1. Human resource management (HRM) involves hiring, attracting, retaining, motivating and training employees to create a competitive advantage for organizations. 2. HRM must account for changing technologies, diverse workforces, globalization, and continuous improvement programs to empower employees. 3. Key HRM functions include staffing to recruit and select qualified employees, training and developing workers, motivating through performance reviews and compensation, and maintaining employee safety, communication and relations.

1. Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins
Chapter 1
The Dynamic Environment
of Human Resource
Management (HRM)

2. Objectives:
At the end of the session, the students are able to:
1.Define Human Resource Management.
2.Explain the relevance of Human Resource
Management.
3.Articulate the importance of Human capital to
organizations.

3. Introduction
Strong employees = competitive advantage.
HRM is a subset of management. It has five main
goals:
Goals
of
HRM
hire
employees
attract
employees
retain
employees
motivate
employees
train
employees

4. HRM helps employees understand other countries’
political and economic conditions.
Understanding Cultural Environments
Countries have different
 values
 morals
 customs
 political, economic, and legal systems
HRM operates in a global business environment.

5. The Changing World of Technology
HRM information systems help to
 facilitate HR plans
 make decisions faster
 clearly define jobs
 evaluate performance
 provide desirable, cost-effective benefits

6. The Changing World of Technology
HR managers use technology to:
 recruit, hire, and train employees
 motivate and monitor workers
 research fair compensation packages
 communicate throughout the
organization
 evaluate decentralized employees’
performance

7. Workforce Diversity
Today’s workers want a healthy work/life
balance.
They
 can work any time, from almost anywhere
 work more than 40 hours per week
 are part of a dual-income household
#1 reason
for leaving a company:
lack of work schedule flexibility

8. The Labor Supply
HR managers monitor the labor supply.
Trend is to rightsize: fit company goals to
workforce numbers.
For agility, companies build a contingent
workforce of
 part-time workers
 temporary workers
 contract workers

9. Continuous Improvement Programs
HR managers help workers adapt to continuous improvement changes
through retraining, providing answers, and monitoring expectations.
continuous
improvement
components
empowerment
of employees
accurate
measurement
concern for
total quality
focus
on
customer
concern for
continuous
improvement

10. Employee Involvement
It’s all about employee empowerment through
involvement, which increases worker productivity
and loyalty.
Employee Involvement Concepts
delegation • participative management
work teams • goal setting • employer training

11. Other HRM Challenges
Challenges for HRM:
 The recession has brought layoffs and low
morale.
 Increased offshoring means jobs can move
overseas, even HR.
 Today’s spate of mergers and acquisitions
increase HR’s role.

12. A Look at Ethics
Code of ethics: a formal statement of an
organization’s primary values and the ethical rules
it expects members to follow.
HR managers must take part in enforcing ethics
rules.
Requires proper financial recordkeeping
for public companies

13. HRM Functions
A) Staffing function(hiring qualified
employees):
i) Strategic HR planning
ii) Recruiting iii) Selection
B) Training and development
i) Orientation
ii)Employee training
iii) Employee development
iv)Career development

14. HRM Functions
C) Motivation:
i) Performance appraisal
ii) Reward and compensation
iii) Employee benefit
D) Maintenance
i) Safety and health
ii) Communication
iii) Employee relations