1. INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 1 Chapter 1 Prepared by : Ly Sokcheu Updated : 1 st September, 2012

2. Chapter Objectives 2  Describe the brief history of HRM.  Define human resource management.  Identify the human resource management functions.  Explain who performs the HRM functions.  Discuss the objectives of the HRM Functions.  Discuss the roles of HRM.  Explain the HR department.  Discuss the HR responsibilities. After studying this chapter, you should be able to:

3. HRM can be traced to England, where craftspeople organized themselves into guilds. - They used unity to improve working conditions. The Industrial Revolution in the 18th century laid the basis for a new, complex industrial society. - Changing work conditions, social patterns, and labor created a gap between workers and owners. During the world wars era, scientific management, welfare work, and industrial psychology merged. I. A Brief History of HRM 3

4. Frederick W. Taylor, the father of scientific management, summarized scientific management as:Frederick W. Taylor, the father of scientific management, summarized scientific management as: Science, not roles of thumb Science, not roles of thumb Harmony, not discord Harmony, not discord Cooperation, not individualism Cooperation, not individualism Maximum output, not restricted output Maximum output, not restricted output Industrial psychology, initiated in 1913, focused on:Industrial psychology, initiated in 1913, focused on: The worker The worker Individual differences Individual differences The maximum well being of the worker The maximum well being of the worker I. A Brief History of HRM (Cont.) 4

5. Personnel departments were created to deal with:Personnel departments were created to deal with: Drastic changes in technology Drastic changes in technology Organizational growth Organizational growth The rise of unions The rise of unions Government intervention concerning working people Government intervention concerning working people I. A Brief History of HRM (Cont.) 5 Around the 1920s, more organizations noticed and acted on employee-management conflict.Around the 1920s, more organizations noticed and acted on employee-management conflict.

6. The Hawthorne studies (1924 to 1933):The Hawthorne studies (1924 to 1933): Were to determine the effects of illumination on workers and their output Were to determine the effects of illumination on workers and their output The studies pointed out the importance of social interaction on output and satisfaction The studies pointed out the importance of social interaction on output and satisfaction I. A Brief History of HRM (Cont.) Source: John M. Ivancevich, Human Resource Management, 8 edition, p6 6 Until the 1960s, the personnel function was concerned only with blue-collar employees.Until the 1960s, the personnel function was concerned only with blue-collar employees. File clerk, house-keeper, social worker, firefighter, and union trouble defuser File clerk, house-keeper, social worker, firefighter, and union trouble defuser

7. Is the activities designed by manager to provide for an ordinate human resources of an organization. (Rick Colow, 1991) Refers to the policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Many companies refer to HRM as involving people practices. (Noe, et al. 2003) Is utilization of individuals to achieve organizational objectives. All managers get things done through the efforts of others; this requires effective HRM. II. Definitions of HRM 7

8. Was responsible for arranging and coordinating the management of human resources to help the organization achieve its goals.Was responsible for arranging and coordinating the management of human resources to help the organization achieve its goals. Is an individual who normally acts in an advisory or staff capacity, working with other managers regarding HR matters.Is an individual who normally acts in an advisory or staff capacity, working with other managers regarding HR matters. There was a shared responsibility between line manager and human resource professionals.There was a shared responsibility between line manager and human resource professionals. Often the line managers go to HR for guidance such as promotion, hiring, discipline.Often the line managers go to HR for guidance such as promotion, hiring, discipline. III. HR Manager 8

9. 9 IV. HRM Functions 1 HRM Functions Human Resource Development Compensation Staffing Employee and Labor Relations Safety and Health

10.  Job Analysis  Human Resource Planning  Recruitment  Selection Û Process through which organization ensures it always has proper number of employees with appropriate skills in right jobs at right time to achieve organizational objectives. 10 1.Staffing

11. a)Job analysis Systematic process of determining skills, duties, and knowledge required for performing jobs in organization.Systematic process of determining skills, duties, and knowledge required for performing jobs in organization. 1. Staffing (Cont.) 11 b)Human resource planning Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.

12. 1. Staffing (Cont.) 12 d)Selection Process of choosing from a group of applicants, the individuals best suited for a particular position and the organization.Process of choosing from a group of applicants, the individuals best suited for a particular position and the organization. c)Recruitment Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.

13. a.Training Designed to provide learners with knowledge and skills needed for their present jobs.Designed to provide learners with knowledge and skills needed for their present jobs. 2. Human Resource Development 13 c.Career planning Ongoing process whereby individual sets career goals and identifies means to achieve them.Ongoing process whereby individual sets career goals and identifies means to achieve them. b.Development Involves learning that goes beyond today's job; it has more long-term focus.Involves learning that goes beyond today's job; it has more long-term focus.

14. 2. Human Resource Development 14 d.Career development Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed.Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed. e.Organization development Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals.Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals.

15. f.Performance management Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization.Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization. 2. HR Development (Cont.) 15 g.Performance appraisal Formal system of review and evaluation of individual or team task performance.Formal system of review and evaluation of individual or team task performance.

16. \All rewards that individuals receive as a result of their employment. 3. Compensation 16 a. Direct Financial Compensation Pay that person receives in form of wages, salaries, bonuses, and commissions.Pay that person receives in form of wages, salaries, bonuses, and commissions.

17. 3. Compensation 17 c. Nonfinancial Compensation Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works. b. Indirect Financial Compensation (Benefits) All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.

18. Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization. 4. Safety and Health 18 a)Safety Involves protecting employees from injuries caused by work- related accidents.Involves protecting employees from injuries caused by work- related accidents. b)Health Refers to employees' freedom from illness and their general physical and mental well being.Refers to employees' freedom from illness and their general physical and mental well being.

19.  Private-sector union membership has fallen from 39 percent in 1958 to 9 percent today.  Business is required by law to recognize a union and bargain with it in good faith if the firm’s employees want the union to represent them.  Human resource activity is often referred to as industrial relations.  Most firms today would like to have a union- free environment. 5. Employee and Labor Relations 19

20. Ç 3 levels of management perform HRM functions. V. Who Performs HRM Functions 20  Operating managers are managers who manage directly people involved with the production of an organization's products and services.  HR specialists are people who are specially trained in one or two areas of HRM.  HR generalists are people who are responsible for performing various parts of HR activities.

21. Human Resource Executives, Generalists, and Specialists Manager Safety & health Vice President Human Resources Vice President Industrial Relations Manager Compensation Manager Training and Development Executive: Generalist: Specialist: Manager, Staffing President and CEO 21

22. Performs one or more HR functions Performs one or more HR functions A top-level manager A top-level manager Reports directly to CEO or head of major division Reports directly to CEO or head of major division Characteristics of an HR Executive 22

23.  Often an executive  Performs tasks in various HR related areas  Involved in several, or all, of the five HRM functions Characteristics of an HR Generalist 23

24.  May be an HR executive, manager, or non-manager  Who typically is concerned with only one of the five functional areas of HRM. Characteristics of an HR Specialist 24

25.  Helping the organization reach its goals. VI. Objectives of the HRM Function 25 Source: John M. Ivancevich, Human Resource Management, 8 edition, p10  Increasing to the fullest the employee’s job satisfaction and self-actualization.  Providing the organization with well-trained and well-motivated employees.  Employing the skills & abilities of the workforce efficiently.

26.  Developing & maintaining a quality of work life that makes employment in the organization desirable.  Communicating HRM policies to all employees.  Helping to maintain ethical policies and socially responsible behavior.  Managing change to the mutual advantage of individuals, groups, the enterprise, and the public. VI. Objectives of the HRM Function (Cont.) 26 Source: John M. Ivancevich, Human Resource Management, 8 edition, p10

27. \There are majors roles associated with the managing of human resource in organization. - Strategic role - Strategic role - Operational role VII. The Roles of HRM 27

28.  Strategic role of HRM emphasizes that the people in organization are valuable resources presenting a significant investment of organizational efforts.  Human resource can be a source of competitive strength if they are managed effectively.  Human resource must be viewed in the same context as the financial, technological, and other resources that are managed in organization. 1. Strategic Roles 28

29.  Human resource planning  Evolving legal issue  Workforce trend and issue  Community economic development  Organizational restructuring and downsizing  Merger / acquisition advising  Compensation planning and strategy 1. Strategic Roles (Cont.) 29  The typically activities at strategic point are viewed:

30.  Operational activities includes both tactical and administrative in nature.  Compliance with equal employment opportunity and other laws must be ensured.  Applicants must be interviewed, new employees must be oriented, supervisor must be trained, safety problems must be solved, and salary and wages must be administered. 2.Operational role 30

31. a)Recruiting and selecting for current openings. b)Conducting employee oriented. c)Reviewing safety and accident report. d)Resolving employee complaints/grievance. e)Administering employee benefits performances. 2.Operational role (Cont.) 31  In short, a wide variety of activities typically associated with the day-to-day management of people in organizations must be performed effectively and appropriately:

32. \ Is the place that supports to operating managers on all human resource activities. VIII. HR Department a) a)Specific services Maintaining employee's records, initial phases of employee orientation.Maintaining employee's records, initial phases of employee orientation. 32 \ \ HR department provides 3 types of service to operating managers

33. VIII. HR Department (Cont.) c)Coordination Performance appraisals, compensation matters.Performance appraisals, compensation matters. 33 b)Advice Disciplinary matters, equal employment opportunity (EEO), employment protection act (EPA), occupational safety and health administration (OSHA)Disciplinary matters, equal employment opportunity (EEO), employment protection act (EPA), occupational safety and health administration (OSHA)

34. Coordination karsMrb sMrYl Coordination karsMrb sMrYl Advice RbwkSa pþl;eya bl; Advice RbwkSa pþl;eya bl; Specific Services esvakm µCak;la k; Specific Services esvakm µCak;la k; HR Department EpñkRKb;R KgFnFanm nusS HR Department EpñkRKb;R KgFnFanm nusS Operating Managers RbFanRbti btiþ Operating Managers RbFanRbti btiþ HR Department 34

35.  The direct handling of people, is an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor. IX. HR Responsibilities Placing the right person on the right job.Placing the right person on the right job. 35  For example, one major company outlines its line supervisors’ responsibilities for effective human resource management under the following general heading:

36. Starting new employees on the organization (orientation)Starting new employees on the organization (orientation) Training employees for jobs that are new to themTraining employees for jobs that are new to them Improving the job performance of each person.Improving the job performance of each person. Gaining creative cooperation and developing smooth working relationshipGaining creative cooperation and developing smooth working relationship IX. HR Responsibilities (Cont.) 36

37. Interpreting the company’s policy and proceduresInterpreting the company’s policy and procedures Controlling labor costControlling labor cost Developing the abilities of each personDeveloping the abilities of each person Creating and maintaining development moralCreating and maintaining development moral Protecting employees’ health and physical conditionProtecting employees’ health and physical condition IX. HR Responsibilities (Cont.) 37

38. 4. HRM PRACTICES & RESPONSIBILITIES Important HRM practices include: X. HRM PRACTICES & RESPONSIBILITIES 38

39. RESPONSIBILITIES OF HR DEPARTMENTS 39