Chapter 1
Introduction to HRM
Chapter Outcomes
• After studying this chapter, you
should be able to—
• Explain what human resource management is
and how it relates to the management process.
• Give at least eight examples of how all
managers can use human resource
management concepts and techniques.
• Illustrate the human resources responsibilities of
line and staff (HR) managers.
• Provide a good example that illustrates HR’s role
in formulating and executing company strategy.
Human Resource Management
• Human Resource Management (HRM) is an operation
in companies designed to maximize employee
performance in order to meet the employer's
strategic goals and objectives. More precisely, HRM
focuses on management of people within companies,
emphasizing on policies and systems.
• The policies and practices involved in carrying out
the “people” or human resource aspects of a
management position, including recruiting,
screening, training, rewarding, and appraising.
• HR creates value by engaging in activities that
produce the employee behaviors that the company
needs to achieve
its strategic goals.
Importance of HRM to all
Managers
• Why HRM concepts and techniques important to all
managers?
• Hiring the right person for the job
• Reducing turnover
• Help your people to do the best in their job
• Proper utilization of time
• Giving equal employment opportunities
• Ensure occupational safety laws and safe practices in
workplace
• Always being fair to employees regarding salaries & wages
• Arranging effective training
• Fair labor practices and ensure job satisfaction
Human Resource Management
Processes
Acquisitio
n
Fairne Traini
ss ng
Human
Resource
Management
Health and (HRM) Apprais
Safety al
Labor Compensati
Relations on
HRM Process
Line and Staff Aspects of HRM
• Line Manager
• A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
• Staff Manager
• A manager who assists and advises line
managers.
Line Managers’ HRM
Responsibilities
• Placing the right person on the right job
• Starting new employees in the organization
(orientation)
• Training employees for jobs that are new to them
• Improving the job performance of each person
• Gaining creative cooperation and developing smooth
working relationships
• Interpreting the firm’s policies and procedures
• Controlling labor costs
• Developing the abilities of each person
• Creating and maintaining department morale
• Protecting employees’ health and physical condition
HR Manager’s Duties &
Responsibilities
1. A Line Function
2. A Coordinative Function
3. Staff (assist & advice) Functions
• Advice the top executives for better understanding of HR
aspects of organizational objectives
• Assist in hiring, training, evaluating, rewarding,
counseling, promoting & firing employees
• Play role in handling grievance & employee relations
• Play innovator roles in implementing current trends for
better utilization of employees
• Play an employee advocacy role
• Exert implied authority
Trends Shaping Human
Resource Management
Globalization
and
Competition
Trends
Indebtedness
(“Leverage”) Technologi
and cal
Deregulation Trends in HR Trends
Management Workforce
Trends in
and
the Nature
Demographi
of Work
c Trends
Economic
Challenges
and Trends
FIGURE 1–4 Trends Shaping Human Resource
Management
Important Trends
in HRM
The New
HR
Manager
s
Strateg High-
ic Human Performance
HRM Work
Resource
Systems
Management
Evidence- Trends M anagi
Based ng
HRM Ethics
HR
Certificatio
n
Trends in the Nature of Work
Changes in How We
Work
High- Servic Knowledge Work
Tech e and Human
Jobs Jobs Capital
TABLE 1–1 Demographic Groups as a Percent of the Workforce,
1986–2016
Workforce and
Demographic Trends
Demographic
Trends
Generation “Y”
Trends Affecting
Human Resources
Retirees
Nontraditional
Workers
Meeting Today’s HRM
Challenges
The New Human
Resource
Managers
Acquire
Find new
Focus more broader
ways to
on “big business
provide
picture” knowledge
transactional
(strategic) and new
services
issues HRM
proficiencies
TABLE 1–2 Some Technological Applications to Support HR
Technology How Used by HR
Application service ASPs provide software application, for instance, for
providers (ASPs) and processing employment applications. The ASPs host and
technology outsourcing manage the services for the employer from their own
remote computers
Web Employers use these, for instance, to enable employees to
portals sign up for and manage their own benefits packages and
to update their personal information
Streaming desktop Used, for instance, to facilitate distance learning and
video training or to provide corporate information to
employees quickly and inexpensively
Internet- and Used to track employees’ Internet and e-mail activities or
network- to monitor their performance
monitoring
software
Electronic Legally valid e-signatures that employers use to more
signatures expeditiously obtain signatures for applications and record
keeping
Electronic bill Used, for instance, to eliminate paper checks and to
presentment and facilitate payments to employees and suppliers
payment
Data warehouses Help HR managers monitor their HR systems. For
and computerized example, they make it easier to assess things like cost
analytical programs per hire, and to compare current employees’ skills with
the firm’s projected strategic needs
Understanding Cultural Environments
• HRM operates in a global business environment
• Countries have different
• Values
• Morals
• Customs
• Political, economic, and legal systems
• HRM helps employees understand other countries’
political and economic conditions.
• The rise of multinational and transnational
corporations places new requirements on human
resource managers.
• For example, HR department must ensure that employees
with the appropriate mix of knowledge, skills, and cultural
adaptability are available & ready to handle global
assignments.
Understanding Cultural
Environments
• Cultural Values
• Countries differ greatly on the emphasis they place on the
individual versus the collective. Organizations that plan to
enter the global environment need to do their homework to
understand the culture and workers
Countries that value Individualism Countries that value Collectivism
1. United States 1. Japan
2. Great Britain 2. Colombia
3. Australia 3. Pakistan
4. Canada 4. Singapore
5. Netherlands 5. Venezuela
6. New Zealand 6. Philippines
The Changing World of Technology
• HRM operates in a technologically changing
environment.
Globalization 1.0 Globalization 2.0 Globalization 3.0
(1492-1800) (1800 -2000) (2000 -????)
Driven by transportationDriven by communication Driven by technology
3.0 fueled by instant communication and the Internet.
• Globalization 3.0 has shifted demand for
manufacturing and services such as customer
services to low-cost providers in Mexico, India,
and China.
The Changing World of Technology
• The IT field is growing.
• Knowledge workers focus on the acquisition and
application of information for decision making.
• Knowledge workers include professionals such as
registered nurses, accountants, teachers, lawyers,
and engineers.
• It also includes technologists—people who work
with their hands and with theoretical knowledge—
commonly referred to as information
technologists.
