HUMAN RESOURCE MANAGEMENT

1. Human Resource Management

2. 1. What is human resource
management?
Definition of HRM:
Human resource management is to make
the most productive use of human
resource to the greatest benefits of the
organization and individuals.
Organization: profits and social
commitments.
Individuals: development and achievement

3. 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.

4. Organization and individual
(1) Organization needs: Profits, productivity and
markets.
(2) Individual needs:
Physiological needs, security, belonging, self-
respect and self-actualization.
(3) Coordinating organization and individual needs:
goal of HRM.

5. 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.

6. Employee quality and productivity
(1) Employee skill determines productivity.
Man and tools.
(1) Employee motivation affects productivity.
(1) Employee creativity and initiatives improve
productivity.
innovation is the key to improvement.

7. 6. Functions and divisions of HRM
(1)Management process
a. Planning.
b. Organizing.
c. Staffing.
d. Leading.
e. Controlling.

8. (2) Functions of HRM
a. Conducting job analysis.
b. Planning future needs and supplies.
c. Recruiting and selecting employees.
d. Orienting and training employees.
e. Managing wages and benefits.
f. Performance appraisal.
g. Communicating (discipline and services).
h. Building employee commitment
(incentives).

9. (3) Line managers’ HRM responsibilities
a. Job placing.
b. Orienting new employees.
c. On-job training of employees.
d. Interpreting company policies and procedures.
e. Conducting job appraisals.
f. Controlling labor costs.
g. Labor protection and disciplines.

10. (4) Staff managers’ HRM responsibilities
a. A line function: directing and managing people in
the HRM department.
b. A coordinating function: coordinating HRM
activities across the organization.
c. Staff functions:
Same as the HRM functions plus labor relations
and collective bargaining with the trade unions.

11. (2) 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.

12. (4) Human behavior and relations
a. The Hawthorne Studies by Westing House
The happy workers are the most productive
workers. (The Pet Milk theory)

13. (5) Three stages of growth of HRM
a. File Management :collecting and storing data of
each employee.
b. Government Accountability :
c. Compliance to government regulations.
d. Human Resource Management:
 Treating human resource as an asset.
 Emphasizing joint responsibilities of line
managers and staff managers.