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Human Resource Management

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Human Resource Management (MGT501)
VU
Lesson 2
ESSENTIALS OF MANAGEMENT
LESSON OUTLINE
After studying this chapter, students should be able to understand the following:
Concepts and Essential of Management
Management and its relationship with HRM
LESSON OVERVIEW
This lecture discusses the management process and its role in the organization. To start with, first of all we
will define the Management and then we will go through the functions of management as well as
relationship between management and HRM
.
A. Concepts and Essential of Management
i. What is Management?
Management is the process of working with different resources to accomplish organizational goals. Good
managers do those things both effectively and efficiently. To be effective is to achieve organizational goals. To
be efficient is to achieve goals with minimum waste of resources, that is, to make the best possible use of
money, time, materials, and people. Some managers fail on both criteria, or focus on one at the expense of
another. The best managers maintain a clear focus on both effectiveness and efficiency.
ii. The Functions of Management
What can managers do to be effective and efficient? The management process, properly executed, involves
a wide variety of activities including planning, organizing, leading, and controlling.
These activities, described below, are
Functions of Management
the
traditional
functions
of
management
Planning
a. Planning
Planning is specifying the goals to be
achieved and deciding in advance the
Controlling
Organizing
appropriate actions taken to achieve
those goals. Planning activities include
analyzing
current
situations,
Leading
anticipating the future, determining
objectives, deciding what types of
Dr. Mukhtar Ahmed
activities the company will engage in,
choosing corporate and business strategies, and determining the resources needed to achieve the
organization's goals. The outcome of the planning process is the organization's strategy.
b. Organizing
Organizing is assembling and coordinating the human, financial, physical, informational, and other
resources needed to achieve goals. Activities include attracting people to the organization, specifying job
responsibilities, grouping jobs into work units, marshalling and allocating resources, and creating conditions
so that people and things work together to achieve maximum success. The outcome of organizing is an
organizational structure.
c. Leading
Leading is stimulating people to be high performers. It is directing, motivating, and communicating with
employees, individually and in groups. Leading involves close day-to-day contact with people, helping to
guide and inspire them toward achieving team and organizational goals. Leading takes place in teams,
departments, divisions, and at the tops of entire organization. The outcome of leading is a high level of
motivation and commitment.
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Human Resource Management (MGT501)
VU
d. Controlling
Comprehensive plans; solid organization, and outstanding leaders do not guarantee success. The fourth
functional controlling, monitors progress and implements necessary changes. When managers implement
their plans, they often find that things are not working out as planned. The controlling function makes sure
that goals are met. It asks and answers the question, "Are our actual outcomes consistent with our goals?" It
makes adjustments as needed. Specific controlling activities are to set performance standards that indicate
progress toward long-term goals; to identify performance problems by comparing performance data against
standards; and to take actions to correct
problems. Budgeting, information systems, cost
The Management Process
cutting, and disciplinary action are just a few of
the tools of control. Successful organizations,
large and small, pay close attention to how well
HUMAN
PHYSICAL
Planning
RESOURCES
RESOURCES
they are doing. They take fast action when
problems arise, and are able to change as needed.
The outcome of controlling is an accurate
ORGANIZATIONAL
GOALS
measurement of performance and regulation
of efficiency and effectiveness
iii. Effectiveness & Efficiency
Leading
INFORMATION
FINANCIAL
RESOURCES
RESOURCES
Productivity = Efficiency x Effectiveness
Dr. Mukhtar Ahmed
a.
Efficiency is the ratio of
Organizational Performance
outputs to inputs.
b. Effectiveness is the degree
Efficiency: A measure of how well resources
to which the organizations
are used to achieve a goal
output correspond to the
"Doing Things Right"
need  and  wants  of  the
external  environment  that
Effectiveness:
A measure of the
include customers' suppliers'
appropriateness of the goals chosen (are these
the right goals?), and the degree to which they
competitors and regulatory
are achieved
agencies.
"Doing the Right Things Right"
iv. Manager
Dr. Mukhtar Ahmed
The member of the organization who
participates in the management process by planning, organizing, leading, or controlling the organization's
resources.
v. Types of Mangers
There are three types of mangers...
`Managing is like holding a dove in your hand.
If you squeeze too tight, you kill it. Open your
1. Strategic
Manager:
Strategic
managers are the senior executives
hand too much, you let it go' - T. Lasorda
of  an  organization  and  are
responsible
for
its
overall
management. Major activities include developing the company's goals and plans. Typically
strategic managers focus on long-term
issues and emphasize the survival, growth,
and
overall
effectiveness
of
the
organization.
2. Tactical Managers: Tactical managers are
responsible for translating the general goals
and plans developed by strategic managers
into objectives that are more specific and activities. These decisions, or tactics, involve both a
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Human Resource Management (MGT501)
VU
shorter time horizon and the coordination of resources. Tactical managers are often called middle
managers, because in large organizations they are located between the strategic and operational
managers. Today's best middle managers have been called "working leaders." They focus on rela-
tionships with other people and on achieving results. They are hands-on, working managers. They
do not just make decisions, give orders, wait for others to produce, and then evaluate results.
They get dirty, do hard work themselves, solve problems, and produce value.
3. Operational Managers: Operational managers are lower-level managers who supervise the
operations of the organization. These managers often have titles such as supervisor or sales
manager. They are directly involved with non-management employees, implementing the specific
plans developed with tactical managers. This role is critical in the organization, because opera-
tional managers are the link between management and non-management personnel. Your first
management position probably will fit into this category.
vi. Managers are Universal:
Managers work in all types of organizations, at all levels, and in all functional areas. Large and small
businesses, hospitals, schools and governments benefit from efficient and effective management. The
leaders of these organizations may be called executives, administrators, or principals, but they are all
managers and are responsible for the success or failure of the organization. This success or failure is
reflected in a manager's career. For example, when a CEO saves a failing corporation, the board rewards
this success with bonuses and stock options. When a professional football team starts losing, the owner
fires the coach, not the team.
vii. The Managerial Skills
Managers need three basic sets of skills: technical, interpersonal, and conceptual.
a. Technical Skills
Managerial Skills & Managerial Level
The skills that include knowledge of and
proficiency in a certain specialized field Managers
Top
Managers
need to be technically competent. They need to
know how to plan, organize lead and control. Line
Middle
managers need this skill the most while top
Managers
manager will need minimum of technical skills.
Line
b. Interpersonal Skills/Human Skills
Interpersonal skills include the ability to work well  Managers
with other people both individually and in a
Conceptual
Human
Technical
group. Mangers need good interpersonal skills,
knowledge about human behaviors and group
processes, ability to understand the feelings, attitudes and motives of others, and ability to communicate,
clearly and persuasively. Human skills are very
important at each level of management.
Levels of Managers
c. Conceptual Skills
Conceptual skills include the ability to think and to
conceptualize about abstract and complex situations,
to see the organization as a whole, and to
Top
Managers
understand the relationships among the various
subunits, and to visualize how the organization fits
Middle
into its broader environment. Conceptual skills
Managers
include analytical ability, logical thinking, concept
formation, and inductive reasoning. They manifest
First-line
themselves in things like good judgment, creativity,
Managers
and the ability to see the big picture. Top
mangers/CEO needs this type of skill the most.
Dr. Mukhtar Ahmed
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Human Resource Management (MGT501)
VU
viii. Levels of Management Three level in the organization can classify managers, particularly for
traditionally structured organizations...
1. First-line managers are the lowest level of management. They're often called supervisors
2. Middle managers include all levels of management between the first-line level and the top level of
the organization.
3. Top managers include managers at or near the top of the organization who are responsible for
making organization wide decisions and establishing the plans and goals that affect the entire
organization.
Manager's Roles:
a. Interpersonal roles
 Figurehead--duties that are ceremonial and symbolic in nature
 Leadership--hire, train, motivate, and discipline employees
 Liaison--contact outsiders who provide the manager with information. These may be individuals or
groups inside or outside the organization.
b.
Informational roles
Monitor--collect information from organizations and institutions outside their own
Disseminator--a conduit to transmit information to organizational members
Spokesperson--represent the organization to outsiders
c. Decisional roles
 Entrepreneur--managers initiate and oversee new projects that will improve their organization's
performance
 Disturbance handlers--take corrective action in response to unforeseen problems
 Resource allocators--responsible for allocating human, physical, and monetary resources
 Negotiator role--discuss issues and bargain with other units to gain advantages for their own unit
All managers are mostly concerned with following activities:
 Staffing
 Retention
 Development
 Adjustment
 Managing change
HR Professionals' Responsibilities:
Line manager
Authorized to direct the work of subordinates--they're always someone's boss. In addition, line managers
are in charge of accomplishing the organization's basic goals.
Staff manager
Authorized to assist and advise line
managers in accomplishing these basic
goals. HR managers are generally staff
managers.
B. Management
and
its
Effective
Effective
Effective
Effective
relationship with HRM
Organiizatiion
HRM
Organ zat on
HRM
There are five basic functions that all
managers
perform:
planning,
organizing,  staffing,  leading,  and
controlling. HR management involves
the policies and practices needed to
carry out the staffing (or people)
Dr. Mukhtar Ahmed
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Human Resource Management (MGT501)
VU
function of management.
HRM can help to manage the following factors in the organization.
 Productivity
 Operations
 Relationships
 Conflict
 Stress
 Reward systems
Effectiveness and success of entire organization depends upon effective manpower of organization.
Key Terms
Controlling: Specific activities are to set performance standards that indicate progress toward long-term
goals
Decisional roles included those of entrepreneur, disturbance handler, resource allocator, and negotiator
activities.
Disseminator is a conduit to transmit information to organizational members
Disturbance handlers take corrective action in response to unforeseen problems
Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the
degree to which they are achieved
Efficiency measure of how well resources are used to achieve a goal
Entrepreneur: managers initiate and oversee new projects that will improve their organization's
performance
Figurehead: duties that are ceremonial and symbolic in nature
Informational roles included monitoring, disseminating, and spokesperson activities
Interpersonal roles included figurehead, leadership, and liaison activities
Leadership: hires, train, motivate, and discipline employees
Leading: Leading is stimulating people to be high performers It is directing, motivating, and com-
municating with employees, individually and in groups.
Liaison: contact outsiders who provide the manager with information. These may be individuals or groups
inside or outside the organization.
Line manager: Authorized to direct the work of subordinates--they're always someone's boss.  In
addition, line managers are in charge of accomplishing the organization's basic goals.
Management: Management is the process of working with different resources to accomplish organizational
goals.
Manager: The member of the organization who participates in the management process by planning,
organizing, leading, or controlling the organization's resources
Monitor: collect information from organizations and institutions outside their own
Negotiator role: discuss issues and bargain with other units to gain advantages for their own unit
Organizing is assembling and coordinating the human, financial, physical, informational, and other
resources needed to achieve goals.
Planning: Planning is specifying the goals to be achieved and deciding in advances the appropriate actions
taken to achieve those goals.
Resource allocators: responsible for allocating human, physical, and monetary resources
Spokesperson: represent the organization to outsiders
Staff manager: Authorized to assist and advise line managers in accomplishing these basic goals.
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Table of Contents:
  1. INTRODUCTION TO HRM:Growing Importance of HRM, Road Map of the Course
  2. ESSENTIALS OF MANAGEMENT:Concepts and Essential of Management, Managerís Roles
  3. ORGANIZATION AND COMPONENTS OF ORGANIZATION:Open versus Closed Systems, The Hawthorne Studies
  4. PEOPLE AND THEIR BEHAVIOR:Why to work in organizations?, The Goals of Organizational Behavior
  5. INDIVIDUAL VS. GROUP BEHAVIOR:What Are Roles?, Problem solving Team
  6. PERSONNEL MANAGEMENT TO HUMAN RESOURCE MANAGEMENT:Records and Administration, Competitive Advantage
  7. HRM IN A CHANGING ENVIRONMENT:Productivity, New Trends at Work Place
  8. How organization Cultivate a Diverse Workforce, STEPS TOWARD MANAGEMENT OF DIVERSITY
  9. FUNCTIONS AND ENVIRONMENT OF HRM:Compensation and Benefits, Safety And Health, Interrelationships of HRM Functions
  10. LINE AND STAFF ASPECTS OF HRM:Authority, Line versus Staff Authority, Staff Manager
  11. LEGAL CONTEXT OF HR DECISIONS:Doing the Right Thing, Affirmative Action, Unintended Consequences
  12. HUMAN RESOURCE PLANNING (HRP):Benefits of HR Planning, Forecasting Human Resource Availability
  13. STRATEGIC PLANNING AND HRIS:HRís Strategic Role, Human Resource Information System, Common HRIS Functions
  14. JOB ANALYSIS:Purposes of the job Analysis, Questions Job Analysis Should Answer
  15. JOB ANALYSIS:Methods of Collecting Job Analysis Information, Observation, Source of Data
  16. JOB ANALYSIS (CONTD.):SURPLUS OF EMPLOYEES FORECASTED, Diversity through Recruiting Efforts
  17. SOURCES OF RECRUITMENT:ALTERNATIVES TO RECRUITMENT, Quantity of the Applicants, Quality of the Applicants
  18. SELECTION:Initial Screening, Advantages of Successful Screening
  19. SELECTION TESTS:Characteristics of Properly Designed Selection Tests, Guidelines for Conducting an Interview
  20. SELECTION PROCESSÖ CONTD:Background Investigations, Physical Exam, Selecting Managers
  21. SOCIALIZATION:Compensation and Benefits, Team Membership, Stages in socialization Process, Training and Development Trends
  22. TRAINING AND DEVELOPMENT:Learning, Phases of Training, Why Transfer of Training Fails
  23. MAXIMIZING LEARNING:Following up on Training, Repetition, Feedback, Purposes of T & D
  24. CAREER MANAGEMENT:Individual career planning, Career Planning and Development Methods
  25. PERFORMANCE:Determinants of Job Performance, Why is performance measured?, Performance Management
  26. PERFORMANCE APPRAISAL:What to Evaluate, The Appraisal Interview, PROBLEMS IN PERFORMANCE APPRAISAL
  27. JOB EVALUATION AND PRICING:THE APPRAISAL PERIOD, Ranking method,
  28. COMPENSATION SYSTEM:Pay, Job Pricing, Compensation: An Overview, Compensation Surveys
  29. BENEFITS:Total Compensation, Discretionary Benefits (Voluntary), Workplace Flexibility
  30. ROLE OF MONEY IN PERFORMANCE OF EMPLOYEES:Types of Pay-for-Performance Plans, Empower Employees
  31. MOTIVATION:The Motivation Process, Motivational Theories, Challenges of motivating employees
  32. OCCUPATION, HEALTH & SAFETY:Physical Conditions, Accident Investigation, Smoking in The work place
  33. STRESS MANAGEMENT:Symptoms of Stress, Managing Stress,
  34. COMMUNICATION IN ORGANIZATION:Burnout, Social Support at Work & Home, Communication in organization, Meetings
  35. TRADE UNIONS:Collective Bargaining, The HRM Department in a Nonunion Setting, Phases of Labor Relations
  36. CONFLICT AND NEGOTIATION:Transitions in Conflict Thought, Individual Conflict Management Styles
  37. POWER AND POLITICS:Sources of Power, Advantages and Disadvantages of PowerPower and Politics in Context
  38. EMPLOYEE RIGHTS AND DISCIPLINE:Contractual Rights, Management Rights, Disciplining Employees,
  39. DISCIPLINE (CONT...):Factors to Consider when Disciplining, Disciplinary Guidelines, Employee Separations
  40. LEADERSHIP:The Leaderís Behavior, Situational Theories of Leadership, Becoming a Leader
  41. REVISION (LESSON 12-21):Plans, Job Specification, Human resource planning, Selection Process, Corporate Culture
  42. REVISION (LESSON 22-26):Training, Case Study Method, Training, Performance
  43. REVISION (LESSON 27-35):Classification Method, Compensation, Empowerment, Mediation
  44. INTERNATIONAL DIMENSIONS OF HRM:Global Corporation, Type of staff members, Approaches to Global Staffing
  45. CONCLUSION & REVIEW:Strategies for Gaining Competitive Advantage, High-performance Work System