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Chapter 1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 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. § Identify the human resource management § § § 2 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.
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 18 th 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. 3
I. A Brief History of HRM (Cont. ) • Frederick W. Taylor, the father of scientific management, summarized scientific management as: ü Science, not roles of thumb ü Harmony, not discord ü Cooperation, not individualism ü Maximum output, not restricted output • Industrial psychology, initiated in 1913, focused on: ü The worker ü Individual differences ü The maximum well being of the worker 4
I. A Brief History of HRM (Cont. ) • Personnel departments were created to deal with: ü Drastic changes in technology ü Organizational growth ü The rise of unions ü Government intervention concerning working people • Around the 1920 s, more organizations noticed and acted on employee-management conflict. 5
I. A Brief History of HRM (Cont. ) • The Hawthorne studies (1924 to 1933): ü Were to determine the effects of illumination on workers and their output ü The studies pointed out the importance of social interaction on output and satisfaction • Until the 1960 s, the personnel function was concerned only with blue-collar employees. ü File clerk, house-keeper, social worker, firefighter, and union trouble defuser Source: John M. Ivancevich, Human Resource Management, 8 edition , p 6 Management, 6
II. Definitions of HRM 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.
III. HR Manager • • 8 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.
IV. HRM Functions d d e an oye ons lloye ons Emp ellatii e at or R Lab Hu m De an ve Re lop so m urc en e t HRM 1 Functions Safety and Health Com pens ation g fin taf S 9
1. Staffing 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. v v 10 Job Analysis Human Resource Planning Recruitment Selection
1. Staffing (Cont. ) a) Job analysis • Systematic process of determining skills, duties, and knowledge required for performing jobs in organization. b) Human resource planning • 11 Systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.
1. Staffing (Cont. ) c) Recruitment • Process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization. d) Selection • 12 Process of choosing from a group of applicants, the individuals best suited for a particular position and the organization.
2. Human Resource Development a. Training • Designed to provide learners with knowledge and skills needed for their present jobs. b. Development • Involves learning that goes beyond today's job; it has more long-term focus. c. Career planning 13 • Ongoing process whereby individual sets career goals and identifies means to achieve them.
2. Human Resource Development d. Career development • 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. 14
2. HR Development (Cont. ) f. Performance management • Goal-oriented process directed toward ensuring organizational processes are in place to maximize productivity of employees, teams, and ultimately, the organization. g. Performance appraisal • Formal system of review and evaluation of individual or team task performance. 15
3. Compensation All rewards that individuals receive as a result of their employment. a. Direct Financial Compensation • Pay that person receives in form of wages, salaries, bonuses, and commissions. 16
3. Compensation b. Indirect Financial Compensation (Benefits) • All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. c. Nonfinancial Compensation 17 • Satisfaction that person receives from job itself or from psychological and/or physical environment in which person works.
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. 18 a) Safety • Involves protecting employees from injuries caused by workrelated accidents. b) Health • Refers to employees' freedom from illness and their general physical and mental well being.
5. Employee and Labor Relations q Private-sector union membership has fallen from 39 percent in 1958 to 9 percent today. q 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. q Human resource activity is often referred to as industrial relations. q Most firms today would like to have a unionfree environment. 19
V. Who Performs HRM Functions Ç 3 levels of management perform HRM functions. 20 v Operating managers are managers who manage directly people involved with the production of an organization's products and services. v HR specialists are people who are specially trained in one or two areas of HRM. v HR generalists are people who are responsible for performing various parts of HR activities.
Human Resource Executives, Generalists, and Specialists President and CEO Vice President Human Resources Manager, Staffing 21 Manager Training and Development Executive: Generalist: Specialist: Vice President Industrial Relations Manager Compensation Manager Safety & health
Characteristics of an HR Executive ü ü ü 22 Performs one or more HR functions A top-level manager Reports directly to CEO or head of major division
Characteristics of an HR Generalist Ø Often an executive Ø Performs tasks in various HR related areas Ø Involved in several, or all, of the five HRM functions 23
Characteristics of an HR Specialist q May be an HR executive, manager, or non-manager q Who typically is concerned with only one of the five functional areas of HRM. 24
VI. Objectives of the HRM Function q Helping the organization reach its goals. q Employing the skills & abilities of the workforce efficiently. q Providing the organization with well-trained and well-motivated employees. q Increasing to the fullest the employee’s job satisfaction and self-actualization. 25 Source: John M. Ivancevich, Human Resource Management, 8 edition , p 10 Management,
VI. Objectives of the HRM Function (Cont. ) q Developing & maintaining a quality of work life that makes employment in the organization desirable. q Communicating HRM policies to all employees. q Helping to maintain ethical policies and socially responsible behavior. q Managing change to the mutual advantage of individuals, groups, the enterprise, and the public. 26 Source: John M. Ivancevich, Human Resource Management, 8 edition , p 10 Management,
VII. The Roles of HRM There are majors roles associated with the managing of human resource in organization. - Strategic role - Operational role 27
1. Strategic Roles Ø Strategic role of HRM emphasizes that the people in organization are valuable resources presenting a significant investment of organizational efforts. Ø Human resource can be a source of competitive strength if they are managed effectively. 28 Ø Human resource must be viewed in the same context as the financial, technological, and other resources that are managed in organization.
1. Strategic Roles (Cont. ) Ø The typically activities at strategic point are viewed: q Human resource planning q Evolving legal issue q Workforce trend and issue q Community economic development q Organizational restructuring and downsizing q Merger / acquisition advising q Compensation planning and strategy 29
2. Operational role v Operational activities includes both tactical and administrative in nature. v Compliance with equal employment opportunity and other laws must be ensured. v 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. 30
2. Operational role (Cont. ) v 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: 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.
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 a) Specific services • 32 Maintaining employee's records, initial phases of employee orientation.
VIII. HR Department (Cont. ) b) Advice • Disciplinary matters, equal employment opportunity (EEO), employment protection act (EPA), occupational safety and health administration (OSHA) c) Coordination • Performance appraisals, compensation matters. 33
HR Department Specific Services HR Department Epñk. RKb; R Kg. Fn. Fanmn us. S esvakm µCak; la Advice k; Rbwk. Sa pþl; eya bl; Coordination kars. Mrb s. Mr. Yl 34 Operating Managers Rb. Fan. Rbti btiþ
IX. HR Responsibilities v The direct handling of people, is an integral part of every line manager’s responsibility, from president down to the lowest-level supervisor. v 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. 35
IX. HR Responsibilities (Cont. ) • • 36 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
IX. HR Responsibilities (Cont. ) • • • 37 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
X. HRM PRACTICES & 4. HRMRESPONSIBILITIES PRACTICES & RESPONSIBILITIES 38 Important HRM practices include:
RESPONSIBILITIES OF HR DEPARTMENTS 39