Human Resource Management

HRMT 3401
 Learner Outcomes:
At the end of the unit, students should be able to:
 Review five (5) of the major functions of HRM in an organization
 Give four (4) reasons of the importance of HRM to an
employee/organization and to the employees
 Assess how four (4) changes in the global economy are impacting the
HRM functions
 Review four (4) laws , regulations or policies that affect the work
environment, employees and employer’s relationship
 Research five (5) new and emerging trends in HRM in the work
environment.
 Background to HRM

 The term Human Resource has been around for the

last 18 years
 Change of name partly due to the social and economic
activities through out history such as industrial
revolution that was taking place in Europe where
realized that productivity was linked to worker
satisfaction.
 History of HRM

 By the 1960s, managers and researchers realized that just

because an employee has better working conditions does
not mean he will work harder. Instead, a new theory
emerged. Both bosses and social scientists concluded that
each worker has individual needs and requires a more
personalized form of motivation in order to produce more.
Businesses began treating employees as assets or
resources, which needed cultivation and encouragement
in order for the company to succeed
 Background to HRM

 HRM developed in response to the substantial increase in competitive

pressures in organizations which began in 1970’s as a result of
globalization, deregulation, technological changes

 HRM included practices that help the organization to deal effectively with
its people as it relates to the administration of the employees
 History of Personnel Management
 Its predecessor was Personnel Management/Personnel
Administration.

 Personnel administration emerged from the 1920’s largely

concerned with the technical aspects of hiring, evaluating,
training and compensation in the organization.
 Personnel administration lacked the relationship building
between the employee and the organization. There was
nothing unifying or bonding the employee to the
organization.
DEFINITIONS OF PERSONEL ADMINSTRATION

Personnel Management is predominantly a record keeping

function that aims to establish and maintain equitable/fair
terms and conditions of employment

These may include recruitment, job evaluation, payroll

administration, performance appraisals, training and related
tasks, labour law compliance.
DEFINITIONS OF HUMAN RESOURCE
MANAGEMENT
 HRM includes the traditional personnel functions mentioned
before but also incorporates activities such as leadership,
motivation, development of organization culture,
communications, values.

 HRM is the process of managing the people of an

organization in a structured way.
 MAJOR FUNCTIONS OF HRM

 HR plays an integral role in the success of an organization.

 The major functions of Human Resources are:
 (a) strategic management (b) workforce planning and
employment © policy formulation, (e) total rewards (f)
labor relations (g) talent management (h) recruitment
and selection (i) performance appraisal (j) recognition
rewards and incentives (k) occupational health and safety
(l) job analysis and design, career development and
training.
 Workforce planning and Employment (recruitment
and selection)

 Workforce planning involves recruitment, selection,

orientation, and exit process. Department managers
collaborate with Human Resources to determine staffing
needs and to fill job vacancies in a timely manner whenever
the need(s) arise. The HR recruitment team strategically
recruits and selects only the best candidates for the company
and ensures workforce efficiency thereafter in an effort to help
the organization accomplish it goals and objectives.
Workforce planning and Employment
(recruitment and selection)

 It is one of the most challenging task for any HR

manager. A lot of attention and resources are
required to draw, employ and hold the
prospective employees. A lot of elements go into
this function of recruitment, like developing a job
description, publishing the job posting, sourcing
the prospective candidates, interviewing, salary
negotiations and making the job offer.
 Policy Formulation

Human Resources keeps new hires and current

employees abreast of the policies and procedures of
the organization. This might include (but not limited to)
the distribution of employee handbook, code of
conduct manual, and performance appraisals
guidelines.
 Employee and Labor Relations

The employee relations team seeks to align the employees’ needs and
rights with the needs of the organization. Things such as: union and
non-union issues, discrimination issues, and sexual harassment claims
are matters that should be handled by the labor relations department.
Employers must stay in compliance with the law in making sure that
every employee is treated fairly. Employees are encouraged to contact
employee relations should they ever feel that they were treated unfairly
or to resolve other workplace problems.
 Training and Development

On the job training is the responsibility of the HR department. Fresher

training may also be provided by some companies for both new hires
and existing employees. This Fresher training is mainly done to make
the employees up to date in their respective areas as required by the
company. This function makes the employees understand the process
and makes it easy for them to get on their jobs with much ease. During
the process of the training and development, the results are monitored
and measured to find out if the employees require any new skills in
addition to what he/she has.
 Professional Development

 This is a very important function of Human Resource

Management. This function helps the employees with
opportunity for growth, education, and management training.
The organization undertakes to sponsor their employees for
various seminars, trade shows, and assistance with studies.
This, in turn, makes the employees feel that they have been
taken care of by the organization
 Compensation and Benefits

A company can attain its goals and objectives if it can find new ways of
providing benefits to the employees. The HR benefits team is
responsible for acquiring and administering an attractive compensation
and benefits package for new hires. This might include: a competitive
salary range, medical and dental insurance, life insurance, tuition
reimbursement, and more. The HR recruiter should promote and offer
an attractive rewards package to those candidates who meet the
selection criteria at some point during the interview process. A
competitive reward package will attract top talent and hopefully retain
them once hired
 Compensation and Benefits

 Working hour flexibility

 Dental/Medical Insurance
 Maternal/Paternal Leave
 Education Reimbursement for children
 Salary
 Maternity Leave
 Vacation Leave & extended vacation
 Sick Leave
 Compassionate Leave
 Performance Appraisal

 The employees of any organization will be evaluated and HR

plays as big role in this process. This function of Human
Resource Management is to help the organization in finding
out if the employee they have hired is moving towards the
goals and objectives of the organization. On the other hand, it
also helps the company to evaluate whether the employees
needs improvement in other areas. It also helps the HR team
in drawing certain development plans for those employees
who have not met the minimal requirements of the job.
 Ensuring Legal Compliance

 To protect the organization and the employee, this function

plays a crucial role. The HR department of every organization
should be aware of all the laws and policies that relate to
employment, working conditions, working hours, overtime,
minimum wage, tax allowances etc. Compliance with such
laws is very much required for the existence of an
organization.
 Occupational Health and Safety
Human resources professionals are assuming health, safety, and
security responsibilities within organizations. Such
responsibilities include the identification of hazardous
conditions and practices, exposure control and mitigation
strategies, legal compliance, development of a safety culture,
and measurement of health, safety and security program
effectiveness
Occupational Health and Safety

 Occupational health and safety is a cross-disciplinary area

concerned with protecting the safety, health and welfare of
people engaged in work or employment. The goal of all
occupational health and safety programs is to foster a safe
work environment. As a secondary effect, it may also
protect co-workers, family members, employers, customers,
suppliers, nearby communities, and other members of the
public who are impacted by the workplace environment.
 Job Analysis and Design

 Job Analysis is a primary tool to collect job-related data. The process

results in collecting and recording two data sets including job description
and job specification. Any job vacancy can not be filled until and unless
HR manager has these two sets of data. It is necessary to define them
accurately in order to fit the right person at the right place and at the
right time. This helps both employer and employee understand what
exactly needs to be delivered and how.

 It has two components: Job description and Job Specification.

 Job Description

 Job description includes basic job-related data that is useful to

advertise a specific job and attract a pool of talent. It includes
information such as job title, job location, reporting to and of
employees, job summary, nature and objectives of a job, tasks
and duties to be performed, working conditions, machines,
tools and equipments to be used by a prospective worker and
hazards involved in it.
 Job Specification

 This is also known as employee specifications, a job specification is a

written statement of educational qualifications, specific qualities, level of
experience, physical, emotional, technical and communication skills
required to perform a job, responsibilities involved in a job and other
unusual sensory demands.

 It also includes general health, mental health, intelligence, aptitude,

memory, judgment, leadership skills, emotional ability, adaptability,
flexibility, values and ethics, manners and creativity, etc.
 Importance of HRM Function

 What is the importance of the HRM Function to the employer

and employee
Employer
(a) Strategic Management – knowing how to deploy human
capital, staffing and future workforce requirements
(b) Budget Control – knowing how to trim costs associated with
the workforce, negotiating better health insurance rates etc,
Importance of HRM Function

 Improving corporate image – Companies want to be

known as the ‘employer of choice’ based on how they
treat their employees and with whom people want to
work, human resources is key in how matters are handled
and ensuring the right people are selected
 Employee performance improvement – without HR to
measure employees performance, employees whose
performance falls below standard continue on payroll,
creating waste of money on low performing employees
 Importance of HRM Function

 What is the importance of the HRM Function to the employer and employee
Employee
(a) Resolution of employee conflicts - given the diversity of personalities, culture, socio-economic
backgrounds and levels of experience among employees, conflicts are bound to arise.
(b) The HR Function educates employees on the do’s and don'ts of the company , benefits, rights
and responsibilities
(c) Promotion of health and safety – The HR team is responsible for ensuring the company complies
with health and safety regulations to reduce accidents on the job.
(d) Facilitate work place training
Importance of HRM Function

 Promotion of health and safety – The HR team is

responsible for ensuring the company complies
with health and safety regulations to reduce
accidents on the job.
 Facilitate work place training
 Globalization and HRM

 What is Globalization
 Globalization describes the growing interdependence
of the world’s economies, cultures, and populations,
brought about by cross-border trade in goods and
services, technology, and flows of investment, people,
and information.
 Globalization and HRM

 Equipping the workforce to become more

customer focused and responsive to market
needs.

 Helping employees overcome resistance to change

by convincing them about the bigger picture.
 Globalization and HRM

 When a business expands its operation into other

countries, the impact of globalization on human
resource development and management is
significant. Companies need to consider a diverse
range of practical adjustments to be able to hire,
train, retain and support a workforce that's often
spread throughout several countries, which often
have varying cultural identities.
 Globalization and HRM

 Human Resources departments must

adapt their thinking and practices to
include cultural differences, foreign
regulations and technological
developments.
 Globalization and HRM

 Globalization of Human Capital

 Perhaps the greatest resource available to any company is
the workforce it acquires and retains. As a company
extends its base to a foreign shore, the impact of that
globalization on HR procedures will extend to current
workers and also to new employees. The HR department
will need to increase support of its current staff, as they
transfer overseas to new positions.
 Globalization and HRM

 Assistance with visas, work permits, and housing will be

required, as well as training in cultural issues and perhaps
language acquisition. New local talent must be acquired and
developed, as well.
 A company's ability to move into new markets, will depend on
its ability to fill needs with skilled workers. In some situations,
local workers may meet the criteria, but in other situations,
they may be more looking for skilled and already-trained
employees to be transferred to positions in the new overseas
location. In this case, the willingness of workers to become
mobile could be a key factor to productivity.
 Globalization and HRM
Managing Outsourcing
 Availability of Low Cost Labor from Emerging Countries

 The spread of globalization combined with technological

developments has made possible outsourcing, both at the
global and domestic levels. Firms now turn to outsourcing
as a means to cut costs as well as to avail the services of
top-quality talent from a wider pool.
Globalization and HR

Corporate and Cultural Differences

Another significant impact of globalization on human
resource development is the necessity to consider cultural
differences, both in and out of the workplace. Businesses
tend to have their own corporate cultures or ways of
operating, but there are societal and cultural differences
between people as well.
 Globalization and HR

 Corporate and Cultural Differences

 Cultural norms within a society affect the workforce and
how workers view their jobs, especially in relation to time
spent with their family and ideas about employment
expectations. Some cultures may also have varying mores
about gender roles, particularly concerning the role of
women in leadership. While a female in a managerial
position is not uncommon in American culture, the same
many not hold true elsewhere.
 Globalization and HR

 Similarly, a manager brought in from the home office may

not be the best person to manage an overseas staff,
because they do not understand all the nuances of the
local culture and what's considered acceptable business
practice
 Globalization and HR

 Long-Distance Communication Challenges

 In a small, local business, the HR manager can ask an
employee to stop by the HR office to sign a form, discuss
an issue with their paycheck or to handle a policy-related
issue. When managing employees over great distances and
perhaps in several sites spread around the globe, HR
departments face a bigger challenge in communicating
with their employees.
 Globalization and HR

 Relianceon technology such as email or

conference calling to relay information,
thereby eliminating some of the more
direct human elements of interaction
 Globalization and HR

 Employment and Tax Laws

 Global expansion is also affected by varying tax and labor
laws. HR departments need to be prepared to deal with
different tax rates, benefit requirements or labor and
environmental regulations. These requirements may be in
addition to or even in conflict with current corporate
policies, so adjustments to maintain compliance with local
governments are necessary. HR managers must become
experts in issues that not only pertain to their industry,
but keep current with issues and government policies
within the countries in which their company now operates
 Globalization and HR

Compensation Practices & Benefits

 The process of globalization makes it easier for individuals

to look for better paid jobs in other countries. Companies
also have the possibility to hire employees from other
countries that work for smaller salaries, or to relocate
their production to countries where workers require
smaller salaries.
References

 https://smallbusiness.chron.com/effects-globalization-human-resources-
management-61611.html