Lesson-1-Introduction-to-HRM.pptx

Introduction to
Human Resource
Management
Prepared by:
KYLE PAULINO, MBA

Introduction to Human Resource Management
Human is one of the most important asset of any Organization and
unlike other resources the human could be developed and increased to a
limitless extent. Human resources mean the energies, skills, knowledge and
physical strength of the people at work. Today, companies offer their products
and services with the highest quality as possible to be competitive.
In order to remain competitive, to grow, and diversify, an organization
must ensure that its employees are qualified, placed in appropriate positions,
properly trained, managed effectively, and committed to the firm’s success.
Therefore, the only thing that will uphold a company’s advantage
tomorrow is the caliber of people in the organization.

The goal of HRM is concerned with the “people” dimension in
management. Since every organization is made up of people, acquiring their
services, developing their skills, motivating them to high level of
performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives.
Those organization that can
acquire, develop, stimulate and
keep outstanding workers will be
effective (able to achieve their
organizational goals), efficient
(expanding the least number of
resources necessary) and
economical (work with little
waste or at saving).

Terminologies:
• Human – refers to people. It is considered as one of the important asset in
an organization in any form. Without a human, there’s no existing
organization.
• Resource – refers to the supply of something (such as money, people) that
someone or (organization) and can use when it is needed.
• Management - (or managing) is the administration of an organization,
whether it is a business, a not-for-profit organization, or government body.
Management includes the activities of setting the strategy of
an organization and coordinating the efforts of its employees (or of
volunteers) to accomplish its objectives through the application of
available resources, such as financial, natural, technological, and human
resources. The term "management" may also refer to those people who
manage an organization.

What is Human Resource Management?
Generally Human Resource Management refers to the management of
people in organizations. It comprises of the activities, policies, and practices
involved in obtaining, developing, utilizing, evaluating, maintaining, and
retaining the appropriate number and skill mix of employees to accomplish
the organization’s objectives.
The goal of HRM is to maximize employees’ contributions in order to
achieve optimal productivity and effectiveness, while simultaneously attaining
individual objectives (such as having a challenging job and obtaining
recognition), and societal objectives (such as legal compliance and
demonstrating social responsibility).
In short Human Resource Management (HRM) can be defined as the art
of procuring, developing and maintaining competent workforce to achieve the
goals of an organization in an effective and efficient manner.

Nature of HRM
HRM is concerned with people’s dimension in organizations.
The following constitute the core of HRM:
1. HRM Involves the Application of Management Functions and Principles.
The functions and principles are applied to acquiring, developing,
maintaining and providing remuneration to employees in organization.
2. Decision Relating to Employees must be Integrated. Decisions on different
aspects of employees must be consistent with other human resource (HR)
decisions.
3. Decisions Made Influence the Effectiveness of an Organization.
Effectiveness of an organization will result in betterment of services to
customers in the form of high-quality products supplied at reasonable costs.
4. HRM Functions are not Confined to Business Establishments Only but
applicable to nonbusiness organizations such as education, health care,
recreation and like.

Scope of HRM
The scope of HRM is indeed extensive. All major activities in the working
life of a worker – from the time of his or her entry into an organization until he
or she leaves the organizations comes under the purview of HRM. The major
HRM activities include HR planning, job analysis, job design, employee hiring,
employee and executive remuneration, employee motivation, employee
maintenance, and employees' industrial relations, health and safety.
The scope of Human Resources Management extends to:
• All the decisions, strategies, factors, principles, operations, practices,
functions, activities and methods related to the management of people as
employees in any type of organization.
• All the dimensions related to people in their employment relationships, and
all the dynamics that flow from it.

Nine Broad Areas of Activities of HRM
1. Human Resource Planning: The objective of HR Planning is to ensure that
the organization has the right types of persons at the right time at the
right place. It prepares human resources inventory with a view to assess
present and future needs, availability and possible shortages in human
resource. Thereupon, HR Planning forecast demand and supplies and
identify sources of selection. HR Planning develops strategies both long-
term and short-term, to meet the man-power requirement.
2. Design of Organization and Job: This is the task of laying down
organization structure, authority, relationship and responsibilities. This
will also mean definition of work contents for each position in the
organization. This is done by “job description”. Another important step is
“Job specification”. Job specification identifies the attributes of persons
who will be most suitable for each job which is defined by job
description.

3. Selection and Staffing: This is the process of recruitment and selection of
staff. This involves matching people and their expectations with which the
job specifications and career path available within the organization.
4. Training and Development: This involves an organized attempt to find out
training needs of the individuals to meet the knowledge and skill which is
needed not only to perform current job but also to fulfil the future needs
of the organization.
5. Organizational Development: This is an important aspect whereby
“Synergetic effect” is generated in an organization i.e. healthy interpersonal
and inter-group relationship within the organization.
6. Compensation and Benefits: This is the area of wages and salaries
administration where wages and compensations are fixed scientifically to
meet fairness and equity criteria. In addition, labor welfare measures are
involved which include benefits and services.

7. Employee Assistance: Each employee is unique in character, personality,
expectation and temperament. By and large each one of them faces
problems everyday. Some are personal some are official. In their case he or
she remains worried. Such worries must be removed to make him or her
more productive and happier.
8. Union-Labor Relations: Healthy Industrial and Labor relations are very
important for enhancing peace and productivity in an organization. This is
one of the areas of HRM.
9. Personnel Research and Information System: Knowledge on behavioral
science and industrial psychology throws better insight into the workers
expectations, aspirations and behavior. Continuous research in HR areas is
an unavoidable requirement.

Objectives of HRM
The primary objective of HRM is to ensure the availability of competent
and willing workforce to an organization. The specific objectives include the
following:
1. Human capital: assisting the organization in obtaining the right number
and types of employees to fulfill its strategic and operational goals
2. Developing organizational climate: helping to create a climate in which
employees are encouraged to develop and utilize their skills to the fullest
and to employ the skills and abilities of the workforce efficiently
3. Helping to maintain performance standards and increase productivity
through effective job design; providing adequate orientation, training and
development; providing performance-related feedback; and ensuring
effective two-way communication.
4. Helping to establish and maintain a harmonious employer/employee
relationship.

5. Helping to create and maintain a safe and healthy work environment
6. Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the
productive employees
7. Ensuring that the organization follows provincial/territorial and laws
affecting the workplace (such as human rights, employment equity,
occupational health and safety, employment standards, and labor
relations legislation). To help the organization to reach its goals.
8. To provide organization with well-trained and well-motivated employees
9. To increase the employee's satisfaction and self-actualization
10. To develop and maintain the quality of work life
11. To communicate HR policies to all employees.
12. To help maintain ethical polices and behavior.

The above stated HRM objectives can be summarized under four
specific objectives: societal, organizational, and functional and personnel.

1. Societal Objectives: seek to ensure that the organization becomes socially responsible
to the needs and challenges of the society while minimizing the negative impact of such
demands upon the organization. The failure of the organizations to use their resources
for the society’s benefit in ethical ways may lead to restriction.
2. Organizational Objectives: it recognizes the role of HRM in bringing about
organizational effectiveness. It makes sure that HRM is not a standalone department,
but rather a means to assist the organization with its primary objectives. The HR
department exists to serve the rest of the organization.
3. Functional Objectives: is to maintain the department’s contribution at a level
appropriate to the organization’s needs. Human resources are to be adjusted to suit the
organization’s demands. The department’s value should not become too expensive at
the cost of the organization it serves.
4. Personnel Objectives: it is to assist employees in achieving their personal goals, at least
as far as these goals enhance the individual’s contribution to the organization. Personal
objectives of employees must be met if they are to be maintained, retained and
motivated. Otherwise, employee performance and satisfaction may decline giving rise
to employee turnover.

HR management can be thought of as seven interlinked functions
taking place within organizations, as shown in Figure. The functions can be
grouped as follows:
• Strategic HR Management: As a part of maintaining organizational
competitiveness, strategic planning for HR effectiveness can be increased
using HR metrics and HR technology. Human resource planning (HRP)
function determine the number and type of employees needed to
accomplish organizational goals.
• Equal Employment Opportunity: Compliance with equal employment
opportunity (EEO) laws and regulations affects all other HR activities.
• Staffing: The aim of staffing is to provide a sufficient supply of qualified
individuals to fill jobs in an organization. Job analysis, recruitment and
selection are the main functions under staffing.

• Talent Management and Development: Beginning with the orientation of new
employees, talent management and development includes different types of
training. Training and Development programs provide useful means of assuring
that the employees can perform their jobs at acceptable levels.
• Total Rewards: Compensation in the form of pay, incentives and benefits are
the rewards given to the employees for performing organizational work.
Compensation management is the method for determining how much
employees should be paid for performing certain jobs. Compensation affects
staffing in that people are generally attracted to organizations offering a higher
level of pay in exchange for the work performed. To be competitive, employers
develop and refine their basic compensation systems and may use variable pay
programs such as incentive rewards, promotion from within the team,
recognition rewards, etc. This function uses rewards to motivate personnel to
achieve an organization’s goals of productivity, innovation and profitability.

• Risk Management and Worker Protection: HRM addresses various workplace
risks to ensure protection of workers by meeting legal requirements and being
more responsive to concerns for workplace health and safety along with
disaster and recovery planning.
• Employee and Labor Relations: The relationship between managers and their
employees must be handled legally and effectively. It is important to develop,
communicate, and update HR policies and procedures so that managers and
employees alike know what is expected. In some organizations,
union/management relations must be addressed as well. The term labor
relation refers to the interaction with employees who are represented by a
trade union. Unions are organization of employees who join to obtain more
voice in decisions affecting wages, benefits, working conditions and other
aspects of employment. Regarding labor relations the major function of HR
personnel includes negotiating with the unions regarding wages, service
conditions and resolving disputes and grievances.

Role of HRM
The role of HRM is to plan, develop and administer policies and
programs designed to make optimum use of an organizations human
resources. It is that part of management which is concerned with the people
at work and with their relationship within enterprises. Its objectives are: (a)
effective utilization of human resources, (b) desirable working relationships
among all members of the organizations, and (c) maximum individual
development.
The role of HR personnel is to impart continuous education to the
employees about the changes and challenges facing the country in general
and their organization. The employees should know about the balance sheet
of the company, sales progress, and diversification of plans, share price
movements, turnover and other details about the company. The HR
professionals should impart such knowledge to all employees through small
booklets, video films and lectures.

Classification of HR Roles
Administrative Role of HR
The administrative role of
HR management has
been heavily oriented to
administration and
recordkeeping including
essential legal paperwork
and policy
implementation.
Operational and Employee Advocate
Role for HR
HR often has been viewed as the
“employee advocate” in organizations.
They act as the voice for employee
concerns and spend considerable time
on dealing with employee problems
that are both work-related and not
work-related. Employee advocacy
helps to ensure fair and equitable
treatment for employees regardless of
personal background or
circumstances.
Strategic Role for HR
The strategic HR role means
that HR professionals are
proactive in addressing
business realities and
focusing on future business
needs, such as strategic
planning, compensation
strategies, the performance
of HR, and measuring
its results.

Paper Tower
• Paper tower teaches participants the importance of planning,
timing, and thinking on their feet. Please prepare sheet of
paper and ten paperclips. Each group/student needs to design a
freestanding tower using only the materials given. The tallest
tower wins. Give the groups/student 15 minutes to work on their
towers. After the time is up, take a picture of the towers and
measure them. The tower must be able to stand on its own in
order to qualify. Discuss why one tower might stand on its own
and another fall. Point out the importance of quality in producing
the towers.

Lesson-1-Introduction-to-HRM.pptx

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