Human Resource

Management
(Lecture 1)

BSc. (Hons.) Applied Management

(2008-10)

Human Resource
Management
Lecture outline:
1. Introduction
2. Definitions
3. Fundamental Purpose of
HRM
4. Integrated HR System
5. Basic Functions of HRM

Introduction: What is Human Resource

Management?
Human represents the dimension of HRM which
relates to the soft aspects such as commitment of
employees through participation and the most
important assets being the employees.
Resource represents the hard aspects such as
the strategy link of HRM and the importance of
efficient utilization of employees.
Management represents the role of HRM as part
of management that implies that its not only an
administrative function that carries out the
formulated policies but also a managerial function
that contributes to strategy formulation.
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HRM - Definitions
All the processes and activities aimed at
utilising the employees (also referred to
as staff, personnel, human resources,
human assets and human capital) to
achieve organisational ends (Macky
2008)
HRM is the management of people in
such a way that they become sustainable
competitive advantage for the company
HRM is a management process to
enhance an organisations productivity
through employee satisfaction
4

Fundamental Purpose of HRM

To ensure that a firm has:
the right number of people
with the required knowledge, skills,
abilities (KSAs) and competencies
at an affordable cost
who are motivated
and committed to achieving the
current and strategic needs of their
firm
1-5

HRM vs. Personnel

Management
Some experts assert that there is no
difference between human resource
management and personnel
management. They state that the
two terms can be used
interchangeably, with no difference
in meaning. In fact, the terms are
often used interchangeably in helpwanted ads and job descriptions
But these are two different terms

The Difference between HRM &

Personnel Management
Personnel management is more
administrative in nature, dealing with
payroll, complying with employment
law, and handling related tasks.
Human resources, on the other hand,
is responsible for managing a
workforce as one of the primary
resources that contributes to the
success of an organization.

Human Resource
Management & Personnel
Management

Major Domains of HRM

Four major domains of HRM
acquiring human resource capability
developing human resource capability
rewarding and compensating human
resources
managing human resources and
enhancing productivity and quality of
worklife
1-9

Major Activities of HR
Management

1. Organizational Designing

human resource planning

job analysis & designing
information systems

2. Staffing
recruiting/interviewing/hiring
employee selection
induction/orientation

3. Employee training & development

career planning & development/people
planning
Improvement & development programs
1-10

Major Activities of HR
Management
4. Performance Management - to ensure
that employee actions are linked to, and add
value to, a firms strategy
management appraisal (MBO, multi-rater
systems)
customer-focused performance appraisal
productivity/enhancement programs
Employee training & development
career planning/career
development/people planning
Improvement & development programs
1-11

Major Activities of HR
Management

5. Reward Systems & Benefits

compensation administration
wage/salary administration
insurance benefits administration
pension/provident fund/EOBI etc.
labor relations/collective bargaining

6. Compliance
safety programs/OHS compliance
health/medical services
complaint/disciplinary procedures
1-12

The Integrated HR
System
Organisational vision, mission, objectives
and strategy
HR strategy and policies
Human resource planning
Job analysis
Recruitment
Employee selection
Performance management

Training and
development

Remuneration and
other rewards

Discipline and
termination

13

Impact of HRM on
Organisational Performance