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After studying this chapter, you should be able to:

1. Explain what human resource management is and how


it relates to the management process.
2. Give at least two examples of how all managers can
use human resource management concepts and
techniques.
3. Illustrate the human resources responsibilities of line
and staff (HR) managers.
4. Explain the Changing Role of Human Resource
Management due to changing environment.

1–1
The Management Process

Planning

Controlling Organizing

Leading Staffing

1–2
Human Resource Management at Work
• What Is Human Resource Management
(HRM)?

 Human Resource Management is the process of


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

1–3
Human Resource Management at Work

Acquisition

Fairness Training

Human
Resource
Management
Health and
(HRM) Appraisal
Safety

Labor Relations Compensating

1–4
Nature of HRM

• Inherent part of Management


• Pervasive Function
• Basic to all Functional areas
• People centered
• Personnel Activities
• Continuous Process
• Based on Human Relations
Personnel Aspects of a Manager’s Job
• Conducting job analyses
• Planning manpower 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
1–6
Personnel Mistakes
• Hire the wrong person for the job
• Experience high turnover
• Have your people not doing their best
• Waste time with useless interviews
• Have some employees think their salaries are unfair and
inequitable relative to others in the organization
• Allow a lack of training to undermine your department’s
effectiveness
• Commit any unfair labor practices

1–7
Basic HR Concepts
• The bottom line of managing:
Getting results
• HR creates value by engaging in
activities that produce the
employee behaviors that the
company needs to achieve
its strategic goals.

1–8
Line and Staff Aspects of HRM
• Line manager
 A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing the
organization’s tasks.
• Staff manager
 A manager who assists and advises line managers.

1–9
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 creative 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

1–10
Human Resource Managers’ Duties

Line Function Coordinative


Line Authority Function
Implied Authority Functional Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

1–11
Human Resource Specialties

Recruiters

Employment/
Human
Industrial
Resource
Relations
Development
Specialist Human Specialists
Resource
Specialties
Training
Job Analysts
Specialists

Compensation Employee
Managers Welfare Officers

1–12
Nature & Significance of Environmental Influences

• The term ‘environment’ here refers to the totality of all


factors which influence both the organisation and HR
function.
• External Factors Internal factors
-Economic -Mission
-Demographic -Policies
-Socio-Cultural -Organisational culture
-Political -Organisation structure
-Technological -Human Resource systems
The Changing Environment of
Human Resource Management

Globalization Trends

Technological Trends
Changes and Trends
in Human Resource
Management
Trends in the Nature of Work

Workforce Demographic Trends

1–14
The Changing Role of
Human Resource Management

Strategic Human
Resource
Management

Managing with the New Creating High-


HR Scorecard Responsibilities Performance Work
Process for HR Managers Systems

Measuring the HRM


Team’s Performance

1–15
History of Human Resource Management
The field of HRM as it exists, represents a crystallization of
a variety of historical and contemporary factors:
• The Industrial Revolution - Machines were brought in;

- workers did only a small


portion of the total job;
- workers were treated like
‘glorified machine tools’
• Scientific Management – Taylor argued that individuals
selected to perform tasks
should be as perfectly matched
physically and mentally, to the
requirements of the task as
possible.
• Trade Unionism – Workers joined hands to
protect against the exploitative
tendencies of employers and
the prohibitive, unfair labour
practices through unions.
• Human Relations Movement - It led to implementation
of behavioural science
techniques in industry
like supervisory
training programmes,
emphasizing support &
concern for workers etc.
• Human Resources Approach -Trend towards treating
employees as assets;
-It assumes that the job
itself is the primary
source of satisfaction &
motivation to employees.
Evolution of the concept of HRM
Concept What it is all about?
• The Commodity concept - Labor was regarded as a
commodity to be bought and
sold. Wages were based on
demand and supply.
• The Factor of Production -Labor is like any other factor of
concept production.
• The Goodwill concept -Welfare measures like safety,
first aid, lunch room, rest room
will have a positive impact on
worker’s productivity.
• The Paternalistic concept – Management must assume a
fatherly and protective attitude
towards employees.
• The Humanitarian concept-To improve productivity,
physical, social and
psychological needs of
workers must be met.
• The Human Resource -Employees are the most
concept valuable assets of an
organisation.
• The Emerging concept -Employees should be accepted
as partners in the progress of a
company.

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