HUMAN RESOURCES MANAGEMENT Chapter 1: The Human Resource Frameworks

Importance of Organizations How well any country survives in this global economy depends on the performance of its organizations – public or private. Ultimately, every society’s wealth and well-being come from its organizations. Every major advance or accomplishment shares a common feature: Organizations.

Importance of HR Assets make things possible, people make things happen.

The Central Challenge Unemployment Challenges Social Responsibility Challenges Medical, Food, Housing Challenges Unknown Challenges Ethical Challenges Work Diversity Challenges Population – Growth Challenges Global Competitive Challenges

The Purpose of HRM The purpose of human resources management is to improve the productive contribution of people to the organization in ways that are strategically, ethically, and socially responsible.

Role of HRM The HR department exists to support managers and employees as they pursue the organization’s strategy. It guides many activities and support managers who operates other parts in the organization.

The Objectives of the HRM Organizational objective HRM exists to contribute to organizational effectiveness. Functional objective The HR department’s contribution must be at a level appropriate to the organization’s needs. Resources are wasted when HRM is more or less sophisticated that the organization demands. Societal objective It means to be ethically and socially responsive to the needs and challenges of the society while minimizing the negative impact of such demands on the organization. Personal objective It means to assist employees in achieving their personal goals, at least insofar as those goals enhance the individuals’ contribution to the organization. This objective must be met if workers are to be maintained, retained, and motivated.

HRM Activities HR activities are actions that are taken to provide and maintain an appropriate workforce for the organization. HR activities are: 1. Human resource planning2. Recruitment 3. Selection4. Orientation and training 5. Placement6. Development 7. Performance appraisal8. Compensation 9. Employee relations10. Union-management relations 11. Assessment Review figure 1-4: The relation of activities to objectives in HRM, page 12)

Responsibility of HR Activities The responsibility of HRM activities rests with each manager.

The Organization of a HR Department HR activities are handled by managers. In small firms, a HR department emerges and it is the responsibility of a middle-level manager. (Review figure 1-5, page 13). In large firms, the importance of the department increases. Its head reports directly to the company’s president and highly specialized subdepartments emerge to provide a wide range of services. (Review figure 1-6, page 14).

The Service Role of a HR Department HR is a service department. It has a staff authority. When the cost of not following the HR department’s counsel is high, top management may replace staff authority with functional authority over specific issues. The use of line, staff, and functional authority results in a dual responsibility for HRM.

The HRM Model HRM is a system that consists of many interdependent activities. These activities do not happen in isolation; virtually every one affects another HR activity. If a problem happens in one, the other activities are affected. An applied systems view describe HR activities as taking inputs and transforming them into outputs. Then an HR specialist checks the results to see if they are correct. This checking process produces feedback. Review figure 1-5: The human resource management model and subsystems, page 19 and figure 1-6: Input- output simplification of the HRM system, page 20. It is an open system, affected by the environment.

Proactive versus Reactive HRM Reactive HRM occurs when decision makers respond to HR problems. Proactive HRM occurs when HR problems are anticipated and corrective action begins before a problem rises.

Viewpoints of HRM Strategic approach HRM must contribute to the strategic success of the organization. Human resource approach HRM is management of people. Only through careful attention to the needs of employees can organizations grow and prosper. Management approach HRM is the responsibility of every manager. The performance and well-being of each worker are the dual responsibility of that worker's supervisor and the HR department. Systems approach HRM takes place with a larger system; the HR efforts must be evaluated with respect to the contribution they make to the organization’s productivity. HRM model is an open system of interrelated parts. Proactive approach HRM can increase its contribution to the employees and the organization by anticipating challenges.