THE DYNAMIC ENVIROMENT OF HRM.

1. Welcome to
Human Resources!!

2. 2
Resources are anything that has utility and adds
value to your life. a source of supply or support
Air, water, food, plants, animals, minerals, metals,
and everything else that exists in nature and has
utility to mankind is a 'Resource’
• Natural resources.
• Human resources.
• Environmental resources.
• Mineral resources.
• Water resources.
• Capital resource

3. © 2005 Prentice Hall Inc. All rights reserved. 1–3

4. Human resource management (HRM), or
staffing, is the management function devoted to
acquiring, training, appraising, and
compensating employees

5. “Human resource management involves the
acquisition, retention, and development of
human resources necessary for organizational
success”

6. What exactly is Human Resource Management
 The policies and practices involved in carrying
out the “people” or human resource aspects of
a management position, including recruiting,
screening, training, rewarding, and appraising.
Management process
The five basic functions of planning,
organizing, staffing, leading, and controlling.

7. Understanding HRM
HRM is a management function concerned with
1) Hiring
2) Motivating
3) Maintaining people in the organisation.
It focuses on people in the organisation.

8. What We Don’t Want to Do!!
 Hire the wrong person for the job.
 Experience high turnover.
 Find your people not doing their best.
 Waste time with useless interviews.
 Have your company taken to court because of
discriminatory actions.
 Have your company cited under federal occupational
safety laws for unsafe practices.
 Have some employees think their salaries are unfair
and inequitable relative to others in the organization.
 Allow a lack of training to undermine your
department’s effectiveness.
 Commit any unfair labor practices.

9. Importance of Human Resource
Management
1. Recruitment.
2. Performance Appraisals.
3. Maintaining Work Atmosphere.
4. Budget Control.
5. Conflict Resolution.
6. Training and Development.
7. Employee Satisfaction.
8. Performance Improvement.
9. Sustaining Business.
10. Corporate Image.

10. Components of Human Resource
Management
 Human Resources Planning.
 Job and work design.
 Staffing.
 Training and development.
 Performance appraisal and review.
 Compensation and reward.
 Employee protection and representation.
 Organization improvement.

11. Challenges of Human Resource
Management
 Human resource management operates in an open
environment.
 So, it is affected by internal and external changes in
the environmental forces.
 It operates in a dynamic environment; hence, the
change may create opportunities as well as threats
for the organization.
 The main issue behind human resource
management challenges is the emerging trends in
the organizational environment and
policies/procedures to encounter such issues to
achieve organizational objectives.

12. These challenges can be studied under
three dimensions as follows;
1) Environmental Challenges.
2) Organizational Challenges.
3) Individual Challenges.

13. 1. Environmental Challenges
Environmental challenges refer to forces and institutions
that are beyond access to management. These forces
are external to the organization and beyond the control
of management.
Hence, managers face difficulties in managing such
environmental issues. Environmental challenges consist
of the following factors:
 Globalization Movement
 Change in Economic Outlook
 Change in Political Environment
 Change in Socio-cultural Environment
 Change in Technological Environment

14. 2. Organizational Challenges
Organizational challenges are internal to the firm; often they
are the by-product of environmental challenges. The
management has control over these issues and can be
managed by efficient management.
It consists of the following aspects:
 Work Force Diversity
 Organizational Objectives
 Downsizing
 Business Process Re-engineering
 Decentralization
 Management of Human Relation
 Computerized Information System

15. 3. Individual Challenges
These forces are related to the personal aspect of the
organization. It includes all the complexities that are
raised due to organizational interaction with people.
These are similar to the organizational challenges but
are primarily concerned with the individual.
Some of its components are as follows:
 Brain Drain
 Individual Norms and Values
 Mobility of Professional personnel between
organizations
 Aspirations of Employees

16. © 2005 Prentice Hall Inc. All rights reserved. 1–16
HR Department Organizational Chart (Large Company)
Figure 1–1
Source: Adapted from BNA Bulletin to Management, June 29, 2000.

17. Study Guide Questions
 What is Human Resource management?
 Why is the HR important?
 What is a line manager/ staff manager? What is the difference between them.
What duties do each do? Which duties might they both do?
 What is implied authority?
 What is strategy and how is HR involved?
 How does globalization affect the HR department?
 How does technology affect HR?
 How has the nature of work changed?
 How has the labor force changed?
 What does outsourcing have to do with HR?
 What is strategic human resource management? What are the three different
types of roles HR plays in businesses. Which role is becoming more and more
popular with businesses?
 An HR staffer trains an employee on how to operate a piece of equipment. Is
this a line function or a staff function?
1–17
Use these questions to help prepare yourself for the exam.