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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT. Chapter 1. Prepared by : Ly Sokcheu Updated : 1 st September, 2012. Chapter Objectives. After studying this chapter, you should be able to:. Describe the brief history of HRM. Define human resource management.

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introduction to human resource management
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Chapter 1

Prepared by : Ly Sokcheu

Updated : 1st September, 2012

chapter objectives
Chapter Objectives

After studying this chapter, you should be able to:

  • 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.
slide3

I. A Brief History of HRM

  • 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.
slide4

I. A Brief History of HRM (Cont.)

  • Frederick W. Taylor, the father of scientific management, summarized scientific management as:
    • Science, not roles of thumb
    • Harmony, not discord
    • Cooperation, not individualism
    • Maximum output, not restricted output
  • Industrial psychology, initiated in 1913, focused on:
    • The worker
    • Individual differences
    • The maximum well being of the worker
slide5

I. A Brief History of HRM (Cont.)

  • Personnel departments were created to deal with:
    • Drastic changes in technology
    • Organizational growth
    • The rise of unions
    • Government intervention concerning working people
  • Around the 1920s, more organizations noticed and acted on employee-management conflict.
slide6

I. A Brief History of HRM (Cont.)

  • The Hawthorne studies (1924 to 1933):
    • 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
  • Until the 1960s, the personnel function was concerned only with blue-collar employees.
    • File clerk, house-keeper, social worker, firefighter, and union trouble defuser

Source: John M. Ivancevich, Human Resource Management, 8 edition , p6

slide7

II. Definitions of HRM

  • 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.
slide8

III. HR Manager

  • 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.
  • 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.
slide9

IV. HRM Functions

1

Staffing

HRM Functions

Human Resource Development

Employee and Labor Relations

Compensation

Safety and Health

slide10

Staffing

  • 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.
  • Job Analysis
  • Human Resource Planning
  • Recruitment
  • Selection
slide11

1. Staffing (Cont.)

  • Job analysis
    • Systematic process of determining skills, duties, and knowledge required for performing jobs in organization.
  • 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.
slide12

1. Staffing (Cont.)

  • Recruitment
    • Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization.
  • Selection
    • Process of choosing from a group of applicants, the individuals best suited for a particular position and the organization.
slide13

2. Human Resource Development

  • Training
      • Designed to provide learners with knowledge and skills needed for their present jobs.
  • Development
    • Involves learning that goes beyond today's job; it has more long-term focus.
  • Career planning
    • Ongoing process whereby individual sets career goals and identifies means to achieve them.
slide14

2. Human Resource Development

  • Career development
    • Formal approach used by organization to ensure that people with proper qualifications and experiences are available when needed.
  • Organization development
    • Planned process of improving organization by developing its structures, systems, and processes to improve effectiveness and achieving desired goals.
slide15

2. HR Development (Cont.)

  • Performance management
    • Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization.
  • Performance appraisal
    • Formal system of review and evaluation of individual or team task performance.
slide16

3. Compensation

  • All rewards that individuals receive as a result of their employment.
  • Direct Financial Compensation
      • Pay that person receives in form of wages, salaries, bonuses, and commissions.
slide17

3. Compensation

  • Indirect Financial Compensation (Benefits)
    • All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance.
  • Nonfinancial Compensation
    • Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.
slide18

4. Safety and Health

  • Employees who work in safe environment and enjoy good health are more likely to be productive and yield long-term benefits to organization.
  • Safety
    • Involves protecting employees from injuries caused by work-related accidents.
  • Health
    • Refers to employees' freedom from illness and their general physical and mental well being.
slide19

5. Employee and Labor Relations

  • 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 .
slide20

V. Who Performs HRM Functions

  • 3 levels of management perform HRM functions.
  • 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.
human resource executives generalists and specialists

Executive: Generalist: Specialist:

Human Resource Executives, Generalists, and Specialists

President and CEO

Vice President Human Resources

Vice President Industrial Relations

Manager Training and Development

Manager Compensation

Manager, Staffing

Manager Safety & health

slide22

Characteristics of an HR Executive

  • Performs one or more HR functions
  • A top-level manager
  • Reports directly to CEO or head of major division
slide23

Characteristics of an HR Generalist

  • Often an executive
  • Performs tasks in various HR related areas
  • Involved in several, or all, of the five HRM functions
slide24

Characteristics of an HR Specialist

  • May be an HR executive, manager, or non-manager
  • Who typically is concerned with only one of the five functional areas of HRM.
slide25

VI. Objectives of the HRM Function

  • Helping the organization reach its goals.
  • Employing the skills & abilities of the workforce efficiently.
  • Providing the organization with well-trained and well-motivated employees.
  • Increasing to the fullest the employee’s job satisfaction and self-actualization.

Source: John M. Ivancevich, Human Resource Management, 8 edition , p10

slide26

VI. Objectives of the HRM Function (Cont.)

  • 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.

Source: John M. Ivancevich, Human Resource Management, 8 edition , p10

slide27

VII. The Roles of HRM

  • There are majors roles associated with the managing of human resource in organization.
  • - Strategic role
  • - Operational role
slide28

1. Strategic Roles

  • 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.
slide29

1. Strategic Roles (Cont.)

  • The typically activities at strategic point are viewed:
  • Human resource planning
  • Evolving legal issue
  • Workforce trend and issue
  • Community economic development
  • Organizational restructuring and downsizing
  • Merger / acquisition advising
  • Compensation planning and strategy
slide30

Operational role

  • 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.
slide31

Operational role (Cont.)

  • 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:

Recruiting and selecting for current openings.

Conducting employee oriented.

Reviewing safety and accident report.

Resolving employee complaints/grievance.

Administering employee benefits performances.

slide32

VIII. HR Department

  • Is the place that supports to operating managers on all human resource activities.
  • HR department provides 3 types of service to operating managers
  • Specific services
    • Maintaining employee's records, initial phases of employee orientation.
slide33

VIII. HR Department (Cont.)

  • Advice
    • Disciplinary matters, equal employment opportunity (EEO), employment protection act (EPA), occupational safety and health administration (OSHA)
  • Coordination
    • Performance appraisals, compensation matters.
slide34

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slide35

IX. HR Responsibilities

  • The direct handling of people, is an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor.
  • For example, one major company outlines its line supervisors’ responsibilities for effective human resource management under the following general heading:
  • Placing the right person on the right job.
slide36

IX. HR Responsibilities (Cont.)

  • Starting new employees on the organization (orientation)
  • Training employees for jobs that are new to them
  • Improving the job performance of each person.
  • Gaining creative cooperation and developing smooth working relationship
slide37

IX. HR Responsibilities (Cont.)

  • Interpreting the company’s policy and procedures
  • Controlling labor cost
  • Developing the abilities of each person
  • Creating and maintaining development moral
  • Protecting employees’ health and physical condition