Introduction To HRM

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Introduction to HRM

What is management?
The Strategic Role of Human Resources Management

Human Resources Management (HRM)


• the management of people in organizations to drive
successful organizational performance and
achievement of organization’s strategic goals
Human Capital
• the knowledge, education, training, skills, and
expertise of an organization’s workforce
A Brief History of HRM
Scientific Management
• concern for production
• scientifically analyzing manufacturing processes to
reduce costs and compensating employees based
on performance

Human Resources Movement


• concern for people and productivity
Human Resources Movement: Evolutionary Phases

Phase 1 - early 1900’s


• personnel administration
• hiring, firing, payroll/benefits processing

Phase 2 – 1930’s to 1950’s


• union liaison, compliance with new laws
• orientation, performance appraisal, employee
relations
Human Resources Movement: Evolutionary Phases

Phase 3 – 1960’s to 1980’s


• human resources management
• outsourcing of many administrative functions
• emphasis on contribution and proactive
management of people
Human Resources Movement: Evolutionary Phases

Phase 4 – 1990’s to present


• every line manager must posses basic HR skills
• help achieve strategic objectives
• new roles: activist, change steward, talent
manager/organizational designer, operational
executor and business ally
Measuring the Value of HR: Metrics

Today’s Measures
• focus on productivity, quality, sales, market share,
and profits
• balanced scorecard
• a measurement system that translates organization’s
strategy into a comprehensive set of financial and
operational performance measures
Environmental Influences
on HRM
External Influences Internal Influences

• Economic conditions • Organizational


• Labour market issues culture
• Technology • Organizational
climate
• Government • Management
• Globalization practices
• Environmental
concerns
External Influences:
Economic Conditions

• employment levels
• productivity levels
• growth of the primary, secondary, and tertiary
(service) sectors
External Influences:
Labour Market Issues

• increasing workforce diversity: visible and ethnic


minorities; women; Aboriginal population; people
with disabilities
• generational differences:
• Traditionalists (pre-1946)
• Baby Boomers (1946 to 1964)
• Generation X (1965 to 1980)
• Generation Y (1981 to present)
External Influences: Technology

• new technologies: Twitter, Facebook,


videoconferencing
• concerns over data control, accuracy, right to privacy,
and ethics
• computerized monitoring of e-mail, voice mail,
telephone conversations, computer usage, and
behaviour
External Influences: Government

Ensure policies and practices comply with new and


changing laws covering:
• human rights
• employment standards
• labour relations
• occupational health and safety
• workers’ compensation
External Influences: Globalization

Global trends:
• firms extend business operations abroad
• emergence of one world economy
• increased international competition
• multinational corporations: conduct business around the
world, seek cheap skilled labour

HR professionals must become familiar with


employment legislation in other countries and manage
ethical dilemmas.
External Influences: Environmental Concerns

Topics of increasing importance:


• sustainability
• climate change
• global warming
• pollution
• carbon footprints
• extinction of wildlife species
• ecosystem fragility
Internal Influences:
Organizational Culture

• core values, beliefs and assumptions


• often conveyed through an organization’s mission
statement
• positive culture is desired
Internal Influences:
Organizational Climate

• prevailing atmosphere in an organization


• friendly/unfriendly, open/secretive, rigid/flexible,
innovative/stagnant
• influenced by leadership, HR polices, communication
style
Management
The process of efficiently getting activities
completed with and through other people.
Management functions
Planning
• A management function focusing on setting organizational goals and
objectives.
.
Management functions
Organizing
• A management function that deals with what jobs are to be done, by
whom, where decisions are to be made and the grouping of
employees.
. Staffing
• A management function concerned with hiring, recruiting, training
and developing employees
Management functions
Leading
• A management function concerned with directing the work of others.
Controlling
• A management function concerned with monitoring activities
What is human resource
management?
Human Resource Management
• Function in the organization concerned with the staffing, training,
development, motivation and maintenance of employees.
OR
• Involves the productive use of people in achieving the organizations
strategic business objectives and the satisfaction of individual
employee needs.
Importance/Purpose of Human Resource
Management
• The purpose of HRM is to improve the productive contribution of
people to the organization in ways that are strategically, ethically
and socially responsible.
• Improper attention to HRM in the organization can lead to:
1. Hiring of wrong person for the job
2. Experience high turnover
Importance/Purpose of Human Resource
Management
3. Having people not doing their best
4. Wasting time with useless interviews
5. Company could be taken to court because of discriminatory actions
6. Thinking of some employees that their salaries are unfair and
inequitable relative to others in the organization
Importance/Purpose of Human Resource
Management
7. Committing any unfair labor practices
• For achieving best results, organization should focus on following
parameters:
1. Employment Security
2. Fair selection
Importance/Purpose of Human Resource
Management
3. Self managed teams and decentralized decision making
4. Comparatively high compensation linked to individual and
organizational performance
5. Extensive training
6. Extensive sharing of financial and performance information
throughout the organization
Human Resource Management Objectives

• Organizational Objectives
• Functional Objectives
• Societal Objectives
• Personal Objectives

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