Human Resource Management Chapter One discusses the key concepts and functions of human resource management. It explains that HRM is concerned with managing the human resources in an organization and is important because people are the driving force behind any organization. Some of the major functions of HRM discussed include staffing, development, compensation, and maintenance of employees. The chapter provides definitions of HRM and describes the scope, objectives, and nature of human resource management.

1. Human Resource
Management
Chapter One
• Ashenafi A.

2. why rich
countries are
rich and poor
countries are
poor?

3. On analyzing the behavior
of the people in rich &
developed countries, the
great majority follow the
following principles in their
lives:

4. 1. Ethics, as a basic principle.
2. Integrity.
3. Responsibility.
4. Respect to the laws & rules.
5. Respect to the rights of other citizens.
6. Work loving.
7. Strive for saving & investment.
8. Will of super action.
9. Punctuality.

5. Why Is Human Resource Important?
 Affects the quality of goods and service
produced
 Is the driving force in organizational life
cycle
 is responsible for managing other
resources of an organization
 Prerequisite for organizational learning
 Employees are scarce resources that
should be acquired effectively, utilized,
developed and retained.
 Provides an organization with
competitive advantage

6. Contents
Concept and Definitions of human resource management
Nature and scope of Objectives of human resource management
History of human resource management
Strategic importance of human resource management
Models of human resource management
Major human resource management functions

7. 1 Concept of Human Resource
Management (HRM)
HRM Is Concerned With The Human Beings In An Organization.
“The Management of Man”
Is A Very Important And Challenging Job Because of The Dynamic
Nature Of The People.
 No Two People Are Similar.
People Are Responsive, They Feel, Think and Act Therefore They
Cannot Be Operated Like A Machine or
Shifted And Altered Like Template In A Room Layout.
They Therefore Need tactful Handing By Management Personnel
7

8. 1 Concept of Human Resource
Management (HRM)
1.1 What is HRM?
• Before giving answer to this question, it
would be better to define "management"
itself, because HRM belongs to the
broader field of study and practice known
as management.
8

9. Concepts HRM Continued…
 Management is defined as the process of reaching goals
through efficient utilization of human, financial, material and
informational resources.
 Among all these, human resource is the most important and
fundamental resource for an organization. Why? Because:
 Human resource is the major cost(expenditure) of doing
business (wages, benefit & training constitute 40-60% of the
total cost)
 Unlike other resources, human resource require fairness, justice
and equity
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10. Concepts HRM Continued…
 Human resources make decision over efficient utilizations of other
resources.
 Organizational activities require human efforts and capabilities
 Organizations depend on performance of people for achieving its
mission and goals
10

11. Definition of human resource
management
 Human Resource Management is the process of achieving
organizational goal by attracting, developing, and retaining
and properly using talented human resource.
 Human resource management can be defined as a strategic,
integrated and coherent approach to the employment,
development and well-being of the people working in
organizations.
 Is about having the best human resources who are best
utilized to produce cheaper and better-quality goods and
services
 The process of managing human talent to achieve an
organization’s objectives

12. Definition of
human
resource
management
 HRM is the planning, organizing, directing
& controlling of the procurement,
development, compensation,
integration, maintenance and separation
of human resources to the end that
individual, organizational and social
objectives are accomplished.
Edwin B. Flippo,

13. Scope of HRM
 Very Vast
 Covers all major
activities in the
working life of a
worker
-from time an
individual enters
into an organization
until he or she
leaves
comes under the
purview of HRM
Prospects
of
employees
HRM
Nature of
HRM
Industrial
Relations
Employee
Maintenance
Employee
Hiring
Employee
&
Executive
Remunera
tion
Employee
Motivation

14. Scope of HRM
At last, HRM comprises of three aspects:
A. Personnel Aspects:
 This is concerned with manpower planning, recruitment, selection, placement, transfer,
promotion, training and development, lay-off and retrenchment, remuneration, incentives,
productivity, etc.
B. Welfare Aspects:
 It deals with working conditions and amenities such as canteen, scenes, rest and lunchrooms,
housing, transport, medical assistance, education, health and safety, recreational facilities, etc.
C. Industrial Relations Aspects:
 This covers union-management relations; join consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.

15. Scope of HRM
The scope of HRM refers to all the activities that come under the banner of HRM. The
activities are as follows
1.Human resources planning: – Human resource planning is a process by which the
company to identify the number of jobs vacant, whether the company has excess staff or
shortage of staff and to deal with this excess or shortage.
2.Job analysis design: – Another important area of HRM is job analysis. Job analysis gives a
detailed explanation about each and every job in the company. Based on this job analysis
the company prepares advertisements.
3.Recruitment and selection: – Based on information collected from job analysis the
company prepares advertisements and publishes them in the news papers. A number of
applications are received after the advertisement is published, interviews are conducted,
and the right employee is selected thus recruitment and selection are yet another
important areas of HRM.

16. Scope of HRM
4. Orientation and induction: – Once the employees have been selected an
induction or orientation program is conducted. The employees are informed about
the background of the company. They are told about the organizational culture and
values and work ethics and introduce to the other employees.
5. Training and development: – Every employee goes under training program
which helps him to put up a better performance on the job. Training program is
also conducted for existing staff that have a lot of experience. This is called
refresher training. Training and development is one area were the company spends
a huge amount.
6. Performance appraisal: – Once the employee has put in around 1 year of
service, performance appraisal is conducted i.e. the HR department checks the
performance of the employee. Based on these appraisal future promotions,
incentives, increments in salary are decided.

17. Scope of HRM
7. Compensation planning and remuneration: – There are various rules regarding
compensation and other benefits. It is the job of the HR department to look into
remuneration and compensation planning.
8. Motivation, welfare, health and safety: – Motivation becomes important to
sustain the number of employees in the company. It is the job of the HR
department to look into the different methods of motivation. Apart from this
certain health and safety regulations have to be followed for the benefits of the
employees.
9. Industrial relations: – Another important area of HRM is maintaining co-ordinal
relations with the union members. This will help the organization to prevent strikes
lockouts and ensure smooth working in the company.

18. The Nature of
Human Resource
Management
A Managerial
Process:
Forward
Looking:
Mixture of Art
and Science:
All Pervasive:
Continuous
Process:
Key to
Organizational
Success:
Utilization of
Human
Capital:
Management
of Individuals:

19. Objectives of HRM
Goal Achievement : HRM is not an end by itself, but it is
means for the achievements of organizational goals by
Providing the organization with well motivated, committed
and qualified employees.
Productivity Improvement: HRM continuously develops
employees through training and other opportunities. Better
quality of human resources result in improved productivity
20

20. Objectives of HRM
Societal objectives
• To be ethically & socially responsible to the needs of the society while minimizing the negative
impact of such demands upon the organization
Organizational objectives
• To recognize the role of HRM in bringing about organizational effectiveness
Functional objectives
• To maintain the department’s contribution at a level appropriate to the organization’s needs
Personal objectives
• To assist employees in achieving their personal goals in a manner that their personal goals enhance
the individual’s contribution to the organization

21. Functions of HR
MANAGERIAL
FUNCTIONS
Planning
Organizing
Directing
Controlling
OPERATIVE
FUNCTIONS
Staffing
Development
Compensation
Motivation
Maintenance
Integration
Emerging Issues
Ashenafi A.(MA)

22. Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility
DEVELOPMENT
Competency profiling, Training and
development, Performance &
potential management, Career
management, 360-degree feedback
COMPENSATION
& MOTIVATION
Job design, Work scheduling, Job
evaluation, Compensation
administration, Incentives and
benefits
Ashenafi A.(MA)

23. Operative functions of HR (contd.)
MAINTENANCE
Health, Safety, Welfare,
Social security
INTEGRATION
Employment relations, Grievance,
Discipline, Trade unions,
Participation, Collective
bargaining
EMERGING
ISSUES
HR audit, HR scorecard,
International HRM, Workforce
Diversity
Ashenafi A.(MA)

24. 1.4 Human resource functions
To achieve HRM objectives, mangers must perform the following interrelated
activates:
1. Job analyses: systematic process of determining duties, responsibilities and
qualification required to do a job
2. Job designing: structuring and restructuring of the job to meet both employees
and organization’s interests
3. Human resource planning: systematically reviewing human resource
requirement to ensure that the required number and type of employees are
available when they are needed
4. Recruitment: attracting a pool of candidates to apply for the job that are open
25

25. Function continued..
5. Selection: choosing from a group of applicants the individual best suited to a
particular job
6. Placement, orientation, promotion and separation
7. Performance appraisal: a formal system of periodic review and evaluation of
individual’s performance
8. Training and development
Training: program designed to improve skills of operational employee required to do
present job
Development: designed to improve competency of managerial employees necessary
to do future job
9. Compensation administration: administering any type of rewards that an employee
receive in return for his/ her performance
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26. Functions continued…
10. Safety and health:
Safety: protecting employees from injuries caused by work related accidents
Health: employees' freedom from illness and general mental and physical
wellbeing's
11. Human resource research: systematic gathering, recording, analyzing, and
interpretation of data for guiding HRM decisions.
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27. Major HRM functions
• Procurement functions
• focus on availing the right type and number of
employees required for achieving organizational goals.
• Development functions
• Focus on enhancing knowledge , skill and values of
employees to perform their current and future
responsibilities competently.
• Integration functions
• Focuses on reconciling organizational goals with individual
goals.
• Maintenance functions
• Focuses on maintaining physical and mental health of
employees.
28

28. History
Evolution of human resource management

29. History/Evolution of
human resource
management

30. Human Capital
 Human capital is the economic value that comes from things like the
worker’s experience, skills, knowledge, and abilities.
 Human capital is an intangible asset with economic value
 Human capital, like other forms of capital, can be measured and
developed and delivers a return on investment (ROI).

31. Human Capital Management
Human capital management, or “HCM” for short,
is the collection of organizational practices related to the acquisition,
management, and development of the human workforce—or human
capital—within an organization.
The goal of HCM is to optimize and maximize the economic, or business,
value of an organization’s human capital in order to gain a competitive
advantage.
Effective human capital management enables the organization to
successfully pursue human capital initiatives.

32. Differences between PM & HRM
Dimension Personnel Management Human Resources Management
1. Employment Contract Careful delineation of written
contracts
Aim to go beyond contract
2. Rules Importance of guiding clear rules Can do outlook, impatience with rule
3. Behavior referent Norms/customs/practices Values/mission
4. Managerial task Monitoring Nurturing
5. Management Role Transactional Transformational leadership
6. Communication Indirect Direct
7. Conflict handling Reach temporary truce Manage climate & culture
8. T&D Controlled access to courses Learning organization
9. Focus of attention for
interventions
Personnel procedures Wide ranging cultural, structural & personnel
strategies
10. Shared interests Interests of the org. are
uppermost
Mutuality of interests

33. Differences between PM & HRM
Personnel management Human resource management
Short term ,routine, reactive Strategic, proactive
Compliance Commitment
Pluralist, collective, low trust Unitarist, individual, high trust
Bureaucratic Organic
Activity based Solution based
Internally focused Externally focused
Specialized/professional Largely integrated into line management
Cost minimization , humans are seen as
liabilities
Maximum utilization (human asset)

34. The Environmental Factors Affecting HRM
39

35. HRM Environment
• Environment is the totality of factors that influence an organization and its sub
systems such HRM.
• External Environment -forces external to a firm that affect the firm’s
performance but are beyond the control of management.
• In order to adopt to the external environment constant monitoring of the
external environment for opportunities and threats is important.
• Internal Environment- are concerns or problems internal to the organization.

36. Why Study HRM?
 Taking a look at people is a rewarding experience
 People possess skills, abilities and aptitudes that
offer competitive advantage to any firm
 No computer can substitute human brain, no
machines can run without human intervention &
no organization can exist if it cannot serve
people’s needs.
 HRM is a study about the people in the
organization-how they are hired, trained,
compensated, motivated & maintained.

37. THANK YOU

38. Chapter THREE
JOB ANALYSIS AND DESIGN

39. 2.1.1. Job Analysis Terminologies
 Task: is the smallest units of analysis or identifiable work activities
composed of motions. E.g. receiving telephone call
 Duty: a larger work segments composed of several tasks
performed by an individual. E.g. pick up, sort out and deliver
incoming mail
 Position: A collection of tasks and duties which are performed by
one person. There are as many positions in an organization as
there are employees. or example, the P.A. to Chairman receives
visitors, takes dictation, operates computer, answers queries,
attends to complaints and helps students
 Job: group of positions that are similar in their duties and positions
performed by one or more person/s to achieve the organization’s
goal. For example the job of salesmen, technical assistants,
computer programmers, etc.
44

40. Terminology continued…
Note:
Job may require a service of one or more person Example:
• University president service of one person
• Accounting clerks service of more than one person
Position require the service of only one person
Exercise:
• In a work group consisting of a financial head, a chief accountant, two
accounting clerks and two cashers. How many positions and jobs are there?
45

41. 2.1.2 Concepts of Job analysis
Definition:
Job analysis is
 A systematic process of determining tasks, duties and responsibilities that make
up the job and the qualification (skill, knowledge, experience) required to
perform the job
 Systematic process of collecting information about all of the parameters of a job:
• basic responsibilities,
• Required behaviors,
• skills, and
• the physical and mental requirements of the people who do it.
46

42. 2.1.2 Concepts of Job analysis
When the organization
is founded
(established)
01
When new jobs are
created
02
When jobs are
changed significantly
as a result of new
technology
03
47
WHEN TO CONDUCTED JOB ANALYSIS ?

43. WHO PERFORM JOB ANALYSIS ?
HRM department Manager External consultant

44. Job analysis is the foundation of all HRM activities

45. The Product (output) of Job Analysis

46. The Product (Output) Of Job Analysis
Job analysis is conducted to prepare:
1.Job description: is a written statement that explains the title, duties,
responsibilities, authority, accountabilities, working conditions, conditions of
employment and other aspects of a specified job (what the worker does ).
• What is the use of job description?
• Use of job description:
• It describes the job to the recruiters
• It guides newly hired employees about what they are expected to
perform.
• It is used for appraising whether the actual activities of the employees
match with their stated duties
•
51

47. Product of Job Analysis Continued…
2. Job specification: is a written statement that describes the skill,
knowledge, work experiences required to perform the job (who the
worker is)
Uses of Job specification:
• It sets minimum qualifications needed in potential candidates
• It guides selectors to select candidates with right qualifications
3. Job Performance Standard: is a statement that indicate quality and
quantity of job performance.
52

48. Product of job Analysis
continued…
Use of Job performance standards:
 Motivation: standards becomes objectives or
targets for employee efforts. Once standards are
met, workers may feel a sense of
accomplishment
 Performance Evaluation: Standards are criteria
against which job success is measured.
 Improve the performance of employees: The
more employees understands what is expected
of them, the more likely it is that they will be
able to carry out responsibilities successfully.
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49. Product of
Job Analysis
Continued…
4. Job Evaluation
The process of determining the relative values of
each job in the organization and ranking them in
a hierarchy
Use of job evaluation
 Provide information for developing a
compensation package
 It serves as a bases for fixing a fair and
equitable salary and wage structure
54

50. Purposes and
uses of Job
analysis
 HR planning
 Recruitment and Selection
 Wage and Salary Administration
 Job Reengineering
 Employee Training and Management
Development
 Performance Appraisal
 Health and Safety
55

51. 2.1.3
Conducting
Job analysis
1. Collecting Job Analysis Information
All relevant information concerning the job is vital for
successful accomplishment of job analysis.
56

52. 2.1.3
Conducting
Job analysis
 Work oriented activities (what the worker does?)
Specific tasks that are involved in the job
Procedure used to perform the job
Personal responsibilities ( for property, fund etc…)
 Work oriented activities (how the job is performed?)
Human behavior ( physical action, communication
etc..)
Types of materials used (metal, plastic etc…)
 Machines and Materials Used (tools, equipment etc…)
Types of machine, equipment and tools used
Types of materials used (metal, plastic etc…)
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A. TYPES OF JOB ANALYSIS INFORMATION

53. Job Analysis Information continued…
 Job performance ( what are performance standards?)
Works standards ( quantity and quality standards of the job
Work measurement ( time, kg meter etc…)
 Job Context ( what is the job environment?)
Work schedule ( first month, second, etc…)
Incentives ( financial and non financial)
Physical working conditions ( exposure to heat, dust, toxic substance, discomfort etc…)
Organizational context( mission, startegy, structure and culture
 Personal requirements for the Job
Education and training required
Work experience and skill needed
Personality requirement
58

54.  Employee: posses first hand knowledge about activities and elements
involved in the job. E.g. Job holders diaries
 Supervisors/Mangers: posses rich experience of the job , because
they record activities involved in the job
 Job review committee: consists of representatives from HRM, labor
union and other interest groups
 None- human sources : (films of workers on the job, pervious job
description and specification, reports etc…
59
B. SOURCE OF INFORMATION FOR JOB ANALYSIS

55. C. Methods of Collecting Information
Some of the most common methods of collecting information for job
analysis are:
 Questionnaire
 Interview
 Observation
 Employee log method
 A combination of the above methods
What are advantage and disadvantage of each method?
60

56. Questionnaire
Structured questionnaires given to employees to be filled by both jobholder and
immediate supervisor.
 Saves time and is economical
 However, employees might exaggerate the significance of their tasks

57. Observation
Job analyst learn about the job by
observing the jobholder at action
•Used primarily to gather information on jobs
emphasizing manual skills
•Often insufficient when used alone
•Difficult when mental skills are dominant in a job

58. Diaries
• Jobholders will record information about
their job for some specific period.
• Employees describe daily work activities in
diary or log
• Valuable in understanding highly specialized
jobs
• Problem: Employees might exaggerate job
importance

59. Interview
• Interview both employee and supervisor
• Interview employee first, helping him or her describe duties
performed
• After interviews, analyst normally contacts supervisor for additional
information

60. How to ensure data
correctness
 check with immediate supervisor/manager
Ask more than one employee

61. Process of job analysis
Identify
Identify the
scope of the
analysis
Review
Review relevant
background
information such
as organizational
chart, process
chart and old job
descriptions in
order to
understand the
general context
of the job
Select
Select
benchmarking
jobs
Identify
Identify source of
data and data
collection
method

62. Process of job analysis…
Analyze
Analyze the job
Verify
Verify the job
analysis
information
with the worker
and immediate
supervisor.
Develop
Develop the job
description and
job
specification.

63. Process of Job Analysis

64. 2.1.3
Conducting
Job analysis
2. Writing Job Descriptions And Specification
69

65. A. Writing job
Description:
70
In writing job description the analyst should
include the following elements or items
 Job identification elements; these includes:
• Title of the job, e.g, HR manager, Secretary II
• Department e.g, development management
• Reporting relationship e.g to program manger
• Date of the job description e.g, Sep, 2013
• Job code number
• Salary and benefit classification
 Job Summary: brief one or two sentences
describing the purpose of the job and the
expected output

66. Writing
continued…
 Major duties performed , responsibilities,
accountability and authority
 Percentage of time devoted to each duties
 Condition of work and possible hazards
 Number of employees performing the job
 Machines and equipment used in the job
71

67. B.Writing job
specification
 Job specification involves listing of
employees experience, training, education,
and the ability to meet physical and mental
demands
 Because of both focus on the job
specification often included as one section
of job description
72

68. 73
Job Analysis Continued…
Position: Project General Manager Responsible to:
Responsible for:
Job Summary
Manages engineering procurement, operations, and construction of power project
Specific duties
1.Establishes with owner and power division, Engineering, operations, and construction the basic criteria for
project plan and schedules.
2.Reviews project status to measure performance and minimize delays.
3.Continually monitors reject to identify and resolve potential or real problem areas.
4.Administers contract and coordinates contract changes.
5.Reviews and issues progress reports to owner and Division management
6.Reviews and issues engineering and construction change notices.
7.Reviews and issues estimates and cash flow schedules to provide financial information to Owner.
8.Arranges and conducts project status meetings with owner, Engineering, procurement, and Construction
management.
9. Prepares Project Management Office procedures.
10. Performs other related duties as assigned
Supervisory responsibilities: Directly supervises four or more project coordinators; indirectly supervises three
or more project team leaders.
Desirable Qualifications: College degree in Engineering with 10 or more years of related experience,
Demonstrated proficiency in English grammar, punctuation and spelling

69. 7.2.2 Job Design
What is Job design?
Job design refers to organize work content
(task, duties, responsibility) and qualification
required (skills, knowledge, experience) in each
job in the way that meet the needs of the
organization and employees.
The purpose of job design and redesign is to
improve:
 employees satisfaction and performance
 organizational performance
74

70. 2.2.1 Factors affecting Job design
A. Organizational factors : include
 Work flow: the sequence and balance between jobs. Product and
service type often determines the sequence of work flow. A balance is
required between various product or service processes and a job
design ensures this
 Ergonomics: concerned with the design and shaping of jobs as per
the physical abilities and characteristics of individuals
 Work practice: as set of ways ( procedure used to do a job)
75

71. 2.2.1 Factors affecting Job design…
B. Environmental factors : include
 Employee availability and abilities: Employee skills, abilities and time
of availability play a crucial role while designing of the jobs.
 Social and cultural expectations: working hour, holiday, religious
beliefs are some of the factors that must be considered in designing
jobs.
76

72. 2.2.1 Factors affecting Job design…
C. Behavioral Factors
Behavioral/ human factors are those that pertain to the human need and
that need to be satisfied for ensuring productivity at workplace. They include
the elements like:
 Skill variety: the extent to which the job require different skill and talents
 Task identity: the extent to which the job allows it’s employee to complete
the whole tasks than part of it
 Task significance: the impact of the job on other people
 Autonomy: freedom to plan, decide about work procedure
 Feedback: clear and direct knowledge about how well the individual
performed the job
77

73. 2.2.2 Approaches of Job Designing
78
Job Rotation The process
whereby employees rotate
in and out of different jobs.
Job Enlargement The
process of adding a greater
variety of tasks to a job.
Horizontal expansion
Job Enrichment Enhancing a job
by adding more meaningful tasks
and duties to make the work more
rewarding or satisfying. Vertical
expansion.

74. THANK YOU

75. Chapter FOUR
HUMAN RESOURCE PLANNING
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