HUMAN RESOURCE

MANAGEMENT(HRM)

CHAPTER ONE

A N OV E RV I E W
 DEFINITION OF HUMAN RESOURCE
1.1.
MANAGEMENT
• Human resource management refers to the management of an
organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of its objectives.
• Human Resource Management is the process of achieving organizational
goal by attracting, developing, and retaining and properly using talented
human resource.
• Human resource management can be defined as a strategic, integrated
and coherent approach to the employment, development and well-being of
the people working in organizations.
• Is about having the best human resources who are best utilized to produce
cheaper and better quality goods and services
• The process of managing human talent to achieve an organization’s
objectives
 1.2. WHY IS HUMAN RESOURCE
IMPORTANT?
• Affects the quality of goods and service produced
• Is the driving force in organizational life cycle
• is responsible for managing other resources of an organization
• Prerequisite for organizational learning
• Employees are scarce resources that should be acquired effectively,
utilized, developed and retained.
• Provides an organization with competitive advantage
1.3. EVOLUTION OF HUMAN RESOURCE MANAGEMENT
EVOLUTION OF HUMAN RESOURCE
MANAGEMENT
….EVOLUTION OF HUMAN RESOURCE
MANAGEMENT
Personnel management Human resource management
Short term ,routine, Strategic, proactive
reactive
Compliance Commitment
Pluralist, collective, low Unitarist, individual, high trust
trust
Bureaucratic Organic
Activity based Solution based
Internally focused Externally focused
Specialized/professional Largely integrated into line
management
 PHILOSOPHIES OF HUMAN RESOURCE MANAGEMENT

1. Human resource management is and has to be owned and driven by the top
management in the interests of the key stakeholders. the top management
owns and drives the agenda for effective people management in an
organization.
2. Business or organizational strategies form the basis for human resource
strategies, and there should be a strategic fit.
3. Investment in people, like any other capital investment, is necessary for
better returns in the future.
4. Employees are capable of producing added value. It is the role of the
management to obtain such added value through human resource
development and performance management systems.
5. Organizational success comes from the employees’ total commitment to the
organizational mission, goals, objectives, and values.
6. Building a strong organizational culture that gives managers an advantage in
stimulating employees’ commitment through effective communication,
 1.4. OBJECTIVE OF HUMAN RESOURCE
MANAGEMENT
• The overall objective of human resource management is to ensure
organizational success through people.
• ensure that the organization has competent people it needs
• support the organization achieve its goal
• contribute to the development of high-performance culture
• create a positive employment relationship between management and
employees
• encourage the application of an ethical approach to manage human
resource.
 Major HRM functions
• Procurement functions
– focus on availing the right type and number of employees
required for achieving organizational goals.
• Development functions
– Focus on enhancing knowledge , skill and values of employees
to perform their current and future responsibilities competently.
• Integration functions
– Focuses on reconciling organizational goals with individual
goals.
• Maintenance functions
– Focuses on maintaining physical and mental health of
employees.
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 PROCUREMENT FUNCTIONS

• Job analysis- is the process of obtaining

information about jobs by determining their
duties, tasks, or activities, skills and qualifications
needed to perform it successfully
• Human resource planning- is the process by
which an organisation attempts to ensure that it
has the right number of qualified people in the
right jobs at the right time.

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…PROCUREMENT FUNCTIONS
• Employee Recruitment and Selection
– Recruitment - is the process of seeking and attracting
a pool of applicants from which qualified candidates
for job vacancies within an organisation can be
selected.
– Employee selection- involves choosing from the
available candidates the individual predicted to be
most likely to perform successfully in the job.
– Placement- on the other hand, is the assignment of an
employee to a new or different job.
– Orientation- is the formal process of familiarizing
new employees with the organization, their jobs, their
work units and employees.
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 DEVELOPMENT FUNCTIONS
• Career development – involves Planning careers
and managing individuals careers.
• Training and development- activities help
employees learn how to perform their jobs, improve
their performance and prepare themselves for more
senior positions.
• Performance appraisal- is concerned with
determining how well employees are doing their
jobs, communicating that information to the
employees and establishing a plan for performance
improvement.

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 INTEGRATION FUNCTIONS

• Employee Disciplining

• Compensation refers to all types of rewards that

employees receive in return for their services.

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 MAINTENANCE FUNCTIONS

Safety- involves protecting employees from

injuries caused by work-related accidents.
Health- devising schemes that enhance
employees' physical and mental well being.
Creating conducive working environment
Promoting smooth working relationship
between management and employees

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 STRATEGIC IMPORTANCE OF HUMAN
RESOURCE MANAGEMENT
• If managed strategically HRM can bring organizational
excellence through:-
– Becoming partner with top and line managers of an
organization in strategy execution
– Organizing work efficiently to ensure Costs are reduced
without compromising quality
– Becoming representative of employees by representing
employees concern to top management and by working on
ways to increase employee commitment.
– Become an agent of continuous change by shaping process
and organizational culture.
The Link Between HRM and FIRM PERFORMANCE

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I. HRM ROLE IN DELIVERING RESULT
(DAVE ULRICH MODEL)
DEFINITION OF HR ROLES
 ….HRM ROLE IN DELIVERING RESULT

• The strategic HR role

– Focuses on aligning HR strategies and practices
with business strategy.
– Requires to conduct organizational diagnosis to
identify the strength and weakness of
organizations.
 ….HRM ROLE IN DELIVERING RESULT

• Management of firm infrastructure role

– Focuses on designing and delivering efficient HR process

for attracting, retaining , developing, promoting,
appraising and other HR process to ensure administrative
efficiency.
– Administrative efficiency comes from continues
improvement of HR processes and from ensuring HR
professional’s have the right competency.
 ….HRM ROLE IN DELIVERING RESULT

• Management of employee contribution role

– Encompasses involvement in the day to day problems, concerns
and needs of employees.
– Required understanding employees needs and working to met
those needs in order to increase employees contributions.
– Focuses on developing employees competences to deliver
results.
 ….HRM ROLE IN DELIVERING RESULT

• Management of transformation and change role

– HR professionals are expected to play cultural guardian's and
cultural catalyst role.
– Help employees let go of the past way of doing things and adapt
to the new way of doing things.
– Ensure the change occurs as intended by defining value and
behavioral requirements of the change.
 II. THE MICHIGAN/MATCHING MODEL

o Emphasizes more on “tight fit” between the HR strategy and the

business strategy.
o Business strategy is the main focus
o Human resources are taken like any other resource which must be
fully utilized together with the other resources to achieve
organizational objectives.
o This model emphasizes more on the hard side of HRM
• HR systems and the organization structure should be managed in a
way that is congruent with organizational strategy

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THE MICHIGAN/MATCHING MODEL
 III. HARVARD MODEL OF HRM
o The Harvard model acknowledges the existence of multiple stakeholders
within the organization.
• shareholders
• management
• employees,
• government and
• the community at large
o interest of the various groups must be fused and factored in the creation
of HRM strategies and ultimately the creation of business strategies.
o This model emphasizes more on the human/soft side of HRM
o Emphasizes the importance of employees like any other stakeholder in
influencing organizational outcomes.
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THE HARVARD FRAMEWORK

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 CHARACTERISTICS OF HRM IN HARVARD
FRAMEWORK

• Line managers accept more responsibility for ensuring the alignment of

competitive strategy and HRM policy
• HRM has the mission of setting policies that govern how HR activities are
developed and implemented in ways that make them more mutually reinforcing
• HRM is the concern of management in general rather than the HRM function in
particular.

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 IV. GUEST MODEL OF HRM

o The Guest model of Human Resource Management (HRM) was developed by

David Guest in 1997.
o This model is a fusion of hard and a soft approach of HRM.
o Guest proposes 4 crucial components that underpin organizational
effectiveness.
1. Strategic Integration
This is the ability of organizations to maintain a fit between the HRM strategy
and the business strategy. In other words, there must be congruence between
business strategy and the HR strategy for the organization to achieve its goals.

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 GUEST MODEL OF HRM
2.Flexibility
the ability of the organization and its people to adapt to the changing business
and work environment.
3.High Commitment
attitudinal commitment- which is reflected through a strong identification with

the organization.
behavioral commitment- the ability to go an extra mile, and
4.Quality
Quality is based on the assumption that provision of high quality goods and
services results from a quality way of managing people.

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