This document defines human resource management and discusses its strategic importance. It explains that HRM involves leveraging people's capabilities to achieve competitive advantage through distinctive employment policies, programs, and practices. The document also outlines some of the key roles and responsibilities of HR managers and line managers in performing HRM activities. It provides a brief history of the development of HRM as a field.

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2. Objectives
 Define the term human resource management.
 Describe the strategic importance of human resource
management (HRM) activities.
 Explain what career opportunities are available in the
HRM field.
 Discuss the role that specialists and operating managers
play in performing HRM activities.
 List the main objectives pursued by HRM units.
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3. “RESOURCES”……..ARE THEY…????
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4. Jack Welch- Winning
“Elevate HR to a position of power and primacy in
the organization, and make sure HR people have
the special qualities to help managers build leaders
and careers. In fact, the best HR types are pastors
and parents in the same package.”
“The head of human resources at any company
should be at least as important as the CFO.”
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5. Assets
Physical Financial Intangible Human
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6. Human Capital Core Competency
The collective value of the A unique capability that
capabilities, knowledge, creates high value and
skills, life experiences, and differentiates an organization
motivation of an from its competition.
organizational workforce.
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7. Leaders are Readers
 Peter Drucker
 The Essential Drucker (2008)
 “Business management must always, in every decision
and action, put economic performance first.”
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8. Human Resource Management:
A strategic approach to managing
employment relations which emphasizes that
leveraging people’s capabilities is critical to
achieving competitive advantage. This being
achieved through a distinctive set of
integrated employment policies, programmes
and practices.
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9.  Human resource management (HRM) is the
effective management of people at work
 The goal: make workers more satisfied and productive
 When an organization is concerned about people, its
total philosophy, culture, and orientation reflect it
 Every manager must be concerned with people,
whether or not there is a human resources department
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10. The Nature of Human Resource
Management
Management:
The science perspective
The political perspective
The control perspective
The practice perspective
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11. The meaning of ‘management’
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12. Leaders are Readers
 Good to Great
 Jim Collins (2001)
 “Good is the enemy of great.”
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13. The Nature of the Employment
Relationship
Describes dynamic interlocking relations that
exist between individuals and their work
organizations.
Considers economic, legal, social and
psychological relations.
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14. The Nature of the Employment
Relationship
Economic – exchange of pay for work.
Legal – network of common law and
statutory rights and obligations affecting
both parties.
Social – ‘social norms’ influence employees’
actions in the workplace.
Psychological – dynamic, two-way exchange
of perceived promises and obligations.
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15. Figure 1.2 The employment and psychological contracts between employer and employee
The Nature of the Employment
Relationship
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16. Figure 1–2
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17. 12–17

18. The Manager’s Human Resource
Management Jobs
 Management process
 The five basic functions of planning,
organizing, staffing, leading, and controlling.
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19. Line and Staff Aspects of HRM
 Authority
 The right to make decisions, direct others’
work, and give orders.
 Staff authority (Advisory)
 The authority gives right to the HR manager
to advise other managers or employees.
 Line authority (Superior-Subordinate)
 The authority of managers to direct people in
his or her own department.
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20. Line and Staff Aspects of HRM
 Line manager (Line Authority)
 A manager who is authorized to direct the
work of subordinates and is responsible for
accomplishing the organization’s tasks.
 Staff manager (Staff Authority)
 A manager who assists and advises line
managers.
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21. Line Managers’ HRM Responsibilities
1. Place the right person on the right job
2. Orientate new employees
3. Train employees for jobs new to them
4. Improve the job performance of each person
5. Gain creative cooperation and developing smooth
working relationships
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22. Line Managers’ HRM
Responsibilities
1. Interpret the company’s policies and procedures
2. Control costs
3. Develop the abilities of each person
4. Maintain morale
5. Protect employees’ health and physical condition
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23. Functions of the HR Manager
 Carries out 3 distinct functions:-
1. Line function
2. Coordination function
3. Staff function
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24. Functions of the HR Manager
 A line function
 The HR manager directs the activities of
the people in his or her own department
and in related service areas (like the plant
cafeteria).
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25. Functions of the HR Manager
 A coordinative function
 HR managers also coordinate personnel
activities, a duty often referred to as
functional control.
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26. Functions of the HR Manager
 Staff (assist and advise) functions
 Assisting and advising line managers is the
heart of the HR manager’s job.
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27. Typical Division of HR
Responsibilities
 HR Unit  Managers
 Develops legal, effective  Advise HR of job openings
interviewing techniques  Decide whether to do own
 Trains managers in final interviewing
conducting selection  Receive interview training
interviews from HR unit
 Conducts interviews and  Do final interviewing and
testing hiring where appropriate
 Sends top three applicants to  Review reference
managers for final review information
 Checks references  Provide feedback to HR unit
 Does final interviewing and on hiring/rejection decisions
hiring for certain job
Figure 1–1
classifications 27

28. 1–28

29. Figure 1–5
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30. HR Management Roles
 Administrative Role
 Clerical and administrative support operations (e.g.,
payroll and benefits work, leaves)
 Now e-HR
 Employee Advocate Role
 “Champion” for employee concerns
 Employee crisis management
 Responding to employee complaints
 Operational Role
 Identification and implementation of HR programs and
policies—EEO, hiring, training, and other activities that
support the organization.
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31. Strategic Role for HR
 HR becomes a strategic business partner by:
 Focusing on developing HR programs that enhance
organizational performance .
 Involving HR in strategic planning at the onset.
 Participating in decision making on mergers,
acquisitions, and downsizing.
 Redesigning organizations and work processes
 Accounting and documenting the financial results of
HR activities.
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32. xample percentages are based on various surveys.
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33. 1–33

34. Figure 1–7
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35. A Brief History of HRM
 HRM can be traced to England, where craftspeople
organized guilds
 They used unity to improve working conditions
 The Industrial Revolution in the 18th century laid
the basis for a new, complex industrial society
 Changing work conditions, social patterns, and labor
created a gap between workers and owners
 During the world wars era, scientific management,
welfare work, and industrial psychology merged
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36. A Brief History of HRM
 Frederick W. Taylor, the father of scientific
management, summarized scientific management
as:
 Science (not rules of thumb)
 Harmony (not discord)
 Cooperation (not individualism)
 Maximum output (not restricted output)
 Industrial psychology, initiated in 1913, focused on:
 The worker
 Individual differences
 The maximum well being of the worker
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37. A Brief History of HRM
 Personnel departments were created to deal with:
 Drastic changes in technology
 Organizational growth
 The rise of unions
 Government intervention
concerning working people
 Around the 1920s, more organizations
noticed and acted on employee-management
conflict
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38. A Brief History of HRM
 The Hawthorne studies (1924 to 1933):
 Were to determine the effects of
illumination on workers and their output
 Rather, it pointed out the importance of
social interaction on output and satisfaction
 Until the 1960s, the personnel function was
concerned only with blue-collar employees
 File clerk, house-keeper, social worker, firefighter, and
union trouble defuser
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39. Malden Mills (Lawrence, Massachusetts)
 Aaron, Feuerstein
 Dec 11, 1995
 1400 displaced employees
 Salary for 3 months
 Extended health benefits
 600 employees completed courses (computer skills for
running new machines)
 More than 90% returned to work.
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40. Outsourcing
 Outsourcing HRM activities is growing in
popularity because of:
 Downsizing
 Rapid growth or decline of business
 Globalization
 Increased competition
 Restructuring
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41. Outsourcing
 Some executives assume that outsourcing can:
 Reduce costs
 Improve flexibility
 Permit the hiring of specialized expertise
 The choice to outsource HRM activities is being
made with little empirical support
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42. Necessary HRM Competencies
Communication Technology
Problem solving Forecasting
Leadership Compensation design
Recruiting/staffing Benefit design
Employment law Accounting/finance
Training/development Record keeping
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43. HR Management Competencies
and Careers
 HR Generalist
 A person with responsibility for performing a variety of
HR activities.
 HR Specialist
 A person with in-depth knowledge and expertise in a
limited area of HR.
 Important HR Capabilities:
 Knowledge of business and organization
 Influence and change management
 Specific HR knowledge and expertise
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44. Duties of HR Specialists
 Training Specialist
 Plan, organize and direct training
 Advise managers on training
 Job Analyst
 Collect information about jobs
 Prepare job description
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45. Duties of HR Specialists
 Recruiter
 Collect information about jobs
 Interview and recommend suitable
candidates
 EEO (Equal Employment Opportunity)
Coordinator
 Investigate EEO grievances
 Examine HR practices for potential
violations
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46. Duties of HR Specialists
 Compensation Manager
 Develop compensation plans
 Handle employee benefits program
 Employment relations specialist
 Advise managers on ER issues
 Negotiate with unions
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47. The New HR Manager
 New Proficiencies
 HR proficiency
 Business proficiency
 Leadership proficiency
 Learning proficiency
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48. The New HR Manager