HUMAN RESOURCE MANAGEMENT (HRM)
The policies, practices, and systems that influence employees’
behavior, attitudes, and performances
Is a function in an organization that facilitates the most effective
use of people (human capital) to achieve organizational and
individual goals; with specialized responsibility of enabling
management to acquire, develop, motivate, and retain competent
employees
a “distinctive” approach to employment management which seeks
to achieve competitive advantage through the strategic deployment
of a highly committed and capable workforce an array of cultural,
structural and personnel techniques’
HUMAN RESOURCE MANAGEMENT (HRM)
refers to as involving “people practices”
1. Analyzing work & designing jobs, attracting potential employees;
2. Choosing employees;
3. Teaching employees how to perform their jobs and preparing them for the
future;
4. Evaluating their performance;
5. Rewarding employees;
6. Creating a positive work environment; and
7. Supporting the organization’s strategy.
an organization performs best when all of these practices are
managed well
Human Resource Management Practices
Support
Analysis Employ Training Perform ing the
and ee Recruiti Selectio and ance Compen Organiz Company
Design Relation ng n Develop Manage sation ation’s Performance
of Work s ment ment Strateg
y
Strategic Human Resource Management
Human Resources and Company Performance
Human capital – an organization’s employees, described in terms of
their training, experience, judgement, intelligence, relationships, and
insight – the employee characteristics that can add economic value to
the organization.
Employee in today’s organization are not interchangeable, easily
replaced parts of a system but the source of the company’s success
and failure.
By influencing who works for the organization and how those people
work, HRM therefore contributes to such basic measures of an
organization’s success as quality, profitability, and customer
satisfaction
Type of Human Capital
• Training
• Experience
• Judgement
• Intelligence
• Relationships Organizational
• Insight Performance
Human Resource • Quality
Management • Profitability
• Customer
Satisfaction
Behavior of Human
Capital
• Motivation
• Effort
Impact of Human Resource Management
Responsibilities of Human Resource Departments
FUNCTION RESPONSIBILITIES
Analysis and Design Work analysis; job design; job description
of work
Recruitment and Recruiting; job postings; interviewing; testing; coordinating use of
Selection temporary labor
Training and Orientation; skills training; career development programs
Development
Performance Performance measures; preparation and administration of performance
Management appraisals; discipline
Compensation and Wage and salary administration; incentive pay; insurance; vacation leave
Benefits administration; retirement plans; profit sharing’ stock plans
Responsibilities of Human Resource Departments
FUNCTION RESPONSIBILITIES
Employee Relations Attitude survey; labor relations; employee handbooks; company publications; labor
law compliance; relocation and outplacement services
Personnel Policies Policy creation; policy communications; record keeping; HR information systems
Compliance with laws Policies to ensure lawful behavior; reporting; posting information; safety
inspections; accessibility accommodations
Support for Strategy Human resource planning and forecasting; change management
HRM or Personnel Management
Phrases and terms for “HRM:”
★ Human Resource Development (HRD); ★ Human Capital Management; or
★ Personnel; ★ Labour Concepts Management
★ People Management & Development;
Human Resource Management, the more strategic and business-
focus, while Personnel Management, more operational,
administrative and employee-focused
Key Differences between Personnel Management and
Human Resource Management
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
Employee focused Business partner
Operational and administrative Strategic
Reactive Proactive
Fragmented and ad hoc policies and practices Integrated and coordinated policies and practices
Focus on performance measurement Focus on adding value
Hard and Soft HRM
Hard HRM – said to place an emphasis on the efficient utilization of
your workforce.
Views employees as a “resource” that needs to be effectively sourced and deployed to
achieve organizational goals;
Focus on HR activities/tools, HR planning, clear goal/target setting
Soft HRM – places greater emphasis on those people management
practices and activities that are aimed at gaining the affective
commitment of employees to the organization and its goals
Views employees in a more humanistic way
Hard and Soft Human Resource Management
Hard HRM Soft HRM
Employees are a (human) resource to be utilized Employees are a source of competitive advantage
Deployment Development
Control Commitment
Direction Involvement
Rigidity flexibility
Performance measurement Performance enabling
HRM Roles and Responsibilities
Presenting two (2) heavily influencing both theory and practice about
HRM roles.
John Storey’s “Strategic/Tactical Model”
Two criteria:
1. Level of intervention – “interventionist” HR is directive and proactive
and “non-interventionist” HR is reactive and non-directive
2. Strategic or Tactical Focus – “strategic” HR if focused on macro business-
related concerns, and “tactical” HR is focused on more day-to-day
operational (micro) people management issues
Summary of Storey’s (1992) HR Roles
HRM Roles and Responsibilities
Presenting two (2) heavily influencing both theory and practice
about HRM roles.
Dave Ulrich and Wayne Brockbank’s HR Leader Model
Identified five (5) potential HR roles within organizations.
Like Storey, they attempted to develop model that recognized, and
integrated, the complex (and often competing) strategic and
operational functions/responsibilities of HR within organizations
Summary of Ulrich and Brockbank’s (2005) HR Leader Model
Summary of Storey’s (1992) HR Roles
Skills of HRM
Professional
Skills of Human Resource Departments Professionals
Human Relations Skills
“source of people expertise;”
Need knowledge of how people can and do play a role in giving the
organization an advantage against the competition;
Knowledge of the policies, programs, and practices that can help the
organization’s people do so;
Particularly important are communicating, negotiating, and team
development.
Skills of Human Resource Departments Professionals
Decision-Making Skills
Apply decision-making skills to strategic issues;
Knowledge of organization’s line of business;
Ability to present options in terms of costs and benefits to the organization,
stated in terms of finances (pesos);
Decisions also must take into account social and ethical implications of the
alternatives
Skills of Human Resource Departments Professionals
Leadership Skills
Requires helping the organization manage change
Includes diagnosing problems, implementing organizational changes, and
evaluating results, especially in terms of employee’s skills and attitudes
changes – produces conflicts, resistance, and confusions among the people who must
implement the new plans or programs
Provides tools for overcoming resistance to change, teaching employees to
operate under new conditions, and even encouraging innovation.
Skills of Human Resource Departments Professionals
Technical Skills
Need knowledge of state-of-the-art practices in such areas as staffing,
development, rewards, organizational designs, and communications
Must be able to evaluate the worth of the techniques that are
available for carrying out HRM activities, principles, and business value
to determine which are beneficial
Outsourcing the HR function
HR outsourcing – refers to the use of another party to deliver all
or part of this function and its services, with various reports
suggesting that nearly all organizations (at some point) have
outsourced parts of their HR function.
Outsourcing presents organizations with certain challenges,
including decisions regarding what to outsource, whom to
outsource them to, for how long and how to manage this
relationship.
Potential Benefits and Challenges of Outsourcing HR (CIPD, 2011)
Potential Benefits Potential Challenges
Decisions on what to outsource-as a rule, do not
Reduced costs
outsource what you don’t understand
Increased efficiencies and speed of response Loss of tacit knowledge
Loss of control over HR processes and decision
Access to the provider’s sophisticated her systems
making
Disconnect between day-to-day operational
Access to new HR expertise and the knowledge
decisions made by the outsourcing provider and the
strategic HR decisions made by the central
Reduced risk functions
HR function freed to be more focused on strategy
HR Responsibilities of Supervisors
Many large organizations have human resource department,
which advise and support activities of the other departments. In
small organizations, there may be an HR specialist, but many HR
activities are carried out by line supervisors.
Non-HR managers need to be familiar with the basics of HRM and
their role with regard to managing human resources.
Supervisors typically have responsibilities related to all the HR
functions
HR Responsibilities of Supervisors
Supervisors are likely to be involved in:
1. Determine what kind of works need to be done and in what quantities
2. Interview and participate in the decisions which job candidates to be hire
3. Train employees in some or all aspects of employees’ job
4. Conduct performance appraisal and may recommend pay increase
5. Plays a key role in employee relations, because they are most often the voice of management
Understanding the principles of communication, motivation, and
other elements of human behavior can help supervisors inspire
the best from the organization’s human resources
Help define
Motivate, with jobs
support from Forecast
pay, benefits, HR needs
and other
rewards
Interview
Communication (and select)
policies candidates
Recommend pay Appraise
increases and Supervisors’ Involvement in performance
promotions HRM: Common Areas of
Involvment
Ethics in Human Resource Management
Ethics – refers to the fundamental principles of right and wrong;
ethical behavior is behavior that is consistent with those
principles.
In the context of ethical human resource management, HR
manager must view employees as having basic rights.
Employee Rights
Right of free consent – right to be treated only as knowingly and
willingly consent to be treated
Right of privacy – right to do as they want in their private lives,
and they have the right to control what they reveal about private
activities
Right of freedom of conscience – right to refuse to do what
violates their moral beliefs, as long as these beliefs reflect
commonly accepted norms
Employee Rights
Right of freedom of speech – right to criticize an organization’s
ethics, if they do so in good conscience and their criticisms doe
not violate the rights of individuals in the organizations
Right to due process – if people believe their rights are being
violated, they have the right to a fair and impartial hearing.
(Congress has addressed this right in some circumstances by establishing agencies to hear
complaints when employees believe their employer has not provided a fair hearing)
Standards for Ethical Behavior
Four principles according to ethical, successful companies:
1. Relationship with customers, vendors, and clients, emphasize
mutual benefits;
2. Employees assume responsibility for the actions of the
company;
3. Such companies have a sense of purpose or vision that
employees value and use in their day-to-day work
4. Emphasize fairness; that is, another person’s interest count as
much as their own
Standards for identifying
Ethical Practices
Fair and Respect
equitable for basic
human
Ethical rights
Alternative