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Lecture 1
INTRODUCTION TO HRM
Certificate In Business ManagementModule 402
Jeeshan Mirza
CBM Topic Overview
1. Introduction To HRM
2. Recruitment & Selection
Lecture Overview• What Is HRM
• Evolution of HRM
• HRMs Contributing Role
• HRM Functions
• Current & Future HRM Challenges
What is Human Resource Management
Definition, Key Concepts
Sugar Bakery
By: Jane
Hire
Train
Hire Train
Policies
Policies
Problems
Employee Relations
Strategy
StrategyCompensation Rewards
Job Analysis
Definition▷Human resource management is designing
management systems to ensure that human talent isused effectively and efficiently to accomplish organizational goals
-Mathis
▷Human resource management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns
-Dessler
Definition▷Human resource management can be defined as a
strategic, integrated and coherent approach to the employment, development and well-being of the people working in organizations
-Armstrong
▷HRM are the policies, practices, and systems that influence employees’ behavior, attitudes, and performance
-Raymond Noe
Definition▷Design and application of formal systems in an
organization to ensure the effective and efficient use of human talent to accomplish organizational goals.
▷Activities undertaken to attract, develop, and maintain an effective workforce within an organization
-CBM Notes
Common Elements
Management SystemPolicies, procedures, recruiting, training, compensation, labor relations, health, safety
StrategicOrganizational goals, integrated
PerformanceEfficiency, effectiveness, behaviour, attitude
Key Idea # 1
HR is not a person or department
It is system-a set of activities, policies, procedures designed to help an organization achieve its objectives
Key Idea # 2
Technology, marketing, product can imitable by competitors
At the end a company’s competitive advantage is having innovative employees who can constantly come up with better products/services
Evolution Of HRM The Emergence & Development of the HRM Discipline
Before Industrial Revolution Agro based economies
Before Industrial RevolutionCraftsmen producing goods in villages, cottage type industry
Evolution of HRM Before Industrial Revolution
▷HRM or any similar activity non existent
▷Businesses typically built around master craftsmen
▷Apprentices would assist craftsmen as employees
▷Family members, community, slaves
Industrial Revolution 1750-1850Conversion of economy from agro to industry based, factories with long working hours, poor condition
Evolution of HRM Industrial Revolution
▷A department was set up to look into workers wages, welfare and other related issues
▷Workers record maintenance, housing health care
▷Deal with labor union; began in 1790
Evolution of HRM Industrial Revolution
▷Larger employers such as Cadbury, Lever Brothers began to appoint welfare officers
▷To manage new initiatives designed to make life less harsh for their employees
▷Unemployment benefit, sick pay and subsidized housing
Evolution of HRM Industrial Revolution
▷ Improves commitment of staff, compare the organization favorably with competitors
▷Higher productivity, a longer-serving workforce and a bigger pool of applicants for each job
▷Commitment to welfare reduces scope for the of adversarial industrial relations
Post Industrial Revolution 1850-1950Study of work- Frederick Taylor, Hawthorne Studies, McGregor; World War 1, 2
Evolution of HRM Post Industrial Revolution
▷Emergence of personnel manager
▷Focus shifted slightly from welfare towards other organizational objectives
▷Responsibilities in the areas of staffing, training and organization design
Evolution of HRM Post Industrial Revolution
▷Personnel specialists looked at management and administrative processes analytically
▷How organizational structures could be designed and labor deployed so as to maximize efficiency
▷Social relationships in the workplace and employee morale became important
Evolution of HRM Until The 1980’s
▷Most people employed by organizations were required simply to provide manual labor
▷Relatively little skill, experience or intelligence was needed to do the jobs
▷The requisite training was cheap and speedy to provide, and payment methods unsophisticated
Evolution of HRM Until The 1980’s
▷Finding people to do the work was rarely a problem
▷There were no restrictions when it came to firing those who were not satisfactory
▷Or who displeased managers in some other way
Economic Liberalization Era 1980+Corporatization, overseas expansion, growth of businesses, computers at workplace
Evolution of HRM Economic Liberalization Era
▷HRM replaced Personnel Management
▷ Integration with management of the company; instead of acting on behalf
▷Demand for higher-level skills had grown
▷Need for many more people to fill professional and managerial jobs
Evolution of HRM Economic Liberalization Era
▷Harder to find individuals with the right skills, qualifications, attributes and experience
▷Competitors keen to secure the services of the best talent by offering better deal
▷Sophisticated approaches to recruitment, selection, retention, employee relations and performance management
Evolution of HRM Economic Liberalization Era
▷Process becomes more complex for organizations that employ people in different countries
▷Diverse legislative and public policy; cultural difference
▷Led to the evolution of a more complex human resource management function
Digital, Social Media EraE-Commerce, Social Media, Technology, Globalization, Intense Competition, Millennials
Evolution of HRM Digital, Social Media Era
▷HRM shifting from administrative role to strategic
▷Enabling organization to achieve corporate goals and objectives; improving performance and driving shareholder value
▷Technology facilitating administrative processes and functions of HRM
Evolution of HRM Digital, Social Media Era
▷Changing workforce, circumstances-globalization, millennials, flexibility, regulations
▷Management of jobs to management of people-improving employee engagement
▷Focus on employees as internal customers; develop human capital
Evolution of HRM
Source: HR Dictionary
Personnel Management▷More traditional approach to managing people
▷Essentially workforce centered; direct efforts mainly at organization's employees
▷Finding , training them, compensation, administration, welfare, labor relations
▷Explaining management’s expectations, justifying management’s actions
Personnel Management▷Satisfying employees’ work-related needs
▷Dealing with problems, modify management action that could produce an unwelcome employee response
▷Primary focus-achieving efficiency, justice in managing people, ensuring satisfied employees, avoiding disputes
▷Considered administrative function
Personnel Management▷Not totally identified with management interests
▷Always some degree of being in between management and the employees
▷Mediating the needs of each to the other
Human Resource Management
▷Modern way of managing people
▷Aligned with strategy of organization; directed mainly at management needs
▷Greater emphasis on planning, monitoring and control, rather than mediation
▷Problem solving undertaken with other members of management rather than directly with employees or their representatives
Human Resource Management
▷Relatively distant from the workforce as a whole
▷Perceives people as asset, recognizes them as value creators, manages individually not collectively
▷People can develop a sustainable competitive advantage
▷Delivered in collaboration with line managers
Key Idea # 3
We are in the era of Human Capital management
There is intense competition for the best talent; human capital may be company’s defining asset
HRM’s Contributing RoleImpact in Organizations
HRM’s Contributing RoleStaffing Objectives
▷ Ensuring that the business is appropriately staffed; recruitment and selection
Performance Objectives
▷ Ensure employees are well motivated and committed
▷ Training and development, appraisal
▷ Performance targets, employee engagement
HRM’s Contributing RoleChange Management Objectives
▷Adapting to external factors, reorganization, cultural changes/shifts
Administration Objectives
▷ Facilitating organizations smooth running
▷Maintaining record, information of employees
▷Managing compliance
HRM’s Contributing Role
Negative Perceptions▷ Bureaucratic and administrative focused
▷ Too detail oriented
▷ Too costly
▷Does not understand the main business
▷HR managers seen more concerned about activities than results, and hard to link HR efforts to employee, managerial, and business performance organizational metrics
3
Key Idea # 4
HR needs to shift to strategic aspects of managing people; assist company achieve its business objectives
Role has to shift from operational/administrational
HRM FunctionsRole of HRM Function In An Organization
Responsibilities Of HR Department- Raymond Noe
HRM Function▷All managers are human resource managers- they
are involved recruiting, interviewing, selecting, training
Manager
Line Manager Staff Manager
A manager who is authorized to direct the work of subordinates and is responsible for accomplishing the organization’s tasks-production and sales
A manager who assists and advises line managers. Human resource managers are staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation
HRM Function▷All supervisors spend much of their time on
personnel-type tasks
▷Direct handling of people integral part of every line manager’s responsibility, from president to first-line supervisor
▷Small organizations-line managers may carry out all personnel duties unassisted
▷As organization grows, line managers need assistance, specialized knowledge, advice of HR
Key Idea # 5
All managers are HR managers
HR role and activities will need to be played by line managers, with HR department playing facilitation role
Distributed HR
All managers thus must understand HRM
HRM Function
Organizational Chart Of Smaller Company
HRM Function
Organizational Chart Of HR Department in Large Company
HRM Function
Organizational Chart Shared Services
Current & Future HRM Challenges
Trends influencing human resource management
Current & Future HRM Challenges
Organizational Cost Pressures
▷Containing costs while retaining top talent and maximizing productivity
▷Mergers & Acquisitions
▷Downsizing & Layoffs
▷Outsourcing, Offshoring, Productivity Enhancements
Current & Future HRM Challenges
Workforce Demographics & Diversity
▷Millennials Vs Generation X Vs Baby Boomers
▷Racial and ethnic diversity
▷Women in workforce
▷Aging workforce
Current & Future HRM Challenges
Economics & Job Changes
▷Occupational shifts
▷Service industry growth
▷Contingent workforce/Flexibility
▷Changing attitude towards work
▷Work life balance
Current & Future HRM Challenges
Economics & Job Changes
▷ Imbalanced labor force
▷Migration
▷Employee rights, rigid regulations, privacy concerns
Current & Future HRM Challenges
Globalization of Organizations
▷Expatriates
▷Global economic factors
▷Global legal factors
▷Ethics
Current & Future HRM ChallengesHR Technology
▷HRMIS, Cloud Computing
Real time information on the go
Reduces administrational actions;
Data analytics
▷Social Media
▷Flexi Time
