Introduction to Human Resource Management - BMSbms.lk/download/GDM_Tutorials/batch-33-34/HRM/Mathisha/week 1... · Introduction to Human Resource Management ... 2–3 Chapter Contents

PowerPoint Presentation by Charlie CookThe University of West Alabama

Managing Human ResourcesBohlander • Snell 14th edition

MANAGING PEOPLEIntroduction to Human ResourceManagement

MATHISHA HEWAVITHARANA

MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer(UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL),

MSLIM(SL),

Head of Marketing & Branches - Siyapatha Finance PLC

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Chapter ContentsSummarized Chapter Contents:

1. What is Human Resource Management (HRM)2. Origin of HRM3. Milestones of HRM4. Scope of HRM5. Functions of HRM6. Responsibilities of HR Manager7. HRM Vs PM8. Human Resource Development9. Human Capital Management10. Talent Management11. Knowledge Management12. Changing role of HRM13. Challenges faced by Modern HRM14. Impact of IT in HRM15. Benefits of HRM

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• Human : refer to the skilled workforce in the organization.• Resource : refer to limited availability or scarce.• Management : refer to maximize or proper utilization and make best

use of limited and a scarce resource.

Human resource management is the process of proper and maximizeutilization of available limited skilled workforce. The core purpose ofthe human resource management is to make efficient use of existinghuman resource in the organization.

Introduction to HRMWhat is Human Resource management (HRM):

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Human Resource Management (HRM) is the function within anorganization that focuses on recruitment of, management of, andproviding direction for the people who work in the organization.

HRM is the Managerial utilization of the Efforts, Knowledge,Capabilities & Committed Behaviors which people contribute to anAuthoritatively Co-ordinated Human Enterprise as part of anEmployment Exchange to carryout work, tasks in a way which enablesthe enterprise to continue in to the future.


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Human resource management (HRM), also called personnelmanagement , consists of all the activities undertaken by an enterpriseto ensure the effective utilization of employees toward the attainmentof individual, group, and organizational goals.


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Frederick Taylor, known as the father of scientific management, playeda significant role in the development of the personnel function in theearly 1900s. In his book, Shop Management, Taylor advocated the "scientific"

selection and training of workers. He also pioneered incentive systemsthat rewarded workers for meeting and/or exceeding performancestandards. Although Taylor's focus primarily was on optimizing efficiency in

manufacturing environments, his principles laid the ground-work forfuture HRM development.

Introduction to HRMorigin of HRM:

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Study of Work Efficiency at the Hawthorne works of the WesternElectric Company During 1924 – 1932 which realized that people aremore sensitive towards the attention paid to them and the work placerelationships than the work place physical conditions.

This realized the importance of “People oriented Management” for thefirst time hence given more value for the people factor than the task.

Introduction to HRMorigin of HRM:

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Introduction to HRMMilestones of HRM:

1890-1910Frederick Taylor develops his ideas on scientific management. Taylor advocatesscientific selection of workers based on qualifications and also argues for incentive-based compensation systems to motivate employees.

1910-1930Many companies establish departments devoted to maintaining the welfare ofworkers. The discipline of industrial psychology begins to develop. Industrialpsychology, along with the advent of World War I, leads to advancements inemployment testing and selection.

1930-1945The interpretation of the Hawthorne Studies' begins to have an impact onmanagement thought and practice. Greater emphasis is placed on the social andinformal aspects of the workplace affecting worker productivity. Increasing the jobsatisfaction of workers is cited as a means to increase their productivity.

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1945-1965In the U.S., a tremendous surge in union membership between 1935and 1950 leads to a greater emphasis on collective bargaining andlabor relations within personnel management. Compensation andbenefits administration also increase in importance as unionsnegotiate paid vacations, paid holidays, and insurance coverage.

1965-1985The Civil Rights movement in the U.S. reaches its apex with passageof the Civil Rights Act of 1964. The personnel function is dramaticallyaffected by Title VII of the Civil Rights Act , which prohibitsdiscrimination on the basis of race, color, sex, religion, and nationalorigin. In the years following the passage of the CRA, equalemployment opportunity and affirmative action become key humanresource management responsibilities.

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1985-presentThree trends dramatically impact HRM.

The first is the increasing diversity of the labor force, in terms of age,gender, race, and ethnicity. HRM concerns evolve from EEO andaffirmative action to "managing diversity."

A second trend is the globalization of business and the accompanyingtechnological revolution. These factors have led to dramatic changes intransportation, communication, and labor markets.

The third trend, which is related to the first two, is the focus on HRM asa "strategic" function. HRM concerns and concepts must be integratedinto the overall strategic planning of the firm in order to cope with rapidchange, intense competition, and pressure for increased efficiency.

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Introduction to HRMScope of HRM:

The scope of Human Resource Management refers to all the activitiesthat come under the area of Human Resource Management.Key Areas of HRM ;

Human Resource Planning

Job Analysis & Design

Recruitment & Selection

Orientation & Induction

Training & Development

Performance Appraisals

Compensation & Remuneration

Employee Motivation

Employee Welfare

Employee Health & Safety

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Introduction to HRMFunctions of HRM:

Human Resource Planning

A Process in which , an organization attempts to estimate the demand

for labor and evaluate the size, nature & sources of supply which will be

required to meet the demand of the organization.

Job Analysis & Design

The process of describing the nature of a job and specifying the human

requirements, such as skills, and experience needed to perform it. The

relevant jobs will be designed accordingly.

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Introduction to HRMFunctions of HRM:Recruitment & Selection

Recruiting is the personnel function that attracts qualified applicants to fill

job vacancies. In the selection function, the most qualified applicants are

selected for hiring from among those attracted to the organization by the

recruiting function.

Orientation & Induction

The first step toward helping a new employee adjust himself to the new

job and the employer. This will facilitate the employee to get familiar to

the corporate culture and environment.

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The training and development function gives employees the skills and

knowledge to perform their jobs effectively. In addition to providing

training for new or inexperienced employees, organizations often provide

training programmes for experienced employees whose jobs are

undergoing change. Large organizations often have development

programmes which prepare employees for higher level responsibilities

within the organization.

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Performance Appraisals

Monitors employee performance to ensure that it is at acceptable levels.

Human resource professionals are usually responsible for developing

and administering performance appraisal systems, which ensures that

the actual employee behavior / performance happened according to

planned expectations.

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Compensation & Remuneration

Determining how much employees should be paid for performing certain

jobs. Pay is obviously related to the maintenance of human resources.

Since it is a major cost to many organizations, it is a major consideration

in Human Resource Management.

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Employee Motivation

Creating a hidden force with in the employee which will change the

performance behavior of individuals as a result. This can be “Intrinsic” or

“Extrinsic”.

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Employee Welfare

Welfare includes anything (Services, Facilities, Assistance) that is done

for the comfort and improvement of employees and is provided over and

above the wages. Welfare helps in keeping the morale and motivation of

the employees high so as to retain the employees for longer duration.

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Employee Health & Safety

A cross-disciplinary area concerned with protecting the safety, health and

welfare of people engaged in work or employment. The goal of all

occupational health and safety programs is to foster a safe work

environment.

As a secondary effect, it may also protect co-workers, family members,

employers, customers, suppliers, nearby communities, and other

members of the public who are impacted by the workplace environment.

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Introduction to HRMKey Responsibilities of HR Manager:To act as an internal change agent and consultant.

To initiate change and act as an expert and facilitator.

To keep communication lines open between the HRDfunction and individuals and groups both within and outsidethe organization.

To identify and evolve HRD strategies in consonance withoverall business strategy.

To facilitate the development of various organizationalteams and their working relationship with other teams andindividuals.

To try and relate people and work so that the organizationobjectives are achieved effectively and efficiently.

To diagnose problems and to determine appropriatesolution particularly in the human resources areas.

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Introduction to HRMHRM Vs Personnel Management (PM):

Personnel Management is thus basically an administrative record-keeping

function, at the operational level. Personnel Management attempts to maintain

fair terms and conditions of employment, while at the same time, efficiently

managing personnel activities for individual departments etc.

Human Resource Management is concerned with the development and

implementation of people related strategies, which are integrated with

corporate strategies, and ensures that the culture, values and structure of

the organization, and the quality, motivation and commitment of its

members contribute fully to the achievement of its goals.

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Introduction to HRMHuman Resource Development (HRD):

HRD concept was first introduced by Leonard Nadler in 1969 in a conference in

US. “He defined HRD as those learning experience which are organized, for a

specific time, and designed to bring about the possibility of behavioral change”.

According to M.M. Khan, "Human resource development is the across

of increasing knowledge, capabilities and positive work attitudes of all

people working at all levels in a business undertaking."

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Introduction to HRMHuman Capital Management:

'The stock of accumulated knowledge, skills, experience, creativity and other

relevant workforce attributes' and suggest that human capital management

involves 'putting into place the metrics to measure the value of these attributes

and using that knowledge to effectively manage the organization'.

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Introduction to HRMTalent Management:Talent Management is about identifying a person's natural

skills, talent, personality and traits, by realizing that each

person has a certain talent suited to a specific job profile.

Simply it is a business practice that manage the planning,

acquisition, development, retention and growth of talent in

order to achieve business goals with optimized overall

performance.

Talent management has two challenges to face;

I. Finding new talent to fit in to the required job

description.

II. Retaining existing employees.

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Introduction to HRMKnowledge Management:

Knowledge Management is Capturing, organizing, and storing knowledge and

experiences of individual workers and groups within an organization and making

this information available to others in the organization.

Knowledge management is the systematic approach to getting an

organization to make the best possible use of its intellectual capital in

order to sustain competitive advantage.

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Introduction to HRMKnowledge Management:

How to create a learning organization by effectively managing knowledge?

Four steps to be followed

i. Effective Documentation (processing and storing data)

ii. Establishing connectivity / communication through LAN/WAN/INTERNET

iii. Dissemination (proper sharing of information among employees)

iv. Feedback and continual improvement.

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Introduction to HRMChanging Role of / Challenges Faced by HRM:

Personnel Management to Strategic Human Resource Management

Operational View to Strategic View

Reactive Behavior to Proactive Behavior

Employee Engagement

Change Management Involvement

Task Culture to Human Relations Culture

Acquisition Philosophy to Retention philosophy

Extraction to Development of HR

Improvement of IT Platforms

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Introduction to HRMImpact of IT in HRM:

e-HRM is the use of web-based technologies to provide HRM services within

organizations. Currently human resource management is making extensive use

of web-based technology.

HRM planning

Recruitment

Selection

Labour Cost Management

Monitoring of Leaves and Absenteeism

Salaries


Employee Feedback Collection

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Introduction to HRMKey Goals of / benefits Expected from HRM:

Supporting the business to achieve its corporate objectives

Creating & Developing a high performance culture

Ensure the timely supply of required Human Resources

Creating a positive employment relationship between the Employees & the

organization

Facilitating Professional growth of employees

Creating minimum possibilities for conflicts and regulatory action

Encouraging an Ethical Approach to HRM

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PowerPoint Presentation by Charlie CookThe University of West Alabama

Managing Human ResourcesBohlander • Snell 14th edition

THANK YOU !0773 – 29 20 29

[email protected]

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Introduction to Human Resource Management - BMSbms.lk/download/GDM_Tutorials/batch-33-34/HRM/Mathisha/week 1... · Introduction to Human Resource Management ... 2–3 Chapter Contents