CHAPTER ONE

OVERVIEW OF HUMAN RESOURCE MANAGEMENT

1.1 Definition
v Human Resource Management (HRM): is the a) planning, b) organizing, c) directing,
and d) controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual, organizational,
and social objectives are accomplished. (Edwin B. Flippo)

v Human resource management is defined as a strategic and coherent approach to the

management of an organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of its objectives.
q “The function performed in organizations that facilitates the most effective use of people
(employees) to achieve organizational and individual goals.” John Ivancevich
q HRM as “A process consisting of four functions - acquisition, development, motivation,
and maintenance of human resources.” (David. A. Decenzo and Stephen P. Robbins)
q The policies, practices, and systems that influence employees’ behavior, attitudes, and
performance. Noe, Hollenback, Gerhart & Wright.
Ø In past it was known as

 Personnel Administration

 Personnel Management
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In sum, Human Resource Management
v Focuses on people aspect of management
v Is a management function that helps managers recruit, select, train and develop members for the
organization.
v Emphasizes the need to think strategically about people as a key resource.
v Is a proactive rather than reactive approach
v Implies that HR policies and programs should be integrated into the business strategy and also
contribute to it.
v Its activities/functions are integrated/interrelated.
v In HRM activities, top management involvement is important/critical.
v Designs mechanisms to integrate the goals of the organization, employees and the society.
 Objectives of Human Resource Management
§ Effective utilization of human resources in the achievement of organizational goals.

§ Recognition and satisfaction of individual needs and group goals.

§ Provision of maximum opportunities for individual development and advancement.

§ Maintenance of high morale of the employees in the organization.

§ Continuous strengthening and appreciation of human assets.

 Objectives of HRM at different levels
 Societal Objectives
 To be ethically and socially responsible to the needs and challenges of a society while
minimizing negative impact of such demands on the organization.
 Organizational Objectives
 To recognize that HRM exists to contribute to organizational effectiveness by attracting,
retaining, and perpetuating the workforce.
 Functional (Departmental) Objectives
 To maintain the department’s contribution at a level appropriate to the organization’s needs.
 Personal Objectives
 To assist employees in achieving their personal goals, as these goals enhance the individual’s
contribution to the organization.
 Personal objectives of employees can be met if workers are to be maintained, retained and
motivated. Otherwise, employee performance and satisfaction may decline, and employees
may leave the organization.
 Nature of HRM
 HRM is concerned with the people dimension of an organization.

 It is pervasive activity in any type of industry.

 HR is the most important element in an organization since people make

the decisions concerning all other organizational resources.

 The HR is special kind of resource, and if it is improperly managed,

effectiveness declines more quickly than with other resources.
 Importance of HRM function
 HRM is critical for the survival of an organization.

 HRM supplies the required HR for all other functional areas.

 HRM ensures effective utilization of HR through proper recruitment,

selection, placement, training, compensation and performance appraisal.

 HRM plays a role in attracting and retaining qualified workforce that

can best contribute to organizational effectiveness.
 Purpose of HRM
 Help the organization reach its goals.
 Employ/allocate the Skills and Abilities of the workforce effectively.
 Provide the organization with well-trained and well-motivated employees.
 Develop and maintain Quality of Work Life (QWL) that makes employment desirable.
 Identify the best people for the available jobs and make sure that they are placed in
suitable positions.
 Develop individuals through trainings on their needs, based on appraisal.
 Motivate organizational members to do outstanding jobs.
 Communicate HR policies to all employees.
 Manage change to the mutual advantage of individuals, groups, the organization, and
the public.
 The Major Functions/Activities of HRM
§ HRM functions are the set of activities performed in utilizing human resources
for better achievement of organizational objectives. The following are the major
elements.
a) Job Analysis
 Detail study or analysis of tasks, duties, and responsibilities as well as identification
of the KASs to perform the tasks successfully

b) Human Resources Planning/Employment Planning

 HRP is the process of systematically reviewing human resources requirements to
ensure that the required number of employees with the required skills are available
when they are needed.
c) Recruitment
 Recruitment is the process of attracting pool of candidates in sufficient numbers and
encouraging them to apply for jobs within the organization.
d) Selection
 Selection is the process of choosing from a group of applicants the individuals “best”
suited for a particular position. The purpose of selection is to identify and employ
qualified individuals for specific position/s.
e) Placement
 Refers to assigning individuals to suitable jobs.
f) Orientation/induction/socialization
 It is the formal process of familiarizing new employees with the organization, their
jobs and their work unit. Through orientation, the employees will acquire the
knowledge, skills and attitude that make them successful members of the
organization.
g) Training and Development
 Training and development aim to increase employee’s ability to contribute to
organizational effectiveness.
 Training is designed to maintain or improve performance and skills in the present
job, whereas, development is a program designed to develop skills necessary for
present and future work activities.
h) Compensation Administration
 Refers to the administration of every type of reward that employees receive in return
for their services.
i) Performance evaluation
 It is a formal system of periodic review and evaluation of an individual’s job
performance.
j) Safety and health
 Safety involves protection of employees from injuries caused by work related
accidents.
 Health refers to the employees’ freedom from illness and their general physical
and mental wellbeing. These aspects of the job are important because
employees who work in a safe environment and enjoy good health are more
likely to be productive and yield long run benefits to the organization.
k) Promotion, transfer, demotion, and separation
 These reflect an employee’s value to the organization. High performers may be
promoted or transferred to help them develop their skills while low performers
may be demoted, transferred to less important positions, or even separated.
L) Human Resources Research
 HRR is a systematic gathering, recording, analyzing and interpretation of data for

guiding human resource management decisions.

m) Employee and labor relations, collective bargaining and discipline
 Concerned with the nature of relationship that must be developed between

employees (labor) and management, the procedures followed during negotiations

before signing a contract between labor and management, and the different
measures taken to enhance employee disciplines within an organization.
 Four Major Categories of HR Activities

The Acquisition The Development

of of
Human Resources Human Resources

The Rewarding The Maintenance

of of
Human Resources Human Resources
 How HR Functions Relate to HR Activities

The Acquisition of Human Resources The Development of

 Planning
Human Resources
 Analyzing Jobs
 Recruitment
•Appraising
 Selection
•Training
•Developing

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How HR Functions Relate to HR Activities…

The Rewarding of
Human Resources
The Maintenance of
 Compensating
Human Resources
- Wages & Salaries • Employee Benefits
- Incentives • Safety & Health
• Labor Relations

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 Impact of the HR Manager on Organizational Performance
ü Reducing unnecessary overtime expenses by increasing productivity during a
normal day
ü Staying on top of absenteeism and instituting programs designed to reduce
money spent for time not worked
ü Eliminating wasted time by employees with sound job design

ü Minimizing employee turnover and unemployment benefit costs by practicing

sound human relations and creating a work atmosphere that promotes job
satisfaction.
ü Installing and monitoring effective safety and health programs to reduce lost-
time accidents and keep medical and workers’ compensation costs low.
ü Properly training and developing all employees to improve their value to company and
do a better job producing and selling high-quality products and services at lowest
possible cost
ü Decreasing costly material waste by eliminating bad work habits, attitudes and poor
working conditions that lead to carelessness and mistakes
ü Hiring the best people available at every level and avoiding overstaffing

ü Maintaining competitive pay practices and benefit programs to foster a motivational

climate for employees
ü Encouraging employees to submit ideas for increasing productivity and reducing costs

ü Installing human resource information systems to streamline and automate many

human resource functions. 1-19
 THE PHILOSOPHY OF HRM
v Mutual goal: The organization needs individuals for fulfillment of its goals and
individual needs to develop and grow.

v Mutual respect: Which brings out the importance of respect by stating that “Give
respect and take respect”.

v Mutual rewards: HRM believes in the mutual reward system. Organization’s reward is
development and growth. Individual’s rewards are in the form of financial and non-
financial incentives and benefits.

v Mutual Responsibilities: The individuals and the organization are responsible mutually.
This sense of responsibility will lead to effective utilization of teamwork and leads to
excellent growth.
 Human Resource Policies, Procedures and Programs
HR Policies
HR policy is a set of general statements that act as a reference point for HR
managers in their dealings with employees. They constitute general guides to
actions and should not include detailed statements.
Purposes of HR Policies
 To reassure employees that they will be treated fairly and objectively.

 To help managers make quick and consistent decisions.

 To give managers confidence to resolve problems and defend their decisions.

Specifically,
 Policies make delegation possible
 Policies enhance uniformity
 Policies enhance better control
 Policies serve as standards of efficiency
 Policies enhance the confidence of employees
 Policies help as coordinating devices
 Policies enhance faster decisions
 HR Procedures
 HR procedures detail the exact manner in which a certain activity must be
accomplished with a view to implement a certain HR policy.

 While HR policies are broad and general, HR procedures tend to be less general
and more specific in establishing the course of action and sequence of activities
necessary to implement the HR policies.

 HR policies are derived from organizational values, philosophies, concepts and

principles. However, HR procedures are derived from the HR policies.
HR Programs
 HR programs are sets of goals, policies, procedures, rules, steps to be
taken, resources to be employed, and other elements necessary to carry
out a given course of action.

 Program of action should be prepared for implementing policies and

procedures.
 Assignment: Group
qQ1. write in detail about the history of human resource management. Your
literature should include: the time period, major contributors, and trends in
approach. (Not less than 3 pages). Indicate appropriate reference for your work.

qQ2. What are unethical HRM practices that frequently happen in organization?
What do you think are the causes? If you are a manager of such organization
how would you deal with them? (Not less than 3 pages). Indicate appropriate
reference for your work.
THANK YOU!!!

END OF THE
FIRST CHAPTER!!!