Chapter 1

Introduction to
Human Resource
Management

Part One | Introduction

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publishing as Prentice Hall The University of West Alabama
WHERE WE ARE NOW…

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LEARNING OUTCOMES
1. What is human resource management
2. What is the significance of human resource
management. Why should we study this subject. Is it
important to all managers. Line vs Staff
3. Responsibilities of line and staff (HR) managers
4. Latest trends shaping human resource management
5. The new human resource manager and the new
competencies required

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Human Resource Management at Work
• Organization
 People with formally assigned roles who work together to
achieve the organization’s goals.
• Manager
 The person responsible for accomplishing the organization’s
goals, and who does so by managing the efforts of the
organization’s people.

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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Human Resource Management at Work
• The staffing Function
 Determining what type of people you should hire; recruiting
prospective employees; selecting employees; training and
developing employees; setting performance standards;
evaluating performance; counseling employees; compensating.

• What Is Human Resource Management (HRM)?

 The process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and
safety, and fairness concerns.

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 Human Resource Management Processes

Acquisition

Fairness Training

Human
Resource
Management
Health and Safety (HRM) Appraisal

Labor Relations Compensation

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Personnel Aspects of a Manager’s Job
• Conducting job analysis
• Planning labor needs and recruiting job candidates
• Selecting job candidates
• Orienting and training new employees
• Managing wages and salaries
• Providing incentives and benefits
• Appraising performance
• Communicating
• Training and developing managers
• Building employee commitment
• Employee rights (health, safety, grievance handling)
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The Significance of HR Management
• Hire the wrong person for the job(counts& effects)
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have your firm in court because of discriminatory actions
• Have your firm cited by OSHA for unsafe practices
• Have some employees think their salaries are unfair and
inequitable relative to others in the organization (IE&EE)
• lack of training: undermining department’s effectiveness
• Commit any unfair labor practices

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The Significance of HR Management
The fundamental HR Management Concept;
Improving performance; HR as profit center
• The bottom line of managing:
Getting results
• HR creates value by engaging in activities
that produce the employee behaviors that
the organization needs to achieve its
strategic goals.
• Looking ahead: Using evidence-based
HRM to measure the value of HR activities
in achieving those goals.( measuring b&a)

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The Significance of HR Management
• 1/3rd of top HR managers in Fortune 100 Cos moved
there from other functional areas –Why

• HR for the entrepreneurs and small businesses; In US

more than 50 % of the working people work for small
businesses (68 of 118m); Approx 600,000 new
businesses created are small scale businesses_So what
No specialised HR Manager. You as manager need to
know the nuts &bolts of HRM
• In personal life( w/h,d/s,f,m sub conscious JA)

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Line and Staff Aspects of HRM
All managers are HRMs as they get involved in recruiting,
interviewing, selecting & training their employees
• Line Manager (Core departments)
 Is authorized (has line authority) to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks.(Superior-Subordinate relationship)
• Staff Manager (Support departments)
 Assists and advises line managers.(Advisory relationship)
 Has functional authority to coordinate personnel activities
and enforce organization policies.

Advise in recruitment, hiring,

compensation etc.

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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 that are new to them
4. Improving the job performance of each person
5. Gaining 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

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 Human Resource Managers’ Duties

Functions of
HR Managers

Coordinative Staff Functions

Line Function
Line Authority
Function Staff Authority
Functional Authority Innovator/Advocacy
Implied Authority Implied Authority

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 FIGURE 1–1 Human Resources Organization Chart for a Large Organization

Generally 1HR Employee Per 100 Employees

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 FIGURE 1–2 Human Resources Organization Chart for a Small Company

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FIGURE 1–2 Human Resources Organization Chart for a Small Company

Director HR

Compensation Recruitment &

& Benefits Selection HR Assistant
Manager Manager

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 Human Resource Specialties

Employee Welfare
Recruiter
Officer

Labor relations
specialist EEO coordinator
Human
Resource
Specialties
Training specialist
Job analyst
HRD or LLD

Engagement Compensation
Specialist manager

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Reorganising the HRM Function

New HR Services Groups

Transactional HR Corporate Embedded Centers of

Team HR Team HR unit Expertise

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 Trends Shaping Human Resource
Management

Globalization
and Competition

Indebtedness
(“Leverage”) and Technological
Deregulation Innovations
Trends in HR
Trends in the Nature of
Management
Work Workforce and
Hi-Tech Jobs Demographic
Service Jobs Trends
Work & Human Capital

Economic
Challenges

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 FIGURE 1–4 Trends Shaping Human Resource Management

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 FIGURE 1–5 Employment Exodus: Percent of employers who said they
planned as of 2008 to offshore a number of these jobs

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Trends in the Nature of Work

Changes in How We Work

High-Tech Service Knowledge Work

Jobs Jobs and Human Capital

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 TABLE 1–1 Demographic Groups as a Percent of the Workforce, 1986–2016

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Workforce and Demographic Trends

Demographic Trends

Generation “Y”
Trends Affecting
Human Resources
Retirees

Nontraditional Workers

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 FIGURE 1–6 Gross National Product (GNP)

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 FIGURE 1–7 Case-Shiller Home Price Indexes

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 Important Trends in HRM

The New HR
Managers

Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

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 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Focus more on Focus on Measuring

“big picture” improving Performance &
(strategic) issues Performance Results
FBR,Yahoo,Infos INC P,I,MS,S& BM Comp,HR
ys dec C cost as % op exp

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 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Evidence based Adding Values New ways to

HRM Increase provide HR
Data,facts, performance & services
research therefore profits Tech

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 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Talent
Employee Managing Ethics
Management
Engagement B town & Nestle
approach

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 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Understanding
HR Philosophy

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The HR Manager’s Competencies
• Strategic Positioners
 Helping in creating the firm’s strategy

• Credible Activists
 Exhibiting leadership xics that make them respected & listened to. Active by
making their point of view, taking positions, challenging assumptions

• Capability Builders
 Creating meaningful work environment & aligning strategy, culture, practices &
behaviors

• Change Champions
 Initiating & sustaining change

• HR Innovators & Integrators

 Developing talent & optimising HR capital through workforce planning & analytics

• Technology Proponents
 Connecting people through technology

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 TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers ASPs provide software application, for instance, for processing
(ASPs) and technology employment applications. The ASPs host and manage the services
outsourcing for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up
for and manage their own benefits packages and to update their
personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to
provide corporate information to employees quickly and
inexpensively

Internet- and network- Used to track employees’ Internet and e-mail activities or to monitor
monitoring software their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping

Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate
and payment payments to employees and suppliers

Data warehouses and Help HR managers monitor their HR systems. For example, they
computerized analytical make it easier to assess things like cost per hire, and to compare
programs current employees’ skills with the firm’s projected strategic needs

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 FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes

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High-Performance Work Systems
• Increase productivity and performance by:
 Recruiting, screening and hiring more effectively
 Providing more and better training
 Paying higher wages
 Providing a safer work environment
 Linking pay to performance

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 Evidence-Based HRM

Providing Evidence for

HRM Decision Making

Actual Existing Research

measurements data studies

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Managing Ethics
• Ethics
 Standards that someone uses to decide
what his or her conduct should be
• HRM-related Ethical Issues
 Workplace safety
 Security of employee records
 Employee theft
 Affirmative action
 Comparable work
 Employee privacy rights

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HR Certification
• HR is becoming more professionalized.
• Society for Human Resource Management (SHRM)
 SHRM’s Human Resource Certification Institute (HRCI)
 SPHR (Senior Professional in HR) certificate
 GPHR (Global Professional in HR) certificate
 PHR (Professional in HR) certificate

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The Plan of This Book: Basic Themes
• HRM is the responsibility of every manager.
• The workforce is becoming increasingly diverse.
• Current economic challenges require that HR managers
develop new and better skills to effectively and efficiently
deliver and manage HR services.
• The intensely competitive nature of business today
means human resource managers must defend their
plans and contributions in measurable terms.

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 FIGURE 1–10 Strategy and the Basic Human Resource Management Process

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KEY TERMS

organization
manager
management process
human resource management (HRM)
authority
line authority
staff authority
line manager
staff manager
functional authority
globalization
human capital

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Printed in the United States of America.

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