Human Resources

Management
MSC 43153
The importance of HRM
(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s
economic growth potential, and labor quality is the
key to improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and
unpredictable variable of all production variables,
organizational success depends on the management
of people.
Organization and individual

(1) Organization needs: Profits, productivity and markets.

(2) Individual needs: Maslows Need Hierarchy
Physiological needs, security, belonging, self-respect and self-
actualization.
(3) Coordinating organization and individual needs: goal of HRM.
People and productivity
(1) Productivity: the measurement of economic growth
potential.
(2) Productivity formula: input : output
(3) Measurement of productivity:
a. Productivity of worker is the output per hour.
b. Productivity of equipment is the output per every
dollar invested.
c. Productivity of energy is the output per every unit of
energy consumed.
Employee quality and productivity

(1) Employee skill determines productivity.

Man and tools.
(1) Employee motivation affects productivity.
Willingness to perform.
(1) Employee creativity and initiatives improve productivity.
innovation is the key to improvement.
Human Resources Management:
Definition and Concept
• Working for any organization means that you and those around you
share common goals among which include an interest in the growth
and continuing development of the organization.
• Some of those common goals include how work is accomplished
within the organization.
• Human resource management (HRM) is the process of acquiring,
training, appraising, and compensating employees, and of attending
to their labor relations, health and safety, and fairness concerns.
 What Is Human Resource Management?

• The Management Process

o Planning
o Organizing
o Staffing
o Leading
o Controlling
No matter what the job is, planning involves establishing goals, rules
and procedures and attempting to forecast the future. Planning will
enhances one’s ability to manage people and functions.
Basic staffing functions include:
• Acquiring talented employees
• Training new hires and existing managers and employees
• Creating and administering effective performance appraisals
• Properly compensating employees, and
• Attending to concerns about labor relations, health, safety, and
fairness
Why Is Human Resource Management Important to
All Managers?

• No manager wants to:

o Hire the wrong person for the job
o Experience high turnover
o Have your people not doing their best
No manager wants to:

• Waste time with useless interviews

• Have his company taken to court because of your discriminatory
actions
• Have his company cited under occupational safety laws for unsafe
practices
• Have some employees think their salaries are unfair relative to others
in the organization
• Allow a lack of training to undermine the department’s effectiveness
• Commit any unfair labor practices
• About one-third of the top HR managers in Fortune 100 companies
moved there from other functional areas.
• Reasons given include the fact that such people may give the firm’s
HR efforts a more strategic emphasis, and the possibility that they’re
sometimes better equipped to integrate the firm’s human resource
efforts with the rest of the business.
Line and Staff Aspects of Human Resource
Management

• Line and staff managers focus their energies in different yet related
and complementary ways.
• Authority is the right to make decisions, to direct the work
of others, and to give orders.
• Managers usually distinguish between line authority and
staff authority.
 Line and Staff Managers

• Line authority gives you the right to issue orders

• Staff authority gives you the right to advise others in

the organization
• When the vice president of sales tells her sales director to “get the sales presentation
ready by Tuesday,” she is exercising her line authority.
• Staff authority gives a manager the right to advise other managers or employees. It
creates an advisory relationship. When the human resource manager suggests that the
plant manager use a particular selection test, he or she is exercising staff authority. If you
are a line manager, you will hold responsibilities to issue orders, provide directions and
establish rules and procedures. For example, as a sales manager, you will be responsible
for requiring adherence to your rules relative to sales quotas and goals.

• On the other hand, an HR manager is a staff manager and, like all staff managers, is
responsible for influencing and advising others. Within the HR department you may be
responsible for establishing goals and giving orders to those in your department thus
serving as a line manager within HR. Your principal duty to the organization as a whole,
however, is that of a staff function, much the same as a purchasing department.

• Staff departments may include finance, accounting, and logistics. Sales, production, and
operations departments generally are considered line functions.
• If you are a line manager, your duties and responsibilities concern how well you can
successfully orient and integrate new hires into your unit, maintain their health and
safety, supervise and motivate them, and effectively manage department costs.
 Human Resource Duties

Line Managers
• Job placement
• Orientation & Training
• Performance
• Cooperation
• Labor costs
• Development
 Human Resource Duties
Staff Managers

• Line function inside of HR department

• Coordination
• Assist and advise
Line managers require support to perform their jobs properly. If you
are a line manager, you will have the help of the people in your HR
department. HR professionals ensure adherence to company policies,
provide training, advice on motivating your employees, and other
support as needed.
 Review
Human Resource Management

• Part of total management process

• Focus on staffing processes
o Job analyses
o Recruiting
o Compensation
o Performance
o Compliance issues, etc.
 Review
Human Resource Duties

• In providing specialized assistance, the human

resource manager carries out three distinct
functions:
o line function
o coordinative function
o Staff (assist and advise) functions
Evolution of HRM

(1) Industrial Revolution:

a. Adam Smith: specialization and division of labor.
b. Robert Owen: Pioneer of HRM, performance appraisal and pay for
performance (fair treatment of employees)
(2) Scientific management

Frederic Taylor: Father of scientific management

a. Definition:
Systematic analysis and breakdown of work into the smallest
mechanical components and rearranging them into the most
efficient combination.
b. Steps:
Job analysis—selection—training—rewards.
(3) Industrial psychology

a. Henri Fayol’s management functions:

Planning, organizing, communicating, coordina- ting and controlling.
b. F. & L. Gilbreth’s principles of work simplification (time and motion
studies).
c. Henry Gantt’s principles of work scheduling.
d. Continuation of scientific management.
(4) Human behavior and relations

a. The Hawthorne Studies

b. The happy workers are the most productive workers.

b. Max Weber: the Ideal Bureaucracy.

c. Chris Argyris: Individual and organization—mutual adjustment.
d. Affected by the theories of behavioral science and system theory.
 Recent Trends in Human Resource
Management
• Technological advances
• Globalization and competition
• Trends in the nature of work: High-tech
Jobs, Services
• Demographic and workforce trends
• Economic challenges and trends
 Trends in Human Resource
Management

• More knowledge work

• Aging workforce
• Economic downturn
• Slower economic growth
 Important traits of today’s human
resource managers: The New Human
Resource Manager

• Focus More on Strategy

• Focus on Improving Performance
• Measure HR Performance and Results
• Use Evidence-Based Human Resource Management
• They Add Value
• They Use New Ways to Provide HR Services
 The New Human Resource Manager

• They Take a Talent Management Approach

• They Manage Employee Engagement
• They Manage Ethics
• They Understand Their Human Resource Philosophy
• They Have New Competencies
 Big Transactional
picture Services

The New
Human Talent
Competencies Resource Management
Managers

Performance,
results,
evidence- Employee Ethics
based practice Engagement
Human Resource Manager’s
Competencies

• Strategic positioners
• Credible activists
• Capability builders
• HR innovators and
integrators
• Technology proponents
 Themes and Features

Human resource management is the responsibility of every

manager—not just those in human resources.