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Human Resource Management

Chapter 1
Parveen Kaur

1. Introduction
2. Course Overview *..\..\all work\lesson paln hrm & ob 2012.docx
3. Introduction to human resource management
4. Why HRM
5. Strategic HRM
6. New HR Issues
7. Goals of HRM
8. History of HRM
Introduction to HRM

• Two questions:
– Does it matter?
– Why does it matter?
• What is HRM?
– Organization’s methods and procedures for managing people to
enhance skills and motivation
– Activities to enhance the organization’s ability to attract, select,
retain and motivate people

• necessary to promote and implement empowerment in every

organization and how the role of a manager should be to empower
the team member to that he/she can do the job effectively and not be
burdened by excessive layers of red tape and administrative tasks
which only serve to justify and prove that actions are being taken
rather than that results have been achieved.
• Results speak for themselves whereas failure always seems to
have to justify itself!

• dedicate themselves to supporting, coaching, developing and

rewarding their “ants”, building the environment which helps their
“ants” perform better and supporting them when necessary to clear
any obstacles which impede performance
• Good managers either add more ants(they understand the profile
and recruit similar complimentary profiles) or they work with the ant
to build an action plan to optimize performance. Above all, good
managers sit down with their team members at year start, set
SMART objectives their “ants” can achieve and then work with
him/her throughout the year to ensure the ant remains on course.
Lessons for human resources who want to have “good lions” in their organization

• Rather than promoting management practices which only serve to

frustrate and block the effective ants in their organizations or which
generate disengagement and lack of motivation, HR should be
promoting policies and strategies which empower the ants to act
effectively and which develop them, recognize and reward them in
level with their line of performance.
• HR should ensure that the Lions in the organization understand their
role and how to play it, should train and develop each lion to play this
role effectively and step in whenever one or more “lions” confuse
their roles and switch to command and control mode too
– After all, every lion is also an ant to someone higher up the chain and
a “command and control” management mindset only generates
disengagement and demotivation and frustration throughout the
Human Resource Management

Matching process,
All managers Employees are integrating the
are resource viewed as assets organization’s
managers goals with
employees’ needs

How a company manages its workforce may be

single more important factor in sustained competitive
Human Resource Management DEFINITION

The policies, practices, and systems that

influence employees’ behavior, attitudes, and

Terms for human resource management:

Personnel People
Human capital Human relations
The Death of HR ?
Traditional “personnel” function
– Recordkeeping
– Perceived as a dumping ground
The death of HR?
HR’s rebirth



People management that contributes to organizational effectiveness.

Within Firms

and increasingly…

Across Firms
Three Ways HR Is Changing

Focus on building human capital

Development of
global HR strategies

The use of Information
3 Technology

Human Capital - IHRM

• Human Capital = economic value of the knowledge, experience,

skills, and capabilities of employees

• IHRM = addresses the complexity that results from recruiting,

selecting, developing, and maintaining a diverse workforce on a
global scale

Information Technology

• Human resource information technology = An integrated

computer system designed to provide data and information
used in HR planning and decision making
• Traditional HR to e-HR significantly affected every area of
human resource management
• Some organizations are close to a paperless HRM system –
saves time, money, frees staff

Federal Legislation

• Discrimination = hiring or promoting of applicants based on criteria

that are not job relevant
• Affirmative action = policy requiring employers to take positive steps
to guarantee equal employment opportunities for people within
protected groups

The Changing Social Contract

New Contract Old Contract

Employee Employability, personal responsibility Partner Job security

in business improvement Learning A cog in the machine

Employer Continuous learning, lateral career Traditional compensation package

movement, incentive compensation
Creative development opportunities Standard training program
Challenging assignments Routine jobs
Information and resources Limited information

HR Issues in the New Workplace

• Teams and Projects

• Temporary Employees
• Technology
• Work-Life Balance
• Downsizing

Teams and Projects TEAMS AND PROJECTS

• Teams and Projects – major trend in today’s workplace

• With emphasis on projects, distinctions between job categories and
descriptions are collapsing
• Many of today’s workers straddle functional & departmental
boundaries; handle multiple tasks/responsibilities
• Virtual team = made up of members who
– are geographically or organizationally dispersed,
– rarely meet face to face, and
– do their work using advance information technologies.

Temporary Employees
• In opening years of the 21st century, largest employer in U.S. was a
temporary employment agency, Manpower, Inc.
• Temporary Employees do everything from data entry to interim CEO
• Contingent workers = people who work for an organization, but not
on a permanent or full-time basis, including temporary placements,
contracted professionals, or leased employees


• Telecommuting and virtual teams are related trends

• Telecommuting = using computers and telecommunications
equipment to perform work from home or another remote location
• Work anywhere - wireless Internet devices, laptops, cell phones, fax
• Extreme telecommuting = people live and work in countries far away
from the organization’s physical location

Work-Life Balance

• Telecommuting is one way organizations help employees lead more

balanced lives
• Flexible scheduling important in today’s workplace – 27% of
workforce/flexible hours
• Broad Work-Life Balance initiatives – critical retention strategy – on-
site gym & childcare, paid leaves & sabbaticals


• Downsizing = intentional, planned reduction in the size of a

company’s workforce
• Managers can smooth the downsizing process
– Regularly communicating with employees
– Providing them with as much information as possible
– Providing assistance to workers who will lose their jobs
– Using training and development for remaining employees

Who Is Responsible for
Managing Human Resources?

A partnership of:
top management
human resource professionals
HR specialty firms
Goals of HRM
•Attract, retain, and motivate employees
•Direct employee efforts toward goals of organization
•Assist in the development of the strategic direction of the organization
•Provide the organization a source of competitive advantage
•Help ensure legal compliance
Human Resource Management Goals
HRM Environment
Company Strategy Legislation
Trends in society
International events
Changing technology
Attract an Effective Workforce
HRM planning
Job analysis
Maintain an Effective Workforce
Develop an Effective Workforce
Wage and salary
Benefits Training
Labor relations Development
Terminations Appraisal

HRM’s History

• Welfare

• Administration

• Employee relations

• Functional expertise

• Business partner / player

Activities in Human Resource Management

• HR strategy formulation
• Managing organizational and HR changes and culture
• Recruitment and selection (staffing)
• Training and development
• Performance appraisal
• Compensation and benefits
• Employee relations
• Labor/management relations
HR Functions: What We’ll Be Looking At
Employee and
Labor Relations