BUS 101
Chapter 11:
Introduction to Human Resource
Management
FEIHAN AHSAN
BRAC University
Sep 15th , 2013
About Me
• FEIHAN AHSAN
• M.A., Queen’s University, Canada
• MBA, North South University, NSU
• BBA, North South University, NSU
• School- Scholastica
• Interests:-
• Big Tennis fan- Queen’s Championship League player
• Big Movie Fan- Comedy/Romance/Action- I watch everything
• I like singing, am learning to play the piano
• Contact:-
• feihantheone@yahoo.com (lol)
Class Outline
1. What is HRM?
2. Why is HRM important?
3. Line and Staff aspects of HRM
4. HR Manager’s Duties
5. Changing Environment of HRM
6. Strategic HRM
The Management Process
• Managers basically do 5 things:
• Planning- Establishing goals and standards; developing rules and
procedures; developing plans and forecasting
• Organizing- Arranging who will do what; establishing organizational
structure and levels of authority; delegating work
• Staffing- Choosing people to hire; training them; paying them;
measuring their performance etc.
• Leading- Getting work done through people; motivating and inspiring
employees
• Controlling- Measuring actual performance with forecasted
performance; controlling variations; correcting them
What is HRM?
HRM is the 3rd function- STAFFING
1. Definition
The process of hiring, managing and developing employees to achieve the
overall strategic objectives of the organization.
2. Includes:
Human Resource Management includes conducting job analyses, planning
personnel needs, recruiting the right people for the job, orienting and
training, managing wages and salaries, providing benefits and incentives,
evaluating performance, resolving disputes, and communicating with all
employees at all levels.
3. Requires:
Examples of core qualities of HR are strong intuition(i.e. good judgment), and
effective negotiation skills. Formerly called personnel management.
Why is HRM Important?
• The basic objective of a manager is getting results, i.e. making
profits for the company
• As a manager, you will have to get those results through people. You
cannot do it alone
• Therefore, you need to manage those human resources effectively
to achieve those profits. Hence, the need for HRM
• Without proper HRM, you might:-
Hire the wrong person for the job
Experience high turnover (employees leaving)
Experience low morale in the firm
Face legal charges by employees as well as the Govt.
All these factors together can make the firm fail to reach it’s long-term
objectives
Line and Staff Aspects of HRM
• Line (Primary) Authority is direct authority. It gives managers the right to
issue orders to other managers or employees, hence creating a superior-
subordinate relationship
• Staff (Secondary) Authority gives the manager the right to advise other
managers or employees, not order.
• HR Managers are usually staff managers, which means they can advise top
management regarding HR issues but they usually cannot order other line
managers. (Except in their own department, remember: HR Managers have
line authority in their own department)
• Ex- The HR Manager can directly order the HR officer
• Also remember, in small companies or firms there may be no separate HR
department and the line manager may be responsible for all the HR
functions.
Types of HR Officers
• Recruiters- Search for qualified job applicants
• Human Resource development Specialists- managing employee-development
activities in an integrated manner
• Job Analysts- Collect and examine information about jobs to prepare job descriptions
• Compensation Managers- Develop compensation plans and handle the employee
benefits program
• Training Specialists- Plan, organize and direct training activities
• Employment/Industrial Relations Specialists- Advise management on all aspects of
union-management relations.
• Employee Welfare officers- Handle welfare activities in factories, as required by law.
The Changing Environment of HRM
• The environment in which HR operates is changing, because of:-
• Increased Globalization- more and more companies are operating on a
global scale, therefore there is pressure to make the workforce more
productive and reduce labour costs in relation to competitors.
• Technological Advancement- Everything is becoming automated, so the
people have to be trained to use the technology.
• More Service-oriented jobs- as jobs become more and more service
oriented, the focus on customer care and service delivery increases.
Hence, HR has to maintain this service orientation.
• All this requires a need for Strategic HRM
Strategic Human Resource Management
• Strategic HRM means formulating and executing human resource
policies and practices that produce the employee output the company
needs to achieve its long-term objectives
• So, Strategic HRM helps the company to achieve it’s overall long-term
objectives (it’s vision and mission)
• To do this, HR has to work together with the other departments and
formulate the best strategy for the firm given the current resources at
hand
• Strategic HRM sees HRM as part of a master plan for the firm, along
with Finance, Marketing and the other departments, all working
together to maximize firm profits in the current market situation
Core Themes in HRM
• Shared HR Responsibility
• HRM is the responsibility of every manager, not just the HR dept. Because every business decision
involves people
• HR Performance has to be Measurable
• HR managers have to validate their decisions in measurable terms. Ex- How much will this new
employee save the company
• Strategic Implications
• HR decisions have to be strategic, meaning they must give the firm a significant competitive
advantage over rivals
• Improving Technology
• HR is getting more and more dependent on information technology. Ex- HR managers now use
HRIS (Human Resource Information System) to handle administrative tasks.
• Legal Implications
• Almost every HR decision has legal implications. Thus, a HR manager has to be fully aware of the
law. Ex- Making employees work overtime may be productive, but it is against the law if not given
Thank You!
