Introduction to Human

Resource Management

M. Khasro MIAH Ph.D.

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 Personnel Mistakes

Hire the wrong person for the job

Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company in court because of discriminatory
actions
Have some employees think their salaries are unfair and
inequitable relative to others in the organization
Allow a lack of training to undermine your department’s
effectiveness
Commit any unfair labor practices

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 Human Resource Management

 Human Resource Management is the

organizational function that deals with issues
related to people such as hiring, training,
promotion, performance management,
compensation, organization development,
safety, wellness, benefits, employee
motivation, communication, administration
and Industrial relations.

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 Therefore, human resource management can be defined as a
specific combination of HR practices, work structures, and
processes that maximizes employee knowledge, skill,
commitment, and flexibility.
 It composed of many interrelated parts that complement one
another to reach the goals of an organization, large or small.

Set of activities directed at attracting, developing, and

maintaining an effective workforce capable of achieving the
firm’s objective.

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 ”Soft” and ”Hard” HRM
 Soft HRM emphasizes the importance of high
commitment, learning, enlightened leadership;
human resources are valuable assets, not
variable costs. Models and theories focus on
tapping the human potential, based on
organizational behavior theories (e.g. Maslow,
1954; Herzberg, 1966; McGregor, 1960)
• Hard HRM emphasizes the calculative,
quantitative and strategic management aspects
( Strategy, Structure) and of managing the workforce
in a rational way (Storey, 1989).

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 Evolution of HRM

 Human resource management has changed in

name various times throughout history.
 Industrial welfare was the first form of human
resource management (HRM).

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 Evolution of HRM

• In 1833 the factories act stated that there

should be male factory inspectors.
• In 1878 legislation was passed to regulate
the hours of work for children and women
by having a 60 hour week. During this
time trade unions started to be formed.
• In 1868 the 1st trade union conference
was held.
• This was the start of collective bargaining.
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 Evolution of HRM(cont’s)

 In 1916 it became compulsory to have a

welfare worker in explosive factories and was
encouraged in arms factories.

 The armed forces focused on how to test

abilities and IQ along with other research in
human factors at work.

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 Evolution of HRM(cont’s)
1917-18: 1st formal personnel department created to
deal with tight labor market, high turnover, waste and
inefficiency, widespread strikes, union growth,
government intervention, takeovers

 1920’s: HR used to “win” worker cooperation,

through ensuring job security, benefits, etc.

 1930’-50’s: “Human Relations” recognizes that

there are psychological and social influences to worker
satisfaction, cooperation, performance; first focus on
groups (not teams).

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 Evolution of HRM
 1960’s: Work design, rather than communication and
cooperation in groups, is the key to increasing worker
motivation. Small work group design leads to greater employee
effort, group work provides opportunities for “self-actualization”;
work is more interesting and fulfilling.

 1970’s: Quality of Work Life (QWL): emphasis on the value

of human resources. PM becomes HR.

 1990’s-Present: TQM, reengineering, globalization, strategic

HR, new technologies, diversity, contingency models, holistic
approaches to HR. HRM models include “high involvement”,
“high commitment”, “high performance work system”,
“innovative work practices”. HR becomes HRM.

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 The Management Process

Planning

Controlling Organizing

Leading Staffing

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Human Resource Management at
Work

Acquisition

Fairness Training

Human
Resource
Management
Health and
(HRM) Appraisal
Safety

Labor Relations Compensating

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 Personnel Aspects of a
Manager’s Job
 Conducting job analyses
 Planning labor needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Managing wages and salaries
 Providing incentives and benefits
 Appraising performance
 Communicating
 Training and developing managers
 Building employee commitment
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 DIFFERENCES BETWEEN TRADITIONAL AND NEW HRM
Factors Traditional HR New HRM Concept
Responsibility of Staff specialists Line managers

HR
Employee relations Partnership with internal and
Focus external customers and
stakeholders

Transactional, change follower and Transformational, change leader

Role of HR respondents and initiator
Slow reactive, fragmented Fast, proactive, integrated
Initiatives
Short term Short, median and long as
Time Horizons necessary
Bureaucratic- rules, policies, Organic- flexible, whatever is
Control procedures needed to succeed
Tight division of labor, Broad, flexible, cross-training
Job Design independence, specialization

Capital, Products People, knowledge

Key Investment
1–
Cost centre Investment
MBA Summer 2011 Section 1 centre 14
Accountability
Basic HR Concepts

 The bottom line of managing:

Getting results
 HR creates value by engaging in
activities that produce the
employee behaviors that the
company needs to achieve its
strategic goals.

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Line and Staff Aspects of
HRM
 Line manager
 A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
 Staff manager
 A manager who assists and advises line managers.

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 Line Managers’ HRM
Responsibilities
1. Placing the right person on the right job
2. Starting new employees in the organization (orientation)
3. Training employees for jobs that are new to them
4. Improving the job performance of each person
5. Gaining creative cooperation and developing smooth working
relationships
6. Interpreting the firm’s policies and procedures
7. Controlling labor costs
8. Developing the abilities of each person
9. Creating and maintaining department morale
10. Protecting employees’ health and physical condition
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Human Resource Managers’
Duties
Line Function Coordinative
Line Authority Function
Implied Authority Functional Authority

Functions of
HR Managers

Staff Functions
Staff Authority
Innovator
Employee Advocacy

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Human Resource Specialties

Recruiters

Labor Relations EEO

Specialists Coordinators
Human
Resource
Specialties
Training
Job Analysts
Specialists

Compensation
Managers

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 A Systems View of
Human Resource Management

1 - 20 MBA Summer 2011 Section 1 12/09/21

 Goals of Human Resource
Management

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 Human Resource Management
as a Center of Expertise

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 FIGURE 1–1 HR Organization Chart for a Large Organization

Source: www.hr.wayne.edu/orgcharts.php. Accessed May 6, 2007. 1–

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FIGURE 1–2 HR Organizational Chart (Small Company)

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 FIGURE 1–3 Employment and Recruiting—Who Handles It?
(Percentage of All Employers)

Note: Length of bars represents prevalence of activity among all surveyed employers.

Source: HR MAGAZINE, BNA/Society for Human Resource Management, 2002.

Reproduced with permission via Copyright Clearance Center. 1–
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 The Changing Environment of
Human Resource Management

Globalization Trends

Technological Trends
Changes and Trends
in Human Resource
Management
Trends in the Nature of Work

Workforce Demographic Trends

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FIGURE 1–4 Employment migration: Projected Loss of Jobs and Wages

Source: Michael Schroeder, “States Fight Exodus of Jobs,” Wall Street Journal, June 3,
2003, p. 84. Reproduced with permission of Dow Jones & Co. Inc. via Copyright Clearance 1–
Center.
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 The Changing Role of
Human Resource Management
Strategic Human
Resource
Management

Managing with the New Creating High-

HR Scorecard Responsibilities Performance Work
Process for HR Managers Systems

Measuring the HRM

Team’s Performance

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TABLE 1–1 Technological Applications for HR

Application Service Providers (ASPs) and technology outsourcing

Web portals
PCs and high-speed access
Streaming desktop video
The mobile Web and wireless net access
E-procurement
Internet- and network-monitoring software
Bluetooth
Electronic signatures
Electronic bill presentment and payment
Data warehouses and computerized analytical programs

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High-Performance Work System
Practices
Employment security
Selective hiring
Extensive training
Self-managed teams/decentralized decision making
Reduced status distinctions
Information sharing
Contingent (pay-for-performance) rewards
Transformational leadership
Measurement of management practices
Emphasis on high-quality work
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Benefits of a High-Performance
Work System (HPWS)
 Generate more job applicants
 Screen candidates more effectively
 Provide more and better training
 Link pay more explicitly to performance
 Provide a safer work environment
 Produce more qualified applicants per position
 Hiring based on validated selection tests
 Provide more hours of training for new employees
 Conduct more performance appraisals
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FIGURE 1–5 Five Sample HR Metrics
HR Metric* How to Calculate It

Absence rate # of days absent in month

× 100
Average # of employees during month × # of workdays

Cost per hire Advertising + agency fees + employee referrals + travel cost of
applicants and staff + relocation costs + recruiter pay and benefits
Number of hires

HR expense HR expense
factor Total operating expense

Time to fill Total days elapsed to fill job requisitions

Number hired

Turnover rate Number of separations during month

× 100
Average number of employees during month
Sources: Robert Grossman, “Measuring Up,” HR Magazine, January 2000, pp. 29–35; Peter V. Le Blanc, Paul Mulvey, and Jude T. Rich, “Improving the Return on Human Capital: New Metrics,”
Compensation and Benefits Review, January/February 2000, pp. 13–20; Thomas E. Murphy and Sourushe Zandvakili, “Data and Metrics-Driven Approach to Human Resource Practices: Using
Customers, Employees, and Financial Metrics,” Human Resource Management 39, no. 1 (Spring 2000), pp. 93–105; [HR Planning, Commerce Clearing House Incorporated, July 17, 1996;] SHRM/BNA
2000 Cost Per Hire and Staffing Metrics Survey; www.shrm.org. See also, SHRM Research “2006 Strategic HR Management Survey Report,” Society for Human Resource Management.. 1–
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Measuring HR’s Contribution
 The HR Scorecard
 Shows the quantitative standards,
or “metrics” the firm uses to
measure HR activities.
 Measures the employee behaviors
resulting from these activities.
 Measures the strategically relevant
organizational outcomes of those
employee behaviors.

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 The Human Resource Manager’s
Proficiencies
 New Proficiencies
 HR proficiencies

 Business proficiencies

 Leadership proficiencies

 Learning proficiencies

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FIGURE 1–6 Effects CFOs Believe Human Capital Has on Business Outcomes

Source: Steven H. Bates, “Business Partners,” HR Magazine, September 2003, p. 49. Reproduced
with permission of the Society for Human Resource Management via Copyright Clearance Center. 1–
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 HR Certification
 HR is becoming more professionalized.
 Society for Human Resource Management
(SHRM)
 SHRM’s Human Resource Certification
Institute (HRCI)
 SPHR (senior professional in HR)
certificate
 PHR (professional in HR)
certificate

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FIGURE 1–7
2004 SHRM®
Learning
System
Module
Descriptions

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The Human Resource Manager’s
Proficiencies (cont’d)
 Managing within the Law
 Equal employment laws

 Occupational safety and health laws

 Labor laws

 Managing Ethics
 Ethical lapses

 Sarbanes-Oxley in 2003

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An integrated approach to people resourcing

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HR strategy: the integration of HR activities to
manage performance

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HRM in the twenty-first century?

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K E Y T E R M S

management process globalization

human resource management human capital
(HRM) strategy
authority strategic plan
line manager metrics
staff manager HR Scorecard
line authority outsourcing
staff authority ethics
implied authority strategic human resource
functional control management
employee advocacy high-performance work system

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