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LEARNIN OB!ECTI"ES#####################################################################################2 1#1 INTRO$%CTION##############################################################################################2 1#2 &H' ST%$' H%MAN RESO%RCE MANA EMENT(##################################3 1#3 HISTORICAL $E"ELO)MENT OF H%MAN RESO%RCE MANA EMENT #* +HRM,################################################################################################################*
1#3#1 T-e Factor. S.stem##############################################################################################* 1#3#2 T-e Mass )ro/uct0on S.stem##############################################################################* 1#3#3 Contr01ut0ons o2 In/ustr0a3 4 Organ05at0ona3 )s.c-o3og.###################################6 1#3#7 T-e Human Re3at0ons Mo8ement#########################################################################6 1#3#* Contr01ut0ons o2 t-e Be-a80ora3 Sc0ences##########################################################6 1#3#6 Increase/ S9ec0a305at0on o2 HR Funct0ons##########################################################6 1#3#: Increas0ng Em9-as0s on Strateg0c Management################################################:
1#* &HO IS RES)ONSIBLE FOR HRM(############################################################12 1#6 FACTORS AFFECTIN THE MANA EMENT OF AN OR ANI@ATIONAS ##############################################################################################################################13 H%MAN RESO%RCES###################################################################################13
1#6#1 Bus0ness Con/0t0on#############################################################################################13 1#6#2 Tec-no3og.########################################################################################################## 17 1#6#3 &orB2orce C-aracter0st0cs##################################################################################17 1#6#7 La1or LaCs########################################################################################################## 17 1#6#* %n0ons an/ %n0on05at0on####################################################################################17 1#6#6 Organ05at0onDs S05e#############################################################################################1* 1#6#: Organ05at0on Cu3ture###########################################################################################1* 1#6#= Organ05at0ona3 Structure####################################################################################1* 1#6#> Organ05at0ona3 Bus0ness Strateg.#####################################################################16
UNITAR 2005
age 1 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
LEARNIN
OB!ECTI"ES
At the end o! this chapter# $ou %i&& 'e a'&e to: (e!ine %hat Human Resource Management )HRM* is Understand the importance o! stud$ing HRM ro+ide the historica& de+e&opment o! HRM Identi!$ the !unctions# processes# and their inter,re&ationships in HRM (escri'e the responsi'i&ities and ro&e o! HR Managers and -ine Managers %ith respect to HRM (escri'e the !actors that in!&uence HRM po&icies and practices.
1#1 INTRO$%CTION
/mp&o$ees %or0ing in an organi1ation are considered the most important resource that the organi1ation has 'ecause the$ are the ones that ensure the organi1ation gro%s and 'ecomes success!u&. -i0e an$ other resources in the organi1ation the$ need to 'e managed2 'ut un&i0e an$ other ph$sica& resources# emp&o$ees are human 'eings that has !ee&ings# !reedom o! thoughts and ma0ing choices# &i'ert$ to act# or not to act# in a certain m manner# etc. 3ecause emp&o$ees are considered uni4ue and +ita& organi1ationa& resources# the$ need to 'e managed proper&$. The !ie&d o! management that &oo0s into these aspects and acti+ities o! managing the emp&o$ees is 0no%n as human resource management. Human resource management )HRM*# !or man$ decades# represents the e5tension o! the area that %as 0no%n as personne& management. According to (e Cen1o and Ro''ins# human resource management can 'e de!ined as a process consisting o! inception# de+e&opment# moti+ation# and maintenance o! an organi1ation6s human resources. In a simp&er term# human resource management is the process o! attracting# moti+ating and retaining emp&o$ees. In order !or organi1ations to get emp&o$ees# e!!ort must 'e made to attract the right peop&e to come and %or0 !or them. 7nce the emp&o$ees 8oin the organi1ation# the$ must 'e a'&e to per!orm the re4uired tas0s. Their &e+e&s o! per!ormance depend on their 0no%&edge# s0i&&s and a'i&ities )9:A*# a+ai&a'i&it$ o! organi1ationa& !aci&ities and support as %e&& as their %i&&ingness to e5ert enough e!!ort to do the 8o'. There!ore# the organi1ation must ensure that emp&o$ees are not on&$ capa'&e o! per!orming the assigned tas0s 'ut are a&so moti+ated to do e5ce&&ent&$. Man$ organi1ations are !aced %ith di!!icu&ties in tr$ing to 0eep their emp&o$ees# especia&&$ the good ones. It is the responsi'i&it$ o! human resource management to ensure that emp&o$ees remain %ith the organi1ation !or &onger terms '$ creating conduci+e and satis!$ing %or0ing en+ironment. Retention programs such as emp&o$ee assistance# 4ua&it$ o! %or0 &i!e# emp&o$ee participation as %e&& as emp&o$ee re&ations programs are imp&emented to ena'&e peop&e remain %or0ing in the organi1ation !or as &ong as 'oth the emp&o$er and the emp&o$ee 'ene!it !rom this re&ationship.
UNITAR 2005
age 2 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
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UNITAR 2005
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management 08# T-e resource must 1e organ05e/ eop&e are a source o! competiti+e ad+antage %hen their ta&ents can 'e com'ined and dep&o$ed to %or0 on ne% assignments at a moment6s notice. Team%or0 and co, operation are t%o per+asi+e methods !or ensuring an organi1ed %or0!orce.
These !our criteria high&ight the importance o! managing peop&e )human resources* and sho% the c&oseness o! HRM to strategic management. 3ecause emp&o$ee s0i&&s# 0no%&edge# and a'i&ities are among the most distincti+e and rene%a'&e resources upon %hich a compan$ can dra%# their strategic management is more important. As Thomas B. >atson# !ounder o! I3M# said# =Cou can get capita& and erect 'ui&dings# 'ut it ta0es peop&e to 'ui&d a 'usiness=.
UNITAR 2005
age D o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
UNITAR 2005
age 5 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
UNITAR 2005
age F o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
UNITAR 2005
age G o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
1#7#1 Ince9t0on
The inception !unction in+o&+es e!!orts to 'ring in the right peop&e to 'ecome emp&o$ees o! the organi1ation. >hi&e recruiting is !re4uent&$ percei+ed as the initia& step in the inception !unction# there are se+era& other se4uences o! acti+ities that too0 p&ace 'e!ore recruitment. The graphic 'e&o% sho%s the se4uence o! acti+ities.
UNITAR 2005
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
1#7#2 Ma0ntenance
The o'8ecti+e o! this !unction is to put into p&ace acti+ities that %i&& he&p retain producti+e emp&o$ees. There are three HRM !unctions o! maintenance# as discussed 'e&o%: 1# Bene20ts A/m0n0strat0on The acti+ities in+o&+ed in the 'ene!its administration inc&ude those that satis!$ emp&o$ee needs 'esides compensation inc&uding assisting emp&o$ees %hen the$ are sic0# or emp&o$ees need !or some time a%a$ !rom %or0. Caring !or emp&o$eesH %e&& 'eing has a ma8or e!!ect on their commitment. /mp&o$ee assistance programs# such as those that he&p emp&o$ees dea& %ith stress!u& &i!e situations# are needed. 2# Sa2et. an/ Hea3t/mp&o$ers must ensure that the %or0ing en+ironment is sa!e and hea&th$. Iuide&ines !or pro+iding sa!e and hea&th$ %or0 p&ace o!!ered '$ &egis&ation shou&d 'e adhered to. 3# Em93o.ee Re3at0ons-09s /mp&o$ee re&ation programs are designed to ensure that emp&o$ees are 0ept %e&& in!ormed a'out %hat is occurring around them# and to !oster an en+ironment %here emp&o$ee +oices are heard.
UNITAR 2005
age ? o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
1#7#3 Mot08at0on
/mp&o$ees not on&$ need to ha+e the appropriate s0i&&s# 0no%&edge# and a'i&ities to ade4uate&$ do the 8o' 'ut the$ a&so need to 'e moti+ated. An understanding o! moti+ation and its sources is important !or HRM pro!essiona&s. 3e&o% are the HRM !unctions o! moti+ation. 1# ReCar/ an/ Com9ensat0on A &in0 'et%een the compensation o!!ered to emp&o$ees and their per!ormance must a&so 'e esta'&ished. There!ore# compensation acti+it$ must 'e adapted to# and coordinated %ith# a pa$,!or,per!ormance p&an. 2# )ro/uct080t. En-ancement )rogram roper 8o' designs must 'e imp&emented to ensure that emp&o$ees are not on&$ moti+ated to do the 8o' 'ut are a&so producti+e. 3# $0sc0930ne an/ Counse30ng o&icies co+ering emp&o$ee discip&ine must 'e !air as it a&so a!!ects 8o' per!ormance. Thus# discip&inar$ and counse&ing s$stems shou&d 'e ade4uate to pro+ide organi1ation,%ide support !or ensuring high producti+it$.
1#7#7 $e8e3o9ment
Ne% emp&o$ees ma$ not tru&$ come into an organi1ation and immediate&$ 'ecome !u&&$ !unctioning. HRM p&a$s an important ro&e in shaping ne% emp&o$ees so that %ithin a short period o! time# the$ are !u&&$ producti+e. HRM em'ar0s !our areas in the de+e&opment phase to accomp&ish this# %hich are as discussed 'e&o%. 1# Em93o.ee Or0entat0on 7rientation is the process o! assisting ne% emp&o$ees in adapting to their ne% surroundings. It 'egins in the &ate stages o! the hiring process and ma$ continue !or man$ months a!ter an indi+idua& 'egins %or0ing. The !ocus o! the orientation is to orient the ne% emp&o$ee to the ru&es# regu&ations# and goa&s o! the organi1ation# department# and %or0 unit. 2# Tra0n0ng an/ $e8e3o9ment /mp&o$ee training is designed to assist emp&o$ees in ac4uiring 'etter s0i&&s !or the current 8o'. The ro&e that HRM p&a$s %i&& +ar$ depending on the si1e o! the organi1ation# the degree o! centra&i1ation in the emp&o$ee training# and the HRM specia&istHs a'i&it$. 7rgani1ations em'ar0 on emp&o$ee de+e&opment programs to ensure an appropriate supp&$ o! interna& candidates !or !uture needs. The !ocus here is to train emp&o$ees !or !uture positions '$ re4uiring them to ac4uire di!!erent sets o! s0i&&s# 0no%&edge# and a'i&ities %hi&e on their present 8o'. 7rgani1ation de+e&opment is the phase o! HRM that dea&s %ith !aci&itating s$stem, %ide change in the organi1ation. This in+o&+es changes in the +a&ues and attitudes o! emp&o$ees# and in some cases# the organi1ation structure# in order to ma0e the organi1ation more adapti+e to the e5terna& in!&uences.
UNITAR 2005
age 10 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management 3# Career $e8e3o9ment A process designed to he&p %or0ers manage their careers. HRM can assist emp&o$ees '$ guiding them ma0e proper decisions a'out their careers# 'ut must &ea+e the responsi'i&it$ to the indi+idua&s.
UNITAR 2005
age 11 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
UNITAR 2005
age 12 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
F0gure 3G Interna& and /5terna& ;actors a!!ecting HRM o&icies and ractices
UNITAR 2005
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
1#6#2 Tec-no3og.
Techno&ogica& change# %hi&e contri'uting to a rise in producti+it$# %i&& continue to shi!t emp&o$ment !rom some occupations to others. ;or e5amp&e# &a'or,intensi+e '&ue,co&&ar and c&erica& 8o's %i&& decrease %hi&e technica&# manageria&# and pro!essiona& 8o's %i&& increase. Bo's and organi1ationa& structures %i&& ha+e to 'e redesigned# ne% incenti+e and compensation p&ans instituted# ne% 8o' descriptions %ritten# and ne% emp&o$ee se&ection# e+a&uation# and training programs instituted J a&& %ith the he&p o! HR management. In!ormation techno&og$ has a&so hastened %hat e5perts ca&& the K!a&& o! hierarch$2L that is# managers depend &ess and &ess on $esterda$Hs stic0,to,the,chain,o!,command approach to organi1ing. ;or e5amp&e# %ith Kdistri'uted computingL e+er$ emp&o$ee %ith a persona& computer on his her des0 can tap into the !irmHs net%or0 and get needed in!ormation %ithout ha+ing to go up# o+er# and do%n through the organi1ation# and there!ore# 'rea0ing the hierarch$.
UNITAR 2005
age 1D o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
(i!!erent organi1ations do ha+e di!!erent cu&tures. :ome !irms# especia&&$ &arge ones# ha+e 'ureaucratic,t$pe o! cu&ture %here its emphasis is on hierarch$# centra&i1ation o! decisions# permanent emp&o$ment# and strict promotion,!rom,%ithin. This t$pe o! cu&ture is +er$ rigid and unresponsi+e to e5terna& e&ements. It is e5pected that organi1ations %ith this t$pe o! cu&ture ha+e +er$ c&ear and speci!ic po&icies and procedures go+erning e+er$ detai& aspects o! HRM. 7n the other e5treme o! the cu&ture continuum# organi1ations %ith an organic,t$pe o! cu&ture tend to 'e +er$ open and their emphasis is on harmon$# decentra&i1ation o! decisions and peop&e minded, st$&e# %ith 4ua&it$ o! products and ser+ices as their !ocus. HRM po&icies and practices in these t$pes o! organi1ations %ou&d 'e p&a$ing more o! the integrati+e and supporti+e ro&es rather than the K$ou,shou&d,!o&&o%,the,ru&es.L
UNITAR 2005
age 15 o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
Mi&es and :no% produce the other generic strateg$# %hich in+o&+e !our strategic t$pes: de!enders# prospectors# ana&$1ers# and reactors. 3oth o! these strategies ma$ 'e used to ana&$1e %hich HR po&icies and practices represent the 'est !it %ith a !irmHs 'usiness strateg$.
UNITAR 2005
age 1F o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
S%MMAR'
1. Human Resource Management )HRM* is the process o! attracting# moti+ating and retaining emp&o$ees. :peci!ica&&$# the process inc&udes sta!!ing# training and de+e&opment# appraisa&# compensation# emp&o$ee rights and discip&ine# industria& re&ations and hand&ing &ega& issues. 2. :tud$ing HRM is important 'ecause it is a'out managing the most important asset in organi1ations that ma0e the ma8or contri'utions to emp&o$ers. Improper HR management %ou&d &ead to &ega& imp&ications and ad+ersaria& emp&o$er,emp&o$ee re&ationships. <. HRM is 'asica&&$ shaped '$ se+en historica& !actors that 'egan %ith the ;actor$ :$stem# the Mass roduction :$stem# contri'utions o! Industria& E 7rgani1ationa& s$cho&og$# the Human Re&ations Mo+ement# contri'utions o! the 3eha+iora& :ciences# increased specia&i1ation o! HR !unctions and increasing emphasis on :trategic Management. D. HRM is made up o! D 'asic !unctions2 the inception# de+e&opment# moti+ation# and maintenance !unctions. /ach o! these !unctions has their o%n respecti+e processes. 5. HR Managers coordinate a&& HR acti+ities and the$ act as the right arm o! the top e5ecuti+e to assure him that a&& HRM po&icies are imp&emented and the$ are a&so responsi'&e to a ssist &ine managers in imp&ementing HR po&icies. F. HRM po&icies and procedures are in!&uenced '$ 'oth interna& )cu&ture# si1e# structure and 'usiness strateg$* and e5terna& )'usiness conditions# techno&og$# unionism# &a'or &a%s and %or0!orce characteristics* en+ironments o! the organi1ations.
)RACTICE E%ESTIONS
1. 2. <. D. /5p&ain the cha&&enges o! managing HR in organi1ations. (escri'e the imp&ications o! poor HR management in genera&. (iscuss ho% the di!!erent !unctions in HR are re&ated to each other. >hat are the !actors that in!&uence HRM.
UNITAR 2005
age 1G o! 1"
Course Name: Human Resource Management [BMB2113] Chapter 1: Introduction to Human Resource Management
UNITAR 2005