1.
BASIC
Human Resource Management
www.humanikaconsulting.com

2.
What Do I Need to Know? (1 of 2)
1. Define human resource management and explain how HRM
contributes to an organization’s performance.
2. Briefly discuss and illustrate each of the important trends
influencing human resource management.
3. List and briefly describe important trends in human resource
management
4. Identify the responsibilities of human resource departments.
5. Summarize the types of skills needed for human resource
management.

3.
What Do I Need to Know? (2 of 2)
6. Explain the role of supervisors in human resource management.
7. Discuss ethical issues in human resource management.
8. Describe typical careers in human resource management.
9. Identify several challenges today’s human resource managers currently
face.
10. Outline several potential challenges and contributions that an
increasingly diverse workforce presents.
11. Discuss the role of human resource managers in the future.
12. Explain how human resource managers can affect organizational
performance.
13. Summarize several guidelines to follow when communicating human
resource programs.

4.
Competitive
Challenges Ahead
• Globalization
• Value Chain for Business Competitiveness & HR services
• Profitability through cost and growth
• Capability Focus
• Change, change, and change some more
• Technology
• Attracting, retaining, & measuring competence & intellectual capital
• Turnaround is not transformation

5.
• People go into HR
because they like
people
• HR departments are not
designed to provide
corporate therapy or as
social or health-and-
happiness retreats.
• HR professionals must
create the practices that
make employees more
competitive, not more
comfortable.

6.
• Anyone can do HR. • HR activities are based
on theory and research.
• HR professionals must
master both theory and
practice.

7.
• HR deals with the soft
side of business and is
therefore not
accountable.
• The impact of HR
practices on business
results can and must be
measured.
• HR professionals must
learn how to translate
their work into financial
performance.

8.
• HR focuses on costs,
which must be
controlled
• HR practices must
create value by
increasing the
intellectual capital
within the firm.
• HR professionals must
add value, not reduce
costs.

9.
• HR’s job is to be the
policy police and the
health-and-happiness
patrol.
• The HR function does not
own compliance- managers
do.
• HR practices do not exist to
make employees happy but
to help them become more
committed.
• HR professionals must help
managers commit
employees and administer
policies.

10.
• HR is full of fads. • HR policies have
evolved over time.
• HR professionals must
see their current work
as part of an
evolutionary chain and
explain their work with
less jargon and more
authority.

11.
• HR is staffed by nice
people.
• At times, HR should
force vigorous debates.
• HR professionals should
be confrontative and
challenging as well as
supportive.

12.
• HR is HR’s job. • HR work is as important
to managers as are
finance, strategy, and
other business domains.
• HR professionals should
join with managers in
championing HR issues.

13.
Human Resource Management at Work
• What Is Human Resource Management (HRM)?
– The process of acquiring, training, appraising, and compensating
employees, and of attending to their labor relations, health and
safety, and fairness concerns.
• Organization
– People with formally assigned roles who work together to
achieve the organization’s goals.
• Manager
– The person responsible for accomplishing the organization’s
goals, and who does so by managing the efforts of the
organization’s people.

14.
The Management Process
Copyright © 2011 Pearson Education, Inc. publishing
as Prentice Hall
1–15
Planning
Organizing
Leading Staffing
Controlling

15.
16
Source of Organisational Capabilities:
 Human Capital-skills,experience,know-how and
capabilities of individuals in the organisation.
 Structural Capital-Organisational architecture,business
processes,culture,decision making,patents,
trademarks.(Intellectual Capital).
 Relationship Capital-internal and external
interconnectedness, Value Chain Management,Image
promotion and development

16.
 HRM can increase its contribution to the
organisations’ effectiveness by playing key role in
creating value in each of the components of
strategic capability.
Through sound HR Policies, Programs and Practices
• HR should be involved in the identification of Key
Competencies that are needed to exploit existing
Organization Capabilities; Developing
Competencies to achieve organization's strategy.

17.
Human Resource Management (HRM)
The policies, practices,
and systems that
influence employees’:
– behavior
– attitudes
– performance

18.
Human Resource Management Practices

19.
At companies
with effective
HRM:
• Employees and customers tend to be more
satisfied.
• The companies tend to:
– be more innovative
– have greater productivity
– develop a more favorable reputation in the
community

20.
Human Capital
• Human Capital – an
organization’s
employees described in
terms of their:
– training
– experience
– judgment
– intelligence
– relationships
– insight
• The concept of “human
resource management”
implies that employees
are resources of the
employer.

21.
Competency Based HRM
• Competencies begin to play a central role in the formulation of an
HR strategy;
• This is an HR strategy that is directly aligned to the business
strategy
• HR needs skills and tools for competency tracking and management
for the individuals and teams within an organisation.
• Such tracking helps in Skills Gap analysis.
• These processes can now be assisted by standardised data formats,
which can be automated.

22.
Talent management
• Talent management is the strategic management of
the flow of talent through an organization.
• Its purpose is to assure that the supply of talent is
available to align the right people with the right jobs
at the right time based on strategic business
objectives.

23.
Impact of Human Resource Management

24.
Behind these numbers are gaps in areas particularly relevant in
today’s environment
Traditionally Engaged
 Belief in company goals
and objectives
 Emotional connection
(pride, recommendation)
 Willingness to give
extra effort to support
success
Energy
 Can sustain energy
needed at work
 Have social supports in
work environment
 Have sense of
enthusiasm and
accomplishment at work
Enablement
 Freed from obstacles to
succeed at work
 Have resources to
perform well
 Can meet work
challenges effectively
Ensuring people are
capable of doing their
jobs well
Ensuring people have
capacity to perform at
their best

25.
HRM and Sustainable Competitive Advantage
• An organization can succeed if it has sustainable competitive
advantage.
• Human resources have the necessary qualities to help give
organizations this advantage:
– Human resources are valuable.
– Human resources with needed skills and and knowledge are
sometimes rare.
– Human resources cannot be imitated.
– Human resources have no good substitutes.

26.
High-Performance Work System
An organization in which technology,
organizational structure, people, and
processes all work together to give an
organization an advantage in the
competitive environment.

27.
Engaged, Enabled Employees Deliver
Bottom-Line Benefits

28.
Responsibilities of HR Departments

29.
Activities of the Major Human Resource
Functions
1-30

30.
Skills of HRM Professionals

31.
Who Performs the Human Resource
Functions?
• Human resource
generalist
– Person who devotes a
majority of working
time to human
resource issues, but
does not specialize in
any specific areas.
• Human resource
specialist
– Person specially
trained in one or
more areas of human
resource
management
– labor relations
specialist, wage and
salary specialist
1-32

32.
Supporting the
Organization’s Strategy
• Human resource planning – identifying the
numbers and types of employees the
organization will require to meet its objectives.
• The organization may turn to its HR department
for help in managing the change process.
• Skilled HR professionals can apply knowledge of
human behavior, along with performance
management tools, to help the organization
manage change constructively.

33.
Supporting the
Organization’s Strategy
• Evidence-based HR– Collecting and using data
to show that human resource practices have a
positive influence on the company’s bottom line
or key stakeholders.

34.
Questions for Understanding the
Organization’s Business Strategies

35.
Why measure HR effectivenessAlignment of HR with Business
Distinctive Competence
To achieve our strategy, what are
the key things we need to do
exceptionally well in order to
achieve our competitive advantage.
Workforce Capability
What are the key capabilities that our
workforce needs to excel in order to
achieve our business strategy?
Strategy
What are our strategic
and business
objectives?

36.
37
COMPETENCIES AS LINK BETWEEN STRATEGY AND
HUMAN RESOURCE PROGRAMMES
Business
Strategy
Organisational
Capabilities
Capability
Components
Competencies
Human Resource
Consequences
•Strategy
•Mission
•Values
• Objectives
•Characteristics
of the organi-
zation which
are crucial
for success-
fully imple-
menting the
organization’s
strategy
•Measures
and actions
needed to
build each
Capability
•The
competencies
(skills and
behaviour)
needed to
bring about
the required
capability
components
•Human
Resource
activities for
developing
and reinforcing
the required
competencies

37.
38
FROM STRATEGY TO INDIVIDUAL COMPETENCIES
Business
Strategy
Organisational
Capabilities
Capability
Components
Employee
Competencies
Strategic Intent
• To become the
Leading telecom
provider
in Egypt
•Obtain and
maintain No. 1
position in telecom
l services provision
• Accelerate
network
expansion
•Strong focus on
Added value of
Customers
• Sophisticated
information
system.
•Knowledge of the
Market and
Competitors
• Understanding of
The customer.
• Customer focused
attitude.

38.
HPCL Model for alignment with business
Strategic partner
(Management of Strategic
Human Resources)
Change Agent
(Management of
Transformation
and change)
Administrative expert
(Management of
Organisation infrastructure)
Employee champion
(Management of
Employee contribution)
Future/strategic focus
Day-to-day operational focus
People
Processes
The Dave Ulrich Model

39.
HR as Change Agent
Change Agent
(Management of
Transformation
and change)
Future/strategic focus
PeopleFocus

40.
Metrics and the HR Scorecard
• Metrics
– Any set of quantitative
measures used to assess
workforce performance
• Analysis of cost per hire
• Average length of time
to fill a position
• Training cost per
employee
• Turnover cost per
employee
• New-hire performance
by recruiting strategy

41.
Metrics and the HR Scorecard
• HR Scorecard
– Measurement and control system using a mix of
quantitative and qualitative measures to evaluate
performance
– Modified form of the balanced scorecard system

42.
Supporting the Organization’s Strategy
Corporate Social
Responsibility
• A company’s commitment
to meeting the needs of its
stakeholders.
Stakeholders
• The parties with an interest
in the company’s success
(typically, shareholders, the
community, customers, and
employees).

43.
Analyzing and Designing Jobs
Job Analysis
• The process of getting
detailed information
about jobs.
Job Design
• The process of defining
the way work will be
performed and the
tasks that a given job
requires.

44.
Job Analyzing

45.
Recruiting and Hiring Employees
Recruitment
• The process through
which the organization
seeks applicants for
potential employment.
Selection
• The process by which the
organization attempts to
identify applicants with
the necessary
knowledge, skills,
abilities, and other
characteristics that will
help the organization
achieve its goals.

46.
Top Qualities Employers Seek in Job Candidates

47.
Training and Developing Employees
Training
• A planned effort to
enable employees to
learn job-related
knowledge, skills, and
behavior.
Development
• The acquisition of
knowledge, skills, and
behaviors that improve
an employee’s ability to
meet changes in job
requirements and in
customer demands.

48.
Managing
Performance
• Performance Management – The process of
ensuring that employees’ activities and outputs
match the organization’s goals.
• The human resource department may be
responsible for developing or obtaining
questionnaires and other devices for measuring
performance.

49.
Performance Appraisal Process and Pitfalls

50.
Planning and Administering Pay
and Benefits
Planning Pay & Benefits
• How much to offer in salary
and wages.
• How much to offer in
bonuses, commissions, and
other performance-related
pay.
• Which benefits to offer and
how much of the cost will
be shared by employees.
Administering Pay & Benefits
• Systems for keeping track of
employees’ earnings and
benefits are needed.
• Employees need
information about their
benefits plan.
• Extensive record keeping
and reporting is needed.

51.
Maintaining Positive Employee Relations
• Preparing and distributing:
– employee handbooks and policies
– company publications and newsletters
• Dealing with and responding to communications from
employees:
– questions about benefits and company policy
– questions regarding possible discrimination, safety
hazards, possible harassment
• Collective bargaining and contract administration.

52.
Establishing and Administering
Personnel Policies
• Organizations depend on their HR department to help
establish and communicate policies related to:
– hiring
– discipline
– promotions
– benefits
• All aspects of HRM require careful and discreet record
keeping.

53.
Ensuring Compliance with Labor Laws
• Government requirements include:
– filing reports and displaying posters
– avoiding unlawful behavior
• Managers depend on HR professionals to help
them keep track of these requirements.
• Lawsuits that will continue to influence HRM
practices concern job security.

54.
Who is Responsible for HR?
In an organization, who should be concerned
with human resource management?
A. Only HR departments
B. Only Managers
C. Managers and HR departments

55.
Supervisors’ Involvement in HRM

56.
Ethics in Human Resource Management
• Ethics – the fundamental principles of right
and wrong.
• Ethical behavior is behavior that is consistent
with those principles.
• Many ethical issues in the workplace involve
human resource management.

57.
Employee Rights
Right of free
consent
Right of
privacy
Right of
freedom of
conscience
Right of
freedom of
speech
Right to due
process

58.
Ethical companies act according to four
principles:
1. In their relationships with customers, vendors, and
clients, ethical companies emphasize mutual benefits.
2. Employees assume responsibility for the actions of the
company.
3. The company has a sense of purpose or vision that
employees value and use in their day-to-day work.
4. They emphasize fairness.

59.
Standards for Identifying Ethical Practices

60.
Standards for
Identifying Ethical
Human Resource
Management Practices
1. HRM practices must result in the greatest good for the
largest number of people.
2. Employment practices must respect basic human rights of
privacy, due process, consent, and free speech.
3. Managers must treat employees and customers equitably
and fairly.

61.
Median Salaries for HRM Positions

62.
Challenges For
Today’s Human
Resource Managers
• Diversity in the workforce
• Result of changes in government requirements
• Organizational structures
• Technology
• Management approaches

63.
Diversity in Workforce
• Between years 2004-2018:
– Almost half the new entrants will be women
– White, non-Hispanic males will comprise fewer
than one-third of new labor force entrants
– Average age of employees will climb to 42.3

64.
Diversity in Workforce
Increasing globalization of many companies
• Defining diversity in global terms
– Looking at all people and everything that makes
them different from one another, as well as the
things that make them similar
– Values, habits, and customs

65.
Key Human Resource
Related Challenges
Facing global Companies
• Cultural differences
• Compliance with data-privacy regulations
• Varying economic conditions across countries
• Time zone differences
• Legal environment
• International compliance
1-70

66.
Challenges and Contributions of
Diversity
• Organizations must get away from fitting
employees into a single corporate mold
– Must create new human resource policies to explicitly
recognize and respond to unique needs of individual
employees
• Communication problems that arise will
necessitate additional training in written and
spoken language skills
1-71

67.
Regulatory Changes
Organizations face new regulations routinely issued
in areas of:
• Safety and health
• Equal employment opportunity
• Pension reform
• Quality of work life
1-72

68.
Structural Changes to Organizations
• Downsizing
– Laying off large
members of managerial
and other employees
• Outsourcing
– Subcontracting work to
an outside company that
specializes in that
particular type of work
1-73

69.
Structural Changes to Organizations
• Rightsizing
– Continuous and
proactive assessment of
mission-critical work and
its staffing requirements
• Reengineering
– Fundamental rethinking
and radical redesign of
business processes to
achieve dramatic
improvements in cost,
quality, services, and
speed
1-74

70.
Technological and
Managerial Changes
within Organizations
• Computerized information systems are now being used
to maintain easily accessible employee data that are
valuable in job placement and labor utilization
• Also being used in employee training, succession
planning, and compensation management, and to track
and report affirmative action activity

71.
• Many organizations have implemented Web-
based human resource systems that allow
employees to complete many HR-related tasks
online.
• Referred to as electronic human resources
(eHR)
Technological and
Managerial Changes
within Organizations

72.
Advantages of eHR
Employee convenience
Immediate response
Increased accuracy
Reduced costs
1-77

73.
Technological and Managerial Changes
within Organizations
• Telecommuting
– Working at home by using an electronic linkup
with a central office
– Applicable to employees in home country or on
different continents
Technological and
Managerial Changes
within Organizations

74.
Technological and Managerial Changes
within Organizations
• Empowerment
– Form of decentralization that involves giving
subordinates substantial authority to make decisions
• Self-managed work teams
– Groups of peers that are responsible for a particular
task or area

75.
Human Resource
Management In
the Future
• Human resource managers must be integrally
involved in organization’s strategic and policy-
making activities
• Human resource managers need to:
– Overcome negative impressions and biases sometimes
associated with this field
– Become well-rounded businesspeople
– Understand business complexities and strategies
1-80

76.
Becoming more familiar with the business:
• Know the company strategy and business plan
• Know the industry
• Support business needs
• Spend more time with the line people
• Keep your hand on the pulse of the organization
• Learn to calculate costs and solutions in hard numbers
Human Resource
Management In
the Future

77.
Impact of the HR Manager
on Organizational
Performance
1. Reducing unnecessary overtime expenses by
increasing productivity during a normal day
2. Staying on top of absenteeism and instituting
programs designed to reduce money spent
for time not worked
3. Eliminating wasted time by employees with
sound job design

78.
4. Minimizing employee turnover and unemployment
benefit costs by practicing sound human relations
and creating a work atmosphere that promotes job
satisfaction
5. Installing and monitoring effective safety and health
programs to reduce lost-time accidents and keep
medical and workers’ compensation costs low
Impact of the HR Manager
on Organizational
Performance

79.
6. Properly training and developing all employees to
improve their value to company and do a better job
producing and selling high-quality products and services
at lowest possible cost
7. Decreasing costly material waste by eliminating bad
work habits, attitudes and poor working conditions that
lead to carelessness and mistakes
8. Hiring the best people available at every level and
avoiding overstaffing
Impact of the HR Manager
on Organizational
Performance

80.
9. Maintaining competitive pay practices and benefit
programs to foster a motivational climate for
employees
10. Encouraging employees to submit ideas for
increasing productivity and reducing costs
11. Installing human resource information systems to
streamline and automate many human resource
functions
Impact of the HR Manager
on Organizational
Performance

81.
Communicating
Human Resource
Programs
• Communication
– The transfer of information that is meaningful to
those involved
• Human resource managers must develop an
appreciation for the importance of
communication

82.
Guidelines for Communicating Human
Resource Programs
• Avoid communicating in peer group or “privileged-
class” language by focusing on the audience
• Don’t ignore cultural and global aspects of
communication
• Back up communications with management action
• Periodically reinforce employee communications
1-87

83.
Guidelines for Communicating Human
Resource Programs (cont.)
• Transmit information and not just data
• Don’t ignore perceptual and behavioral
aspects of communication; anticipate
employee reactions and act accordingly
1-88

84.
Guidelines for Communicating Human
Resource Programs (cont.)
• Data
– Raw material from which
information is developed
– composed of facts that
describe places, people,
things, or events and
that have not been
interpreted
• Information
– Data that have been
interpreted
– meet a need of one or
more managers
1-89

85.
Test Your Knowledge
• Which HR functions are primarily concerned
with 1) ensuring employees are capable of
doing their current job , 2) ensuring that
employees are satisfied with their rewards.
A. 1) Development; 2) Employee Relations
B. 1) Training; 2) Legal Compliance
C. 1) Selection; 2) Pay & Benefits
D. 1) Training; 2) Pay & Benefits

86.
Summary
• Human resource management (HRM) consists
of an organization’s “people practices”
– the policies, practices, and systems that influence
employees’ behavior, attitudes, and performance.
• HRM influences who works for the
organization and how those people work.
• HR departments have responsibility for a
variety of functions related to acquiring and
managing employees.

87.
Summary (continued)
• HR management requires substantial human
relations skills, including skill in:
– communicating
– negotiating
– team development
• HR professionals also need:
– To understand the language of business
– To be a credible with line managers and executives
– To be strategic partners

88.
Summary (continued)
• Non-HR managers must be familiar with the
basics of HRM and their own role with regard
to managing human resources.
– Supervisors typically have responsibilities related
to all the HR functions.
• HR professionals should make decisions
consistent with sound ethical principles.

89.
Summary (continued)
• The decisions of HR professionals should:
– Result in the greatest good for the largest number of
people.
– Respect basic rights of privacy, due process,
consent, and free speech.
– Treat employees and customers equitably and fairly.
• Careers in HR management may involve
specialized work in fields such as recruiting,
training, or compensation

90.
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