Introduction to

Human
Resource
 Objectiv
After studying this lesson, you will be able
to: thees
Discuss basic concepts of human resource management
(HRM).
Explain what human resource management is and how it relates
to the management process.
Provide an overview of functions of HRM.
Describe how the major roles of HR management are being
transformed.
Explain the role of HRM in the present millennium.
 INTRODUCTIO
•Since mid 1980’s Human Resource Management (HRM) has gained
acceptance in both academic and commercial circle.
N
•HRM is a multidisciplinary organizational function that draws theories
and ideas from various fields such as management, psychology,
sociology and economics.
•There is no best way to manage people and no manager has
formulated how people can be managed effectively, because people
are complex beings with complex needs.
•Effective HRM depends very much on the causes and conditions that
an organizational setting would provide.
•Any Organization has three basic components, People, Purpose, and
Structure.
5 Ms of Management
Money
Machines
Methods This Photo by Unknown Author is licensed under CC BY-NC

Materials
Men

Men – refers to the Human resource, are the

most important in the 5 Ms

Why? This Photo by Unknown Author is licensed under CC BY

Human Capital – set the competitive advantage

of one company over the other
 HUMAN CAPITAL The knowledge, skills and
capabilities of individuals that have
economic value to an organization
-intangible; employees, not the
employer, own their own human
capital

HRM is critical to the

success of the organization
This Photo by Unknown Author is licensed under CC BY-NC-ND
“An organization can succeed if
it has a SUSTAINABLE
COMPETITIVE ADVANTAGE.

- Better than competitor at

something and can hold that
advantage over a sustained
period of time
 What is Human
HRM is the study Resource
of activities regarding people working in an
organization. It is a managerial function that tries to match an
Management?
organization’s needs to the skills and abilities of its employees.
Human resources management (HRM) is a management
function concerned with hiring, motivating and maintaining
people in an organization. It focuses on people in
organizations.
Human resource management is designing management
systems to ensure that human talent is used effectively and
efficiently to accomplish organizational goals
 What is Human
Resource
HRM is the personnel function which is concerned with
Management?
procurement, development, compensation, integration and
maintenance of the personnel of an organization for the
purpose of contributing towards the accomplishments of the
organization’s objectives.
Therefore, personnel management is the planning,
organizing, directing, and controlling of the performance of
those operative functions (Edward B. Philippo)
 What is Human
Resource
“HRM is concerned with the most effective use of people to
achieve organizational and individual goals. It is the way of
Management?
managing people at work, so that they give their best to the
organization”. (Invancevich and Glueck)
HRM are the policies and practices involved in carrying out the
“people” or human resource aspects of a management position,
including recruiting, screening, training, rewarding, and
appraising comprises of HRM. (Dessler ,2008)
 What is Human
Resource
- HRM is the term commonly used to describe all those organizational activities
concerned with recruiting and selecting, designing work for, training and
Management?
developing, appraising and rewarding, directing, motivating and controlling
workers.
- Refers to the framework of philosophies, policies and procedures and practices
for the management of the relationship that exists between an employer and
worker.
- To describe any approach to managing people, or as contemporary term for
people management
“HRM includes anything and everything associated with the management of
employment relationship in the firm” (Boxall and Purcell, 2003)
 What is Human
Generally, HRM Resource
refers to the management of people in
organizations. It comprises of the activities, policies, and
practices Management?
involved in obtaining, developing, utilizing,
evaluating, maintaining, and retaining the appropriate number
and skill mix of employees to accomplish the organization’s
objectives
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 HUMAN
RESOURCE
HRM is a management function that helps manager’s to recruit, select, train and develop
members for an organization. HRM is concerned with people’s dimension in organizations.

MANAGEMENT
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
non-business organizations such as education, health care, recreation and like.
 SCOPE OF HUMAN
RESOURCE
The scope of HRM is indeed vast. All major activities in the
MANAGEMENT
working life of a worker – from the time of his
into an organization until he or she leaves the
or her entry

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, industrial relations and prospects of HRM.
SCOPE OF HUMAN
RESOURCE
MANAGEMENT
SCOPE OF HUMAN
RESOURCE
• Human Resource Planning
MANAGEMENT
• Design of the Organization
• Selection and Staffing
and Job

• Training and Development

• Organizational Development
• Compensation and Benefits
• Employee Assistance
• Union/Labour Relations
• Personnel Research and Information System
 SCOPE OF HUMAN
A.
RESOURCE
Human Resource Planning: The objective of HR Planning is to
ensure that the organization has the right types of persons at the
MANAGEMENT
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.
• 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.
 SCOPE OF HUMAN
RESOURCE
B. 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 contentsMANAGEMENT
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.

C. 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.
 SCOPE OF HUMAN
RESOURCE
D. Training and Development: This involves an organized attempt to find out
training needs of the individuals to meet the knowledge and skill which is
MANAGEMENT
needed not only
the organization.
to perform current job but also to fulfil the future needs of

E. 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.
F. 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, labour welfare measures are
involved which include benefits and services.
 SCOPE OF HUMAN
RESOURCE
G. Employee Assistance: Each employee is unique in character, personality,
expectation and temperament. By and large each one of them faces problems
MANAGEMENT
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
happy.
H. Union-Labor Relations: Healthy Industrial and Labor relations are very important
for enhancing peace and productivity in an organization.

I. Personnel Research and Information System: Knowledge on behavioral science

and industrial psychology throws better insight into the workers expectations,
aspirations and behavior. Advancement of technology of product and production
methods have created working environment which are much different from the past.
OBJECTIVES
PERSONAL OBJECTIVES
OF HRM
FUNCTIONAL OBJECTIVES

ORGANIZATIONAL OBJECTIVES

SOCIETAL OBJECTIVES
 OBJECTIVES OF
HUMAN
1) Societal Objectives: seekRESOURCE
to ensure that the organization becomes
socially responsible to the needs and challenges of the society while
minimizingMANAGEMENT
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.
 OBJECTIVES OF
HUMAN RESOURCE
3) Functional Objectives: is to maintain the department’s contribution
at a level appropriate to the organization’s needs. Human resources
are to be MANAGEMENT
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) Personal 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
 FUNCTION OF
HUMAN RESOURCE
Human Resources management has an important role to play in
equipping organizations to meet the challenges of an expanding and
MANAGEMENT
increasingly competitive sector. Increase in staff numbers,
contractual diversification and changes in demographic profile
which compel the HR managers to reconfigure the role and
significance of human resources management. The functions are
responsive to current staffing needs, but can be proactive in
reshaping organizational objectives.
 FUNCTION OF
HUMAN RESOURCE
MANAGEMENT
 FUNCTION OF
1.
HUMAN RESOURCE
Strategic HR Management: As a part of maintaining organizational
competitiveness, strategic planning for HR effectiveness can be increased
through MANAGEMENT
the use of HR metrics and HR technology. Human resource
planning (HRP) function determine the number and type of employees
needed to accomplish organizational goals.
2. Equal Employment Opportunity: Compliance with equal employment
opportunity (EEO) laws and regulations affects all other HR activities.
3. 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.
 FUNCTION OF
HUMAN RESOURCE
Job analysis is the process of describing the nature of a job and
specifying the human requirements such as knowledge, skills, and
MANAGEMENT
experience needed to perform the job. The end result of job analysis is
job description. Job description spells out work duties and activities of
employees.
4. Talent Management and Development: Orientation is the first step
towards helping a new employee to adjust himself to the new job and
the employer. It is a method to acquaint new employees with
particular aspects of their new job, including pay and benefit
programmes, working hours and company rules and expectations.
 FUNCTION OF
HUMAN RESOURCE
Training and Development programs provide useful means of assuring
that the employees are capable of performing their jobs at acceptable
MANAGEMENT
levels and also more than that. All the organizations provide training
for new and in experienced employee. In addition, organization often
provide both on the job and off the job training programmes for those
employees whose jobs are undergoing change.
Performance appraisal includes encouraging risk taking, demanding
innovation, generating or adopting new tasks, peer evaluation,
frequent evaluations, and auditing innovation processes.
 FUNCTION OF
HUMAN RESOURCE
5. Total Rewards: Compensation in the form of pay, incentives and benefits
are the rewards given to the employees for performing organizational work.
CompensationMANAGEMENT
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.
Benefits are another form of compensation to employees other than direct
pay for the work performed. Benefits include both legally required items and
those offered at employer’s discretion. Benefits are primarily related to the
area of employee maintenance as they provide for many basic employee
needs.
 FUNCTION OF
HUMAN RESOURCE
6. Risk Management and Worker Protection: HRM addresses various
workplace risks to ensure protection of workers by meeting legal
MANAGEMENT
requirements and being more responsive to concerns for workplace
health and safety along with disaster and recovery planning.
7. Employee and Labor Relations: The term labour relation refers to
the interaction with employees who are represented by a trade union.
Unions are organization of employees who join together to obtain
more voice in decisions affecting wages, benefits, working conditions
and other aspects of employment.
 role OF HUMAN
RESOURCE
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
management which is concerned with the people at work and with their
relationship within enterprises.
According to Dave Ulrich HR play’s four key roles.
1. Strategic Partner Role -turning strategy into results by building organizations
that create value;
2. Change Agent Role- making change happen, and in particular, help it happen
fast
3. Employees Champion Role—managing the talent or the intellectual capital
within a firm
4. Administrative Role—to get things to happen better, faster and cheaper.
 role OF HUMAN
RESOURCE
Current Classification of HR roles
According to R.L Mathis and J. H. Jackson (2010) several roles can be fulfilled by HR
MANAGEMENT
management. The nature and extent of these roles depend on both what upper
management wants HR management to do and what competencies the HR staff
have demonstrated. Three roles are typically identified for HR. The focus of each
of them, as shown in Figure 1.is elaborated below:

ADMINISTRATIVE Strategic HR
Operational Actions Organizational/business
Personnel practices Managing employee Strategies, HR strategic or planning
Legal compliance forms relationship issues Evaluation of HR
and paperwork Employee advocate effectiveness.
 role OF HUMAN
RESOURCE
1. Administrative Role of HR
The administrative role of HR management has been heavily oriented to administration and

MANAGEMENT
recordkeeping including essential legal paperwork and policy implementation. Major changes
have happened in the administrative role of HR during the recent years. Two major shifts
driving the transformation of the administrative role are: Greater use of technology and
Outsourcing.
2. Operational and Employee Advocate Role for HR
HR managers manage most HR activities in line with the strategies and operations that have
been identified by management and serves as employee “champion” for employee issues
and concerns. HR often has been viewed as the “employee advocate” in organizations. They
act as the voice for employee concerns, and spend considerable time on HR “crisis
management,” dealing with employee problems that are both work-related and not
work-related.
 role OF HUMAN
RESOURCE
3. Strategic Role for HR
Differences between the operational and strategic roles exist in a number of HR
MANAGEMENT
areas. 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.
However, in some organizations, HR often does not play a key role in formulating
the strategies for the organization as a whole; instead it merely carries them out
through HR activities.
The role of HR as a strategic business partner is often described as “having a seat at the
table,” and contributing to the strategic directions and success of the organization. That
means HR is involved in devising strategy in addition to implementing strategy.
 HRM IN THE NEW
1. HR Can Help in Dispensing Organizational Excellence: To achieve this
MELLINNEUM
paradigm shift in the organization excellence there is a need for
organizations to reform the way in which work is carried out by the
Human Resource department.
2. Human Resource Should be a Strategy Partner: HR should also become a
partner in strategy executions by propelling and directing serious discussions of
how the company should be organized to carry out its strategy.
3. HR Accountability Should be Fixed to Ensure Employee Commitment: HR must
be held accountable for ensuring that employees feel committed to the
organization and contribute fully. They must take responsibility for orienting
and training line management about the importance of high employee morale
and how to achieve it.
 HRM IN THE NEW
4.The New HR Must Become a Change Agent: The new HR must become a change
MELLINNEUM
agent, which is building the organization’s capacity to embrace and capitalize on
change. Even though they are not primarily responsible for executing change it is the
duty of the HR manager to make sure that the organization carries out the changes
framed for implementation.
5. Improving the Quality of HR: The most important thing that managers can do to
drive the new mandate for HR is to improve the quality of the HR staff itself. Senior
executives must get beyond the stereotypes of HR professionals as incompetent
support staff and unleash HR’s full potential
6. Change in Employment Practices: The balance sheet of an organization shows
human resource as an expense and not as a Capital. In the information age, it is
perceived that the machines can do the work more efficiently than most people
however; technology to work is dependent on people.
 HRM IN THE NEW
Benchmarking Tool Must be Mastered by HR Professionals: HR
7.
MELLINNEUM
professionals must master benchmarking, which is a tool for continuous
improvement- directing the human side associated with the strategic path
adopted by the organization. Through this, HR department will start
appreciating the changes happening within and outside the environment
while expanding the knowledge about how to add value to decision making at
the highest level of the organization.
8. Aligning Human Resources to Better Meet Strategic Objectives: Too often
organizations craft their strategy in a vacuum. Some organizations don’t even
include key people during strategy formulation resulting in lacunae between
the actual problems and the solutions implemented- as critical inputs are not
sought from those individuals who are supposed to implement the new
strategies.
 HRM IN THE NEW
9. Promote From Within and Invest in Employees: Promoting employees
MELLINNEUM
from within sends a powerful message that the organization’s employees are
valued. New blood and fresh ideas often come from newcomers to the
organization. To avoid stagnation of the firm, new ideas and approaches are
critical. Yet to improve employee morale, promoting individuals from within
the organization is essential. This communicates that the organization values
their employees and invests in their human resources.
10. Review the Recruitment and Selection Process: A key element of human
resource planning is ensuring that the supply of appropriate employees (with
the right skill mix) is on board when needed. This requires a proactive
approach whereby the organization anticipates its needs well in advance. It is
important to identify the competencies being sought.
 HRM IN THE NEW
11. Communicate Mission and Vision: If employees are expected to contribute to
the attainment MELLINNEUM
of the organization’s strategic objectives, they must understand
what their role is. This can be achieved in part by clearly communicating the
mission and vision statements of the firm. The old adage is certainly true. If a
person does not know where he or she is going, any road will get him or her
there.
12. Use Teams to Achieve Synergy: Synergy can be concisely defined as “two plus
two equals five”. In other words, the whole is greater than the sum of the parts.
So much more can be achieved as people work together. Through the effective
use of teams, organizations can often achieve synergy. Team goals,
however, must be aligned with the organization’s strategic objectives. Aligning
team objectives with overall corporate objectives ensures that people are
working toward the same goal.
Thank
You