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Introduction to Human Resource Management

Lecture 1

 MGT 351 - Human Resource Management


 Instructor: Faisol Chowdhury

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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

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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.

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HRM Objective

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HRM Activities

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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

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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.

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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?

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HR & ‘Line – Staff’ function

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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?

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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.

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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.

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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.

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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?

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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

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