Lecture 01

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Human Resource Management

Chalani Kuruppu
MLRHRM (Col.), PGD.LRHRM (Col.)
BBA (Hons) (Sheff Hallam),  

Lecturer
Faculty of Business
SLIIT - Malabe Campus
LEARNING OUTCOMES

At the end of the lecture, students should be able to;

 Describe the evolvement of HRM.
 Understand the basic concepts of Human Resource Management
(HRM).
 Define HRM.
 Provide an overview of functions of HRM.
 Understand the significance of human resource.
 Understand the disadvantages of poor management of human
resource.
 Identify the global HR challenges.
 EVOLUTION OF HRM
More info: Read the article “Evolution of Human Resource
Management” by G Vani
Page 127 – 133, Review of Management, Vol. 1, No. 2, April-
June 2011”
(uploaded to moodle)

Personnel Management V Human Resource Management

Read Chapter 02 in The oxford handbook of HUMAN
RESOURCE MANAGEMENT
by PETER BOXALL, JOHN PURCELL and PATRICK WRIGHT
(uploaded to moodle)
Human Capital
Management

 Effectively managing the human factor,  It is a prime assets which requires

those who are capable of learning, investment and necessary for
changing, innovating, and being creative. organizational growth and survival
WHAT IS HRM?

 What is Management?
 What are the resources available in an
enterprise?
 What is Human Resource?
Employees as a resource
• Is being developed over the time and experience
• Not depreciated, but, being a continuously developing asset
• Has the ability of creativity and innovation
• Makes decisions in respect of all other resources
• Something valuable, really hard to quantify the exact value
• Something to be developed
• Something to be compensated
• Something to be carefully managed
• Something to be carefully maintained and retained
• Something, really needed to sustain the competitiveness
Other resources make things
possible but only human
resources make things happen.
 Thomas J. Watson, the founder
of IBM said,
“You can get capital and erect
buildings, but it takes people to
building a business”
WHY DOES HRM IMPORTANT TO ALL
MANAGERS
 Managing people is not something occurs in a back room
called HR Department.
 Managing people is every manager’s business.
 Successful organizations combine the experience of line
managers with the expertise of HR specialists to develop
and utilize the talents of employees.
 Addressing HR issues is not exclusive responsibility of
HR department.
 HR manager work side by side with line managers to
address people related issues of the organization.
WHY DOES HRM IMPORTANT TO ALL
MANAGERS
 The losses due to hire the wrong person for
the job
 Experience high turn over
 People not doing their best
 Waste time with useless interviews
 Legal responsibility
Effective management of people
is possible, but difficult. Why?

 Every person is unique

 Complex
 Unpredictable
 Difficult to motivate
 Unending needs
Definitions of HRM
 The human resource is defined as the total knowledge, skills, creative
abilities, talents and aptitudes of an organization’s workforce, as well
as the values, attitudes and beliefs of the individual involved (Professor
Magginson).
 Policies and practices needed to carryout the people, or personnel,
aspects of a management position, including recruiting, training,
rewarding and appraising (Dessler, Griffith, Lloyed Walker, Williams).
 Personnel management is the part of management concerned with the
people at work and their relations within the enterprise. It applies not
only to industry commerce but to all fields of employment (CIPD – UK).
Efficient and effective
HRM examines what
utilization of human resource can or should be
to achieve goals of an done to make people
HRM is the more productive and
organization
effective satisfied.
Simple
Definition management of
people at work

If the human resource is

mismanaged or
neglected, organizations
would not be able to
achieve their goals as
expected.
An organization?
Efficiency?
A collection of people works A productivity metric
together for achievement of Describes how fast a person/
common goals. product can do something
Optimum use of HR by
minimizing wastage

Effectiveness? Comparison of number of

A quality metric employees and cost

Describes how good a person/ product Utilize the right people in the

considering what he or the product is right number with the right cost

expected to be. at the right job

Employees who demonstrate effectiveness

in the workplace help produce high-quality
results.
HRM -hard or soft?

Hard: Human RESOURCE Management

 aligning business and HR strategies

 people as an economic factor (cost) to be

controlled

Soft: HUMAN Resource Management

 training and development

 commitment strategies
 SCOPE OF HRM; Three major subfields
Micro HRM Strategic HRM International
(MHRM) (SHRM) HRM (IHRM)

Covers the sub

• Concerns with HRM
functions of HR
in companies
policy and practices The overall HR
operating across
strategies adopted by
national boundaries.
business units and
• How HR sub functions
companies and tries
as selection and
to measure their
remuneration might
• Smaller group impact on
be adopted to
of sub functions performances
concerns with • Largest group
international
managing of sub functions assignments.
individual and concerns with
small groups work
Recruitment organization
Selection and employee
Induction voice systems
T&D Management
Performance union relations
management
Remuneration Read Page 02 – 04 in The oxford handbook of HUMAN RESOURCE MANAGEMENT
by PETER BOXALL, JOHN PURCELL and PATRICK WRIGHT
(uploaded to moodle)
 Performance
A model of Evaluation
Human Resource Management
Pay Management
Objectives

Training & 1. Procurement Strategic Generic Goal

Development of right people Goals
Job Job in the fight way. To generate
2. Retention of 1. Improvement and retain in
Analysis Design the most of Employee appropriate
Employee
appropriate Productivity. and contented
movements 2. Employee
employees. employee
3. Employee Development force which
3. Enhancement gives the
Human Hiring & Commitment
Management of of Quality of
Resources 4. Employee maximum
Planning Recruitment Selection Induction Incentives Work Life.
Motivation individual
4. Ensuring
5. Control of contribution to
Legal organizational
Employment
Welfare Compliance. success.
Costs
Administration

Health & Safety

Administration

Discipline
Management

Grievance
Handling

Labour Relations
Source: Opatha, 2002, performance Evaluation of Human Resource,
Management
Key Objectives of HR
Department:

What do they do
 Primary Objective
 Process Related Objectives

Primary Objectives of
Process Relating Objectives
HRM Department:
of HRM Department:
The key concerns of HR Department
 Motivational Objective
 Staffing Objectives
 Change Management Objective
 Performance Objective
 Culture Building Objective
 Development Objective
 Administrative Objective
 Maintenance Objective
Read “Reading 01”
(uploaded to Moodle)
Objectives of HRM
Recognize the role of HRM in
Ensure that the organization becomes bringing about organizational
socially responsible to the needs and effectiveness.
challenges of the society. Make sure that HRM is not a
Minimizing the negative impact of such standalone department, but rather a
demands upon the organization. means to assist the organization with
its primary objectives

Maintain the department’s

contribution at a level appropriate
to the organization’s needs.
Human resources are to be adjusted
to suit the organization’s demands.
Assist employees in achieving their
personal goals, at least as far as
these goals enhance the individual’s
contribution to the organization.
Otherwise employee performance and
satisfaction may decline giving rise to
employee turnover.
HRM Objectives and Functions
RESPONSIBILITES OF THE HUMAN
RESOURCES MANAGER
 Advice and counsel
 Service
 Policy formulating and implementation
 Employee advocacy
Consequences of poor Human
Resource Management

• Employees will frequently struggle with the

organization
• Develop interests away from the job
• Allow skilled employees to deteriorate
• Poor motivation
• Hire the wrong person for the job
• Experience high turnover
• People not doing their best
• Waste of time with useless interviews
• Legal actions
Competitive Challenges and HRM
Challenge 01:
Going global

Challenge 02:
Embracing new technology

Challenge 03:
Managing change

Challenge 04:
Managing talent, or human capital

Challenge 05:
Responding to the market

Challenge 06:
Containing costs

Read Competitive Challenges and HRM 1, 2 and 3 (uploaded to Moodle)

CAN YOU

 Describe the evolvement of HRM.

 Understand the basic concepts of Human Resource Management
(HRM).
 Define HRM.
 Provide an overview of functions of HRM.
 Understand the significance of human resource.
 Understand the disadvantages of poor management of human
resource.
 Identify the global HR challenges.
Thank you

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