Introduction to

Managing Human
Resources (MHR)

The Essentials of Management

Management involves setting goals and allocating scarce

resources to achieve them.

Management is the process of efficiently achieving the objectives

of the organization with and through people.

Fundamentals of Human Resource Management 8e, DeCenzo and Robbins

The Essentials of Management

Primary Functions of Management

Planning establishing goals

Organizing determining what activities need to be done

Leading assuring the right people are on the job and

motivated

Controlling monitoring activities to be sure goals are met

Human Resource Management

defined:
Human resource management (HRM) is a strategic, integrated and coherent
approach to the employment, development and well-being of the people working in
organisation (Armstrong, 2009)
HRM is: The management of work and people towards desired ends (Boxall et al,
2007)
HRM comprises set of policies designed to maximize organisational integration,
employee commitment, flexibility and quality of work (Guest, 1987)
Human resource management involves all management decisions and action that
affect the nature of the relationship between the organisation and its employees-its
human resources (Beer et al, 1984)

The importance of HRM

The role of human resource managers has changed. HRM jobs

today require a new level of sophistication.

Employment legislation has placed new requirements on

employers.

Jobs have become more technical and skilled (innovation).

Traditional job boundaries have become blurred with the

advent of such things as project teams and telecommuting.

Global competition has increased demands for productivity.

The importance of HRM

The Strategic Nature HRM must be

a strategic business partner and represent employees.

forward-thinking, support the business strategy, and assist the

organization in maintaining competitive advantage.

concerned with the total cost of its function and for

determining value added to the organization.

HRM is both a staff, or support function that assists line

employees, and a function of every managers job.

Soft and Hard HRM

Soft HRM emphasizes the importance of high commitment,

learning, enlightened leadership; human resources are valuable
assets, not variable costs. Models and theories focus on tapping
the human potential, based on organizational behavior theories
(e.g. Maslow, 1954; Herzberg, 1966; McGregor, 1960)

Hard HRM emphasizes the calculative, quantitative and strategic

management aspects of managing the workforce in a rational
way (Storey, 1989).

Mega trends determine future

challenges in HRM:
Innovation

(rapid change)
Demography (workforce diversity, Skills
shortage)
Globalisation (multi-site workforce)
Internet and modern technology (tele and
video conferencing Skype for Business)
Value change (evolving work and family
roles)

OTHER CHALLENGES IN HRM

Competitive
capabilities

advantage:

cost,

Decentralization

Downsizing

Organizational restructuring

Self-managed work teams

Organizational culture

Outsourcing

Matching people and organization

Productivity

Brain drain

quality,

distinctive

HRM FUNCTIONS

Human resource planning (Strategic HRM)

Recruitment

Selection

Compensation & benefits

Performance appraisal

Training and development

Employee relations

Safety & health

HR PLANNING PROCESS

Process of reviewing and identifying future human resource

needs of an organization

HR planning helps managers reduce uncertainty about future

To ensure that the required number of qualified employees is

available at the right time

HR PLANNING PROCESS
HRP addresses organizational needs both in quantitative and
qualitative terms:
First,

how many people

Second,
HRP

what sort of people?

also looks at broader issues like the ways in which

people are employed and developed in order to improve
organizational efficiency

Approaches to HR Planning
Reactive & Proactive

Organization may be unable to correctly anticipate an increase

in its future demand for employees.

At best, such a company would be forced to recruit employees

at the last minute and may thus fail to find the best candidate.

At worst, the company may become seriously understaffed.

Pre-selection

Job analysis

Job description outline of the roles and responsibilities

Person specification outline of the skills and qualities required of

the post holder

Recruitment

The process by which a job vacancy is identified and advertised.

Recruitment process is regulated and subject to employment law.

Recruitment is done through advertising in newspapers, social media,

magazines, internal vacancy bulletins, etc.

Selection

The process of assessing candidates and appointing a post holder

Applicants short listed most suitable candidates selected

Selection process varies according to organisation

Interview most common method

Psychometric testing assessing the personality of the applicants will they fit
in?

Aptitude testing assessing the skills

of applicants

In-tray exercise activity based around what the applicant will be doing, e.g.
writing a letter to a disgruntled customer

Presentation looking for different skills

as well as the ideas of the candidate

Development

Developing the employee can be regarded as investing in a

valuable asset

A source of motivation

A source of helping the employee fulfil potential

Orientation

On-the job training, apprenticeships, professional workshops, conferences,

research, training, coaching, mentoring

Monitoring & Supervision

Observations

Peer observations, self-assessment, spot-checks

Attendance & Punctuality

Performance Appraisal

Organizational Reward Systems

Both intrinsic and extrinsic rewards received as a result of

employment by the organization.

Ideally, rewards are linked to performance.

Rewards cause satisfaction

Rewards based on performance cause improved performance

Satisfaction does not (necessarily) cause better performance;

performance causes satisfaction

Pay & Benefits

Pay

Performance-based pay

Gain Sharing

Benefits

Traditional

Recent

Health insurance; paid vacations

Child care; parent leave; education; retirement plans

Based on position

Employee and Labour Relations

Administration

procedures.

of discipline and grievance-handling

Organizational

discipline: action taken against an

employee who has violated an organizational rule
or whose performance is below satisfactory.

Should

be viewed as a learning opportunity for

the employee and a tool to improve productivity
and human relations.

Employee Health

Occupational diseases may cost industry as much or

more than occupational accidents.

Number of job-related accidents has decreased;

number of job-related illnesses has risen.

Many diseases and health-related problems that are

not necessarily job-related may affect job
performance (alcohol & drug abuse, AIDS).

Many companies now offer wellness programs,

including fitness centers, EAP programs.