INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT Chapter 1 Prepared by : Ly Sokcheu Updated : 1st September, 2012

2. Chapter Objectives After studying this chapter, you should be able to: • Describe the brief history of HRM. • Define human resource management. • Identify the human resource management functions. • Explain who performs the HRM functions. • Discuss the objectives of the HRM Functions. • Discuss the roles of HRM. • Explain the HR department. • Discuss the HR responsibilities.

3. I. A Brief History of HRM • HRM can be traced to England, where craftspeople organized themselves into guilds. • - They used unity to improve working conditions. • The Industrial Revolution in the 18th century laid the basis for a new, complex industrial society. • - Changing work conditions, social patterns, and labor created a gap between workers and owners. • During the world wars era, scientific management, welfare work, and industrial psychology merged.

4. I. A Brief History of HRM (Cont.) • Frederick W. Taylor, the father of scientific management, summarized scientific management as: • Science, not roles of thumb • Harmony, not discord • Cooperation, not individualism • Maximum output, not restricted output • Industrial psychology, initiated in 1913, focused on: • The worker • Individual differences • The maximum well being of the worker

5. I. A Brief History of HRM (Cont.) • Personnel departments were created to deal with: • Drastic changes in technology • Organizational growth • The rise of unions • Government intervention concerning working people • Around the 1920s, more organizations noticed and acted on employee-management conflict.

6. I. A Brief History of HRM (Cont.) • The Hawthorne studies (1924 to 1933): • Were to determine the effects of illumination on workers and their output • The studies pointed out the importance of social interaction on output and satisfaction • Until the 1960s, the personnel function was concerned only with blue-collar employees. • File clerk, house-keeper, social worker, firefighter, and union trouble defuser Source: John M. Ivancevich, Human Resource Management, 8 edition , p6

7. II. Definitions of HRM • Is the activities designed by manager to provide for an ordinate human resources of an organization. (Rick Colow, 1991) • Refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving people practices. (Noe, et al. 2003) • Is utilization of individuals to achieve organizational objectives. All managers get things done through the efforts of others; this requires effective HRM.

8. III. HR Manager • Was responsible for arranging and coordinating the management of human resources to help the organization achieve its goals. • Is an individual who normally acts in an advisory or staff capacity, working with other managers regarding HR matters. • There was a shared responsibility between line manager and human resource professionals. • Often the line managers go to HR for guidance such as promotion, hiring, discipline.

9. IV. HRM Functions 1 Staffing HRM Functions Human Resource Development Employee and Labor Relations Compensation Safety and Health

10. Staffing • Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives. • Job Analysis • Human Resource Planning • Recruitment • Selection

11. 1. Staffing (Cont.) • Job analysis • Systematic process of determining skills, duties, and knowledge required for performing jobs in organization. • Human resource planning • Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.

12. 1. Staffing (Cont.) • Recruitment • Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization. • Selection • Process of choosing from a group of applicants, the individuals best suited for a particular position and the organization.

13. 2. Human Resource Development • Training • Designed to provide learners with knowledge and skills needed for their present jobs. • Development • Involves learning that goes beyond today's job; it has more long-term focus. • Career planning • Ongoing process whereby individual sets career goals and identifies means to achieve them.

14. 2. Human Resource Development • Career development • Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed. • Organization development • Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals.

15. 2. HR Development (Cont.) • Performance management • Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization. • Performance appraisal • Formal system of review and evaluation of individual or team task performance.

16. 3. Compensation • All rewards that individuals receive as a result of their employment. • Direct Financial Compensation • Pay that person receives in form of wages, salaries, bonuses, and commissions.

17. 3. Compensation • Indirect Financial Compensation (Benefits) • All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. • Nonfinancial Compensation • Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.

18. 4. Safety and Health • Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. • Safety • Involves protecting employees from injuries caused by work-related accidents. • Health • Refers to employees' freedom from illness and their general physical and mental well being.

19. 5. Employee and Labor Relations • Private-sector union membership has fallen from 39 percent in 1958 to 9 percent today. • Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them. • Human resource activity is often referred to as industrial relations. • Most firms today would like to have a union-free environment .

20. V. Who Performs HRM Functions • 3 levels of management perform HRM functions. • Operating managers are managers who manage directly people involved with the production of an organization's products and services. • HR specialists are people who are specially trained in one or two areas of HRM. • HR generalists are people who are responsible for performing various parts of HR activities.

21. Executive: Generalist: Specialist: Human Resource Executives, Generalists, and Specialists President and CEO Vice President Human Resources Vice President Industrial Relations Manager Training and Development Manager Compensation Manager, Staffing Manager Safety & health

22. Characteristics of an HR Executive • Performs one or more HR functions • A top-level manager • Reports directly to CEO or head of major division

23. Characteristics of an HR Generalist • Often an executive • Performs tasks in various HR related areas • Involved in several, or all, of the five HRM functions

24. Characteristics of an HR Specialist • May be an HR executive, manager, or non-manager • Who typically is concerned with only one of the five functional areas of HRM.

25. VI. Objectives of the HRM Function • Helping the organization reach its goals. • Employing the skills & abilities of the workforce efficiently. • Providing the organization with well-trained and well-motivated employees. • Increasing to the fullest the employee’s job satisfaction and self-actualization. Source: John M. Ivancevich, Human Resource Management, 8 edition , p10

26. VI. Objectives of the HRM Function (Cont.) • Developing & maintaining a quality of work life that makes employment in the organization desirable. • Communicating HRM policies to all employees. • Helping to maintain ethical policies and socially responsible behavior. • Managing change to the mutual advantage of individuals, groups, the enterprise, and the public. Source: John M. Ivancevich, Human Resource Management, 8 edition , p10

27. VII. The Roles of HRM • There are majors roles associated with the managing of human resource in organization. • - Strategic role • - Operational role

28. 1. Strategic Roles • Strategic role of HRM emphasizes that the people in organization are valuable resources presenting a significant investment of organizational efforts. • Human resource can be a source of competitive strength if they are managed effectively. • Human resource must be viewed in the same context as the financial, technological, and other resources that are managed in organization.

29. 1. Strategic Roles (Cont.) • The typically activities at strategic point are viewed: • Human resource planning • Evolving legal issue • Workforce trend and issue • Community economic development • Organizational restructuring and downsizing • Merger / acquisition advising • Compensation planning and strategy

30. Operational role • Operational activities includes both tactical and administrative in nature. • Compliance with equal employment opportunity and other laws must be ensured. • Applicants must be interviewed, new employees must be oriented, supervisor must be trained, safety problems must be solved, and salary and wages must be administered.

31. Operational role (Cont.) • In short, a wide variety of activities typically associated with the day-to-day management of people in organizations must be performed effectively and appropriately: Recruiting and selecting for current openings. Conducting employee oriented. Reviewing safety and accident report. Resolving employee complaints/grievance. Administering employee benefits performances.

32. VIII. HR Department • Is the place that supports to operating managers on all human resource activities. • HR department provides 3 types of service to operating managers • Specific services • Maintaining employee's records, initial phases of employee orientation.

33. VIII. HR Department (Cont.) • Advice • Disciplinary matters, equal employment opportunity (EEO), employment protection act (EPA), occupational safety and health administration (OSHA) • Coordination • Performance appraisals, compensation matters.

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35. IX. HR Responsibilities • The direct handling of people, is an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor. • For example, one major company outlines its line supervisors’ responsibilities for effective human resource management under the following general heading: • Placing the right person on the right job.

36. IX. HR Responsibilities (Cont.) • Starting new employees on the organization (orientation) • Training employees for jobs that are new to them • Improving the job performance of each person. • Gaining creative cooperation and developing smooth working relationship

37. IX. HR Responsibilities (Cont.) • Interpreting the company’s policy and procedures • Controlling labor cost • Developing the abilities of each person • Creating and maintaining development moral • Protecting employees’ health and physical condition

38. X. HRM PRACTICES & RESPONSIBILITIES 4. HRM PRACTICES & RESPONSIBILITIES • Important HRM practices include:

39. RESPONSIBILITIES OF HR DEPARTMENTS RESPONSIBILITIES OF HR DEPARTMENTS