Human Resourse

Introduction to Human Resource Management
Lecture 1
 MGT 351 - Human Resource Management

 Instructor: Faisol Chowdhury
1
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
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 3
HRM Objective
4 4
HRM Activities
5 5
HRM Activities
Basic –
Obtaining –
Improving –
• HRM introduction
• Job Analysis
•Historical Development • Performance Appraisal
• Job Design
• Ethical Foundation • Training
• Recruitment
• Legal Foundation • Development
• Selection
• Strategic HRM • Learning Environment
• Induction
• HR Planning
Managing –
Rewarding –
Evaluating –
• Industrial Relations
• Motivation
• Employment Relations • Critical Analysis
• Compensation
• International HRM • HRM Evaluation
• Incentives
• CSR • HR Audit
• Other Benefits
• Diversity • HR Assessment
• Rewards Management
• OH&S
6 6
Three Main HR Activities
recruiting and selecting suitable people
Obtain
Maintain Develop
by enhancing improving employee

employee satisfaction, knowledge, skills,
commitment, loyalty performance,
etc. potential etc.
7
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 8
HR & ‘Line – Staff’ function
9 9
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 10
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 11
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 12
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 13
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 14
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 15
16 16

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Introduction to Human Resource Management

 MGT 351 - Human Resource Management

 It is managing people within the employer – employee

 It involves the productive use of people in achieving the

 HR Managers plan, administer and review activities concerned

 HRM is management, but management is more than HRM

recruiting and selecting suitable people

by enhancing improving employee

 Line managers direct the work of subordinates in

 Staff managers assist and advice line managers in

 Identify the line manager and the staff manager among

 Can a manager be both line and staff manager? How?

 Competitive Advantage – any set of factors that allow an

 What can be the competitive advantage of an organisation?

 Can the employees of an organisation be the competitive

 How can HR contribute to turn its employees into competitive

 Strategic HRM links HR to the organisation’s corporate and

 Linking all HR activities with the organisation’s strategic

 Cost containment: cost reduction via reduced headcount, improved

 Hard (instrumental) HRM approach:

 root from Unitarist approach.

 Soft (humanistic) HRM approach:

 root from Pluralist approaches.

 Unitarist - Employers and employees are of one mind about

 Pluralist - Organisations are made up of individuals and

 Marxist or ‘Radical’ - Organisations are only one element in

 Industrial revolution of 18th and 19th century.

 Industrial Relations (IR) system emerged as an outcome of the conflict

 HRM emerged as a educationalist’, researchers, and management

 IR is seen as the relationship of supporting employees, whereas, HR is

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