Many companies refer to
HRM as involving people practices. (Noe, et
al. 2003)
Is utilization of individuals to achieve
organizational objectives. All managers get
things done through the efforts of others;
this requires effective HRM.

III. HR Manager

Was responsible for arranging and

coordinating the management of human
resources to help the organization achieve its
goals.
Is an individual who normally acts in an
advisory or staff capacity, working with other
managers regarding HR matters.
There was a shared responsibility between
line manager and human resource
professionals.
Often the line managers go to HR for
guidance such as promotion, hiring, discipline.

IV. HRM Functions

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1. Staffing

Process through which organization

ensures it always has proper number
of employees with appropriate skills
in right jobs at right time to achieve
organizational objectives.

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Job Analysis
Human Resource Planning
Recruitment
Selection

1. Staffing (Cont.)
a) Job analysis

Systematic process of determining

skills, duties, and knowledge required
for performing jobs in organization.

b) Human resource planning

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Systematic process of matching the

internal and external supply of people
with job openings anticipated in the
organization over a specified period
of time.

1. Staffing (Cont.)
c) Recruitment

Process of attracting individuals on a

timely basis, in sufficient numbers,
and with appropriate qualifications, to
apply for jobs with an organization.

d) Selection

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Process of choosing from a group of

applicants, the individuals best suited
for a particular position and the
organization.

2. Human Resource Development

a. Training

Designed to provide learners

with knowledge and skills
needed for their present jobs.

b. Development

Involves learning that goes beyond

today's job; it has more long-term focus.

c. Career planning

13

Ongoing process whereby individual

sets career goals and identifies means
to achieve them.

2. Human Resource Development

d. Career development

Formal approach used by organization

to ensure that people with proper
qualifications and experiences are
available when needed.

e. Organization development

Planned process of improving organization

by developing its structures, systems, and
processes to improve effectiveness and
achieving desired goals.

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2. HR Development (Cont.)
f. Performance management

Goal-oriented process directed toward

ensuring organizational processes are
in place to maximize productivity of
employees, teams, and ultimately, the
organization.

g. Performance appraisal

Formal system of review and

evaluation of individual or team task
performance.

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3. Compensation
\ All rewards that individuals
receive as a result of their
employment.
a. Direct Financial Compensation
Pay that person receives in form of
wages, salaries, bonuses, and
commissions.

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3. Compensation
b. Indirect Financial Compensation
(Benefits)

All financial rewards not included in

direct compensation such as paid
vacations, sick leave, holidays, and
medical insurance.

c. Nonfinancial Compensation

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Satisfaction that person receives from

job itself or from psychological and/or
physical environment in which person
works.

4. Safety and Health

Employees who work in safe environment
and enjoy good health are more likely to
be productive and yield long-term
benefits to organization.

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a) Safety
Involves protecting employees
from injuries caused by workrelated accidents.
b) Health
Refers to employees' freedom from
illness and their general physical and
mental well being.

5. Employee and Labor Relations

Private-sector union membership has fallen
from 39 percent in 1958 to 9 percent today.
Business is required by law to recognize a
union and bargain with it in good faith if the
firms employees want the union to
represent them.
Human resource activity is often referred to
as industrial relations.
Most firms today would like to have a unionfree environment .
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V. Who Performs HRM Functions

3 levels of management perform HRM
functions.

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Operating managers are managers who

manage directly people involved with the
production of an organization's products and
services.
HR specialists are people who are specially
trained in one or two areas of HRM.
HR generalists are people who are
responsible for performing various parts of
HR activities.

Human Resource Executives, Generalists, and

Specialists
President
and CEO

Vice President
Human
Resources

Manager,
Staffing
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Manager
Training and
Development

Executive:
Generalist:
Specialist:

Vice President
Industrial
Relations

Manager
Compensation

Manager
Safety & health

Characteristics of an HR
Executive
Performs one or more HR functions
A top-level manager
Reports directly to CEO or head of
major division

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Characteristics of an HR Generalist
Often an executive
Performs tasks in various HR
related areas
Involved in several, or all, of
the five HRM functions

23

Characteristics of an HR Specialist
May be an HR executive, manager, or
non-manager
Who typically is concerned with only
one of the five functional areas of
HRM.

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VI. Objectives of the HRM Function

Helping the organization
reach its goals.
Employing the skills &
abilities of the workforce
efficiently.
Providing the organization with well-trained
and well-motivated employees.
Increasing to the fullest the employees
job satisfaction and self-actualization.

25

Source: John M. Ivancevich, Human Resource Management,

Management, 8 edition , p10

VI. Objectives of the HRM Function

(Cont.)
Developing & maintaining a quality of work
life that makes employment in the
organization desirable.
Communicating HRM policies to all
employees.
Helping to maintain ethical policies and
socially responsible behavior.
Managing change to the mutual advantage
of individuals, groups, the enterprise, and
the public.
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Source: John M. Ivancevich, Human Resource Management,

Management, 8 edition , p10

VII. The Roles of HRM

\

There are majors roles associated with the

managing of human resource in
organization.
- Strategic role

- Operational role

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1. Strategic Roles
Strategic role of HRM emphasizes that
the people in organization are valuable
resources presenting a significant
investment of organizational efforts.
Human resource can be a source of
competitive strength if they are managed
effectively.

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Human resource must be viewed in the

same context as the financial,
technological, and other resources that
are managed in organization.

1. Strategic Roles (Cont.)

The typically activities at strategic point
are viewed:

Human resource planning

Evolving legal issue
Workforce trend and issue
Community economic development
Organizational restructuring and
downsizing
Merger / acquisition advising
Compensation planning and strategy

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2. Operational role
Operational activities includes both tactical
and administrative in nature.
Compliance with equal employment
opportunity and other laws must be
ensured.
Applicants must be interviewed, new
employees must be oriented, supervisor
must be trained, safety problems must be
solved, and salary and wages must be
administered.
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2. Operational role (Cont.)

In short, a wide variety of activities typically
associated with the day-to-day management
of people in organizations must be performed
effectively and appropriately:

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a) Recruiting and selecting for current

openings.
b) Conducting employee oriented.
c) Reviewing safety and accident report.
d) Resolving employee
complaints/grievance.
e) Administering employee benefits
performances.

VIII. HR Department
\ Is the place that supports to operating
managers on all human resource
activities.
\ HR department provides 3 types of
service to operating managers
a) Specific services

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Maintaining employee's records,

initial phases of employee
orientation.

VIII. HR Department (Cont.)

b) Advice

Disciplinary matters, equal

employment opportunity (EEO),
employment protection act (EPA),
occupational safety and health
administration (OSHA)

c) Coordination

Performance appraisals,
compensation matters.

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IX. HR Responsibilities
The direct handling of people, is an integral
part of every line managers responsibility,
from president down to the lowest-level
supervisor.
For example, one major company outlines
its line supervisors responsibilities for
effective human resource management
under the following general heading:
Placing the right person on the right job.
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IX. HR Responsibilities (Cont.)

36

Starting new employees on the

organization (orientation)
Training employees for jobs that are
new to them
Improving the job performance of each
person.
Gaining creative cooperation and
developing smooth working relationship

IX. HR Responsibilities (Cont.)

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Interpreting the companys policy and

procedures
Controlling labor cost
Developing the abilities of each person
Creating and maintaining development
moral
Protecting employees health and
physical condition

HRM
PRACTICES
4.X.
HRM
PRACTICES
& &
RESPONSIBILITIES
RESPONSIBILITIES

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Important HRM practices include:

RESPONSIBILITIES
OF
HR
RESPONSIBILITIES
OF
HR
DEPARTMENTS
DEPARTMENTS

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