Human Resource

Management
CHAPTER 1
Introduction to
Human Resource Management
 Learning objectives
• Define Human Resource Management
• Explain the significance of HRM
• Discuss functions of HRM
• Explain the changing role of HR managers
• Discuss the changing environment of HRM
• Managing Equal Opportunity and Diversity
 Human Resource Management at Work

• What is Management?

•Control
•Organize
Management •Lead
•Plan
•Staff
 Human Resource Management at Work

• What is Management?
• Planning: Establishing goals and standards; developing rules and procedures; developing plans and
forecasts.
• Organizing: Giving each subordinate a specific task; establishing departments; delegating authority
to subordinates; establishing channels of authority and communication; coordinating the work of
subordinates.
• Staffing: Determining what type of people should be hired; recruiting prospective employees;
selecting employees; training and developing employees; setting performance standards;
evaluating performance; compensating employees; counseling employees.
• Leading: Getting others to get the job done; maintaining morale; motivating subordinates.
• Controlling: Setting standards such as sales quotas, quality standards, or production levels;
checking to see how actual performance compares with these standards; taking corrective action as
needed.
 Human Resource Management at Work

• What is Human Resource Management?

- Human resource management (HRM)

is the process of acquiring, training,

appraising, and compensating

employees, and of attending to their

labor relations, health and safety,

and fairness concerns (Dessler,

2020).
 Human Resource Management at Work
What is HRM important to Managers?
=> HRM is important to managers since it helps them to avoid some of the
personnel mistakes:

• Have your employees not doing their best

• Hire the wrong person for the job

• Experience high turnover

• Have your company in court due to your discriminatory actions

• Have your company cited for unsafe practices

• Let a lack of training undermine your department’s effectiveness

• Commit any unfair labor practices

 Human Resource Management at Work

Line and staff aspects of Human Resource Management

HR managers’ duties are different from those of line managers. It is

the difference between line authority and staff authority.

• Authority: is the right to make decisions and give orders.

• Line authority: is the authority of managers to direct
people in their department.

• Staff authority: gives the HR manager the right to advise

other managers or employees.
 Human Resource Management at Work

Line Managers’ Human Resource Management Responsibilities

- Place the right person on the right job
- Orientate new employees
- Train employees
- Improve the job performance
- Develop good working relationships among employees
- Interpret the company’s policies and procedures
- Control costs
- Develop staff’s abilities
- Protect staff’s health and physical condition
 Human Resource Management at Work

• HR Manager’s Duties
Functions of an HR Manager

Coordination Staff function

Line function
functio
Advise and assist CEO and other managers to understand H
Coordinates HR activities and HR- related issues
Direct activities in
own department

Have staff authority

over other
departments in
employment related-
issues
 Human Resource Management at Work

• Size of HR department
- It depends on the size of the company

Figure: HR Organizational Chart (Small Company)

 Human Resource Management at Work

• Size of HR department

Figure:
HR Organizational Chart
(Large Company)
 Human Resource Management at Work
• Cooperative Line and Staff HR Management

- The line manager’s responsibility is to specify the qualifications employees need to fill
specific positions.

- HR staff then develops sources of qualified applicants and conduct initial screening
interviews.

- HR administers the appropriate tests and refers the best applicants to the supervisor (line
manager), who interviews and selects the ones he or she wants.
 Importance of Human Resource Management

HRM helps the It plays an important role

organization achieve It influences and
in identifying HR
competitive advantage; increases employee
problems in a firm and
commitment;
providing solutions;

It increases
It motivates staff; organization's
performance.
 Importance of Human Resource Management

• HRM manages any changes that

happen in an organization due to
merging activities, or business Planner
downsizing.
Facilitator

Coordinator

Auditor

Mediator
 Importance of Human Resource Management

Coordinator: Auditor: Mediator:

Employee health and safety;
Oversee employee performance
Act asand
a middle
controlman
compensa
in matt
Planner: Facilitator: Amenities and benefits Consultation with worker’s
Handling conflicts and empl
• Staffing • Training
• Planning • Development
manpower
needs • Orientation
• Recruitment and
employee
selection
 Functions of Human Resource Management

Training and Safety and Health Work Relations Compensation and b

Staffing
development

Planning Form human resource policy

Orientation
Salary administration
Safety and health programs
Job analysis Training
Medium for organization and workers union

Employee
development
Recruitment
Performance Incentives and benef
evaluation Salary administration
Selection
Career plan
 Changing Human Resource Management Environment

1. Globalization Trends

2. Technology Trends

3. Economic Trends

4. Trends in How People Work

5. Workforce Demographics and Diversity Trends

1. GlobalizationTrends
• Globalization refers to companies extending their
sales, ownership, and/or manufacturing to new
markets abroad.
• As multinational companies jockeyed for position,
many transferred operations abroad, not just to seek
cheaper labor but to tap new markets.
• The search for greater efficiencies prompted some
employers to offshore (export jobs to lower-cost
locations abroad).
2. TechnologyTrends
• Technology changed the nature of work and
therefore the skills that workers must bring to their
jobs.
• Provide up-to-date information for forecasting,
overseeing, and making decisions.
• Employers use “talent analytics” to sift through
vast reams of employee data to identify the skills
that excel on particular jobs, and to cut absences
and accidents.
3. EconomicTrends
• Although globalization supported a growing
global economy, the past 15 or so years were
difficult economically.
• Today, economic trends are pointing up.
• By 2017, the unemployment rate had fallen
from a high of more than 10% to around
4.5%.
4. TrendsinHowPeopleWork
• Work has shifted from manufacturing to
service in North America and Western
Europe.
• “Gig” workers: The large and growing
workforce comprised of contract, temp,
freelance, independent contractor, “on-
demand,” or simply “gig” workers.
5. WorkforceDemographicsandDiversityTrends

• The composition of the workforce will continue to

change over the next few years;
• Specifically, it will continue to become more diverse,
with more women, minority group members, and older
workers in the workforce.
• Diversity management
The changing role of Human Resource Management
• Every company needs its HRM policies and practices to make sense in terms of its
broad strategic aims.

• Strategic plan: The company’s plan for how it will match its internal strengths and
weaknesses with its external opportunities and threats to maintain a competitive
position.

• Strategic Human Resource Management: Formulating and executing human

resource policies and practices that produce the employee competencies and
behaviors the company needs to achieve its strategic aims.
 Managing Equal Opportunity and Diversity
• Equal Pay Act of 1963: The act requiring equal pay for equal work, regardless of sex.
• Title VII of the 1964 Civil Rights Act: The section of the act that says an employer cannot
discriminate on the basis of race, color, religion, sex, or national origin with respect to
employment.

• Equal Employment Opportunity Commission (EEOC): The commission, created by Title VII,
empowered to investigate job discrimination complaints and sue on behalf of complainants.

• Age Discrimination in Employment Act (ADEA) of 1967: The act prohibiting arbitrary age
discrimination and specifically protecting individuals over 40 years old.

• Pregnancy Discrimination Act (PDA): An amendment to Title VII of the Civil Rights Act that
prohibits sex discrimination based on “pregnancy, childbirth, or related medical conditions.”
 Managing Equal Opportunity and Diversity
• Americans with Disabilities Act (ADA): The act requiring employers to make reasonable
accommodations for disabled employees; it prohibits discrimination against disabled persons.

• Diversity: being diverse or varied, and at work means having a workforce comprised of two or more
groups of employees with various racial, ethnic, gender, cultural, national origin, handicap, age, and
religious backgrounds.

• PROBLEMS: Stereotyping, Prejudice (bias), Discrimination, Tokenism, Ethnocentrism…

• Gender-role stereotypes: The tendency to associate women with certain (frequently non-
managerial) jobs.
 Multiple choice questions

1. In order to enable an organization to compete in the 21st century, human

resource management needs to focus on …….

A. Developing production planning

B. Rationalizing scientific management principles
C. Developing a skillful and flexible workforce
D. Recruiting as many as possible employees
2. Below are the main activities of the HR Department EXCEPT…..

A. Directing operations manager

B. Giving services, advice and counseling
C. Developing and implementing organization policy
D. Administer recruitment and training programs
3. The key to quality product and services for an organization depends on how it
manages……

A. Budget
B. Project
C. Labor union strictly
D. Employees
4. The HR owned by an organization can be used to compete if the resource is
…..

A. Paid special attention

B. Well looked after
C. Well managed
D. Given attractive rewards
5. Which of these is Not one of the main technological effects towards human
resource management?

A. Technology has changed the methods used to gather information of

employee transfer

B. Technology has sped up the employee intake data processing

C. Technology has eliminated supervising roles in employee management
D. Technology has improved internal and external communications process
6. Which of the following is NOT considered one of the line supervisor's
responsibilities for effective human resources management under the general
headings outlined by a major company discussed in the textbook?

A) protecting employees' health and physical condition

B) changing employees' attitudes regarding work

C) developing the abilities of each person

D) interpreting the company policies and procedures

7. A line manager's human resource responsibilities most likely include all of the
following EXCEPT .

A) maintaining department morale

B) controlling labor costs

C) protecting employees' health

D) marketing new products and services

8. Which of the following refers to the authority a manager has to advise other
managers or employees?

A) staff authority

B) line authority

C) functional authority

D) corporate authority
 Activity

• Read the two case studies and answer questions.

• Write down your group’s answers and submit them to your lecturer.
 CARTER CLEANING
CENTERS
Jennifer Carter graduated from State University in June 2010, and, after considering several job offers, decided to do
what she really always planned to do—go into business with her father, Jack Carter.
Jack Carter opened his first laundromat in 1998 and his second in 2001. The main attraction of these coin laundry
businesses for him was that they were capital intensive rather than labor intensive. Thus, once the investment in machinery was
made, the stores could be run with just one unskilled attendant and have none of the labor problems one normally expects
from being in the retail service business.
The attractiveness of operating with virtually no skilled labor notwithstanding, Jack had decided by 1999 to expand
the services in each of his stores to include the dry cleaning and pressing of clothes. He embarked, in other words, on a
strategy of “related diversification” by adding new services that were related to and consistent with his existing coin laundry
activities. He added these in part because he wanted to better utilize the unused space in the rather large stores he currently had
under lease. But he also did so because he was, as he put it, “tired of sending out the dry cleaning and pressing work that came in
from our coin laundry clients to a dry cleaner 5 miles away, who then took most of what should have been our profits.” To
reflect the new, expanded line of services, he renamed each of his two stores Carter Cleaning Centers and was sufficiently
satisfied with their performance to open four more of the same type of stores over the next five years. Each store had its own
on-site manager and, on average, about seven employees and annual revenues of about $600,000. It was this six-store cleaning
centers chain that Jennifer joined upon graduating from State University.
Her understanding with her father was that she would serve as a troubleshooter and consultant to the elder Carter with
the aim of both learning the business and bringing to it modern management concepts and techniques for solving the business’s
problem s and facilitating its growth.
Questions: 1, Make a list of five specific HR problems you think Carter Cleaning will have to grapple with.
2, What would you do first if you were Jennifer?
 Jack Nelson's Problem
As a new member of the board of directors for a local bank. Jack Nelson was being introduced to all the employees in
the home office. When he was introduced to Ruth Johnson, he was curious about her work and asked her what her
machine did. Johnson replied that she really did not know what the machine was called or what it did. She explained that she
had been working there for only two months. She did, however, know precisely how to operate the machine. According to her
supervisor, she was an excellent employee.
At one of the branch offices, the supervisor in charge spoke to Nelson confidentially, telling him that “something
was wrong,’’ but she didn’t know what. For one thing, she explained, employee turnover was too high, and no sooner had one
employee been put on the job than another one resigned. With customers to see and loans to be made, she explained, she had
little time to work with the new employees as they came and went. All branch supervisors hired their own employees without
communication with the home office or other branches. When an opening developed, the supervisor tried to find a suitable
employee to replace the worker who had quit.
After touring the 22 branches and finding similar problems in many of them, Nelson wondered what the home
office should do or what action he should take. The banking firm was generally regarded as a well-run institution that had grown
from 27 to 191 employees during the past eight years. The more he thought about the matter, the more puzzled Nelson
became. He couldn’t quite put his finger on the problem, and he didn’t know whether to report his findings to the president.
Jack Nelson's Problem

Questions:
1, What do you think is causing some of the problems in the bank’s home office and
branches? 2, Do you think setting up an HR unit in the main office would help?
3, What specific functions should an HR unit carry out? What HR functions would then be carried out by
supervisors and other line managers? What role should the Internet play in the new HR organization?
 Lecturer: Nguyễn Quốc Sĩ
[email protected]