1. Human Resource
Management

2. PRINCIPLES OF HRM
• Strategic integration
• Organisational flexibility
• Commitment
• Quality

3. STRATEGIC INTEGRATION
An attempt to treat all labour management
processes – from recruitment and training to
remuneration and retrenchment – in a
strategic fashion by integrating them with the
broader business concerns of the enterprise.

4. STRATEGIC HRM
• People are not just another cost or factor of
production. They are the key to competitive
advantage.
• Close ‘fit’ between human resources,
internal processes and the external
environment.
1. Devolution of responsibility for labour
management to line managers.
2. Co-ordination of policies on recruitment,
training & performance management.

5. FLEXIBILITY
• The flexible firm and the global
economy.
• Functional flexibility
• Numerical flexibility
• Financial flexibility
1. Core: Highly skilled knowledge
workers. Full time jobs and job
security.
2. Periphery: Casuals and part-time
workers and short-term contractors.

6. COMMITMENT
• From ‘control’ to ‘commitment’ through
changing the organisation’s culture.
• Mission statement: A statement of core
values.
• Recruitment: Only recruiting those prepared
to subscribe to these core values.

7. Cont’d
• ‘Transformational leadership’: CEO as
visionary change agent.
• Ensuring employees demonstrate desired
attitudes, competencies and behaviours.
• Culture Management – strong culture

8. QUALITY
• Culture of quality: Quality work, quality
workers, quality products and services.
• Total Quality Management.
• Quality assurance and zero defects.
• Internal customers.
• Empowering workers via team working.

9. Differences between
PM and HRM

10. • For those who recognize a difference between
personnel management and human resources, the
difference can be described as philosophical.
• Personnel management is more administrative in
nature, dealing with payroll, complying with
employment law, and handling related tasks.
• Human resources, on the other hand, is responsible
for managing a workforce as one of the primary
resources that contributes to the success of an
organization.

11. • Human resources is described as much broader
in scope than personnel management.
• Human resources is said to incorporate and
develop personnel management tasks, while
seeking to create and develop teams of workers
for the benefit of the organization. A primary
goal of human resources is to enable employees
to work to a maximum level of efficiency

12. • Personnel management can include
administrative tasks that are both traditional and
routine. It can be described as reactive,
providing a response to demands and concerns
as they are presented.
• By contrast, human resources involves ongoing
strategies to manage and develop an
organization's workforce. It is proactive, as it
involves the continuous development of
functions and policies for the purposes of
improving a company's workforce.

13. • PM is often considered an independent function
of an organization.
• Human resource management, on the other
hand, tends to be an integral part of overall
company function.

14. What is Human Resource Management?
• Managing the effective use of people to achieve
both organizational and individual goals through
the effective recruitment, selection,
development, compensation, and utilization of
human resources by organizations

15. Human Resource Management (Contd.)
HR is multidisciplinary: It applies the disciplines of
Economics (wages, markets, resources),
Psychology (motivation, satisfaction),
Sociology (organization structure, culture) and
Law (min. wage, labor contracts)
What HR Professionals Do?
HR planning
Recruitment & Selection
Training and development
Compensation & Performance review
Labor relations

16. HRM has increased in importance
since the 1980s. Why?
• Globalization
• Government regulation
• Stronger knowledge/research base
• Changing role for labor unions
• Challenge of matching worker expectations with
competitive demands

17. WHY IS HRM IMPORTANT?
 Service is delivered by people.
 Low quality HR leads to low quality
customer service.
 In the 21st century effective knowledge
management translates into competitive
advantage and profits.
 Knowledge comes from a firm’s people.
Copyright © 2005 Prentice Hall, Inc. All rights reserved. 12–17

18. How HRHow HR FunctionsFunctions Relate to HRRelate to HR
ActivitiesActivities
The Acquisition of
Human Resources
Planning
Analyzing Jobs
Recruitment
Selection The Development of
Human Resources
Appraising
Training
Developing

19. HowHow HR FunctionsHR Functions Relate toRelate to HRHR
ActivitiesActivities, continued, continued
The Rewarding of
Human Resources
Compensating
(Wages & Salaries)
(Incentives)
The Maintenance of
Human Resources
Employee Benefits
Safety & Health
Labor Relations

20. Goals of Human Resource Management
The human resource
function in contemporary
organizations
Facilitating
organizational
competitiveness
Complying with
legal and social
obligations
Promoting
individual growth
and development
Enhancing
productivity and
quality

21. OBJECTIVES OF HRM
 It is concerned with the optimum utilization of
the human resources within and organization.
 It is concerned with the creation of conditions
in which each employee is encouraged to
make his best possible contribution to the
effective working of the undertaking.
 It is also concerned with the development of
the sense of mutual respect and trust between
management and workers through sound
relations.
 It endeavors to increase the productive
efficiency to the workers through training,
guidance and counseling and
 It tries to raise the morale of the employee.
PERSONAL

22. OBJECTIVES OF HRM
• To recognize the role of HRM in
bringing about organizational
effectiveness.
• HRM is not an end itself. It is only a
means to assist the organization with
its primary objectives.
• Simply stated, the department exist
to serve the rest of the organization.
ORGANIZATIONAL

23. OBJECTIVES OF HRM
• To be ethically and socially responsible to
the needs and challenges of the society
while minimizing the negative impact of
such demands upon the organization.
• The failure of organizations to use their
resources for the society’s benefit in ethical
way may lead to restrictions.
• For example, the society may limit HR
decisions through laws that enforce
reservation in hiring and laws that address
discrimination, safety or other such areas
of social concern.
SOCIETAL

24. 12–25
The Human Resource Management Process

25. Environmental Factors Affecting HRM
• Labor Union
An organization that represents workers and seeks to
protect their interests through collective bargaining.
• Collective Bargaining Agreement
A contractual agreement between a firm and a union
elected to represent a bargaining unit of employees of
the firm in bargaining for:
 Wage, hours, and working conditions.

26. Environmental Factors Affecting HRM
(cont’d)
• Affirmative Action
The requirement that organizations take proactive
steps to ensure the full participation of protected
groups in its workforce.
• Laws and Regulations
Limit managerial discretion in hiring, promoting, and
discharging employees.

27. The HRM Division
• It comprises of:
12–28
Organization Development and Human Resource
Planning Section.
Services Section.
Human Resource Development and Competency
Section.
Performance Appraisal, Disciplinary and Promotion
Section
HRMIS Unit
Psychology Management Unit
Administration Unit

28. Key Functions
Human Resource Planning
Recruitment & Selection
Compensation & Benefits
Performance Appraisals
Training & Development

29. HRM ACTIVITIES
• Performance appraisal is concerned with determining
how well employees are doing their jobs, communicating
that information to the employees and establishing a plan
for performance improvement.
• Training and development activities help employees
learn how to perform their jobs, improve their performance
and prepare themselves for more senior positions.
• Career planning and development activities benefit both
employees (by identifying employee career goals, possible
future job opportunities and personal improvement
requirements) and the organisation (by ensuring that
qualified employees are available when needed).
• Employee motivation is vital to the success of any
organisation. Highly motivated employees tend to be more
productive and have lower rates of absenteeism and
turnover.

30. HRM ACTIVITIES(Continued)
• Job analysis defines a job in terms of specific tasks and
responsibilities and identifies the abilities, skills and
qualifications needed to perform it successfully.
• Human resource planning or employment planning is the
process by which an organisation attempts to ensure that it
has the right number of qualified people in the right jobs at
the right time.
• Employee recruitment is the process of seeking and
attracting a pool of applicants from which qualified
candidates for job vacancies within an organisation can be
selected.
• Employee selection involves choosing from the available
candidates the individual predicted to be most likely to
perform successfully in the job.

31. SELECTION
A series of steps from initial applicant screening
to final hiring of the new employee.
Selection process.
Step 1 Completing application materials.
Step 2 Conducting an interview.
Step 3 Completing any necessary tests.
Step 4 Doing a background investigation.
Step 5 Deciding to hire or not to hire.

32. Selection process
Step 1 Completing application materials.
Gathering information regarding an applicant’s background and
experiences.
Typical application materials.
Traditional application forms.
Résumés.
Sometimes tests may be included with application materials.
Step 2 Conducting an interview.
Typically used though they are subject to perceptual distortions.
Interviews can provide rough ideas concerning the person’s fit with
the job and the organization.

33. Selection process
Step 3 Completing any necessary tests.
Administered before or after the interview.
Common examples of employment tests.
Cognitive, clerical, or mechanical aptitudes or abilities.
Personality.
Step 4 Doing a background investigation.
Can be used early or late in selection process.
Background investigations include:
Basic level checks.
Reference checks.

34. Selection process
Step 5 Deciding to hire or not to hire.
Draws on information produced in preceding selection steps.
A job offer is made.
A physical examination may be required if it is relevant to job
performance.
Negotiation of salary and/or benefits for some jobs.
Step 6 Socialization.
The final step in the staffing process.
Involves orienting new employees to:
The firm.
The work units in which they will be working.
The firm’s policies and procedures.
The firm’s organizational culture.

35. Types of Selection Devices
• Application Forms
• Written Tests
• Performance Simulations
• Interviews
• Background Investigations
• Physical examinations

36. Written Tests
• Types of Tests
Intelligence: how smart are you?
Aptitude: can you learn to do it?
Attitude: how do you feel about it?
Ability: can you do it?
Interest: do you want to do it?
• Legal Challenges to Tests
Lack of job-relatedness of test to job requirements
Discrimination in equal employment opportunity
against members of protected classes

37. Performance Simulation Tests
• Testing an applicant’s ability to perform actual
job behaviors, use required skills, and
demonstrate specific knowledge of the job.
Work sampling
 Requiring applicants to actually perform a task or set of
tasks that are central to successful job performance.
Assessment centers
 Dedicated facilities in which job candidates undergo a
series of performance simulation tests to evaluate their
managerial potential.

38. Other Selection Approaches
• Situational Interviews
Interviews in which candidates are evaluated on how
well they handle role play in mock scenarios.
• Background Investigations
Verification of application data
Reference checks:
 Lack validity because self-selection of references
ensures only positive outcomes.
• Physical Examinations
Useful for physical requirements and for insurance
purposes related to pre-existing conditions.

39. Suggestions for Interviewing
1. Structure a fixed set of questions for all applicants.
2. Have detailed information about the job for which applicants
are interviewing.
3. Minimize any prior knowledge of applicants’ background,
experience, interests, test scores, or other characteristics.
4. Ask behavioral questions that require applicants to give
detailed accounts of actual job behaviors.
5. Use a standardized evaluation form.
6. Take notes during the interview.
7. Avoid short interviews that encourage premature decision
making.

40. Other Selection Approaches (cont’d)
• Realistic Job Preview (RJP)
The process of relating to an applicant both the
positive and the negative aspects of the job.
 Encourages mismatched applicants to withdraw.
 Aligns successful applicants’ expectations with actual
job conditions; reducing turnover.

41. Orientation
• Transitioning a new employee into the
organization.
Work-unit orientation
 Familiarizes new employee with work-unit goals
 Clarifies how his or her job contributes to unit goals
 Introduces he or she to his or her coworkers
Organization orientation
 Informs new employee about the organization’s
objectives, history, philosophy, procedures, and rules.
 Includes a tour of the entire facility

42. Contemporary HRM Issues
• Downsizing
The planned elimination of jobs in an organization
 Provide open and honest communication.
 Reassure survivors.
• Managing Work Force Diversity
Recruitment for diversity
Selection without discrimination
Orientation and training that is effective

43. Contemporary HRM Issues (cont’d)
• Sexual Harassment
An unwanted activity of a sexual nature that affects
an individual’s employment.
 Unwanted sexual advances, requests for sexual favors,
and other verbal or physical conduct of a sexual nature
when submission or rejection of this conduct explicitly
or implicitly affects an individual’s employment.
An offensive or hostile environment
 An environment in which a person is affected by
elements of a sexual nature.

44. Contemporary HRM Issues (cont’d)
• Work-Life Balance
Employees have personal lives that they don’t leave
behind when they come to work.
Organizations have become more attuned to their
employees by offering family-friendly benefits:
 On-site child care
 Summer day camps
 Flextime
 Job sharing
 Leave for personal matters
 Flexible job hours

45. Desired Outcomes of HRM
• Attraction
• Retention
• Job Performance
• Productivity
• Employee Safety and Health
• Attendance
• Job Satisfaction
• Competitive Advantage
• Company Performance