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Nature of Business Organizations
and
Human Resource Management
Htain Lin Kyaw (HR)
Content
Business Functions and Organisation
Human Resource Management
Human Resource Development
Functions of Recruitment
Business Functions
 Human Resources
 Sales and Marketing
 Research and Development
 Business Development
 Production/Operations
 Customer Service
 Finance and Accounts
 Administration and IT
Business
Objectives
Operation
Supporting
 Human Resources
 Sales and Marketing
 Research and Development
 Business Development
 Administration and IT
Operation Functions
 Base on Organization Goals
 Main Financial Income
Sales and Marketing
 Market research
 Promotion strategies
 Pricing strategies
 Sales strategies
 The sales team
 Product – advice on new product
development, product improvement,
extension strategies, target markets
Research and Development
 New product development
 Product improvements
 Competitive advantage
 Value added
 Product testing
 Efficiency gains
 Cost savings
Finance and Accounts
 Cash flow
 Monitoring income/revenue
 Monitoring expenditure
 Preparing accounts
 Raising finance
 Shares
 Loans
 Links with all other functional areas
Production/Operations
 Acquiring resources
 Planning output – labour, capital, land
 Monitoring costs
 Projections on future output
 Production methods
 Batch
 Flow
 Job
 Cell
 Efficiency
Customer Service
 Monitoring distribution
 After-sales service
 Handling consumer enquiries
 Offering advice to consumers
 Dealing with customer complaints
 Publicity and public relations
Administration and IT
•Managing estates – cleaning, health
and safety, maintenance, security
•Reception
•Clerical work – reporting, recording,
record keeping, communication
•Overview of quality control
•Use of IT systems
Human Resources
 Recruitment and Selection
 Compensation and Benefits
 Training and Development
 Employee Relations
 Compliance
 Health and safety
Business Organisation
 Organisation by type
 Global businesses – complex organisation
structures
 National – organisation possibly stretches
throughout the country
 Regional – could be through a county or
wider area (North West, South East, etc.)
 Local – small organisations serving local area
or community
Business Organisation
 Authority – the right to make decisions and carry out tasks
 Span of control – the number of people a superior
is responsible for
 Chain of Command – the relationship between different levels
of authority in the business
 Hierarchy – shows the line management
in the business and who has specific responsibilities
 Delegation – authority to carry out actions
passed from superior to subordinate
 Empowerment – giving responsibilities to people
at all levels of the business to make decisions
Organisation Charts
Hierarchical Structure
Managing Director
Sales Director
Marketing
Director
Finance Director
A B C D Market
Research
Strategy Purchasing
Manager
Sales
Manager
Accounts
Manager
Organisation Charts
MD
Middle
Management
Workers
Pyramidal Structure
Senior
Management
Organisation Charts
MD
Finance
Production
SalesMarketing
R&D
Centralised/Entrepreneurial
Organisation Charts
Sales
Marketing
Production
Accounts
Collaborative
Organisation Charts
Project
Marketing
R&DSales
Finance
HR
Production
Matrix Structure
Human Resource Management
&
Human Resource Development
• Popular 'HR, Recruiting, Teams, & Training' Terms
• Organization structure
• Technical skill
• Job specification
• Motivation
• Values
• Job design
• Recruitment
• Personal management
• Performance management
The three Main task of Performance Management in the
Organization that Point of View of HR !
1. Want to Total Quality Management
2. Develop to Personal Competencies
3. Success to the target of the strategy and aims
Management process
The five basic functions of planning,
organizing, staffing, leading, and controlling.
Human resource management
The policies and practices one needs to carry
out the “people” or human resource aspects of
a management position, including recruiting,
screening, training, rewarding, and appraising.
Key Words :
Key Words :
Authority
The right to make decisions, direct others’ work, and
give orders.
Line manager
A manager who is authorized to direct the work of
subordinates and responsible for accomplishing the
organization’s goals.
Staff manager
A manager who assists and advises line managers.
Globalization
The tendency of firms to extend their sales
or manufacturing to new markets abroad.
Competitive advantage
Any factors that allow an organization to
differentiate its product or service from
those of its competitors to increase market
share.
Key Words :
cost leadership
The enterprise aims to become the low-
cost leader in an industry.
differentiation
A firm seeks to be unique in its industry
along dimensions that are widely valued
by buyers.
Key Words :
The importance of HRM
(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s
economic growth potential, and labor quality is
the key to improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and
unpredictable variable of all production variables,
organizational success depends on the
management of people.
Organization and individual
(1) Organization needs: Profits, productivity and
markets.
(2) Individual needs: Maslow's Need Hierarchy
Physiological needs, security, belonging, self-
respect and self-actualization.
(3) Coordinating organization and individual needs:
goal of HRM.
Employee quality and productivity
(1) Employee skill determines productivity.
Man and tools.
(1) Employee motivation affects productivity.
Willingness to perform.
(1) Employee creativity and initiatives
improve productivity.
innovation is the key to improvement.
Functions of HRM
a. Conducting job analysis.
b. Planning future needs and supplies.
c. Recruiting and selecting employees.
d. Orienting and training employees.
e. Managing wages and benefits.
f. Performance appraisal.
g. Communicating (discipline and services).
h. Building employee commitment (incentives).
Primary Functions of HRM
• Human resource planning
• Equal employment opportunity
• Staffing (recruitment and selection)
• Compensation and benefits
• Employee and labor relations
• Health, safety, and security
• Human resource development
Line managers’ HRM
responsibilities
a. Job placing.
b. Orienting new employees.
c. On-job training of employees.
d. Interpreting company policies and procedures.
e. Conducting job appraisals.
f. Controlling labor costs.
g. Labor protection and disciplines.
Staff managers’ HRM responsibilities
a. A line function: directing and managing people in the
HRM department.
b. A coordinating function: coordinating HRM activities
across the organization.
c. Staff functions:
Same as the HRM functions plus labor relations and
collective bargaining with the trade unions.
HRM MODEL
Current Context
(Political Climate, Gov’t
Laws, Economy, etc.)
Organizational Strategies
and Structure: Goals,
Organizational chart
Organizational Culture:
Mission and Vision,
Informal Procedures
Human Resource Functions
Plan for Future
Human Resource
Needs
Training and
Development
Recruitment and
Selection
Salary, Benefits,
Bonus System
Performance
Management
Review & Evaluation of Human
Resource Activities
Policies
KEY ACTIVITIES OF HUMAN RESOURCES
• Human Resource Planning
• Human Resource Policies
• Salary and Benefit Administration
• Human Rights and Labour Laws
• Recruitment, Selection and Orientation
• Performance Management
• Training and Staff Development
• Communications and Counselling
RESPONSIBILITY FOR HRM
• The responsibility for human resource
management activities rest with each
MANAGER.
• If a MANAGER does not accept this
responsibility then HR activities will only
partially get done.
• HR department provides strategies, systems,
tools and support to Managers to ensure
effective staff management!
• Human Resource Development (HRD) is the
framework for helping employees develop their
personal and organizational skills, knowledge and
abilities.
• A set of systematic and planned activities designed by
an organization or HR department to provide its
members with the necessary skills to meet current and
future job demands.
HRD
Relationship Between HRM and
HRD
• Human Resource Management (HRM) has
many functions.
• Human Resource Development (HRD) is just
one of the functions within HRM
Functions of HRD
• Training and development (T&D)
• Organizational development
• Career development
Training and Development
• Training – improving the knowledge, skills
and attitudes of employees for the short-term,
particular to a specific job or task.
– Employee orientation
– Skills & technical training
– Coaching
Training and Development
• Training – improving the knowledge, skills
and attitudes of employees for the short-term,
particular to a specific job or task.
– Employee orientation
– Skills & technical training
– Coaching
Training and Development
• Development– Preparing for future
responsibilities, while increasing the capacity
to perform at a current job
– Management training
– Supervisor development
Organizational Development
• 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-levels
• HRD plays the role of a change agent
Career Development
• Ongoing process by which individuals progress
through series of changes until they achieve their
personal level of maximum achievement.
– Career planning
– Career management
HR’s strategic role
• Employees as organization's assets
• Driving business strategy
• Spanning organizational functions
• HRD Deliverables:
– Performance
– Capacity Building
– Problem solving/consulting
– Org. change and development
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
• New technologies
• Need for more skilled and educated
workers
• Cultural sensitivity required
• Team involvement
• Problem solving
• Better communications skills
Need for Lifelong Learning
• Organizations change
• Technologies change
• Products change
• Processes change
• PEOPLE must change!!
A Framework for the HRD
Process
HRD efforts should use the following four
phases (or stages):
• Needs assessment
• Design
• Implementation
• Evaluation
HR Wheel
What is Recruitment in Human Resources?
Recruitment is the process of finding and hiring the best-qualified
candidate from within or outside of an organization for a job
opening in a timely and cost-effective manner. The recruitment
process includes analyzing the requirements of a job, attracting
employees to that job, screening and selecting applicants, hiring, and
integrating the new employee into the organization.
Stages for Recruitment in Human Resources
 Job analysis
 Advertise
 Screening applicants
 Finalizing
Recruitment for External Sources:
1. Advertisement: (Social)
2. Employment Exchanges:
3. Schools, Colleges and Universities:
4. Recommendation of Existing Employees:
5. Job Fair
6. Labor Unions:
7. Other Sources
Nature of Business Organizations and Human Resource Management
Nature of Business Organizations and Human Resource Management
Nature of Business Organizations and Human Resource Management
Nature of Business Organizations and Human Resource Management
Nature of Business Organizations and Human Resource Management
Nature of Business Organizations and Human Resource Management

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Nature of Business Organizations and Human Resource Management

  • 1. Nature of Business Organizations and Human Resource Management Htain Lin Kyaw (HR)
  • 2. Content Business Functions and Organisation Human Resource Management Human Resource Development Functions of Recruitment
  • 3.
  • 4.
  • 5. Business Functions  Human Resources  Sales and Marketing  Research and Development  Business Development  Production/Operations  Customer Service  Finance and Accounts  Administration and IT
  • 7.  Human Resources  Sales and Marketing  Research and Development  Business Development  Administration and IT
  • 8. Operation Functions  Base on Organization Goals  Main Financial Income
  • 9. Sales and Marketing  Market research  Promotion strategies  Pricing strategies  Sales strategies  The sales team  Product – advice on new product development, product improvement, extension strategies, target markets
  • 10. Research and Development  New product development  Product improvements  Competitive advantage  Value added  Product testing  Efficiency gains  Cost savings
  • 11. Finance and Accounts  Cash flow  Monitoring income/revenue  Monitoring expenditure  Preparing accounts  Raising finance  Shares  Loans  Links with all other functional areas
  • 12. Production/Operations  Acquiring resources  Planning output – labour, capital, land  Monitoring costs  Projections on future output  Production methods  Batch  Flow  Job  Cell  Efficiency
  • 13. Customer Service  Monitoring distribution  After-sales service  Handling consumer enquiries  Offering advice to consumers  Dealing with customer complaints  Publicity and public relations
  • 14. Administration and IT •Managing estates – cleaning, health and safety, maintenance, security •Reception •Clerical work – reporting, recording, record keeping, communication •Overview of quality control •Use of IT systems
  • 15. Human Resources  Recruitment and Selection  Compensation and Benefits  Training and Development  Employee Relations  Compliance  Health and safety
  • 16. Business Organisation  Organisation by type  Global businesses – complex organisation structures  National – organisation possibly stretches throughout the country  Regional – could be through a county or wider area (North West, South East, etc.)  Local – small organisations serving local area or community
  • 17. Business Organisation  Authority – the right to make decisions and carry out tasks  Span of control – the number of people a superior is responsible for  Chain of Command – the relationship between different levels of authority in the business  Hierarchy – shows the line management in the business and who has specific responsibilities  Delegation – authority to carry out actions passed from superior to subordinate  Empowerment – giving responsibilities to people at all levels of the business to make decisions
  • 18. Organisation Charts Hierarchical Structure Managing Director Sales Director Marketing Director Finance Director A B C D Market Research Strategy Purchasing Manager Sales Manager Accounts Manager
  • 21.
  • 24. Human Resource Management & Human Resource Development
  • 25. • Popular 'HR, Recruiting, Teams, & Training' Terms • Organization structure • Technical skill • Job specification • Motivation • Values • Job design • Recruitment • Personal management • Performance management
  • 26. The three Main task of Performance Management in the Organization that Point of View of HR ! 1. Want to Total Quality Management 2. Develop to Personal Competencies 3. Success to the target of the strategy and aims
  • 27. Management process The five basic functions of planning, organizing, staffing, leading, and controlling. Human resource management The policies and practices one needs to carry out the “people” or human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising. Key Words :
  • 28. Key Words : Authority The right to make decisions, direct others’ work, and give orders. Line manager A manager who is authorized to direct the work of subordinates and responsible for accomplishing the organization’s goals. Staff manager A manager who assists and advises line managers.
  • 29. Globalization The tendency of firms to extend their sales or manufacturing to new markets abroad. Competitive advantage Any factors that allow an organization to differentiate its product or service from those of its competitors to increase market share. Key Words :
  • 30. cost leadership The enterprise aims to become the low- cost leader in an industry. differentiation A firm seeks to be unique in its industry along dimensions that are widely valued by buyers. Key Words :
  • 31. The importance of HRM (1) People is the key factor of production. (2) Productivity is the key to measure a nation’s economic growth potential, and labor quality is the key to improving productivity. (3) Competition today is the competition for talents. (4) Since man is the most uncontrollable and unpredictable variable of all production variables, organizational success depends on the management of people.
  • 32. Organization and individual (1) Organization needs: Profits, productivity and markets. (2) Individual needs: Maslow's Need Hierarchy Physiological needs, security, belonging, self- respect and self-actualization. (3) Coordinating organization and individual needs: goal of HRM.
  • 33. Employee quality and productivity (1) Employee skill determines productivity. Man and tools. (1) Employee motivation affects productivity. Willingness to perform. (1) Employee creativity and initiatives improve productivity. innovation is the key to improvement.
  • 34. Functions of HRM a. Conducting job analysis. b. Planning future needs and supplies. c. Recruiting and selecting employees. d. Orienting and training employees. e. Managing wages and benefits. f. Performance appraisal. g. Communicating (discipline and services). h. Building employee commitment (incentives).
  • 35. Primary Functions of HRM • Human resource planning • Equal employment opportunity • Staffing (recruitment and selection) • Compensation and benefits • Employee and labor relations • Health, safety, and security • Human resource development
  • 36. Line managers’ HRM responsibilities a. Job placing. b. Orienting new employees. c. On-job training of employees. d. Interpreting company policies and procedures. e. Conducting job appraisals. f. Controlling labor costs. g. Labor protection and disciplines.
  • 37. Staff managers’ HRM responsibilities a. A line function: directing and managing people in the HRM department. b. A coordinating function: coordinating HRM activities across the organization. c. Staff functions: Same as the HRM functions plus labor relations and collective bargaining with the trade unions.
  • 38. HRM MODEL Current Context (Political Climate, Gov’t Laws, Economy, etc.) Organizational Strategies and Structure: Goals, Organizational chart Organizational Culture: Mission and Vision, Informal Procedures Human Resource Functions Plan for Future Human Resource Needs Training and Development Recruitment and Selection Salary, Benefits, Bonus System Performance Management Review & Evaluation of Human Resource Activities Policies
  • 39. KEY ACTIVITIES OF HUMAN RESOURCES • Human Resource Planning • Human Resource Policies • Salary and Benefit Administration • Human Rights and Labour Laws • Recruitment, Selection and Orientation • Performance Management • Training and Staff Development • Communications and Counselling
  • 40. RESPONSIBILITY FOR HRM • The responsibility for human resource management activities rest with each MANAGER. • If a MANAGER does not accept this responsibility then HR activities will only partially get done. • HR department provides strategies, systems, tools and support to Managers to ensure effective staff management!
  • 41. • Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge and abilities. • A set of systematic and planned activities designed by an organization or HR department to provide its members with the necessary skills to meet current and future job demands. HRD
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  • 43. Relationship Between HRM and HRD • Human Resource Management (HRM) has many functions. • Human Resource Development (HRD) is just one of the functions within HRM
  • 44. Functions of HRD • Training and development (T&D) • Organizational development • Career development
  • 45. Training and Development • Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task. – Employee orientation – Skills & technical training – Coaching
  • 46. Training and Development • Training – improving the knowledge, skills and attitudes of employees for the short-term, particular to a specific job or task. – Employee orientation – Skills & technical training – Coaching
  • 47. Training and Development • Development– Preparing for future responsibilities, while increasing the capacity to perform at a current job – Management training – Supervisor development
  • 48. Organizational Development • 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-levels • HRD plays the role of a change agent
  • 49. Career Development • Ongoing process by which individuals progress through series of changes until they achieve their personal level of maximum achievement. – Career planning – Career management
  • 50. HR’s strategic role • Employees as organization's assets • Driving business strategy • Spanning organizational functions • HRD Deliverables: – Performance – Capacity Building – Problem solving/consulting – Org. change and development
  • 51. Challenges for HRD • Changing workforce demographics • Competing in global economy • Eliminating the skills gap • Need for lifelong learning • Need for organizational learning
  • 52. Competing in the Global Economy • New technologies • Need for more skilled and educated workers • Cultural sensitivity required • Team involvement • Problem solving • Better communications skills
  • 53. Need for Lifelong Learning • Organizations change • Technologies change • Products change • Processes change • PEOPLE must change!!
  • 54. A Framework for the HRD Process HRD efforts should use the following four phases (or stages): • Needs assessment • Design • Implementation • Evaluation
  • 56. What is Recruitment in Human Resources? Recruitment is the process of finding and hiring the best-qualified candidate from within or outside of an organization for a job opening in a timely and cost-effective manner. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee into the organization.
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  • 59. Stages for Recruitment in Human Resources  Job analysis  Advertise  Screening applicants  Finalizing
  • 60.
  • 61. Recruitment for External Sources: 1. Advertisement: (Social) 2. Employment Exchanges: 3. Schools, Colleges and Universities: 4. Recommendation of Existing Employees: 5. Job Fair 6. Labor Unions: 7. Other Sources