INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

INTRODUCTION TO HUMAN INTRODUCTION TO HUMAN

RESOURCE MANAGEMENTRESOURCE MANAGEMENT

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Chapter 1Chapter 1

Prepared by : Ly SokcheuPrepared by : Ly SokcheuUpdated : 1Updated : 1stst September, 2012 September, 2012

Chapter Objectives

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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.

After studying this chapter, you should be able to:

• 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.

I. A Brief History of HRM

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• Frederick W. Taylor, the father of scientific Frederick W. Taylor, the father of scientific management, summarized management, summarized scientific scientific managementmanagement as: as: Science, not roles of thumbScience, not roles of thumb Harmony, not discordHarmony, not discord Cooperation, not individualismCooperation, not individualism Maximum output, not restricted outputMaximum output, not restricted output

• Industrial psychology,Industrial psychology, initiated in 1913, initiated in 1913, focused on:focused on: The workerThe worker Individual differencesIndividual differences The maximum well being of the workerThe maximum well being of the worker

I. A Brief History of HRM (Cont.)

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• Personnel departments were created to deal Personnel departments were created to deal with:with: Drastic changes in technologyDrastic changes in technology Organizational growthOrganizational growth The rise of unionsThe rise of unions Government intervention concerning working Government intervention concerning working

peoplepeople

I. A Brief History of HRM (Cont.)

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• Around the 1920s, more organizations Around the 1920s, more organizations noticed and acted on employee-management noticed and acted on employee-management conflict.conflict.

• The Hawthorne studies (1924 to 1933):The Hawthorne studies (1924 to 1933): Were to determine the effects of Were to determine the effects of

illumination on workers and their outputillumination on workers and their output The studies pointed out the importance of The studies pointed out the importance of

social interaction on output and satisfactionsocial interaction on output and satisfaction

I. A Brief History of HRM (Cont.)

Source: John M. Ivancevich, Human Resource Source: John M. Ivancevich, Human Resource ManagementManagement, 8, 8 edition edition , p6, p6

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• Until the 1960s, the personnel function Until the 1960s, the personnel function was concerned only with blue-collar was concerned only with blue-collar employees.employees.

File clerk, house-keeper, social worker, File clerk, house-keeper, social worker, firefighter, and union trouble defuserfirefighter, and union trouble defuser

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.

II. Definitions of HRM

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• Was responsible for arranging and Was responsible for arranging and coordinating the management of human coordinating the management of human resources to help the organization achieve its resources to help the organization achieve its goals. goals.

• Is an individual who normally acts in an Is an individual who normally acts in an advisoryadvisory or or staffstaff capacity, working with other capacity, working with other managers regarding HR matters. managers regarding HR matters.

• There was a shared responsibility between There was a shared responsibility between line manager and human resource line manager and human resource professionals.professionals.

• Often the line managers go to HR for Often the line managers go to HR for guidance such as promotion, hiring, discipline.guidance such as promotion, hiring, discipline.

III. HR ManagerIII. HR Manager

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IV. HRM FunctionsIV. HRM Functions

11HRM HRM

FunctionsFunctions

Human Resource

Human Resource

Development

Development

Com

pens

atio

n

Com

pens

atio

n

Staffing

Staffing

Em

ployee and

Em

ployee and

Labor Relations

Labor Relations

Safety and Safety and HealthHealth

Job AnalysisJob Analysis Human Resource PlanningHuman Resource Planning RecruitmentRecruitment SelectionSelection

Û Process through which organization Process through which organization ensures it always has proper number ensures it always has proper number of employees with appropriate skills of employees with appropriate skills in right jobs at right time to achieve in right jobs at right time to achieve organizational objectives. organizational objectives.

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1.1. StaffingStaffing

a)a) Job analysisJob analysis • Systematic process of determining Systematic process of determining

skills, duties, and knowledge required skills, duties, and knowledge required for performing jobs in organization.for performing jobs in organization.

1. Staffing (Cont.)1. Staffing (Cont.)

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b)b) Human resource planningHuman resource planning• SSystematic process of matching the ystematic process of matching the

internal and external supply of people internal and external supply of people with job openings anticipated in the with job openings anticipated in the organization over a specified period organization over a specified period of time.of time.

1. Staffing (Cont.)1. Staffing (Cont.)

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d)d) SelectionSelection• Process of choosing from a group of Process of choosing from a group of

applicants, the individuals best suited applicants, the individuals best suited for a particular position and the for a particular position and the organization. organization.

c)c) RecruitmentRecruitment • Process of attracting individuals on a Process of attracting individuals on a

timely basis, in sufficient numbers, timely basis, in sufficient numbers, and with appropriate qualifications, to and with appropriate qualifications, to apply for jobs with an organization.apply for jobs with an organization.

a.a.TrainingTraining• Designed to provide learners Designed to provide learners

with knowledge and skills with knowledge and skills needed for their present jobs.needed for their present jobs.

2. Human Resource Development2. Human Resource Development

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c.c. Career planningCareer planning• Ongoing process whereby individual Ongoing process whereby individual

sets career goals and identifies means sets career goals and identifies means to achieve them.to achieve them.

b.b. DevelopmentDevelopment• Involves learning that goes beyond Involves learning that goes beyond

today's job; it has more long-term focus.today's job; it has more long-term focus.

2. Human Resource Development2. Human Resource Development

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d.d.Career developmentCareer development• Formal approach used by organization Formal approach used by organization

to ensure that people with proper to ensure that people with proper qualifications and experiences are qualifications and experiences are available when needed.available when needed.

e.e.Organization developmentOrganization development• Planned process of improving organization Planned process of improving organization

by developing its structures, systems, and by developing its structures, systems, and processes to improve effectiveness and processes to improve effectiveness and achieving desired goals.achieving desired goals.

f.f. Performance managementPerformance management• Goal-oriented process directed toward Goal-oriented process directed toward

ensuring organizational processes are ensuring organizational processes are in place to maximize productivity of in place to maximize productivity of employees, teams, and ultimately, the employees, teams, and ultimately, the organization.organization.

2. HR Development (Cont.)2. HR Development (Cont.)

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g.g. Performance appraisalPerformance appraisal• Formal system of review and Formal system of review and

evaluation of individual or team task evaluation of individual or team task performance.performance.

\ All rewards that individuals All rewards that individuals

receive as a result of their receive as a result of their

employment.employment.

3. Compensation3. Compensation

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a.a. Direct Financial CompensationDirect Financial Compensation• Pay that person receives in form of Pay that person receives in form of

wages, salaries, bonuses, and wages, salaries, bonuses, and

commissions.commissions.

3. Compensation3. Compensation

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c.c. Nonfinancial CompensationNonfinancial Compensation• Satisfaction that person receives from Satisfaction that person receives from

job itself or from psychological and/or job itself or from psychological and/or physical environment in which person physical environment in which person works.works.

b.b. Indirect Financial Compensation Indirect Financial Compensation (Benefits)(Benefits)• All financial rewards not included in All financial rewards not included in

direct compensation such as paid direct compensation such as paid vacations, sick leave, holidays, and vacations, sick leave, holidays, and medical insurance.medical insurance.

Employees who work in safe environment Employees who work in safe environment and enjoy good health are more likely to and enjoy good health are more likely to be productive and yield long-term be productive and yield long-term benefits to organization.benefits to organization.

4. Safety and Health4. Safety and Health

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a)a) SafetySafety• Involves protecting employees Involves protecting employees

from injuries caused by work-from injuries caused by work-related accidents.related accidents.

b)b) HealthHealth• Refers to employees' freedom from Refers to employees' freedom from

illness and their general physical and illness and their general physical and mental well being.mental well being.

Private-sector union membership has fallen Private-sector union membership has fallen from 39 percent in 1958 to 9 percent today.from 39 percent in 1958 to 9 percent today.

Business is required by law to recognize a Business is required by law to recognize a union and bargain with it in good faith if the union and bargain with it in good faith if the firm’s employees want the union to firm’s employees want the union to represent them.represent them.

Human resource activity is often referred to Human resource activity is often referred to as as industrial relations.industrial relations.

Most firms today would like to have a union-Most firms today would like to have a union-free environment .free environment .

5. Employee and Labor Relations5. Employee and Labor Relations

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Ç 3 levels of management perform HRM 3 levels of management perform HRM functions.functions.

V. Who Performs HRM FunctionsV. Who Performs HRM Functions

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Operating managers are managers who Operating managers are managers who manage directly people involved with the manage directly people involved with the production of an organization's products and production of an organization's products and services.services.

HR specialists are people who are specially HR specialists are people who are specially trained in one or two areas of HRM.trained in one or two areas of HRM.

HR generalists are people who are HR generalists are people who are responsible for performing various parts of responsible for performing various parts of HR activities.HR activities.

Human Resource Executives, Generalists, and Specialists

Manager Manager Safety & healthSafety & health

Vice President Vice President Human Human

ResourcesResources

Vice President Vice President Industrial Industrial RelationsRelations

Manager Manager Compensation Compensation

Manager Manager Training and Training and DevelopmentDevelopment

Executive: Executive: Generalist: Generalist: Specialist:Specialist:

Manager, Manager, StaffingStaffing

President President and CEOand CEO

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Performs one or more HR functionsPerforms one or more HR functions A top-level manager A top-level manager Reports directly to CEO or head of Reports directly to CEO or head of

major divisionmajor division

Characteristics of an HRCharacteristics of an HR Executive Executive

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Often an executiveOften an executive Performs tasks in various HR Performs tasks in various HR

related areasrelated areas Involved in several, or all, of Involved in several, or all, of

the five HRM functionsthe five HRM functions

Characteristics of an HR GeneralistCharacteristics of an HR Generalist

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May be an HR executive, manager, or May be an HR executive, manager, or

non-manager non-manager

Who typically is concerned with only Who typically is concerned with only

one of the five functional areas of one of the five functional areas of

HRM. HRM.

Characteristics of an HR SpecialistCharacteristics of an HR Specialist

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Helping the organization Helping the organization reach its goals.reach its goals.

VI. Objectives of the HRM FunctionVI. Objectives of the HRM Function

2525 Source: John M. Ivancevich, Human Resource Source: John M. Ivancevich, Human Resource ManagementManagement, 8, 8 edition edition , p10, p10

Increasing to the fullest the employee’s Increasing to the fullest the employee’s job satisfaction and self-actualization.job satisfaction and self-actualization.

Providing the organization with well-trained Providing the organization with well-trained and well-motivated employees.and well-motivated employees.

Employing the skills & Employing the skills & abilities of the workforce abilities of the workforce efficiently.efficiently.

Developing & maintaining a quality of work Developing & maintaining a quality of work life that makes employment in the life that makes employment in the organization desirable.organization desirable.

Communicating HRM policies to all Communicating HRM policies to all employees.employees.

Helping to maintain ethical policies and Helping to maintain ethical policies and socially responsible behavior.socially responsible behavior.

Managing change to the mutual advantage Managing change to the mutual advantage of individuals, groups, the enterprise, and of individuals, groups, the enterprise, and the public.the public.

VI. Objectives of the HRM Function VI. Objectives of the HRM Function (Cont.)(Cont.)

2626Source: John M. Ivancevich, Human Resource Source: John M. Ivancevich, Human Resource ManagementManagement, 8, 8 edition edition , p10, p10

\ There are majors roles associated with the There are majors roles associated with the managing of human resource in managing of human resource in organization.organization.

- - Strategic roleStrategic role- Operational role- Operational role

VII. The Roles of HRMVII. The Roles of HRM

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Strategic role of HRM emphasizes that Strategic role of HRM emphasizes that the people in organization are valuable the people in organization are valuable resources presenting a significant resources presenting a significant investment of organizational efforts.investment of organizational efforts.

Human resource can be a source of Human resource can be a source of competitive strength if they are managed competitive strength if they are managed effectively.effectively.

Human resource must be viewed in the Human resource must be viewed in the same context as the financial, same context as the financial, technological, and other resources that technological, and other resources that are managed in organization.are managed in organization.

1. Strategic Roles1. Strategic Roles

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Human resource planningHuman resource planning Evolving legal issueEvolving legal issue Workforce trend and issueWorkforce trend and issue Community economic developmentCommunity economic development Organizational restructuring and Organizational restructuring and

downsizingdownsizing Merger / acquisition advisingMerger / acquisition advising Compensation planning and strategyCompensation planning and strategy

1. Strategic Roles (Cont.)1. Strategic Roles (Cont.)

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The typically activities at strategic point The typically activities at strategic point are viewed:are viewed:

Operational activities includes both tactical Operational activities includes both tactical and administrative in nature.and administrative in nature.

Compliance with equal employment Compliance with equal employment opportunity and other laws must be opportunity and other laws must be ensured.ensured.

Applicants must be interviewed, new Applicants must be interviewed, new employees must be oriented, supervisor employees must be oriented, supervisor must be trained, safety problems must be must be trained, safety problems must be solved, and salary and wages must be solved, and salary and wages must be administered.administered.

2.2. Operational roleOperational role

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a)a) Recruiting and selecting for current Recruiting and selecting for current openings.openings.

b)b) Conducting employee oriented.Conducting employee oriented.c)c) Reviewing safety and accident report.Reviewing safety and accident report.d)d) Resolving employee Resolving employee

complaints/grievance.complaints/grievance.e)e) Administering employee benefits Administering employee benefits

performances.performances.

2.2. Operational role (Cont.)Operational role (Cont.)

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In short, a wide variety of activities typically In short, a wide variety of activities typically associated with the day-to-day management associated with the day-to-day management of people in organizations must be performed of people in organizations must be performed effectively and appropriately:effectively and appropriately:

\ Is the place that supports to operating Is the place that supports to operating managers on all human resource managers on all human resource activities.activities.

VIII. HR DepartmentVIII. HR Department

a) Specific services• Maintaining employee's records, Maintaining employee's records,

initial phases of employee initial phases of employee orientation.orientation.

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\ HR department provides 3 types of service to operating managers

VIII. HR Department (Cont.)VIII. HR Department (Cont.)

c)c) CoordinationCoordination• Performance appraisals, Performance appraisals,

compensation matters. compensation matters.

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b)b) AdviceAdvice• Disciplinary matters, equal Disciplinary matters, equal

employment opportunity (EEO), employment opportunity (EEO), employment protection act (EPA), employment protection act (EPA), occupational safety and health occupational safety and health administration (OSHA)administration (OSHA)

Coordination

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The direct handling of people, is an integral The direct handling of people, is an integral part of every line manager’s responsibility, part of every line manager’s responsibility, from president down to the lowest-level from president down to the lowest-level supervisor.supervisor.

IX. HR ResponsibilitiesIX. HR Responsibilities

• Placing the right person on the right job.Placing the right person on the right job.

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For example, one major company outlines For example, one major company outlines its line supervisors’ responsibilities for its line supervisors’ responsibilities for effective human resource management effective human resource management under the following general heading:under the following general heading:

• Starting new employees on the Starting new employees on the

organization (orientation)organization (orientation)• Training employees for jobs that are Training employees for jobs that are

new to themnew to them• Improving the job performance of each Improving the job performance of each

person.person.• Gaining creative cooperation and Gaining creative cooperation and

developing smooth working relationshipdeveloping smooth working relationship

IX. HR Responsibilities (Cont.)IX. HR Responsibilities (Cont.)

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• Interpreting the company’s policy and Interpreting the company’s policy and proceduresprocedures

• Controlling labor costControlling labor cost• Developing the abilities of each personDeveloping the abilities of each person• Creating and maintaining development Creating and maintaining development

moralmoral• Protecting employees’ health and Protecting employees’ health and

physical conditionphysical condition

IX. HR Responsibilities (Cont.)IX. HR Responsibilities (Cont.)

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4. HRM PRACTICES & RESPONSIBILITIES

Important HRM practices include:

X. HRM PRACTICES & RESPONSIBILITIES

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RESPONSIBILITIES OF HR DEPARTMENTS

RESPONSIBILITIES OF HR DEPARTMENTS

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