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Human Resource Management

Human Resource Management is the process of acquiring,


training, appraising, and compensating employees and
attending to their labor relations, health and safety, and
fairness concerns.

Human Resource Management can be defined as the
implementation of the strategies, plans and programs
required to attract, motivate, develop, reward and retain the
best people to meet the organizational goals and
operational objectives of the organization.


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Human Resources (HR) Management
The management function devoted to
acquiring, training, appraising, and
compensating employees.

Strategic Human Resource Management
The linking of the human resource function
with the companys strategies to accomplish
that strategy.
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Personnel Management
Approach
Human Resource
Management Approach

Manpower centered
Pragmatic
Resource centered
Strategic
Employee-organization relation by HRM approach

HRM is a term for what historically was referred as personnel
administration or personnel management. In todays arena, HR
managers are sometimes called people managers and
employees are refereed as our associates.
So,
Human Resources are the people in the
organization

Human Resource Management is a series of
activities and decisions carried out by all line
managers that help employees get the job done
and achieve their objectives

Human Resource Department consist of
specially trained professionals who help
managers carry out human resource
management responsinsibilities
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The Management Functions
Planning
Organizing
Staffing
Leading
Controlling
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Human Resource Management Functions
Staffing
HUMAN RESOURCE
MANAGEMENT
FUNCTIONS
Employee
& Labor
Relations
Safety &
Health
Compensation
& Benefits
Human
Resource
Development
Staffing
Job Analysis
Human Resource Planning
(HRP)
Recruitment
Selection
Staffing (Continued)
Staffing - Process through which an
organization ensures that it always has
the proper number of employees with
the appropriate skills in the right jobs at
the right time to achieve the
organizations objectives
Job Analysis
The procedure used to determine the duties of
particular jobs and the kinds of people (in
terms of skills and experience) who should be
hired for them.

Job Specification

The human qualifications in terms of traits,
skills, and experiences required to accomplish
a job.

Job Description

A document that identifies a particular job,
provides a brief job summary, and lists
specific responsibilities and duties of the job.
Staffing (Continued)
Human resource planning - Process of
systematically reviewing human resource
requirements to ensure that the required
numbers of employees, with the required
skills, are available when needed.
Recruiting
Attracting a pool of viable job applicants.
Process of attracting qualified
individuals and encouraging them to
apply for work with the organization
Staffing (Continued)
Selection - Process through which the
organization chooses, from a group of
applicants, the individual best suited for
the company and the position
Human Resource Development
Training
Development
Career Planning
Career Development
Performance Appraisal
Training
Training Program
The process of providing new employees with
information they need to do their jobs
satisfactorily.
Training Program Steps
Needs analysis
Instructional design
Validation
Implementation
Evaluation and follow-up
Human Resource Development
(Continued


Training - Designed to provide the
knowledge and skills needed for a
particular job.
Development - Involves learning that
goes beyond today's job. It has a more
long-term focus
Human Resource Development
(Continued)
Career planning - An ongoing process
whereby an individual sets career goals and
identifies the means to achieve them
Career development - A formal approach
used by the organization to ensure that
people with the proper qualifications and
experiences are available when needed
Performance appraisal - Employees and
teams are evaluated to determine how well
they are performing their assigned tasks
Compensation & Benefits
Pay - Money that a person
receives for performing a job
Benefits - Financial rewards in
addition to base pay
Nonfinancial Rewards
The Job
The Environment
Safety and Health
Safety - Involves protecting employees
from injuries caused by work-related
accidents
Health - Refers to the employees' freedom
from illness and their general physical and
mental well-being
Human Resource Research
Human resource
research is not a
separate function
It pervades all HR
functional areas
Interrelationships of HRM Functions
All HRM functions
are interrelated
Each function
affects other
areas
Business Strategy

What is a strategy
The companys long-term plan for how it will
balance its internal strengths and weaknesses with
its external opportunity and threats to maintain a
competitive advantage

Simply speaking: A plan that is expected to make
an organization adaptive and competitive

Simplest speaking: A plan to make money
Strategic Human Resource
Management
Involves the development of a consistent,
aligned collection of practices, programs, and
policies to facilitate the achievement of the
organizations strategic objectives.
Requires abandoning the mindset and
practices of personnel management and
focusing on strategic issues than operational
issues.
Integration of all HR programs within a larger
framework, facilitating the organizations
mission and its objectives.
Choices of HR strategies

No HR strategy is good or bad in and
of itself
Depend on situation context
Fit between the strategies and
organizations
Traditional HR versus Strategic HR
2008 by Prentice Hall
1-27
Environment of Human Resource Management
EXTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
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Human
Resource
Management
Other
Functional
Areas
Operations Marketing
Finance
L
e
g
a
l

C
o
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a
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s


E
c
o
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m
y

T
e
c
h
n
o
l
o
g
y

Society
S
h
a
r
e
h
o
l
d
e
r
s

Unions
Customers Competition Labor Market
Safety and Health
U
n
a
n
t
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i
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a
t
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E
v
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The Changing Environment of
Human Resource Management
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Globalization Trends
Technological Trends
Trends in the Nature of Work
Workforce Demographic Trends
Changes and Trends in
Human Resource
Management
The Changing Environment of
Human Resource Management
Globalization; tendency of firms to extend their
sales and manufacturing to new markets abroad
Technological advances; technology has been
forcing and enabling firms to become more
competitive (skilled employee, empowerment)
The nature of work; Human capital(knowledge,
education, training, skills and expertise of a
firms worker) provides competitive advantage
The workforce diversity; increased diversity
provide challenges for HR management
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Environmental Scanning
The process of studying the environment
of the organization to pinpoint opportunities
and threats.
Environment Changes Impacting HR
Governmental regulations: legislation
Economic conditions: Inflation, interest rate..
Geographic and competitive concerns: relocation
Workforce composition: women, diversity, part-time

Linkage of Organizational and HR Strategies
There are three challenges facing organisations that must be
met if they are to gain the competitive advantage we referred
to earlier (Mabey and Lawton, 1998):








The challenge of managing intangible assets. This means the ability to access
scarce skills and to cope with the implications of new forms of organizations.

The challenge of managing strategic change, including trends towards flexibility
in organizations and in job design, the break up of bureaucracies and of traditional
structures of employment. These changes create major challenges for working
attitudes and relationships and require a sustained and holistic approach to people
management.

The challenge of innovation in terms of what organizations produce by way
of goods and services, and the way they approach the task. Development,
innovation and creativity become core intangible assets, a focus for managing people
strategically. In other words, bringing the design tasks of innovation together with a
focus on innovatory behavioral strategic approach to HRM involves new ways of
operating in organizations and demands new skills. These include the need
to understand tacit knowledge, recognisecore competencies and attend
to stakeholder views.


A strategic approach to HRM involves new ways of
operating in organisations and demands new skills.
These include the need to understand tacit knowledge,
recognisecore competencies and attend to stakeholder
views,

Tacit knowledge is not easily shared. It involves learning
and skill, but not in a way that can be written down. Tacit
knowledge consists often of habits and culture that we do
not recognize in ourselves. It includes: learning from errors
peoples reaction, anticipation. Learning from interacting
with others; from customers needs and expectations.
Learning formwork routines.

Core competencies are those that are
likely to be as important tomorrow as it
is today.Example: analytical skill and
problem solving.



Typology of business strategies and
HRM


Miles and Snow (1978; 1984) classify organisations as prospectors
(who are doing well and are regularly looking for more products and
market opportunities), defenders (who have a limited and stable
product domain), analyzers (who have some degree of stability but
are on the lookout for possible opportunities) and reactors (who
mainly respond to market conditions).

These generic strategies dictate organisations HRM policies and
practices. For example, defenders are less concerned about
recruiting new employees externally and are more concerned about
developing current employees. In contrast, prospectors are growing,
so they are concerned about recruiting and using performance
appraisal results for evaluation rather than for longer-term
development .






Soft side and hard side of HRM
Mainly concerned
with the way in
which people are
managed, such as how
to motivate workers,
how to develop an
organizational culture,
how to support or train
employees etc.
Soft side of HRM
Soft side and hard side of HRM
Concerned about
qualifying the number
and types of employees
that a business
need,deciding whether
they are available and
planning how to get
them through
predicating the demand
and supply of workforce
for the future.

Soft side of HRM
Hard side of HRM
The implications of strategic
HRM
The implications:
Integration into overall corporate
strategic planning
Developing an organizational
culture
Motivating, training and support
Coordination with other
functions
Developing a flexible workforce




PhotoDisc
Advantages and disadvantages of
Strategic HRM
Advantages:
Help gain a
competitive edge
Help solve HRM
problems
Make the efficient use
of employees and
reduce costs
Help anticipate and
plan for changes
Benefit long term
Disadvantages:
Difficulty in predicating
the people behavior
Problems with predicating
external events affecting
HR planning
Needing constantly
monitoring
Leading to industrial
relation problems
GUEST MODEL OF HRM
The model is prescriptive in the sense that it is
based on the assumption that HRM is
distinctively different from traditional personnel
management.

Reflects view that a core set of integrated HRM
practices can achieve superior individual and
organizational performance.














Goals of Guest Model of HRM

Strategic integration with planning to ensure coherent HRM Policies

Commitment of the employees to the organisation and to high
performance

Flexibility of both organizational structure and functions based on
multiple skilled work force

High quality of work force


``
This approach is based on the assumption that there is a
set of best HRM practices that are universal
in the sense that they are best in any situation, and that
adopting them will lead to superior
organizational performance. A number of lists of best
practices have been produced , the best
known was produced by Pfeffer (1998) namely:
1. Employment security
2. Selective hiring
3. Self-managed teams
4. High compensationcontingent on performance
5. Training to provide a skilled and motivated workforce
6. Reduction of status differentials
7. Sharing information
The best fit approach:

The best fit approach is in line with contingency theory. It emphasizes
that HR strategies should be congruent with the context and
circumstances of the organization. Best fit can be perceived in
terms of vertical integration or alignment between the organizations
business and HR strategies.

Human resource managements effectiveness depends on its fit with
the organizations stage of development. As the organization grows
and develops, human resource management programmes,
practices and procedures must change to meet its needs. Consistent
with growth and development models it can be suggested that human
resource management develops through a series of stages as
the organization becomes more complex


Best fit 'integration is an open template to interpret the
environment in which business operates and to evaluate the
integrated reaction or responses that are necessary. Best
practice differs in that the outcomes are not prescribed. Best
practice does not emphasize fit or matching but is solution
oriented.

LEVEL OF INTEGRATION REQUIRED TO MEET THE BEST FIT
MODEL (BULLER):

A one-way response level where business strategy
informs HR strategy. A two-way response level where
the relationship between the two is interdependent but not
fully integrated. A fully integrated, reciprocal level with top
down, bottom-up strategy formulation

Resource-based approach

Our third model of SHRM is a bottom-up view. There are significant
problems with the principles of the two previous models: They
represent rational and linear approaches to strategy.

The emphasis on the fit of strategy, structure and HR policies does
not focus on the distinctive resource capabilities of individuals
within the organisation. The lack of evidence indicating that explicit HR
strategies have an impact on organisational performance.









A resource based model has a different perspective from other
approaches. Whilst conventional HR approaches start with external
factors such as threats and opportunities, the resource based view
looks. first at the organisation and its potential, and develops ways to
exploit or enhance the available resources.

In a resource based model, the SHRM role becomes one of creating
systems and procedures that focus not on external relationships but on
how staff and their abilities areused.The resource based model
recognizes that many aspects of capability can be formally defined in
skill terms and developed accordingly. However, the truly distinctive
aspects are often hard to define and are formed through informal
processes of learning in the workplace

ASPECTS OF THE COMPANYS ASEESTS UNDERPIN THE
RESOURCE BASED APPROACH:







Storeys view is that sustained competitive advantage derives from
assets that add value, are unique or rare, are difficult to imitate and
cannot be substituted. Mueller (1998)develops the resource-based
view with five propositions concerning the organisations assets.


Proposition 1 is that they must be developed in slow,
incremental and uncertain ways, not in any linear or
planned way.

Proposition 2 is that they require broad-based commitment
over a lengthy period, not a single initiative.

Proposition 3 stresses the importance of routinising skill
formation activities.Formal and informal learning activities
must be effectively captured by the organisation.

Proposition 4 concerns the development of cultures that
will allow potential to be used and developed. Challenge
rather than conformity, is encouraged as a strategic
end,while balancing the need to store organizational value

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