2. Chapter 1Chapter 1 The Strategic Role ofThe Strategic Role of
Human Resource ManagementHuman Resource Management
Behavioral ObjectivesBehavioral Objectives
When you finish studying this chapter, you shouldWhen you finish studying this chapter, you should
be able to:be able to:
AnswerAnswer the question, “What is Human Resourcethe question, “What is Human Resource
Management?”Management?”
DiscussDiscuss the components of the changingthe components of the changing
environment of Human Resource Management.environment of Human Resource Management.
PresentPresent examples of the new managementexamples of the new management
practices that are changing Human Resourcepractices that are changing Human Resource
management.management.
GiveGive examples of human Resourceexamples of human Resource
management’s role as a strategic businessmanagement’s role as a strategic business
partner.partner.
3. Chapter OutlineChapter Outline
Human Resource Management at WorkHuman Resource Management at Work
The Changing Environment of HumanThe Changing Environment of Human
Resource ManagementResource Management
Tomorrow’s HR TodayTomorrow’s HR Today
Strategic Planning and HRStrategic Planning and HR
ManagementManagement
The Plan of This BookThe Plan of This Book
4. Key Words :Key Words :
management processmanagement process
The five basic functions of planning,The five basic functions of planning,
organizing, staffing, leading, and controlling.organizing, staffing, leading, and controlling.
human resource managementhuman resource management
The policies and practices one needs toThe policies and practices one needs to
carry out the “people” or human resourcecarry out the “people” or human resource
aspects of a management position, includingaspects of a management position, including
recruiting, screening, training, rewarding,recruiting, screening, training, rewarding,
and appraising.and appraising.
5. Key Words :Key Words :
authorityauthority
The right to make decisions, direct others’ work,The right to make decisions, direct others’ work,
and give orders.and give orders.
ling managerling manager
A manager who is authorized to direct the work ofA manager who is authorized to direct the work of
subordinates and responsible for accomplishingsubordinates and responsible for accomplishing
the organization’s goals.the organization’s goals.
staff managerstaff manager
A manager who assists and advises lineA manager who assists and advises line
managers.managers.
6. Key Words :Key Words :
line authorityline authority
The authority exerted by a personnel managerThe authority exerted by a personnel manager
by directing the activities of the people in his orby directing the activities of the people in his or
her own department and in service areas (likeher own department and in service areas (like
the plant cafeteria).the plant cafeteria).
implied authorityimplied authority
The authority exerted by a personnel managerThe authority exerted by a personnel manager
by virtue of others’ knowledge that he or sheby virtue of others’ knowledge that he or she
has access to top management (in areas likehas access to top management (in areas like
testing and affirmative action).testing and affirmative action).
7. Key Words :Key Words :
functional controlfunctional control
The authority exerted by an HR manager asThe authority exerted by an HR manager as
coordinator of personnel activities.coordinator of personnel activities.
employee advocacyemployee advocacy
HR must take responsibility for clearly definingHR must take responsibility for clearly defining
how management should be treatinghow management should be treating
employees, make sure employees have theemployees, make sure employees have the
mechanisms required to contest unfairmechanisms required to contest unfair
practices, and represent the interests ofpractices, and represent the interests of
employees within the framework of its primaryemployees within the framework of its primary
obligation to senior management.obligation to senior management.
8. Key Words :Key Words :
globalizationglobalization
The tendency of firms to extend their salesThe tendency of firms to extend their sales
or manufacturing to new markets abroad.or manufacturing to new markets abroad.
competitive advantagecompetitive advantage
Any factors that allow an organization toAny factors that allow an organization to
differentiate its product or service fromdifferentiate its product or service from
those of its competitors to increase marketthose of its competitors to increase market
share.share.
9. Key Words :Key Words :
cost leadershipcost leadership
The enterprise aims to become the low-The enterprise aims to become the low-
cost leader in an industry.cost leader in an industry.
differentiationdifferentiation
A firm seeks to be unique in its industryA firm seeks to be unique in its industry
along dimensions that are widely valuedalong dimensions that are widely valued
by buyers.by buyers.
10. The Strategic Roles of HRMThe Strategic Roles of HRM
1.1. What is human resource management?What is human resource management?
2.2. Functions and divisions of humanFunctions and divisions of human
resource management.resource management.
3.3. Evolution of human resource managementEvolution of human resource management
in the west.in the west.
4.4. Human resource management in China.Human resource management in China.
11. 1. What is human resource management?1. What is human resource management?
Definition of HRMDefinition of HRM::
Human resource management is to makeHuman resource management is to make
the most productive use of humanthe most productive use of human
resource to the greatest benefits of theresource to the greatest benefits of the
organization and individuals.organization and individuals.
Organization: profits and socialOrganization: profits and social
commitments.commitments.
Individuals: development andIndividuals: development and
achievement.achievement.
12. The importance of HRMThe importance of HRM
(1)(1) People is the key factor of production.People is the key factor of production.
(2)(2) Productivity is the key to measure a nation’sProductivity is the key to measure a nation’s
economic growth potential, and labor quality iseconomic growth potential, and labor quality is
the key to improving productivity.the key to improving productivity.
(3)(3) Competition today is the competition for talents.Competition today is the competition for talents.
(4)(4) Since man is the most uncontrollable andSince man is the most uncontrollable and
unpredictable variable of all production variables,unpredictable variable of all production variables,
organizational success depends on theorganizational success depends on the
management of people.management of people.
13. Organization and individualOrganization and individual
(1)(1) Organization needs: Profits, productivity andOrganization needs: Profits, productivity and
markets.markets.
(2)(2) Individual needs: Maslows Need HierarchyIndividual needs: Maslows Need Hierarchy
Physiological needs, security, belonging, self-Physiological needs, security, belonging, self-
respect and self-actualization.respect and self-actualization.
(3) Coordinating organization and individual needs:(3) Coordinating organization and individual needs:
goal of HRM.goal of HRM.
14. People and productivityPeople and productivity
(1)(1) Productivity: the measurement of economicProductivity: the measurement of economic
growth potential.growth potential.
(2)(2) Productivity formula: input : outputProductivity formula: input : output
(3)(3) Measurement of productivity:Measurement of productivity:
a.a. Productivity of worker is the output per hour.Productivity of worker is the output per hour.
b.b. Productivity of equipment is the output per everyProductivity of equipment is the output per every
dollar invested.dollar invested.
c.c. Productivity of energy is the output per every unitProductivity of energy is the output per every unit
of energy consumed.of energy consumed.
15. Employee quality and productivityEmployee quality and productivity
(1)(1) Employee skill determines productivity.Employee skill determines productivity.
Man and tools.Man and tools.
(1)(1) Employee motivation affects productivity.Employee motivation affects productivity.
Willingness to perform.Willingness to perform.
(1)(1) Employee creativity and initiatives improveEmployee creativity and initiatives improve
productivity.productivity.
innovation is the key to improvement.innovation is the key to improvement.
16. 6. Functions and divisions of HRM6. Functions and divisions of HRM
(1)(1) Management processManagement process
a.a. Planning.Planning.
b.b. Organizing.Organizing.
c.c. Staffing.Staffing.
d.d. Leading.Leading.
e.e. Controlling.Controlling.
17. (2) Functions of HRM(2) Functions of HRM
a.a. Conducting job analysis.Conducting job analysis.
b.b. Planning future needs and supplies.Planning future needs and supplies.
c.c. Recruiting and selecting employees.Recruiting and selecting employees.
d.d. Orienting and training employees.Orienting and training employees.
e.e. Managing wages and benefits.Managing wages and benefits.
f.f. Performance appraisal.Performance appraisal.
g.g. Communicating (discipline and services).Communicating (discipline and services).
h.h. Building employee commitmentBuilding employee commitment
(incentives).(incentives).
18. (3) Line managers’ HRM responsibilities(3) Line managers’ HRM responsibilities
a.a. Job placing.Job placing.
b.b. Orienting new employees.Orienting new employees.
c.c. On-job training of employees.On-job training of employees.
d.d. Interpreting company policies and procedures.Interpreting company policies and procedures.
e.e. Conducting job appraisals.Conducting job appraisals.
f.f. Controlling labor costs.Controlling labor costs.
g.g. Labor protection and disciplines.Labor protection and disciplines.
19. (4) Staff managers’ HRM responsibilities(4) Staff managers’ HRM responsibilities
a.a. A line function: directing and managing people inA line function: directing and managing people in
the HRM department.the HRM department.
b.b. A coordinating function: coordinating HRMA coordinating function: coordinating HRM
activities across the organization.activities across the organization.
c.c. Staff functions:Staff functions:
Same as the HRM functions plus labor relationsSame as the HRM functions plus labor relations
and collective bargaining with the trade unions.and collective bargaining with the trade unions.
20. 3. Evolution of HRM in the west3. Evolution of HRM in the west
(1)(1) Industrial Revolution:Industrial Revolution:
a.a. Adam Smith: specialization and division of labor.Adam Smith: specialization and division of labor.
b.b. Robert Owens: Pioneer of HRM, performanceRobert Owens: Pioneer of HRM, performance
appraisal and pay for performance (fair treatmentappraisal and pay for performance (fair treatment
of employees)of employees)
21. (2) Scientific management(2) Scientific management
Frederic Taylor: Father of scientificFrederic Taylor: Father of scientific
managementmanagement
a. Definition:a. Definition:
Systematic analysis and breakdown ofSystematic analysis and breakdown of
work into the smallest mechanicalwork into the smallest mechanical
components and rearranging them into thecomponents and rearranging them into the
most efficient combination.most efficient combination.
b. Steps:b. Steps:
Job analysis—selection—training—Job analysis—selection—training—
rewards.rewards.
22. (3) Industrial psychology(3) Industrial psychology
a.a. Hneri Fayol’s management functions:Hneri Fayol’s management functions:
Planning, organizing, communicating, coordina-Planning, organizing, communicating, coordina-
ting and controlling.ting and controlling.
b.b. F. & L. Gilbreth’s principles of work simplificationF. & L. Gilbreth’s principles of work simplification
(time and motion studies).(time and motion studies).
c.c. Henry Gantt’s principles of work scheduling.Henry Gantt’s principles of work scheduling.
d. Continuation of scientific management.d. Continuation of scientific management.
23. (4) Human behavior and relations(4) Human behavior and relations
a.a. The Hawthorne Studies by Westing HouseThe Hawthorne Studies by Westing House
The happy workers are the most productiveThe happy workers are the most productive
workers. (The Pet Milk theory)workers. (The Pet Milk theory)
b.b. Max Weber: the Ideal Bureaucracy.Max Weber: the Ideal Bureaucracy.
c.c. Chris Argyris: Individual and organization—Chris Argyris: Individual and organization—
mutual adjustment.mutual adjustment.
d.d. Affected by the theories of behavioral scienceAffected by the theories of behavioral science
and system theory.and system theory.
24. (5) Three stages of growth of HRM(5) Three stages of growth of HRM
a.a. File Management (1900-1964):collecting andFile Management (1900-1964):collecting and
storing data of each employee.storing data of each employee.
b.b. Government Accountability (1964-1980):Government Accountability (1964-1980):
Compliance to government regulations.Compliance to government regulations.
c.c. Human Resource Management:Human Resource Management:
Treating human resource as an asset.Treating human resource as an asset.
Emphasizing joint responsibilities of lineEmphasizing joint responsibilities of line
managers and staff managers.managers and staff managers.
25. 5. HRM in China5. HRM in China
(1)(1) Administration:Administration:
a.a. Ministry of LaborMinistry of Labor
b.b. Ministry of Organization of the CentralMinistry of Organization of the Central
Committee.Committee.
(2) Worker participation in China:(2) Worker participation in China:
a.a. Worker Innovation and Workers’ Congress.Worker Innovation and Workers’ Congress.
b.b. Stock sharing and voluntary grouping.Stock sharing and voluntary grouping.
(3) Trade Union and its functions.(3) Trade Union and its functions.
(4) Types of organizations and their HRM activities(4) Types of organizations and their HRM activities
