Many companies refer to HRM as involving “people practices.” Turn to the next slide for Figure 1.1
Figure 1.1 emphasizes that there are several important HRM practices: Analyzing work and designing jobs Attracting potential employees (recruiting) Choosing employees (selection) Teaching employees how to perform their jobs and preparing them for the future (training and development) Evaluating their performance (performance management) Rewarding employees (compensation) Creating a positive work environment (employee relations) Supporting the organization’s strategy (HR planning and change management) An organization performs best when all of these practices are managed well.
For an organization to succeed at what it does, it needs employees with certain qualities, such as particular kinds of training and experience. This view means that employees in today’s organizations are not interchangeable, easily replaced by parts of a system, but the source of the company’s success or failure. By influencing who works for the organization and how these people work, human resources management therefore contributes to such basic measures of an organization’s success as quality, profitability, and customer satisfaction. Figure 1.2 (reproduced in this slide) shows this relationship.
In all but the smallest organizations, a human resource department is responsible for the functions of human resource management. On average, an organization has one HR staff person for every 93 employees served by the department. Table 1.1 (in the slide above) details the responsibilities of human resource departments. These responsibilities include the practices introduced in Figure 1.1 plus two areas of responsibility that support those practices: Establishing and administering personnel policies; and Ensuring compliance with labor laws.
Supervisors typically have responsibilities related to all HR functions. Figure 1.4 (on this slide) shows some HR responsibilities that supervisors are likely to be involved in. In all these activities, supervisors can participate in HRM by taking into consideration the ways that decisions and policies will affect their employees. Understanding the principles of communication, motivation, and other elements of human behavior can help supervisors inspire the best from the organization’s human resources.
HR professionals are increasingly being asked to use their knowledge of the business and of human resources to help the organization develop strategies and align HRM policies and practices with those strategies. Above mentioned Figure summarizes the strategic issues facing human resource management. These issues will be discussed on the slides that follow.
Orientation:Human Resource Environment
Muhammad Shafiq ur Rehman
Comsats Institute of Information Technology
Human Resource Management:
The policies, practices, and systems that influence
employees’ behavior, attitudes, and performance.
Human Resource Development:
A set of systematic and planned activities designed by an
organization to provide its members with the
opportunities to learn necessary skills to meet current
and future job demands.
Human resource management (HRM) encompasses many
functions. Human resource development (HRD) is just
one of the functions within HRM.
Role of HRM
Every organization is comprised of people. Acquiring their
services, developing their skills, motivating them to high
levels of performance and maintain their commitments.
Organizational goals cannot be achieved without human
resources. People – not buildings, equipments, or
brand names – make a company.
The role of human resource managers has changed. HRM
jobs today require a new level of sophistication.
– Jobs have become more technical and skilled.
– Traditional job boundaries have become unclear with
the beginning of such things as project teams and
– Global competition has increased demands for
High-Performance Work Systems
HRM is playing an important role in helping organization’s
gain and keep an advantage over competitors by
becoming high-performance work systems.
Organizations must make full use of their people’s
knowledge and skill, to meet customer demands for high
quality and customized products.
• Organizations that have the best possible fit between
– social system (people and how they interact); and
– technical system (equipment and processes).
• Key trends occurring in today’s high-performance work
– reliance on knowledge workers
– the empowerment of employees to make decisions
– the use of teamwork
The Nature of the Employment
Relationship is Changing
• The employment relationship takes the form of a
“psychological contract” that describes what
employees and employers expect from the employment
• In the traditional version, organizations expected
employees to contribute time, effort, skills, abilities, and
loyalty in exchange for job security and opportunities for
• Today, organizations are requiring top performance and
longer work hours but cannot provide job security.
• Instead, employees are looking for: flexible work schedules,
comfortable working conditions, greater autonomy,
opportunities for training and development, performance-
related financial incentives
• This requires planning for flexible staffing levels.
The need of HRD has become even stronger as
organizations grapple with the challenge presented by
a fast-paced, highly dynamic, and increasingly global
economy. To compete and thrive, many organizations
including employee education, training, and
development as an important and effective part of their
HRD activities begin when an employees join an
organization and continue throughout his or her career,
regardless of whether that employee is an executive or
Evolution of HRD: Early Apprenticeship Programs,
Vocational Education Programs, Factory Schools,
Training for unskilled/semiskilled
Human Relations Movement
Factory system often abused workers
“Human Relations” movement promoted better working
conditions. It provided a more complex and realistic
understanding of workers as people instead of merely
‘cogs’ in a factory machine.
Start of business & management education
Tied to Maslow’s hierarchy of needs. He proposed that
human needs are arranged in terms of lesser to greater
potency. The varied needs and desires of workers can
become important sources of motivation in the place.
Emergence of HRD: During the 1960s and 1970s,
Employee needs extend beyond the training classroom.
Includes coaching, group work, and problem solving.
Need for basic employee & structured career development
Training and development (T&D)
Training and Development
Training – improving the knowledge, skills and
attitudes of employees for the short-term,
particular to a specific job or task – e.g.,
Employee orientation: Basic orientation about job
Skills & Technical Training: To teach the new employee a
particular skill or area of knowledge
Coaching: It involves treating employees as partners in
achieving both personal and organizational goals.
Counseling: To help employees deal with personal
problems that may interfere with the achievement of these
Training and Development
Development – preparing for future
responsibilities, while increasing the
capacity to perform at a current job
The process of improving an
organization’s effectiveness and
member’s well-being through the
application of behavioral science
Focuses on both macro- and micro-
HRD plays the role of a change agent
Ongoing process by which individuals
progress through series of changes until they
achieve their personal level of maximum
Career Planning: It involves activities performed
by an individual, often with the assistance of
counselors to assess his/her skills and abilities in
order to establish a realistic career plan.
Career Management: It involves taking the
necessary steps to achieve that plan.
Challenges for HRD
Changing workforce demographics
Competing in global economy
Eliminating the skills gap
Need for lifelong learning
Need for organizational learning
Competing in the Global Economy
Need for more skilled and educated
Cultural sensitivity required
Better communications skills