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Human Resource Management

INTRODUCTION TO HRM:Growing Importance of HRM, Road Map of the Course Next >>>
Human Resource Management (MGT501)
Lesson 1
After studying this chapter, students should be able to understand the following:
Describe HRM?
Explain why are we concerned about HRM?
Discuss Road-map of HRM
This chapter introduces the students with the basic concepts of the human resource management (HRM).
During the lecture, we will be discussing the three
main things, i.e. the introduction to HRM, the
importance of HRM, and a brief discussion of the
topics that will follow today's lecture.
A basic concept of management states that manager
works in organizations. Organization has three basic
components, People, Purpose, and Structure. HRM is
the study of activates regarding people working in an  Human
organization. It is a managerial function that tries to
match an organization's needs to the skills and abilities
of its employees. Let's see what is meant by the three
key terms... human, resource, and management.
 Human (Homo-sapiens ­ Social Animal)
Dr. Mukhtar Ahmed
 Resources (Human, Physical, Financial, Technical, Informational etc)
 Management (Function of Planning, Organizing, Leading & Controlling
of organizational
resources to accomplish goals efficiently and effectively)
Functions of HRM
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) function of
HRM department regardless of the organization's size must perform following human resource
management functions...
 Staffing (HR planning, recruitment and selection)
 Human resource development
 Compensation and benefits
 Safety and health
 Employee and labor relations
 Records maintaining, etc.
 HR research (providing a HR information base, designing and implementing employee
communication system).
 Interrelationship of HR functions.
A. What is human resource management?
As we said that HRM is the management of people working in an organization, it is a subject related to
human. For simplicity, we can say that it is the management of humans or people. HRM is a managerial
function that tries to match an organization's needs to the skills and abilities of its employees. Human
Resource Management is responsible for how people are managed in the organizations. It is responsible for
bringing people in organization helping them perform their work, compensating them for their work and
solving problems that arise.
Growing Importance of HRM
The success of organizations increasingly depends on people-embodied know-how- the knowledge, skill,
Human Resource Management (MGT501)
and abilities imbedded in an organization's members.  This knowledge base is the foundation of an
organization' core competencies (integrated knowledge sets within an organization that distinguish it from
its competitors and deliver value to customers).
HRM plays important role in creating organizations and helping them survive. Our world is an
organizational world. We are surrounded by organizations and we participate in them as members,
employees, customers, and clients. Most of our life is spent in organization, and they supply the goods and
services on which we depend to live. Organizations on the other hand depend on people, and without people,
they would disappear.
Factors Contributing to the Growing Importance of HRM
a. Accommodation to workers' needs
Workers are demanding that organizations accommodate their personal needs by instituting such programs
as flexible work schedules, parental leave, child-care and elder-care assistance, and job sharing. The human
resource department plays a central role in establishing and implementing policies designed to reduce the
friction between organizational demands and family responsibilities.
b. Increased complexity of the Manager's job
Management has become an increasingly complex and demanding job for many reasons, including foreign
competition, new technology, expanding scientific information, and rapid change. Therefore, organizations
frequently ask human resource managers for assistance in making strategic business decisions and in match-
ing the distinctive competencies of the firm's human resources to the mission of the organization.
Executives need assistance from the human resource department in matters of recruitment, performance
evaluation, compensation, and discipline.
c. Legislation and litigation
The enactment of state laws has contributed enormously to the proliferation and importance of human
resource functions. The record keeping and reporting requirements of the laws are so extensive that to
comply with them, many human resource departments must work countless hours and often must hire
additional staff.
Four areas that have been influenced most by legislation include equal employment, Compensation, safety,
and labor relations. An organization's failure to comply with laws regulating these areas can result in
extremely costly back-pay awards, class action suits, and penalties.
d. Consistency
Human resource policies help to maintain consistency and equity within an organization. Consistency is
particularly important in compensation and promotion decisions. When managers make compensation
decisions without consulting the human resource department the salary structure tends to become very
uneven and unfair promotion decisions also may be handled unfairly when the HR department does not
coordinate the decision of individual manger.
e. Expertise
Now a days there exist sophisticated personnel activities that require special expertise. For example,
researchers have developed complex procedures for making employee-selection decisions; statistical
formulas that combine interviews, test scores, and application-blank information have replaced the
subjective interviews traditionally used in making selection decisions. Similarly, many organizations have
developed compensation systems with elaborate benefits packages to replace simple hourly pay or piece rate
incentive systems
f.  Cost of Human Resource
Human resource activities have become increasingly important because of the high cost of personal
problem. The largest single expense in most organizations is labor cost, which is often considerably higher
than the necessary because of such problems as absenteeism tardiness and discrimination.
Human Resource Management (MGT501)
B. Why are we concerned with HRM?
1. Helps you get results - through others.
Different managerial techniques help mangers to direct the performance of employees in desirable direction
in order to achieve the organizational objectives. Through the efforts of others working in an organization,
managers get things done that require effective human resource management.
2. Helps you avoid common personnel mistakes
Qualified HR mangers utilize organization resources in such a way that helps to avoid common personnel
mistakes like the following...
Hiring the wrong person for the job
Experiencing high turnover
Finding employees not doing their best
Having your company taken to court because of your discriminatory actions
Having your company cited under federal occupational safety laws for unsafe practices
Allowing a lack of training to undermine your department's effectiveness
Committing any unfair labor practices
3. Helps you to gain Competitive Advantage
Among all the resources possessed by the organizations it is only Manpower or the Human resources that
create the real difference. Because all organizations can have the same technology, they can possess same
type of financial resources, same sort of raw material can be used to produce the goods and services but the
organizational source that can really create the difference is work force of the organization. Therefore they
are the main sources of innovation creativity in the organizations that can be used as a competitive
advantage. In today's competitive environment,
these are the people which can create competitive
S u c c e s s fu l H R M
advantageous for the organizations.
The world around us is changing. No longer can we
O r g a n iz a t i o n : H ig h le v e l o f p ro fita b ilit y ,
H ig h e r a n n u a l s a le s p e r e m p lo y e e , H ig h
consider our share of the "good Life" given. If we
m a rk e t v a lu e .
are to maintain some semblance of that life, we as
E m p l o y e e : M o re e m p lo y m e n t s e c u r ity ,
individual, as organizations, as society will have to
M o re jo b o p p o rt u n itie s , H ig h w a g e s .
fight actively for it an increasingly competitive
global environment. If organizations are able to
S o c i e t y : E le v a tin g th e s t a n d a rd o f liv in g ,
S tre n g th e n in g e th ic a l g u id e lin e s .
mange its work force efficiently/effectively this will
be beneficial for all stakeholders (Organization,
Dr. Mukhtar Ahm ed
Employees and Society).
Challenges/Issues of Managing Human Resources in present era
Following are the main issues that are faced by the mangers to manage the workforce of today's
organization for achievement of objectives.
a. To Attract People
People will be interested to join any organization if it is providing them quality working environment,
attractive benefit and opportunities to excel in future. Keeping in view the opportunities in the market, the
first issues will be to attract good people for your organization.
b. To Develop People
Development is related to provide the opportunities for training and development to match the skills to job
in particular areas. It requires careful need assessment for training and selecting effective training methods
and tools. After attracting/selecting, Continuous development of workforce of the organization leads
towards development of the organization. So that they will start playing their important role in the
Human Resource Management (MGT501)
c. To Motivate
Motivation means to influence performance of others and to redirect the efforts in desirable direction by
using different motivational tools that can help in fulfilling the mission of organization. Third important
issues/concern will be to keep your workforce motivated so that they should keep on delivering effectively.
d. To Keep Talented People
This is related to retention of workforce in organization and to take steps that can prevent undesirable
detachments of talented and motivated workers from the organization.
C. Discussion on the road-map of HRM
For the convenience and attainment of our course objectives, we divide our course into 42 modules. Each
module includes information for you to acquire and understand, issues for you to consider, and skills for
you to develop.
Road Map of the Course
The list of topics, which we call the `road map' of this course, is given below...
Basic concepts of management and its relationships with HRM
Components of an organization
Concepts of people working together
Individual vs. Group behavior and Teams
History of HRM
New trends at workplace with changing environment
Workforce diversity, pros and cons
Functions of HRM
Relationship between HR specialist and line managers
Legal and ethical issues in HRM
Human resource planning (HRP)Human resource information system (HRIS)
Job analysis
Job analysis continued Job analysis outcomes.
Source of recruitment
Selection Tests
Selection process, continued
Training & development
Maximizing learning
Career management
Performance Performance Appraisal
Job evaluation and pricing
Compensation system
Role of money in performance of employee
MotivationOccupation health and safety
Stress management
Communication in organization
Trade union
Conflict and Negotiation
Power & politics
HR auditing
Human Resource Management (MGT501)
HR control process
Leadership in organization
Employee separation
International dimension of HRM
Conclusion & Review.
Key Terms
Human Resource
The staffing functions of the management process. Or the policies and
practices needed to carry out the "people" or human resource aspects of a
management position, including recruiting, screening, training, rewarding,
and appraising etc.
Individuals in an organization who direct the activities of others. Member
of the organization performing the management function
Motivation means to influence performance of others and to redirect the
efforts in desirable direction by using different motivational tools that can
help in fulfilling the mission of organization
A systematic arrangement of people to accomplish some specific purpose.
Competitive Advantage
Any factor that allows an organization to differentiate its product or
service from those of its competitors to increase market share.
All individuals and groups that are directly or indirectly affected by an
organization's decisions
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
  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