MGT-351

Human Resource Management

Chapter-1, LS/ Topic: 1

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 The Management Process
Planning 1. Planning. Establishing goals and standards;
developing rules and procedures;
developing plans and forecasting.
Controlling Organizing
2. Organizing. Giving each subordinate a
specific task; establishing departments;
delegating authority to subordinates;
Leading Staffing establishing channels of authority and
communication; coordinating subordinates work.

3. Staffing. Determining what type of people you should hire; recruiting

prospective employees; selecting employees; training and developing
employees; setting performance standards; evaluating performance; counseling
employees; compensating employees.
4. Leading. Getting others to get the job done; maintaining morale; motivating
subordinates.
5. Controlling. Setting standards such as sales quotas, quality standards, or
production levels; checking to see how actual performance compares with
these standards; taking corrective action, as needed.
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Human Resource Management at
Work
⚫ What Is Human Resource Management (HRM)?
⚫ 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.

History of HRM?

⚫ The process of acquiring, training, appraising, and

compensating employees, and of attending to their labor
relations, health and safety, and fairness concerns

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Human Resource Management at Work
Acquisition

Fairness Training

Human
Resource
Management
Health and
(HRM) Appraisal
Safety

Labor Relations Compensating

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Basic HR Concepts
⚫ The bottom line of managing: Getting
results
⚫ HR creates value by engaging in activities
that produce the employee behaviors that
the company needs to achieve its strategic
goals.

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 Why Is Human Resource Management
Important to All Managers?
1. AVOID PERSONNEL MISTAKES
*Hire the wrong person for the job
* Experience high turnover
* Have your people not doing their best
* Waste time with useless interviews
* Avoid lawsuits
* Have some employees think their salaries are unfair, negative “equity”.
* Allow a lack of training to undermine your department s effectiveness
* Commit any unfair labor practices

2. IMPROVE PROFITS AND PERFORMANCE

3. YOU TOO MAY SPEND SOME TIME AS AN HR MANAGER
4. HR FOR ENTREPRENEURS

© 2008 Prentice Hall, Inc. All rights reserved. 1–6

FIGURE 1–3 Employment and Recruiting—Who Handles It?
(Percentage of All Employers)

Note: Length of bars represents prevalence of activity among all surveyed

employers.
Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002.
Reproduced with permission via Copyright Clearance Center.
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Line and Staff Aspects of HRM
Authority is the right to make decisions, to direct the work of others,
and to give orders. Managers usually distinguish between line
authority and staff authority.
⚫ Line manager: A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing the organization’s
tasks.
Line authority traditionally gives managers the right to issue orders to
other managers or employees
⚫ Staff manager: A manager who assists and advises line managers.
Staff authority gives a manager the right to advise other managers or
employees
* Human resource managers are usually staff managers. They assist and
advise line managers in areas like recruiting, hiring, and
compensation

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 Line Managers’ HRM Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition

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Human Resource Managers’ Duties
1. A line function. The human resource manager directs the activities
of the people in his or her own department, and perhaps in related areas.
(Cafeteria, Med Bay, )
2. A coordinative function. The human resource manager also
coordinates personnel activities, a duty often referred to as functional authority
(or functional control). Here he or she ensures that line managers are
implementing the firms human resource policies and practices (for example,
adhering to its sexual harassment policies).
3. Staff (assist and advise) functions. Assisting and advising
line managers is the heart of the human resource manager s job. He or she
advises the CEO so the CEO can better understand the personnel aspects of
the company s strategic options.
HR assists in hiring, training, evaluating, rewarding, counseling, promoting,
and firing employees.
Innovator role: HR providing up-to-date information on current trends and
new methods for better utilizing the company s employees (or human
resources ).
Employee advocacy role: by representing the interests of employees
within the framework of its primary obligation to senior management.
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 Human Resource Specialties
The size of the human resource department reflects the size of the employer. For a very
large employer, an organization will be containing a full complement of specialists for
each HR function.

❑Recruiters: Search for qualified job applicants.

❑Equal employment opportunity (EEO) coordinators:
Investigate and resolve EEO grievances; examine organizational
practices for potential violations; and compile and submit EEO
reports.
❑Job analysts: Collect and examine information about jobs to
prepare job descriptions.
❑Compensation managers: Develop compensation plans and
handle the employee benefits program.
❑Training specialists: Plan, organize, and direct training
activities.
❑Labor relations specialists: Advise management on all
aspects of union management relations.

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 The Changing Environment
of Human Resource
Management
Globalization Trends: Multicultural
workplace!
Technological Trends: Automation,
Changes and Trends Facebook Recruiting replacing Linkedin,
in Human Resource HIRE by Google!
Management Trends in the Nature of Work: Service
as a product, Human capital

Workforce Demographic Trends : Gen

Y, Millenials, Expats

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Important Trends in HRM
Strategic Human Resource Management:
The organization’s intentions and plans
on how its business goals should be
achieved through people.
⚫ AirAsia example.
⚫ NSU Example

⚫ It is based on three propositions:

⚫ First, that human capital is a major source of competitive advantage;
⚫ Second, that it is people who implement the strategic plan; and,
⚫ Third, that a systematic approach should be adopted to defining
where the organization wants to go and how it should get there.

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High-Performance Work System
Practices
Employment security
Selective hiring
Extensive training
Self-managed teams/decentralized decision making
Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work

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Evidence Based HRM
⚫ The systematic use of the best available evidence to improve management practice
⚫ A philosophical and pragmatic approach to the management of
human capital.
⚫ Focus on the impact of management practices on observable financial and
organizational outcomes
⚫ Managers must defend their plans and proposals in measurable terms.
⚫ Data may come from previous years or published research.
HR scorecard: A process for assigning financial and nonfinancial goals or
metrics to the human resource management related chain of activities
required for achieving the companys strategic aims and for monitoring
results. Factors measured include costs, hiring, turnover, training, performance
management and alignment with corporate goals.
HR Benchmarking is a process of collecting data on various aspects of HRM systems
from either world class or highly comparable firms or large numbers of firms
worldwide, using the data to evaluate the performance of your own firm, and
thereby identify areas that need improvement.

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