1 MANAGING PEOPLE Introduction to Human Resource Management - - PowerPoint PPT Presentation

PowerPoint Presentation by Charlie Cook The University of West Alabama

Managing Human Resources

Bohlander • Snell

14th edition

MANAGING PEOPLE

Introduction to Human Resource Management

MATHISHA HEWAVITHARANA

MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), MSLIM(SL),

Head of Branches - Siyapatha Finance PLC

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2–2

Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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• Human

: refer to the skilled workforce in the organization.

• Resource

: refer to limited availability or scarce.

• Management : refer to maximize or proper utilization and make best

use of limited and a scarce resource.

• Human resource management is the process of proper and maximize

utilization of available limited skilled workforce. The core purpose of the human resource management is to make efficient use of existing human resource in the organization.

Introduction to HRM

What is Human Resource management (HRM):

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• Human Resource Management (HRM) is the function within an
• rganization that focuses on recruitment of, management of, and

providing direction for the people who work in the organization.

• HRM

is the Managerial utilization

• f

the Efforts, Knowledge, Capabilities & Committed Behaviors which people contribute to an Authoritatively Co-ordinated Human Enterprise as part

• f

an Employment Exchange to carryout work, tasks in a way which enables the enterprise to continue in to the future.

Introduction to HRM

What is Human Resource management (HRM):

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• Human

resource management (HRM), also called personnel management , consists of all the activities undertaken by an enterprise to ensure the effective utilization of employees toward the attainment

• f individual, group, and organizational goals.

Introduction to HRM

What is Human Resource management (HRM):

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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• Frederick Taylor, known as the father of scientific management, played

a significant role in the development of the personnel function in the early 1900s.

• In his book, Shop Management, Taylor advocated the "scientific"

selection and training of workers. He also pioneered incentive systems that rewarded workers for meeting and/or exceeding performance standards.

• Although Taylor's focus primarily was on optimizing efficiency in

manufacturing environments, his principles laid the ground-work for future HRM development.

Introduction to HRM

• rigin of HRM:

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• Study of Work Efficiency at the Hawthorne works of the Western

Electric Company During 1924 – 1932 which realized that people are more sensitive towards the attention paid to them and the work place relationships than the work place physical conditions.

• This realized the importance of “People oriented Management” for the

first time hence given more value for the people factor than the task.

Introduction to HRM

• rigin of HRM:

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Milestones of HRM:

1890-1910 Frederick Taylor develops his ideas on scientific management. Taylor advocates scientific selection of workers based on qualifications and also argues for incentive- based compensation systems to motivate employees. 1910-1930 Many companies establish departments devoted to maintaining the welfare of

• workers. The discipline of industrial psychology begins to develop. Industrial

psychology, along with the advent of World War I, leads to advancements in employment testing and selection. 1930-1945 The interpretation of the Hawthorne Studies' begins to have an impact on management thought and practice. Greater emphasis is placed on the social and informal aspects of the workplace affecting worker productivity. Increasing the job satisfaction of workers is cited as a means to increase their productivity.

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Introduction to HRM

Milestones of HRM:

1945-1965 In the U.S., a tremendous surge in union membership between 1935 and 1950 leads to a greater emphasis on collective bargaining and labor relations within personnel management. Compensation and benefits administration also increase in importance as unions negotiate paid vacations, paid holidays, and insurance coverage. 1965-1985 The Civil Rights movement in the U.S. reaches its apex with passage

• f the Civil Rights Act of 1964. The personnel function is dramatically

affected by Title VII of the Civil Rights Act , which prohibits discrimination on the basis of race, color, sex, religion, and national

• rigin. In the years following the passage of the CRA, equal

employment opportunity and affirmative action become key human resource management responsibilities.

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Introduction to HRM

Milestones of HRM:

1985-present Three trends dramatically impact HRM.

• The first is the increasing diversity of the labor force, in terms of age,

gender, race, and ethnicity. HRM concerns evolve from EEO and affirmative action to "managing diversity."

• A second trend is the globalization of business and the accompanying

technological revolution. These factors have led to dramatic changes in transportation, communication, and labor markets.

• The third trend, which is related to the first two, is the focus on HRM as

a "strategic" function. HRM concerns and concepts must be integrated into the overall strategic planning of the firm in order to cope with rapid change, intense competition, and pressure for increased efficiency.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Scope of HRM:

The scope of Human Resource Management refers to all the activities that come under the area of Human Resource Management. Key Areas of HRM ;

• Human Resource Planning
• Job Analysis & Design
• Recruitment & Selection
• Orientation & Induction
• Training & Development
• Performance Appraisals
• Compensation & Remuneration
• Employee Motivation
• Employee Welfare
• Employee Health & Safety

2–16

Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Functions of HRM:

• Human Resource Planning

A Process in which , an organization attempts to estimate the demand for labor and evaluate the size, nature & sources of supply which will be required to meet the demand of the organization.

• Job Analysis & Design

The process of describing the nature of a job and specifying the human requirements, such as skills, and experience needed to perform it. The relevant jobs will be designed accordingly.

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Introduction to HRM

Functions of HRM:

• Recruitment & Selection

Recruiting is the personnel function that attracts qualified applicants to fill job vacancies. In the selection function, the most qualified applicants are selected for hiring from among those attracted to the organization by the recruiting function.

• Orientation & Induction

The first step toward helping a new employee adjust himself to the new job and the employer. This will facilitate the employee to get familiar to the corporate culture and environment.

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Introduction to HRM

Functions of HRM:

• Training & Development

The training and development function gives employees the skills and knowledge to perform their jobs effectively. In addition to providing training for new or inexperienced employees, organizations often provide training programmes for experienced employees whose jobs are undergoing change. Large organizations often have development programmes which prepare employees for higher level responsibilities within the organization.

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Introduction to HRM

Functions of HRM:

• Performance Appraisals

Monitors employee performance to ensure that it is at acceptable levels. Human resource professionals are usually responsible for developing and administering performance appraisal systems, which ensures that the actual employee behavior / performance happened according to planned expectations.

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Introduction to HRM

Functions of HRM:

• Compensation & Remuneration

Determining how much employees should be paid for performing certain

• jobs. Pay is obviously related to the maintenance of human resources.

Since it is a major cost to many organizations, it is a major consideration in Human Resource Management.

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Introduction to HRM

Functions of HRM:

• Employee Motivation

Creating a hidden force with in the employee which will change the performance behavior of individuals as a result. This can be “Intrinsic” or “Extrinsic”.

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Introduction to HRM

Functions of HRM:

• Employee Welfare

Welfare includes anything (Services, Facilities, Assistance) that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration.

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Introduction to HRM

Functions of HRM:

• Employee Health & Safety

A cross-disciplinary area concerned with protecting the safety, health and welfare of people engaged in work or employment. The goal of all

• ccupational health and safety programs is to foster a safe work

environment. As a secondary effect, it may also protect co-workers, family members, employers, customers, suppliers, nearby communities, and other members of the public who are impacted by the workplace environment.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Key Responsibilities of HR Manager:

• To act as an internal change agent and consultant.
• To initiate change and act as an expert and facilitator.
• To keep communication lines open between the HRD

function and individuals and groups both within and outside the organization.

• To identify and evolve HRD strategies in consonance with
• verall business strategy.
• To facilitate the development of various organizational

teams and their working relationship with other teams and individuals.

• To try and relate people and work so that the organization
• bjectives are achieved effectively and efficiently.
• To diagnose problems and to determine appropriate

solution particularly in the human resources areas.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

HRM Vs Personnel Management (PM):

Personnel Management is thus basically an administrative record-keeping function, at the operational level. Personnel Management attempts to maintain fair terms and conditions of employment, while at the same time, efficiently managing personnel activities for individual departments etc.

Human Resource Management is concerned with the development and implementation of people related strategies, which are integrated with corporate strategies, and ensures that the culture, values and structure of the organization, and the quality, motivation and commitment of its members contribute fully to the achievement of its goals.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Human Resource Development (HRD):

HRD concept was first introduced by Leonard Nadler in 1969 in a conference in

• US. “He defined HRD as those learning experience which are organized, for a

specific time, and designed to bring about the possibility of behavioral change”.

According to M.M. Khan, "Human resource development is the across

• f increasing knowledge, capabilities and positive work attitudes of all

people working at all levels in a business undertaking."

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

2–32

Introduction to HRM

Human Capital Management:

'The stock of accumulated knowledge, skills, experience, creativity and other relevant workforce attributes' and suggest that human capital management involves 'putting into place the metrics to measure the value of these attributes and using that knowledge to effectively manage the organization'.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

2–34

Introduction to HRM

Talent Management:

Talent Management is about identifying a person's natural skills, talent, personality and traits, by realizing that each person has a certain talent suited to a specific job profile. Simply it is a business practice that manage the planning, acquisition, development, retention and growth of talent in

• rder to achieve business goals with optimized overall

performance. Talent management has two challenges to face; I. Finding new talent to fit in to the required job description. II. Retaining existing employees.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Knowledge Management:

Knowledge Management is Capturing, organizing, and storing knowledge and experiences of individual workers and groups within an organization and making this information available to others in the organization.

Knowledge management is the systematic approach to getting an

• rganization to make the best possible use of its intellectual capital in
• rder to sustain competitive advantage.

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Introduction to HRM

Knowledge Management:

How to create a learning organization by effectively managing knowledge? Four steps to be followed i. Effective Documentation (processing and storing data) ii. Establishing connectivity / communication through LAN/WAN/INTERNET iii. Dissemination (proper sharing of information among employees)

• iv. Feedback and continual improvement.

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Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

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Introduction to HRM

Changing Role of / Challenges Faced by HRM:

• Personnel Management to Strategic Human Resource Management
• Operational View to Strategic View
• Reactive Behavior to Proactive Behavior
• Employee Engagement
• Change Management Involvement
• Task Culture to Human Relations Culture
• Acquisition Philosophy to Retention philosophy
• Extraction to Development of HR
• Improvement of IT Platforms

2–40

Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

2–41

Introduction to HRM

Impact of IT in HRM:

e-HRM is the use of web-based technologies to provide HRM services within

• rganizations. Currently human resource management is making extensive use
• f web-based technology.
• HRM planning
• Recruitment
• Selection
• Labour Cost Management
• Monitoring of Leaves and Absenteeism
• Salaries
• Training & Development
• Employee Feedback Collection

2–42

Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

2–43

Introduction to HRM

Key Goals of / benefits Expected from HRM:

• Supporting the business to achieve its corporate objectives
• Creating & Developing a high performance culture
• Ensure the timely supply of required Human Resources
• Creating a positive employment relationship between the Employees & the
• rganization
• Facilitating Professional growth of employees
• Creating minimum possibilities for conflicts and regulatory action
• Encouraging an Ethical Approach to HRM

2–44

Chapter Contents

Summarized Chapter Contents:

1. What is Human Resource Management (HRM) 2. Origin of HRM 3. Milestones of HRM 4. Scope of HRM 5. Functions of HRM 6. Responsibilities of HR Manager 7. HRM Vs PM 8. Human Resource Development 9. Human Capital Management 10. Talent Management 11. Knowledge Management 12. Changing role of HRM 13. Challenges faced by Modern HRM 14. Impact of IT in HRM 15. Benefits of HRM

PowerPoint Presentation by Charlie Cook The University of West Alabama

Managing Human Resources

Bohlander • Snell

14th edition

THANK YOU !

0773 – 29 20 29 mathihewa@yahoo.com