CHAPTER 4 Staffing Function

Definition, Scope, strategic HRM

HRM: Nature; Objectives

1
What is Human Resource Management?
Resource, in its organizational context, is defined
as ‘anything that could be thought of as a strength
or weakness of a given firm’ including tangible
and
intangible assets (Wernerfelt, 1984: 172). There
are three main organizational resources: human
resources, financial resources and technological
resources.

2
 Definition

Definition 1
The purpose of HRM is to ensure that the
employees of an organization are used in such a
way that the employer obtains the greatest possible
benefit from their abilities and the employees
obtain both material and psychological rewards
from their work (Graham, 1978).

3
Definition 1I
“HRM is a distinctive approach to employment
management which seeks to achieve competitive
advantage through the strategic deployment of a highly
committed and capable workforce, using an array of
cultural, structural and personnel techniques.” Storey
(1995: 5).
Definition 1II
“HRM is a managerial perspective which argues the
need to establish an integrated series of personnel
policies to support organizational strategy.” Buchanan
andHuczynski (2004: 679).
4
Definition 1V
“HRM is a strategic approach to managing
employment relations which emphasizes that
leveraging people’s capabilities is critical to
achieving competitive advantage, this being
achieved through a distinctive set of integrated
employment policies, programmes and practices.”
Bratton and Gold (2007: 7).

5
Definition V
HRM is the process of achieving organizational
objectives by acquiring, developing, retaining,
and properly using the HRs in an Organization.
This definition recognizes a process consisting
Of four functions. These are:
a) Acquisition/getting employees/
- Demand for and supply of labor – HRP
- Recruiting - Socialization
- Selecting - Placing

6
 Definition---Cont’d
b) Development/preparing employees/
 Employee training:
Skill development and changing attitudes among
workers.
 Management development:
- Knowledge acquisition
- Enhancement of managers abilities.
 Career development:
Effort to match long term individual and
organizational needs

7
 Definition---Cont’d

c) Motivation/activating / stimulating employees/

- Job satisfaction
- Linking rewards to performance
- Performance evaluation
- Compensation and benefits
d) Maintenance/Keeping/ retaining employees/
- Working conditions
- Employee relations

8
 Human Resource Management: Nature
Human Resource Management is a process of bringing
people and organizations together so that the goals of
each are met.
The various features of HRM include:
 It is pervasive in nature as it is present in all
enterprises. •
Its focus is on results rather than on rules.
• It tries to help employees develop their potential
fully.
• It encourages employees to give their best to the
organization. •
9
It is all about people at work, both as individuals and
groups.
It tries to put people on assigned jobs in order to
produce good results.
It helps an organization meet its goals in the future by
providing for competent and wellmotivated employees.
It tries to build and maintain cordial relations between
people working at various levels in the organization.
It is a multidisciplinary activity, utilizing knowledge
and inputs drawn from psychology, economics, etc.

10
 Scope of HRM
 Personnel aspect-This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity etc.
• Welfare aspect-It deals with working conditions and
amenities such as canteens, rest and lunch rooms, housing,
transport, medical assistance, education, health and safety,
recreation facilities, etc.
• Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining,
grievance and disciplinary procedures, settlement of
disputes, etc.
11
 HRM Objectives
• To help the organization reach its goals.
• To ensure effective utilization and maximum
development of human resources.
• To ensure respect for human beings.
To identify and satisfy the needs of individuals.
• To ensure reconciliation of individual goals with
those of the organization.
• To achieve and maintain high morale among
employees.
12
To provide the organization with well-trained and
well-motivated employees.
To increase to the fullest the employee's job
satisfaction and self-actualization.
To develop and maintain a quality of work life.
To be ethically and socially responsive to the
needs of society.
To develop overall personality of each employee
in its multidimensional aspect.

13
 Human Resource Management
Functions and Practices
HRM functions and practices include:

- Analyzing and designing of work

- Determining HR Needs (HR planning)
- Attracting potential employees (recruiting)
- Choosing qualified employees (selecting)
- Teaching employees how to perform their jobs and
preparing them for the future (training and
development)
- Rewarding and motivating staff (compensation)
- Evaluating their performance (performance
management)
- Creating positive work environment (employee
relations)
14
 Major HRD Strategies
 Communications Strategy: In today’s changing
scenario, it is essential to educate and train employees
about the change.
Accountability And Ownership Strategy:
Employee’s accountability and ownership leads to
higher productivity and customer acceleration.
• Quality Strategy: Quality needs to be fostered in the
employees through training and development.
• Cost Reduction Strategy: Every employee’s
contribution in savings is crucial as small
contributions from each employee can be pooled by
organizations to save substantial savings at the end of
15
Entrepreneurship Strategy: Every employee needs
to be an independent entrepreneur,
Culture Building strategy: Organization valuing its
employees have a sustainable competitive edge
over competitors because employees are highly
charged, motivated and commitment to the
organization
 Systematic Training Strategy: The planning and
organization of formal on-job training and off-job
 Learning Strategy: Continuous development and
learning environments
16
 Model for HRM Activities/Functions
Laws and Regulations Labor Unions Labor Markets
External influences
HRM Activities HR Outcomes
-HR Environment
-Job Analysis & Job -Performance
Design
Individuals
-HR Planning Ability -Motivation
-Recruitment and Motivation
selection
-Training and -Length of Services
development
-Performance -Attendance
Management
Jobs
-Compensation Skill Requirements -Satisfaction
-Collective bargaining Rewards
and Labor Relations
-HR Globally 17
 Responsibilities and Roles
Department of Human Resources

HR Department is responsible for analyzing and

designing of work, human resource strategic
planning, outplacement, employment,
recruitment and selection, training and
development, evaluating performance,
compensation and benefits, employee services,
employee and labor relations, personnel
records, health and safety, labor law compliance
and developing human resource management
policies and effective practices.

18
Responsibilities and Roles
Department of Human Resources
Outplacement
- HR Department help employees to find jobs
after asking them to leave their employment or
finished their contract employment.

Employment and Recruitment & Selection

- HR Department prepares advertising on TV,
radio, newspapers, electronic advertising,
internet, interviewing, recruiting, testing,
selection of labor or coordination

19
 Responsibilities and roles
Department of Human resources
Training and Development
- HR department provides employees orientation,
teaching staff how to perform their jobs, and
preparing them for the future. Preparing training
courses and programs, organizing conferences,
seminars…….

Performance Management
- HR Department prepares indicators, forms and
criteria for performance evaluation, productivity
enhancement, evaluation for strategic,
administrative and development purposes……..
20
 Responsibilities and Roles
Department of human Resources
Compensation
- Wage and salary administration, job
descriptions, executive compensation,
incentive pay, job evaluation

Benefit Programs
- Insurance, vacation leave administration,
retirement plans, profit sharing, working
conditions and environment, health cares..

21
 Responsibilities and Roles
Department of Human Resources
Employee Services
- Employee assistance programs, services,
outplacement services..

Employee and Community Relations

- Attitude surveys, labor relations, publications,
developing HRM Policies and procedures and
effective practices, labor law compliance, and
discipline……….

22
 Responsibilities and Roles
Department of Human Resources
Personnel Records
- Human resource management systems,
personnel profile records, HR databases…

Health and safety

- Safety inspection, drug testing, health,
wellness of mental and physical at
workplace…………..

23
 Responsibilities and Roles
Department of Human resources

HR Strategic Planning
Planned human resources requirements for long
term in the future, comparing HR availability
and HR requirements, HR forecasting, HR
surplus or shortage and developing strategies,
such as recruitment, downsizing, retired
programs, training and development programs,
pay incentive programs……..

24
 Skills of HRM Professionals Need
(HRM Functions is Changing: Outsourcing)

Outsourcing is the practice of having another

organization provide services. For example:
- Payroll Administration (bank)
- Training and Development Programs
(consultants or Universities, colleges or
schools)
- Recruiting and selecting Employees (agencies)
- Legal counseling (consultant)

25
ENVIRONMENTAL FACTORS
OF HRM
External Environmental Factors
 The Labor Force:
 Legal Considerations:
Society:
•Unions:
Shareholders:
•Competition:
Customers: Technology: . • The
Economy:
26
Internal Envt
Mission:
 Policies:
•Corporate Culture:
Management Style of Upper Managers: •
Employees:
 •Informal Organization:
 Labor-Management Agreement

27