Introduction to Human Resource Management Lecture 1

1. MGT 351 - Human Resource Management • Instructor:Faisol Chowdhury Introduction to Human Resource ManagementLecture 1 1

2. HRM • It is managing people within the employer – employee relationship. • It involves the productive use of people in achieving the organisation’s strategic business objectives and the satisfaction of individual needs. • HR Managers plan, administer and review activities concerned with staff selection, training and development, conditions of employment and other human resource issues within organisations. • HRM is management, but management is more than HRM 2

3. HRM Objective • To: • achieve measurable targets within a certain time frame. • achieve competitive advantage. • identify and understand the source of people and to develop the value of people. • achieve a close match between corporate business objectives and the objectives of the HR function. • conduct activities to obtain, improve and maintain the workforce. • align people strategy and business strategy in order to carry on a sustainable position of the organisation in the competitive business world. • develop the policies and procedures to manage the employment relationship. 3

4. HRMObjective 4

5. HRMActivities 5

6. HRM Activities • Basic – • HRM introduction • Historical Development • Ethical Foundation • Legal Foundation • Strategic HRM • HR Planning • Obtaining – • Job Analysis • Job Design • Recruitment • Selection • Induction • Improving – • Performance Appraisal • Training • Development • Learning Environment • Rewarding – • Motivation • Compensation • Incentives • Other Benefits • Rewards Management • Managing – • Industrial Relations • Employment Relations • International HRM • CSR • Diversity • OH&S • Evaluating – • Critical Analysis • HRM Evaluation • HR Audit • HR Assessment 6

7. Obtain Maintain Develop Three Main HR Activities recruiting and selecting suitable people by enhancing employee satisfaction, commitment, loyalty etc. improving employee knowledge, skills, performance, potential etc. 7

8. Line & Staff • Line managers direct the work of subordinates in accomplishing the organisation’s basic goals. • Staff managers assist and advice line managers in accomplishing the organisation’s basic goals. • Identify the line manager and the staff manager among these two: • Finance Manager • HR Manager • Can a manager be both line and staff manager? How? 8

9. HR & ‘Line – Staff’ function 9

10. HR and Competitive Advantage • Competitive Advantage – any set of factors that allow an organisation to differentiate its product or service from those of its competitors to boost market share. • What can be the competitive advantage of an organisation? • Can the employees of an organisation be the competitive advantage? • How can HR contribute to turn its employees into competitive advantage? 10

11. Strategic HRM • Strategic HRM links HR to the organisation’s corporate and business strategies. HR manager is an essential part of the management team. • Linking all HR activities with the organisation’s strategic business objectives: • Cost containment: cost reduction via reduced headcount, improved productivity and efficiency, reduced absenteeism, low turnover etc. • Customer service: recruitment, selection, training, development, rewards, motivation etc. • Social responsibility: legal compliance, EEO, AA, OH&S, employment relations etc. • Organisational effectiveness: job designing, organisational structure, work / life balance, flexibility, motivation, learning environment etc. 11

12. Hard and Soft Approaches • Hard (instrumental) HRM approach: • root from Unitarist approach. • is associated with Taylorism / Instrumental approach. • employees are viewed as a passive factor of production, an expense. • employees can be easily replaced and are thus seen as disposable. • Soft (humanistic) HRM approach: • root from Pluralist approaches. • stresses active employee participation. • gains employee commitment, adaptability and contribution of their skills to achievement of organisational goals. • employees are valued as assets. 12

13. Theoretical Frameworks • Unitarist - Employers and employees are of one mind about how to achieve business success. Conflict is to be avoided. IR is grounded on mutual cooperation. Discourages unions. • Pluralist - Organisations are made up of individuals and groups with conflicting claims and interest. Conflict is not necessarily unhealthy. Unions are welcome. • Marxist or ‘Radical’ - Organisations are only one element in the capitalist system, for any problem the solution is worker elimination and exploitation. 13

14. Historical Development of HR • Industrial revolution of 18th and 19th century. • Industrial Relations (IR) system emerged as an outcome of the conflict between the employer and employee regarding work conditions. • HRM emerged as a educationalist’, researchers, and management practitioners’ began to examine the nature of work and work systems to both maximise production and efficiency and to achieve improved working relationships between workers and management, and thus to shape the IR issues and to harmonise the employer – employee relationship. • IR is seen as the relationship of supporting employees, whereas, HR is considered as the system of supporting the employers. • Is it a misconception? Why? 14

15. Reference • Biz/ed, 2008, Human Resource Management, [online, retrieved on 25/05/2008], available at: http://www.bized.co.uk/educators/16-19/business/hrm/lesson/hrm1.htm • Bray, M., Deery, S., Walsh, J., & Waring, P., 2005, Industrial Relations, 3rd ed., McGraw-Hill, Australia. • DeNisi, A., & Griffin, R., 2005, Human Resource Management, 2nd ed., Houghton Mifflin, USA. • Dessler, G., Griffiths, J., Lloyd-Walker, B., 2004, Human Resource Management, 2nd ed., Pearson Education, Australia. • Stone, R., 2002, Human Resource Management, 4th ed., John Wiley & Sons, Australia. • Wikipedia, 2008, Human Resource Management, [online, retrieved on 25/05/2008], available at: http://en.wikipedia.org/wiki/Human_resource_management 15

16. 16