1. HUMAN RESOURCE MANAGEMENT Prof H.M Usman Gondal CHAPTER NO. 1

2. AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:
Understand the term HRM and importance of HRM.
Comprehend four functions of HRM .
Describe evolution of HRM.
Identify key roles played by HR managers.
Explain challenges faced by HR managers.
Differentiate between HRM and international HRM.

3. We can Divide this Term into Three Parts
HUMAN
RESOURCE
MANAGEMENT

4. HUMAN ?

5. ORGANIZATIONAL RESOURCES
FINANCIAL RESOURCES
PHYSICAL RESOURCES
Means debt, equity, retain earnings and selected matters.
Means building, machinery, vehicle and other material.
ORGANIZATIONAL RESOURCES
HUMAN
RESOURCE
Include the history of groups in the organization, relationship, level of trust etc.
Includes skills, abilities, experience and other work related characteristics of people associated with the organization.

6. MANAGEMENT
Management is the universal process of getting activities completed with and through other people to achieve organizational goals.

7. HUMAN RESOURCE MANAGEMENT
The design of formal systems in an organization to ensure effective and efficient use of talent to accomplish organizational goals.
Human Resource Management helps in maximizing productivity & reducing cost by Putting Right Person At Right Place.

8. EVOLUTION OF HRM ?

9. 2. Scientific Management (Early 1900s)
EVOLUTION OF HRM Cont . . .
1. The Craft System
(1600s-1700s)
Small level of production
Industrial Revolution
One best way to accomplish the task
Putting the right person on the job with the
correct tools and equipment
Having a standardized method of doing the job
Providing an economic incentive to the worker
2. Scientific Management (Early 1900s)
3. Human Relations
(Late 1920s – Early 1930s)
Hawthorne studies
Employee participation program

10. 6. Human Resource Management 7. Intellectual Capital Management
EVOLUTION OF HRM Cont . . .
4. Behavioral Sciences
The study of the actions of people at work; people are the most important asset of an organization.
5. Personnel Management
Involve in operational planning and decision making & do not incorporate all HR activities.
6. Human Resource Management
Involve in operational as well as strategic planning and decision making & incorporate all HR activities(training, career development, EEO etc.)
7. Intellectual Capital Management
Organizations need to be dynamic both in the context of the management of individual capabilities and the management of organizational structure.

11. H R M FUNCTIONS OF HRM STAFFING MAINTENANCE MOTIVATION TRAINING
& DEVELOPMENT
MOTIVATION
H R M

12. Training & Development
FUNCTIONS OF HRM Cont . . .
STAFFING
Strategic Human Resource
Planning
Recruitment
Selection
Maintenance
Training & Development
Motivation
H R M

13. 1. STAFFING
The activities in HRM concerned with seeking and hiring qualified employees are called Staffing.

14. COMPONENTS OF STAFFING
The basic objective of the staffing function is to locate & secure competent employee.
COMPONENTS OF STAFFING
a. Strategic Human Resource Planning
b. Recruitment
c. Selection

15. STRATEGIC HUMAN RESOURCE
PLANNING
Strategic Human Resource Planning is the process by which an organization ensures that it has right number and kind of people capable of effectively and efficiently completing those task that are in direct support of company’s mission and strategic goals.

16. b. RECRUITMENT
The process by which a job vacancy is identified and potential employees are notified.
OBJECTIVES
To obtain an adequate pool of applicants there by more choice to the organization.
Providing enough information about the job such that those who are unqualified will not apply.

17. c. SELECTION
Selection is the process by which an organization chooses from list of applicants the person or persons who meet the selection criteria for the position available considering current environmental conditions.

18. c. SELECTION
The primary objective of selection activities is to predict which job applicant will be suitable if hired, during the selection process, candidate are also informed about the job and organization
Proper selection can minimize the cost of replacement and training resulting in more productive workforce

19. TRAINING & DEVELOPMENT
FUNCTIONS OF HRM Cont . . .
Staffing
Maintenance
Motivation
TRAINING & DEVELOPMENT
Orientation
Employee Training
Employee Development
Organization Development
Career Development
H R M

20. 2. TRAINING & DEVELOPMENT
Training is the systematic process of altering the behavior of employees in a direction that will achieve organizational goals.
Development can be defined as “Efforts to improve employees’ ability to handle a variety of assignments are.”

21. 2. TRAINING & DEVELOPMENT
The basic objective of Training & Development function is to take competent workforce, adapt them to the organization, and help them to obtain up-to-date skills, knowledge, and abilities for their job responsibilities

22. TRAINING & DEVELOPMENT
COMPONENTS OF
TRAINING & DEVELOPMENT
Orientation
Employee Training
Development
Employee
Organization
Career Development

23. TRAINING & DEVELOPMENT Cont . . .
COMPONENTS OF
TRAINING & DEVELOPMENT Cont . . .
a. Orientation
It covers the activities involve in the introducing a new employee to organization and to his or her work unit.
b. Employee Training
Employee training is designed to assist employee acquiring better skill for the current job.
c. Employee Development
The focus of employee development is on a future position with in the organization for the which employee require additional competencies.
d. Career Development
The focus of career development is to provide the necessary information and assignment in helping employees realize their career goals.
e. Organizational Development
Organizational Development is the part of HRM that deals with facilitating system wide change in the organization.

24. H R M FUNCTIONS OF HRM Cont . . . Motivation Staffing Maintenance
Training
&
Development
Staffing
Maintenance
Motivation
Motivation and Job Design
Performance management
Reward & Compensation
Employee Benefits
H R M

25. 3. MOTIVATION MOTIVATION
An inner force that impels human beings to behave in a variety of ways.

26. 3. MOTIVATION
The basic objective of motivation function is to retain good staff and to encourage them to give of their best.

27. COMPONENTS OF MOTIVATION
A job should be designed in a such a way that it
should facilitate the achievement of the
organizational objective, stimulate performance
and recognize the capacity and needs of those
who are to perform it. 1.
Job
Design
Process which is used to identify, encourage,
measure, evaluate and improve employees through
performance appraisal.
2. Performance Management
Compensation is what employee receives in
exchange for their contribution to the organization.
Compensation management help the organization
to obtain, maintain and retain a productive
Workforce.
3. Compensation Management
Employees benefit are generally membership
based ,non financial reward offered to attract and
keep the employees, regardless their
performance level. 4.
Employee Benefit

28. Training & Development
FUNCTIONS OF HRM Cont . . .
Motivation
Staffing
Maintenance
Health & safety
Communication
Employee relations
Training & Development
H R M

29. 4. MAINTENANCE FUNCTION MAINTENANCE
Activities in HRM concerned with maintaining employees commitment and loyalty to the organization.

30. 4. MAINTENANCE FUNCTION
The last phase of HRM process is called maintenance function. The main objective of this function is to do such HRM activities that maintain employees commitment and loyalty with the organization.

31. COMPONENTS OF MAINTENANCE
Health and Safety
Communication
Employees/ Labor Relation
Designing and implementing programs to ensure employee health and safety.
Serving as an intermediary between the organization and its union.
Designing discipline and grievance handling systems.
Designing and implementing employee communication system.

32. ROLES OF HR MANAGER Serve as “Morale Officer” Administrative Role
Clerical Administration
Serve as “Morale Officer”
Administrative
Role
Employee Advocate
Operational
Strategic
HR Activities
Business Contributor

33. ROLES OF HR MANAGER Cont . . .
1. Administrative Role
Clerical and administrative support operations (e.g., payroll and benefits work).
Employee Advocate Role 2.
“Champion” for employee concerns
Employee crisis management
Responding to employee complaints
Operational Role 3.
Identification and implementation of HR programs and policies—hiring, training, compensating and other activities that support the organization.

34. ROLES OF HR MANAGER Cont . . .4.
Strategic Role
Focusing on developing HR
activities that enhance organizational
performance.
Involvement in strategic planning.
Participating in decision making on
mergers, acquisitions, and downsizing.
Accounting and documenting the
financial results of HR activities.

35. HR MANAGEMENT CHALLENGES
Economic and Technological Changes
Workforce Availability and Quality
Growth in Contingent Workforce
Demographics and Diversity Issues
Balancing Work and Family
Organizational Restructuring, Mergers, and Acquisitions

36. HR MANAGEMENT CHALLENGES Cont . . .
1. Economic & Technological Changes
Shift in jobs for manufacturing and agriculture to service industries and telecommunications.
Pressures of global competition causing firms to adapt by lowering costs and increasing productivity.
Growth of information technology.
2. Workforce Availability and Quality
Inadequate supply of workers with needed skills for “knowledge jobs”
Education of workers in basic skills

37. HR MANAGEMENT CHALLENGES Cont . . .
3. Growth in Contingent Workforce
Increases in temporary workers, independent contractors, leased employees, and part-timers caused by:
Need for flexibility in staffing decisions
Increased difficulty in firing regular employees.
4. Organizational Restructuring, Mergers, and Acquisitions
“Right-sizing”—eliminating of layers of management, closing facilities, merging with other organizations, and out placing workers.
Intended results are flatter organizations, increases in productivity, quality, service and lower costs.
HR managers must work toward ensuring cultural compatibility in mergers.

38. HR MANAGEMENT CHALLENGES Cont . . .
5. Balancing Work & Family
Dual-career couples
Single-parent households
Decline in the “traditional family”
Working mothers and family/childcare
Single employee “backlash” against family-oriented programs.
6. Demographics and Diversity Issues
More diversity of race, gender, age etc.

39. International Human
Resource Management

40. INTERNATIONAL HRM (IHRM)
International HRM (IHRM) is the process of procuring, allocating , and effectively utilizing human resources in a multinational corporation.
HRM vs. IHRM
Encompasses more functions.
Has more heterogeneous functions.
Involves constantly changing perspectives.
Requires more involvement in employees’ personal lives.
Influenced by more external sources.
Involves greater level of risk than typical domestic HRM.

41. THE CONCEPT OF TRANSNATIONALITY
Each of these definitions, depending upon how the organization perceives itself , has implications for the role of international HRM.
Multinational Companies
Refers to companies that have developed a strategic posture and organizational capability that allow them to be very sensitive and responsive to differences in national environments around the world.
Global Companies
Refers to companies that have developed international operations that are much more driven by the need for global efficiency and centralized in strategic and operational decisions.
International Companies
Based on Transferring and adapting the parent company’s knowledge or expertise to foreign markets.

42. FUNCTION OF INTERNATIONAL HRM
Highlighting the broad functions of HRM, Morgan (1986) has presented a model that consist of three dimensions which are:
The Three broad Human Resource activities:
The Three major Country categories involved in International HRM activities:
The Three type of Employee of an International Firm:
Procurement
Allocation
Utilization
Host country
Home Country
Other Country
Host country
Nationals
(HCNs)
Parent Country
Nationals
(PCNs)
Third Country
National
(TCNs)

43. APPROACHES TO IHRM APPROACHES DEFINITIONS
ETHNOCENTRIC
MNC simply exports HR practices and policies used in the home country to the foreign subsidiaries. It Emphasizes consistency and integration across all subsidiaries.
POLYCENTRIC
HR policies are adapted to meet the circumstances in each foreign location.
REGIOCENTRIC
Represents a regional grouping of subsidiaries. HR policies are coordinated and integrated within the region.
GEOCENTRIC
HR policies are developed to meet the goals of the global network of home country locations and foreign subsidiaries.

44. HR Management Challenges
Evolution of
HRM
Craft System
Scientific
Management
Human
Relations
Behavioral
Sciences
Personnel Management
HRM
Intellectual Capital Management
Goals of
HRM
Enhancing Productivity &
Quality
Promoting Individual Growth & Development
Complying with Legal & Social Obligations
Facilitating Organizational Effectiveness
CHAPTER : 1
Functions of
HRM
Human Resource
Management
Scientific Management
STAFFING
Scientific Management
TRAINING
&
DEVELOPMENT
Scientific Management
MOTIVATION
Scientific Management
MAINTAINCE
Strategic Human
Resource planning
Recruitment
Selection
Orientation
Employee Training
Employee Development
Organizational
Development
Career Development
Motivation & Job Design
Performance
Management
Reward & Compensation
Benefits
Health & Safety
Communication
Employee Relations
Roles of HR
Manager
Administrative
Employee
Advocate
Operational
Strategic
HR Management Challenges
Economic & Technological Changes
Workforce Availability & Quality
Growth in Contingent Workforce
Demographics & Diversity Issues
Balancing Work & Family
Mergers & Acquisition
International
HRM (IHRM)
HRM Vs. IHRM
The Concept Of
Transnationality
Function Of
International HRM
Approaches to IHRM

45. THOUGHT OF THE DAY
People are definitely a company’s realest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps.
“Mary Kay Ash”