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Human Resource Management

Chapter 1
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT

BA, MSc: Truong Nu To Giang

LEARNING OUTCOME
After finishing this chapter, you will be able to:

Understand the concept, objectives and the roles of human resource


management (HRM)

The evolution of HRM

Identify the basic functions of HRM

Understand the future challenges HRM in the 21 st center

Identify the functions of HR Manager

1.The concepts,
objectives and roles of
HRM
1.1. Definition
HRM

is the planning, organizing, directing and controlling of

the procurement, development, motivation, compensation,


integration, maintenance and separation of HR to the end that
individual,

organization

and

social

objectives

are

accomplished.

1.The concepts,
objectives and roles of
HRM

In a transitional economy like Vietnam, where the level of


technology and techniques are quite low and the economy
is unstable, HRM is a system of philosophy, policies and
functional activities of attracting, training, developing and
maintenance of an organization in order to achieve optimal
results for both the organization and employees.

1.The concepts,
objectives and roles of
1.2 Objectives
HRM

To obtain maximum individual development, desirable


working

relationships

between

employers

and

employees and employees and employees;

To affect the molding of human resources as contrasted


with physical resources.

1.The concepts,
objectives and roles of
HRM
1.3 The roles
HRM

holds an important place on the success of the organization

through he following reasons:


Through

innovation and experimentation in the fields of

personnel, it helps in reducing casts and increasing productivity


It
It

helps to manage other resources effectively


helps to increase the competitive advantages of the

organization.

2. The evolution of HRM


2.1 In the world

2. The evolution of HRM


2.1.1 Scientific Management
Frederick

Winslow Taylor was one of the earliest of the

theory.
His

philosophy to focus on the belief that making people

work as hard as they could was not as efficient as optimizing


the way the work was done.

2. The evolution of HRM


Four Principles of Scientific Management (Taylorism):
Use

the scientific method to study work and determine the most efficient

way to perform specific tasks


Match

workers to their jobs based on capability and motivation and train

them to work at maximum efficiency


Monitor

worker performance and provide instructions and supervision to

ensure that they are using the most efficient ways of working
Allocate

the work between managers and workers.

2. The evolution of HRM


Critiques of Taylorism
While

Taylors

principles

became

widely

practiced and the resulted in a rise in productivity and


working efficiency, it was crictised to focus too much on
mechanics, fail to value the people side of work and
neglect the importance of teamwork.

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2. The evolution of HRM


2.1.2 Human Relations Movement

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2. The evolution of HRM


The result was limited in raising the labor
productivity and employees job satisfaction
What went wrong?

Simplified the concepts of human behavior in organization and ignore the


individual differences of employees

Failed to assess the job requirement and to evaluate the impacts of work on
the employees behavior

Overestimate the human relations effect on the work efficiency and neglect
other effects.

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2. The evolution of HRM


2.1.3 Human Resource Management

From 1970s, Personnel Management was replaced by

Human Resource Management

People were considered as an important source or assets to be

used for the benefit of the organizations, employees and society

HRM focuses on the mutuality-mutual goals, mutual respect,

mutual rewards and mutual responsibilities which will elicit


commitment and yield economic performance.

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2. The evolution of HRM


Four philosophies of HRM
Employees

should be encouraged and supported to develop their

own capacity
Establish

and implement policies, programs and management

practices to meet the physical and spiritual needs of employees


Building

up the work environment that can stimulate employees

development and maximum employees skills


The

HR function is an important part of the organisation business

planning.
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2. The evolution of HRM


2.1.4 Strategic Human Resource Management

The linking of human resources with strategic goals and

objectives in order to improve business performance and develop


organizational culture that foster innovation, flexibility and
competitive advantage

HR function is considered as a strategic partner in the

formulation and implementation of the company's strategies


through HR activities such as recruiting, selecting, training and
rewarding personnel.

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2. The evolution of HRM


The key features of SHRM are:
There

is an explicit linkage between HR policy and practices and

overall organizational strategic aims and the organizational


environment
There

is some organizing schema linking individual HR

interventions so that they are mutually supportive


Much

of the responsibility for the management of human

resources is devolved down the line

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2. The evolution of HRM


2.2 In Vietnam
The

socialism over decades has created a special socialist HRM system

Most

of the basic functions of HRM, such as: recruitment, training, promotion,

salaries and rewards, etc... were controlled by the government policies

The importance of

justice, fairness and teamwork were emphasised and

appreciated

Though this HRM system was successful at the beginning, it soon

lost the pre-eminence and gradually became unable to stimulate


employees in the workplace, resulting in a reducing labour
productivity and a poor business performance.

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2. The evolution of HRM

During the economic reform period, many big changes, which


came from the economic demand were made in HRM

Lifetime employment was replaced by contracting employment

Salary and reward were no longer controlled by government,


instead now were the organizations responsibilities

The differences in HRM between public and private sector were


reduced, organizations and employees became more proactive.
The development of HRM was one of the main reasons which
lead to the efficiency of business activities.

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2. The evolution of HRM

At the moment, most of the Vietnamese organizations are having


challenges, such as: the shortage of professional employees and
the surplus of unprofessional employees, the misconception about
the key role of HRM, low income and living standard which
affects the health, enthusiasm and efficiency of the employees,
etc

In

order

to

improve

the

business

performance,

many

organizations have neglect the HRM to raise the business profits,


HR is considered as liability, instead of a source of valuable asset.

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3.

Function of HRM

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3.

Function of HRM

3.1 Managerial Functions


3.1.1 Planning

The planning function of human resource department pertains


to the steps taken in determining in advance personnel
requirements, personnel programmes, policies etc.

After determining how many and what type of people are


required, a personnel manager has to devise ways and means
to motivate them

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3.

Function of HRM

3.1.2 Organization

Designing structure of relationship among jobs, personnel


and physical factors in such a way so as to have maximum
contribution towards organisational objectives.

In this way a personnel manager performs following


functions:
preparation of task force;
allocation of work to individuals;
integration of the efforts of the task force;
coordination of work of individual with that of the department

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3.

Function of HRM

3.1.3 Directing

It is concerned with the obtaining of the proper kind and


number of personnel necessary to accomplish organization
goals

The personnel manager directs the activities of people of the


organization to get its function performed properly

The personal manager guides and motivates the staff of the


organization to follow the path laid down in advance.

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3.

Function of HRM

3.1.4 Controlling

It provides basic data for establishing standards, makes job


analysis and performance appraisal. All these techniques assist
in effective control of the qualities, time and efforts of
workers.

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3.

Function of HRM

3.2 Operative Functions


3.2.1Procurement of Personnel

It is concerned with the obtaining of the proper kind and


number of personnel necessary to accomplish organization
goals

It deals specifically with such subjects as:


Determination of manpower requirements
Recruiting and selecting process
Placement and orientation
Etc.
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3.

Function of HRM

3.2.2 Development of Personnel

The increase through various techniques of training and skill


that is necessary for proper job performance

Main elements of personnel development functions include:


To apply the vocational training programs for new employees in order to
determine their capabilities
To establish retraining programs whenever there is a change in business
needs or in technical process or in technology
To provide activities such as vocational training, practical training in
order to improve the working skills of employees and managers.

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3.

Function of HRM

3.2.3 Compensation to Personnel

Compensation means determination of adequate and equitable


remuneration of personnel for their contribution to organisation
objectives

A number of decisions are taken into the function, viz., job


evaluation, remuneration, policy, inventive and premium plans,
bonus policy and co-partnership, etc

It also assists the organisation for adopting the suitable wages and
salaries, policy and payment of wages and salaries in right time

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3.

Function of HRM

3.2.4 Maintaining Good Industrial Relation

HRM is intended to reduce strife, promote industrial peace,


provide fair deal to workers and establish industrial democracy

It the personnel manager is unable to make harmonious relations


between management and labour industrial unrest will take place
the moral and physical condition of the employee will suffer

Hence, the personnel manager must create harmonious relations


with the help of sufficient communication system and copartnership

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3.

Function of HRM

3.2.5 Record Keeping

In record-keeping the personnel manager collects and maintains


information concerned with the staff of the organisation.

It is essential for every organisation because it assists the


management in decision making such as in promotions.

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3.

Function of HRM

3.2.6 Personnel Planning and Evaluation

Under this system different type of activities are evaluated


such as evaluation of performance, personnel policy of an
organisation and its practices, personnel audit, morale, survey
and performance appraisal, etc

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4.

Future challenges
of HRM

Because of continuous changing socio-economic, technological


and political conditions, the human resource managers of the
future shall have to face more problems in the management of
labour.

The human resource managers of today may find themselves


obsolete in the future due to changes in environment if they do
not update themselves

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4.

Future challenges
of HRM

Important challenges which might be faced by the managers in


the management of people in business and industry:
Increasing size of workforce
Increase in education level
Technological advances
Changes in political environment
Increasing aspirations of employees
Changing psychosocial system
Computerised information system

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5.

Functions of a HR
Manager

HR Manager is a leader with high intellectual powers, a


visionary and a philosopher who provides the initiative to shape
the future in terms of leading the human beings in an
organisation towards more prosperous and progressive policies
Human Resource Man as an Intellectual
Human Resource Man as an Educator
Human Resource Man as a Discriminator
Human Resource Man as an Executive
Human Resource Man as a Leader

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Questions
1. Examine the concept of HRM.
2. Discuss the Objectives of HRM.
3. Compare and Contrast between Personnel Management and HRM.
4. What are the functions of HRM?
5. Elaborate some of the main challenges which might be faced by the
HRM in the management of people in Business and Industry.
6. Examine the functions of HR Manager in Industrial Organisations.

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