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UNIT ONE: Introduction to Human Resource Management

Introduction to human resource management

HUMAN RESOURCE MANAGEMENT Major Human resource management functions
BY: H/MARIAM K. Scientific management and the environment of human resource
NGUC
Management

HRM Resources

• belongs to a broader field to study and practice know

management.
• Management - process of reaching organizational goals by working
with and through people and other resource.
• In all areas of life it implies achieving goals with effective and
efficient use of resources

In defining and studying HRM, things that needs to be

Human Resources
emphasized are:
• One of fundamental resources available
• HRM is a pervasive/universal activity in any type of organization
• Some prominent writers define management as the
process of getting things done with and through other • HRM is concerned with the people’s dimension of the
people. organizational management.
• HR is the most important (or critical) element in an organization
• Human Resource Management (HRM) is a part of the –because people make the decisions on other resources
fixed resource of management.
• Therefore keeping good people is critical to the success of every
• HRM - the utilization of Human Resources to achieve organization (gov’t, private, service or business).
organizational objectives.

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• Conclusion
Managers of all levels must concern themselves with HRM at HUMAN RESOURCE MANAGEMENT FUNCTIONS
least in some extent.
• Managers get things done through the effort of others, which
basically requires effective HRM. •HRM functions - set of activities performed
• HR Manager is an individual who normally acts in an advisory in utilizing HR for better achievements of
or “staff” capacity working with other managers to help them organizational objectives.
deal with HR matter.
• The HR manager is primarily responsible for coordinating the
management of human resource to help the organization
achieve its goals.

The major functions are the following:

Selection
Human Resource Planning • choosing individuals best suited for a particular
position. Recruitment encourage individuals to seek
• systematically reviewing human resource requirement to
employment while selection helps to identify the best
ensure that the required numbers of employees, with the
relevant skills, are available when they are needed. Orientation
Recruitment • Formal process of familiarizing with the organization,
their job, and their work unit
• attracting individuals in sufficient numbers and
encouraging them to apply for jobs with the organization. • also called socialization or induction help new
employees to acquire the necessary skills and
• identifying and attracting candidates from others which
knowledge’s to be a member of the company.
some will later be selected.

Training and Development Compensation administration

•Aim to increase employee’s ability to •Administration of every type of reward that
contribute to organizational effectives. individuals receive in return for their service
•Training is designed to maintain or •All sorts of rewards that individuals receive as a
improves performance (skills) in the result of their employment.
present job. Performance evaluation
•Development is a work activity in order to •A formal system of periodic review and
evaluation of an individual’s job performance.
prepare employees for promotion.

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Safety and health Human Resource research

• Safety refers to protecting employees from injures • Systematic gathering, recording, analyzing and
caused by work related accidents. Health refers to interpretation of data for guiding HRM decisions.
the employee’s freedom from illness and their • Every HRM functions need effective research.
general physical and mental well being. • Other areas of HRM such as employee and labor
Promotion, demotion, transfers and separation relation, collective bargaining, employee rights and
• Reflects an employees value to the organization. discipline and retirement are also concern of
High performers may be promoted or transferred to human resource management.
help them develop their skills, while low performers
may be demoted, transferred to less important
position.

The Importance of HRM • Federal legislation required organization to hire the

• Federal and State laws have tie up a watch of new best qualified candidate with out required to race,
requirements concerning hiring and employment religion, color, sex or national origin.
practices on employees. • Once hired and trained, continuous personal
• Job have becomes more technical - requires employees development of each employee is vital
with greater skills - global competition has increased the
importance of organizations improving the productivity of • Many colleges and universities are also helping to
their work force. prepare HRM professionals by offering
• Which resulted in the need for HRM specialists trained in
concentrations and majors in the discipline.
psychology, sociology, organization and work design and a • The society for HRM offers opportunities for
working knowledge of the law. individuals to distinguish themselves in the field

The changing world of work Globalization:- dealing with operation on a world

wide basis.
•Anything that remains constant during our Work force diversity:- refers in the varied background
time is changing. self employees that are present in the work force.
• HRM is not different in this case. Retrenchment:- is a mode of down sizing an
organization when the organization faces an
• Many events (globalization, workforce environment of decline.
diversity, changing skill requirement, Empowerment:- affording employees more
corporate retrenchment, and empowering delegation, participate management, work teams,
employees) forced us to shape our fields goal setting and training.

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Changing skill requirement Skill deficiencies:

• In the changing world of work, the issues of skill requirement
must be addressed. Example, Remember that at the end of •lacking of basic abilities to perform
the last century the United States was primarily an agrarian many of company’s tasks.
economy for a generation of two workers led the United States
is becoming the world’s leading industrialized nation, which is •translate into significant losses for the
producing quality goods and service to day the US.
• Our work force is deficient in the skill to take us well into the
organization in terms of poor quality
20 first centuries. Our new entrants to the work force simply work and lower productivity, increase in
are not adequately prepared. Example today, college employee accidents, and customer
graduates sometimes lack the necessary reading, writing,
mathematics, and computer literacy skills needed to perform complaints.
today’s high technology works.

Empowering employees Empowering concepts

•It means different things to different •Delegation: - is a management activity
organizations and people for today’s assigned to individuals at lower levels in the
workers to be successful. organization
• Participative management: - is a management
•Empowering concepts that appear to be concept giving employees more control over
accepted are delegation, participative the day to day activities on their job.
management work teams, goal setting and • Goal setting: - are mutually agreed statements
employer training. on work targets and time tables.

Empowering employees
•Require extensive training in all aspects of the SCIENTIFIC MANAGEMENT AND THE
job ENVIRONMENT OF HUMAN RESOURCE
•Workers should understand how they may need MANAGEMENT
training in interpersonal skills to make
participative management and work team’s
functions properly.
•Can anticipate much more involvement from
human resource management in all parts of the
organizations.

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Scientific Management
•Taylor has designed the job, there by
• One of the classical schools of thoughts in established how many workers should be able
management.
to do the equipment and materials at hand
• Formulated with the aim of increasing productivity
and making the work easier by scientifically •Then he implemented a piece rate pay system
studying work methods and establishing criteria instead of paying all employees the same wage
• It also focuses on minimizing cost of production •he began increasing the pay of each worker
• Formulating by Fredrick Taylor and he is usually who met and exceeded the target level of out
named as the father of scientific management. put set for his job

Taylor rested his philosophy on some basic principles

•Encouraged employers to pay more
productive workers at a higher rate than 1. The scientific selection of workers, so that each worker would be
given responsibility for the task for which he will be suited.
others 2. The scientific training of workers.
•To realize this he developed a differential 3. Creating, friendly cooperation between management and labor.
4. The development of true science management, so that the best
rate system which involves the method for performing each task could be determined.
compensation of higher wages to more 5. Division of responsibility between labor and manager.

efficient workers

• Taylor saw scientific management as benefiting •The popular module motivated primarily to
both management and the worker equally. satisfy their economic and physical needs.
• He strongly believed that employees could be •Employees were considered as an economic unit.
motivated by economic rewards provided those •According to Taylor, employees could be
rewards were related to individual performance. motivated solely by economic rewards or
• According to Yars and Eve (1992) was a complete material gain
mental revolution for both management and •Taylor’s module of motivation over looked the
employees towards their respective duties and human desire for job satisfaction and the social
towards each other. needs of workers as a group failing to consider
the tensions created when these needs are
frustrated.

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The Human Relation Movement

•The emphasis on productivity and •Refers to human element in the work place.
profitability leads managers to •started as a reaction against the doctrines and
exploit both workers and customers practices of scientific management.
of the organization. •labor is not a commodity to be bought and sold.
•It is interdisciplinary in nature
•Founded on new knowledge’s developed in the
areas of psychology, group dynamics, sociology,
political science and labor economics

Human Relation movement Conclusion of Hawthorne Effect -Elton Mayo

• Basically grew from the Hawthorne experiments
conducted by a scholar known as Elton Mayo. • Workers respond primarily to other social context of
• The result of an experiment conducted at the Hawthorne the work places and he recommends the following.
plant of Western Electric in Cicero, Illinois in 1924. They Work is a group of activities.
lowered the lighting in the factory, expecting productivity The need for recognition, security, and sense of
to fall; but instead, to their astonishment, productivity belonging is more important in determining
increased.
workers moral and productivity.
• The researchers concluded that productivity rose because
workers worked harder when they received attention. A worker is a person whose attitudes and
This phenomenon, in which change of any kind increases effectiveness are conditioned by social demands
productivity, has been known as the “Hawthorne Effect.” from inside and outside the work.

• The Human Relation , on the other hand considered the • In the informal and shifting groupings, leaders arise (not
worker as a complete human being with attitudes and elected or appointed, have no legal standing, but assume
needs which profoundly affected his work. leadership roles on the basis of their colleagues esteem;
• As recognized by the Human Relation , informal and together they constitute the informal authority
organizations exist and play important role in life of the structure.
worker. • After several studies and investigation Elton Mayo and
• Informal organizations consists of social relationships his associate’s tried to show that workers primarily
among employees purpose is not clear. respond to groups not as individuals.
• Many workers get their satisfaction in the informal groups • The administrators of the company should not deal with
where they are treated as individuals not as a part of a workers as individual units, isolated from those they
machine in the organization work with but, as members of work groups.

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Human relation movement also emphasizes that :

• Participative decision making has strong motivating force The Human Resource Management Module
Participation in decision making increases members
level of satisfaction, their enthusiasm for their
organization and their positive attitude towards their
organization and their superiors.
• Communication is the life blood of an organization
information which must flow freely, up, down and
horizontally through established networks of the formal
organization and non official networks of the informal
organization

•According to the above module HRM includes The Environment of Human Resource Management
four interrelated phases (Milkovich and •Many environmental factors (either external or
Boudreau, 1991) internal) affect human resource management
1.Assess human resource conditions. •The organization can not control the external
2. Set objectives based on the assessment. environment which affects the management of
3.Choose a course of actions from alternatives its human resource.
generated to achieve objectives. •These factors influence the organization from
4.Evaluate the result. outside the boundaries

•The environment of an organization consists of I. The external environment

the conditions, circumstance and influence •Elements outside an organization that
that affect the organizations ability to achieve might affect it.
its objectives.
•has a significant impact on human
•Every organizations exists in an environment
that has both external and internal resource management policies and
components. objectives
•Human resource managers therefore, should be •is composed of the general environment
aware that rapid changes occurring within the and the task environment.
environment in which organizations operates.

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The General environment A) The Economic environment

• The non specific dimensions and forces in its surrounding that
might affect the organizations activities. • Refers to the general economic conditions and
• are not necessarily associated with other specific organization or trends that may effects the HRM activities of an
groups. organization.
• are general forces or processes that interact with each other and • The economic variables include unemployment,
also affects the organization as a whole
demand and supply, inflation rates, the labor market
•The general environment consists the following elements and others.
• E.g.: Increased or decrease demand for a firm’
products or services will have important implication
for requirement or lay off.

B) The Technological environment

C) The Socio-cultural environment
• Includes advances in sciences as well as new
development in products, processes, equipment, •This elements is made up of the customs,
machinery and other materials that may affect an values, and demographic character ship of
organization the society in which the organization
• Technological advancements have attended to reduce
the number of jobs that require little skill and to increase
function.
the number of jobs that requires considerable skills. •Influences how employees feel about an
• To define the challenging areas of human resource organization.
management, it’s better to trainee employees of stay up
with rapidly advancing technology.

D) The Physical environment E) Political- legal environment

• Includes the climate, terrain and other physical •Political variable -factors that may affect an
characteristics of the area where the organization organizations activities as a result of the
is located. political process or climate.
• It can help or guard an organizational ability to •Government has a significant impact on HRM
attract and retained employees. from employee recruitment to terminate.
• Housing and living costs can have a significant
impact on the compensation of the employees
•Human resource must follow all laws and
because they can vary from one location to government regulations.
another.

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II. The task environment

• Consists of individuals, groups, and organizations that directly affect
III. The Internal environment
a particular organization but are not part of it. • Are factors that affect an organization human resource from inside its
boundaries.
• The task environment refers to the specific environment of an
organization and includes: • Mission: the organization’s continuing purpose or reason with a clear
understanding of the firm’s mission.
The customers • Policy: predetermined guide established to provide direction in decision
The suppliers making.
The regulators Policies are some what flexible, requiring interoperation and
judgment their use.
Owners
Although policies are established for marketing, production, and
Competitor and finance the largest number of policies often relate to human
Partners resource management.

Organizational culture: social and psychological CHAPTER TWO

climate. JOB ANALYSIS
System of shared values, beliefs, and habits within
an organization that interacts with the formal
structure to produce behavioral norms.
Among the other internal environmental factors
organizations management, organization
employees, organization’s structure and
organizational rules and procedures can be stated.