Lecture 1.1

INTRODUCTION TO HRM

BTEC Higher National DiplomaHuman Resource Management

Jeeshan Mirza

Topic Overview1. HRM Strategy & Analysis

2. Job Analysis

3. Personal Planning & Recruiting

4. Selecting Employees

5. Training & Developing Employees

6. Performance Management & Appraisal

7. Managing Employee Retention, Engagement, and Careers

8. Developing Compensation Plans

9. Pay For Performance & Employee Benefits

10. Ethics, Employee Relations, Fair Treatment At Work

11. Working With Unions/Improving Occupational Safety, Health, and Risk Management

Lecture Overview• What Is HRM• Evolution of HRM • HRMs Contributing Role• HRM Functions • Current & Future HRM Challenges • The New HR Managers • HRM as Career Field

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 (HR) management is designing

management systems to ensure that human talent is used 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

Common Elements

Management SystemPolicies, procedures, recruiting, training, compensation, labor relations, health, safety

StrategicOrganizational goals, integrated

PerformanceEfficiency, effectiveness, behaviour, attitude

Sugar Bakery

By: Jane

Class DiscussionWhat would happen to Sugar Bakery if Jane, kept on expanding the business but didn’t hire an HR person, or implement HR program?

Related Disciplines

HR as Core Competency▷ Core competency- Unique capability that creates

high value, differentiates organization from competition

▷ Organizations have identified- human resources can be core competencies differentiating them from competitors and key determinant of competitive advantage

Herb Kelleher, Chairman & CEO South West Airlines

Our competitors can buy all the physical things, copy our strategy, our routes. But they cannot buy or imitate the dedication, devotion, loyalty and spirit of our people. That is the most powerful thing of all, people are our core reason for success

1

The Starbucks EffectPeople and service constitute Starbucks’s competitive advantage

Human Capital ▷ Not solely people in organizations

▷ What people bring and contribute to organizational success

▷ Collective value of the capabilities, knowledge, skills, life experiences, and motivation of workforce

▷ Intellectual capital reflects thinking, knowledge, creativity, and decision making of people in organizations

Human Capital

Source: Raymond Noe

Evolution Of HRM The Emergence & Development of the HRM Discipline

Evolution of HRM

Source: HR Dictionary

Source: HR Dictionary

2

HRM’s Contributing RoleImpact in Organizations

HRM’s Contributing Role▷ Support the organization in achieving its

objectives by developing and implementing human resource (HR) strategies that are integrated with the business strategy

▷ Contribute to the development of a high-performance culture

▷ Ensure that the organization has the talented, skilled and engaged people it needs

HRM’s Contributing Role▷ Create a positive employment relationship between

management and employees and a climate of mutual trust

▷ Encourage the application of an ethical approach to people management

HRM’s Contributing Role

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

HRM FunctionsRole of HRM Function In An Organization

HR Management Functions-Mathis

Responsibilities Of HR Department- Raymond Noe

Responsibilities Of HR Department- Raymond Noe

HRM Functions

This Course

1. HRM Strategy & Analysis

2. Job Analysis

3. Personal Planning & Recruiting

4. Selecting Employees

5. Training & Developing Employees

6. Performance Management & Appraisal

HRM Functions

This Course7. Managing Employee Retention, Engagement, and

Careers

8. Developing Compensation Plans

9. Pay For Performance & Employee Benefits

10. Ethics, Employee Relations, Fair Treatment At Work

11. Working With Unions/Improving Occupational Safety, Health, and Risk Management

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

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

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 and restructuring• Mergers & Acquisitions

▷ Economics and job changes• Occupational shifts• Service industry growth • Contingent workforce/Flexibility

▷ Globalization of organizations and HR • Expatriates • Global economic factors• Global legal and economic factors • Ethics

Current & Future HRM Challenges▷ Workforce demographics and diversity • Racial and ethnic diversity • Women in workforce• Aging workforce

▷ HR Technology • HRMIS• Social Media

4

The New HR Managers How 21st Century HR Managers are dealing with contemporary

business challenges

The New HR Managers▷ They focus more on strategic big picture issues

▷ They use new ways to provide HR service, eg. Social Media

▷ They take a talent management approach to managing human resources

▷ They manage employee engagement

▷ They manage ethics

The New HR Managers▷ They measure HR performance and results

▷ They use evidence based HRM

▷ They add value by boosting profit and performance

▷ They understand their HR philosophy

▷ They have new competencies

5

HRM as Career FieldCareer choices for HR professionals, and competencies required

HRM as Career Field

HR Generalist-a person who has responsibility for performing a variety of HR activities

HR Specialists- individuals who have in-depth knowledge and expertise in limited areas of HR

HRM as Career Field

Competencies

▷ HR professionals at all levels need the following

Strategic knowledge and impact means Legal, administrative, and operational

capabilities Technology knowledge and usage abilities ethical behavior Results orientation/performance Change champion

HRM as Career Field

Why Study HRM?Beyond the fact it is a core course

▷ In essence, everyone at some point has to perform HRM activities whether CEO, CFO, entrepreneur or a manager

▷ People can truly contribute competitive advantage

▷ Can be an interesting subject!

Thanks!Any questions?

You can find me at:@jeeshan2000jeeshan2000@gmail.com