Introduction to HRM

Dr. Erman TÜRKMEN

Assistant Professor of HR Management
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
Strategies

 What is Human Resource?

Human resources are the people an organization

employs to carry out various jobs, tasks, and functions in
exchange for wages, salaries, and other rewards.
Micro Economic Structure

Profit Product and Profit Profit

Service
Market

Product and Service

COMPANY PEOPLE
Labour ,Money, Materials, Knowledge, Machines

Production
Factors
Pay Interest Market Rent (Money)
 To understand what human resource management is, it’s useful to
start with what managers do.
 An organization consists of people (in this case, people like
Upwork’s own in-house Web designers and managers) with
formally assigned roles who work together to achieve the
organization’s goals.
 A manager is someone who is responsible for accomplishing the
organization’s goals, and who does so by managing the efforts of
the organization’s people.
The Management Process (For All Managers)

Planning

Controlling Organizing

Leading Staffing
Management Process

 Planning.
 Establishing goals and standards;
 developing rules and procedures;
 developing plans and forecasts
Management Process

 Organizing
 Giving each subordinate a specific task;
 establishing departments;
 delegating authority to subordinates;
 establishing channels of authority and communication;
 coordinating the work of subordinates
Management Process

 Leading.
 Getting others to get the job done;
 maintaining morale;
 motivating subordinates
Management Process

 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
Management Process

 Staffing.
 Determining what type of people should be hired;
 recruiting prospective employees;
 selecting employees;
 setting performance standards;
 compensating employees;
 evaluating performance;
 counseling employees;
 training and developing employees
Strategies

 What is Human Resource Management?

The comprehensive set of managerial activities and

tasks concerned with developing and maintaining a
qualified workforce - human resources – in ways at
contribute to organizational effectiveness.
Strategies

 What is Human Resource Management?

The comprehensive set of managerial activities and

tasks
concerned with developing and maintaining a
qualified workforce - human resources –
in ways at contribute to organizational effectiveness.
Human Resource Management (HRM)

All planned and controlled activities of an

organization to build and maintain the
relation between employees and the
organization in order to meet both business
objectives and employee expectations
Responsibility in Human Resources Management

Top
Management

Professional Department
Managers
HR manager (Order Command
Directors)

HRM
All managers are also HR Managers
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
Human Resource Management Processes

Training
Talent Acquisition
Development

Career
Personnel Planning Development and
Management
Human
Resource
Management
(HRM) Performance
Health and Safety
Appraisal and
Management

Compensation
Labor Relations
Management
HRM Landscape

HR-
Strategy &
Planning

Talent
Development

Change
Management
Learning
Talent
Acquisition Work
Retention
Candidate Compensation
Selection & Benefits

HR Social HR
HR-IT
Organization Media Controlling
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
Characteristics of HRM

• People oriented • Science as well as art

• Action- oriented • Staff function
• Individual- oriented • Young discipline
• Development – oriented • Nervous system
• Pervasive Function
• Continuous Function
• Future- oriented
• Challenging function
Objectives of HRM

 To act as a liaison between the top management and

the employees.
 To arrange and maintain adequate manpower
inventory
 To devise employee benefit schemes
 To ensure and enhance the quality of work life
Objectives of HRM

 To offer training
 To help keep up ethical values and behaviour amongst
employees both within and outside the organization.
 To maintain high morale and good human relations
within the organization.
Qualities of an HR
manager
 Knowledge
 Intelligence
 Communication skills
 Objectivity and fairness
 Leadership and motivational qualities
 Emotional maturity and
 Empathy
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
 From Personnel Management to Human Resource Management

 Industrial
Revolution
 Before The Industrial Revolutions

Ind 1.0

Coal/Steem
Before the Industrial Revolution
• Before industrialization, the most significant economic activities
in most countries were small-scale farming
and artisan handicrafts.

• Most social activity took place in small and medium-sized villages.

• People rarely traveled far beyond their home village.

• Before the Industrial Revolution, artisans with specialized skills

produced most of manufactured goods.

• Their work was governed by the traditions of their craft and the
limits of available resources.

• Human and animal muscle and the waterwheel were the era’s
main energy sources.
 From Personnel Management to Human Resource Management

 Industrial
Revolution
 Before The Industrial Revolutions

Ind 1.0

Coal/Steem
1. Industrial Revolution
• Coal-fired steam engine and other
machinery set a new, faster pace for labor.

• Agricultural workers and self-employed

people became factory workers one by one.

• As the number of employees in industrial

enterprises increased, a department was
needed just to do the work related to these
employees.

• Of course, the jobs related to the personnel

at that time were limited to very shallow
human resource activities, which are
described as personnel affairs today!

‘find people who can withstand the working conditions’

 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.

Revolution
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0

Coal/Steem Fuel/Electricity

Increase in Competition
2. Industrial Revolution

- As a clean and more effective source of

power fuel and electricity make things
easier.

- It became far easier to get around on

trains, automobiles and planes.

- Increase in Competition has become

the most important factor.

- Beeing productive and effective was

started to be researched
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.

Revolution
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0

Coal/Steem Fuel/Electricity

Hawthorne
Studies

WOW!
Employees
are ‘human’!

Increase in Competition
From Personnel Management to Human Resource Management

Personnel Human Resource

Management Management
Difference between HRM and PM

 HRM is proactive in nature while PM is reactive.

 HRM is a resource-centred activity whereas PM is a employee-centred
activity.
 HRM emphasizes on flexible, open-ended contracts but PM emphasizes
the strict observance of defined rules, procedures and contracts.
 HRM views better performance as a cause of job satisfaction whereas PM
considers job satisfaction as a source of better performance….

 HRM seeks to develop the competencies of the employees on a

sustained basis while PM is a regular, status quo–based
administrative function.
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.

Revolution Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0

Coal/Steem Fuel/Electricity Electronic

Hawthorne
Studies

WOW!
Employees
are ‘human’!

Increase in Competition
3. Industrial Revolution

- Developments in electronics have been

an important driver.

- Electronic – space studies – satelitte -

communications - internet

- Globalization
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.  4th Industr.

Revolution Rev. Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0 Ind 4.0

Coal/Steem Fuel/Electricity Electronic Info/Data

Hawthorne
Globalization
Studies

WOW! WOW!

Employees Employees
are ‘human’! are very
important
‘resource’!

Increase in Competition
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.  4th Industr.

Revolution Rev. Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0 Ind 4.0

Coal/Steem Fuel/Electricity Electronic Info/Data

Hawthorne
Globalization
Studies

WOW! WOW!

Employees Employees
are ‘human’! are very
important
‘resource’!

Increase in Competition
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.  4th Industr.

Revolution Rev. Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0 Ind 4.0

Coal/Steem Fuel/Electricity Electronic Info/Data

Hawthorne
Globalization
Studies

WOW! WOW!

Employees Employees
are ‘human’! are very
important
‘resource’!

Increase in Competition
4. Industrial Revolution (EN. 4.0)

- Information and Data is the driver of the

En 4.0

- Data collection is the key term

- Gmail, Yandex, Watsapp, Facebook,

SAP

- After big data is created, artificial

intelligence and other system
technologies can work.
CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
Innovation

?
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.  4th Industr.

Revolution Rev. Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0 Ind 4.0

Coal/Steem Fuel/Electricity Electronic Info/Data

Hawthorne
Globalization
Studies Inovations

WOW! WOW!
WOW!
Employees Employees
are very Employees
are ‘human’! are almost
important
‘resource’! ‘everything’
of an
organization

Increase in Competition
From manual work to knowledge work
Demographic Changes

The days when employers could pick and choose among a wide selection of
excellent candidates may be becoming a thing of the past. Throughout world
there are growing skills shortages at all levels.

The changing demographics of the workforce, its increasing diversity and the
work–life balance agenda have led to a very tight labour market resulting in
increased competition from organizations for individuals.
Globalization
Global Trade – Global Compete
Web 2.0 – User-generated Content

Web 1.0 Web 2.0

Value Change
Future Challenges in HRM

 Acquire the right talents

Innovation  Give the right rewards
 Support lifelong learning
Demography  Leverage employee potential
 Support diversity
Competitive
Globalization  Build successors
Advantage
 Retain and share knowledge
 Shape attractive working conditions
Web 2.0
 Manage strategic changes
 Use latest technologies
Value Change
 Retain the best talents
 Important Trends in HRM

The New HR
Managers

Strategic High-Performance
HRM Human Work Systems
Resource
Management
Evidence-Based Trends Managing
HRM Ethics

HR
Certification

Copyright © 2011 Pearson Education 1–50

 Meeting Today’s HRM Challenges

The New Human Resource

Managers

Acquire broader
Find new ways to
Focus more on business
provide
“big picture” knowledge and
transactional
(strategic) issues new HRM
services
proficiencies

Copyright © 2011 Pearson Education 1–51

 TABLE 1–2 Some Technological Applications to Support HR

Technology How Used by HR

Application service providers ASPs provide software application, for instance, for processing
(ASPs) and technology employment applications. The ASPs host and manage the services
outsourcing for the employer from their own remote computers

Web portals Employers use these, for instance, to enable employees to sign up
for and manage their own benefits packages and to update their
personal information

Streaming desktop video Used, for instance, to facilitate distance learning and training or to
provide corporate information to employees quickly and
inexpensively

Internet- and network- Used to track employees’ Internet and e-mail activities or to monitor
monitoring software their performance

Electronic signatures Legally valid e-signatures that employers use to more expeditiously
obtain signatures for applications and record keeping

Electronic bill presentment Used, for instance, to eliminate paper checks and to facilitate
and payment payments to employees and suppliers

Data warehouses and Help HR managers monitor their HR systems. For example, they
computerized analytical make it easier to assess things like cost per hire, and to compare
programs current employees’ skills with the firm’s projected strategic needs

Copyright © 2011 Pearson Education 1–52

 FIGURE 1–8 Effects CFOs Believe Human Capital Has on Business Outcomes

Copyright © 2011 Pearson Education 1–53

 High-Performance Work Systems

Increase productivity and performance by:

– Recruiting, screening and hiring more effectively
– Providing more and better training
– Paying higher wages
– Providing a safer work environment
– Linking pay to performance

Copyright © 2011 Pearson Education 1–54

 Evidence-Based HRM

Providing Evidence for

HRM Decision Making

Actual Existing Research

measurements data studies

Copyright © 2011 Pearson Education 1–55

 Managing Ethics

 Ethics
– Standards that someone uses to decide
what his or her conduct should be

 HRM-related Ethical Issues

– Workplace safety
– Security of employee records
– Employee theft
– Affirmative action
– Comparable work
– Employee privacy rights

Copyright © 2011 Pearson Education 1–56

CONTENT Introduction to Human Resource Management

What is Management? What is Human Historical Development of Human

1 Resource Management? The

Responsibility of Human Resource
Management
4 Resources Management
“From Personnel Management to Human
Resource Management”

Key fields of action in HRM Increasing Importance of Human

2 “Functions Human Resource

Management” 5 Resources Management Today
Which trends determine future challenges
in HRM?

Characteristics and Objectives of Significance of HRM

3 HRM and Qualities of an HR Manager

6 Significance for an enterprise, Professional
Significance, Social significance
National significance
Significance of HRM

 Significance for an enterprise

 Professional significance
 Social significance
 National significance
 Significance of HRM
Significance for an enterprise
Attracting & retaining the required human resource, recruitment & selection ,
placement , orientation, compensation & promotion policies.
Developing the skills & necessary attitude among the employees by T&D &
performance evaluation
Providing them social & job security by grievance handling, motivating &
participation in mgt
Utilizing effectively the available human resources
Ensuring that the enterprise will have in future a team of competent & dedicated
employees.
Significance of HRM

Professional significance

 Providing maximum opportunities for personal

development of each employee.
 Maintaining healthy relationships among
individual & different work groups.
 Allocating work properly.
Significance of HRM
Social Significance

 Sound human resources management has a great

significant for the society. It help to enhance the dignity
of labour in the following ways.
 Providing suitable employment that provides social &
psychological satisfaction to people.
 Maintaining a balance between the job available & the
jobseekers in terms of numbers, Qualification, needs &
aptitudes.
 Eliminating waste of human resource through
conservation of physical & metal health
Significance of HRM

National Significance
Human resource & their management plays a vital role in the development of a nation.
The effective exploitation & utilisation of a nation’s natural, physical & financial
resources require an efficient & committed manpower.
There are wide differences in development between countries are with similar resources
due to differences in the quality of their people.
Countries are underdeveloped because their people are backward. The level of
development in a country depends primarily on the skills , attitudes & values of its human
resources. effective management of human resources helps to speed up the process of
economic growth which in turn leads to higher standards of living & fuller employment
Human resource Management is the central subsystem of an organisation.
National Significance

Finance
subsystem

Material HRM Technical

Subsystem SUBSYSTEM subsystem

Marketing
Subsystem
National Significance
 Increase in the size & complexity of organisation eg. MNC
employees ,Rapid technological development like
automation, computerisation
 Rise of professional & knowledgeable workers, Increasing
proportion of women in the workforce Growth of powerful
nationwide trade unions.
 Widening scope of legislation designed to protect the
interests of the working class.
 Revolution in the information technology that might affect
the work force.
 Rapidly changing jobs & skills requiring long-term
manpower planning.
 Growing Expectations of society from employers.
 From Personnel Management to Human Resource Management

 Industrial  2nd Industr. Rev.  3rd Industr.  4th Industr.

Revolution Rev. Rev.
Ind 2.0
 Before The Industrial Revolutions

Ind 1.0 Ind 3.0 Ind 4.0

Coal/Steem Fuel/Electricity Electronic Info/Data

Hawthorne
Globalization
Studies Inovations

WOW! WOW!
WOW!
Employees Employees
are very Employees
are ‘human’! are almost
important
‘resource’! ‘everything’
of an
organization

Increase in Competition