MGT 301 Chapter 1: Introduction to Human Resource Management FEIHAN AHSAN BRAC University Sep 15th, 2013

About Me FEIHAN AHSAN M.A., Queen’s University, Canada MBA, North South University, NSU BBA, North South University, NSU School- Scholastica Interests:- Big Tennis fan- Queen’s Championship League player Big Movie Fan- Comedy/Romance/Action- I watch everything I like singing, am learning to play the piano Contact:- (lol)

Class Outline 1. What is HRM? 2. Why is HRM important? 3. Line and Staff aspects of HRM 4. HR Manager’s Duties 5. Changing Environment of HRM 6. Strategic HRM

The Management Process Managers basically do 5 things: Planning- Establishing goals and standards; developing rules and procedures; developing plans and forecasting Organizing- Arranging who will do what; establishing organizational structure and levels of authority; delegating work Staffing- Choosing people to hire; training them; paying them; measuring their performance etc. Leading- Getting work done through people; motivating and inspiring employees Controlling- Measuring actual performance with forecasted performance; controlling variations; correcting them

What is HRM?  HRM is the 3 rd function- STAFFING  1. Definition The process of hiring, managing and developing employees to achieve the overall strategic objectives of the organization.  2. Includes: Human Resource Management includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels.  3. Requires: Examples of core qualities of HR are strong intuition(i.e. good judgment), and effective negotiation skills. Formerly called personnel management.

Why is HRM Important? The basic objective of a manager is getting results, i.e. making profits for the company As a manager, you will have to get those results through people. You cannot do it alone Therefore, you need to manage those human resources effectively to achieve those profits. Hence, the need for HRM Without proper HRM, you might:- Hire the wrong person for the job Experience high turnover (employees leaving) Experience low morale in the firm Face legal charges by employees as well as the Govt. All these factors together can make the firm fail to reach it’s long-term objectives

Line and Staff Aspects of HRM Line (Primary) Authority is direct authority. It gives managers the right to issue orders to other managers or employees, hence creating a superior- subordinate relationship Staff (Secondary) Authority gives the manager the right to advise other managers or employees, not order. HR Managers are usually staff managers, which means they can advise top management regarding HR issues but they usually cannot order other line managers. (Except in their own department, remember: HR Managers have line authority in their own department) Ex- The HR Manager can directly order the HR officer Also remember, in small companies or firms there may be no separate HR department and the line manager may be responsible for all the HR functions.

Types of HR Officers Recruiters- Search for qualified job applicants Human Resource development Specialists- managing employee- development activities in an integrated manner Job Analysts- Collect and examine information about jobs to prepare job descriptions Compensation Managers- Develop compensation plans and handle the employee benefits program Training Specialists- Plan, organize and direct training activities Employment/Industrial Relations Specialists- Advise management on all aspects of union-management relations. Employee Welfare officers- Handle welfare activities in factories, as required by law.

The Changing Environment of HRM The environment in which HR operates is changing, because of:- Increased Globalization- more and more companies are operating on a global scale, therefore there is pressure to make the workforce more productive and reduce labour costs in relation to competitors. Technological Advancement- Everything is becoming automated, so the people have to be trained to use the technology. More Service-oriented jobs- as jobs become more and more service oriented, the focus on customer care and service delivery increases. Hence, HR has to maintain this service orientation. All this requires a need for Strategic HRM

Strategic Human Resource Management Strategic HRM means formulating and executing human resource policies and practices that produce the employee output the company needs to achieve its long-term objectives So, Strategic HRM helps the company to achieve it’s overall long-term objectives (it’s vision and mission) To do this, HR has to work together with the other departments and formulate the best strategy for the firm given the current resources at hand Strategic HRM sees HRM as part of a master plan for the firm, along with Finance, Marketing and the other departments, all working together to maximize firm profits in the current market situation

Core Themes in HRM Shared HR Responsibility HRM is the responsibility of every manager, not just the HR dept. Because every business decision involves people HR Performance has to be Measurable HR managers have to validate their decisions in measurable terms. Ex- How much will this new employee save the company Strategic Implications HR decisions have to be strategic, meaning they must give the firm a significant competitive advantage over rivals Improving Technology HR is getting more and more dependent on information technology. Ex- HR managers now use HRIS (Human Resource Information System) to handle administrative tasks. Legal Implications Almost every HR decision has legal implications. Thus, a HR manager has to be fully aware of the law. Ex- Making employees work overtime may be productive, but it is against the law if not given proper pay.

Thank You!