Professional Documents
Culture Documents
Subject: HRM
Class: bba-3
Ch-01
By
Syed Zohaib Hassan Kazmi
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Introduction
Organization: An organization consists of people with formally
assigned role 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 (planning, organizing,
staffing, leading, and controlling) the efforts of the organizations people.
Generally some discus four function of Management (planning, organizing, leading and
controlling);where 3rd function staffing is included in organizing.
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Management functions
Koontz and O'Donnell have classified management functions into five. They have stated that
"the most useful method of classifying managerial functions is to group them around the
activities of planning, organizing, staffing, directing, and controlling." Thus, according to
them, there are five functions of management.
Planning: Establishing Goals and Standards; Developing rules and procedures;
developing plans and forecasting.
the manager will create a detailed action plan aimed at some organizational goal.
Organizing: identifying the tasks, Giving each subordinate a specific task;
establishing departments; delegating authority to subordinates; establishing channels
of authority and communication; coordinating subordinates work.
This step requires Manager to determine how he will distribute resources and organize his
employees according to the plan.
Staffing: Determining what type of people you should hire; recruiting potential
employees; selecting employees; training and developing employees; setting
performance standards; evaluating performance; counseling employees;
compensating employees.
Leading/Directing: Getting others to get the job done; maintaining morale;
motivating subordinates.
Controlling: concern with monitoring activates to ensure goals are meet.
setting standards such as sales quotas, quality standards
checking to see how actual performance compares with these standards ; taking
corrective action, as needed.
• During Studding HRM we discuss only one function which is staffing. 5
“There is no „magic‟ in the success of companies. The secret
of their success is simply the way that treat their
employees”
Akio Morita
Founder ( Sony Corporation)
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HRM
attract
employees
Strong employees
=
Competitive advantage retain hire
Goals employees
employees of
HRM
motivate train
employees employees
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Intro to HRM
HRM is the part of the organization that is concerned with the people
dimension.
Human Resource Management in its simplest definition means
management of organization’s manpower or workforce or human
resources.
HRM is management function concerned with hiring , motivating and
maintaining people in an organization.
HRM is The process of hiring and developing employees so that they
become more valuable to the organization
Definition by Gary Dessler:
"Human resource management refers to the policies and practices
one needs to carry out the people or human resource aspects of
management position including recruiting, screening, training,
rewarding and appraising."
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Personnel Aspects Of A Manager’s Job
This course will provide students with the concepts and techniques they need to
perform the personnel aspects of their management job.
This includes:
Conducting job analyses (determining the nature of each employee’s job)
Planning labor needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Managing wages and salaries (compensating employees)
Providing incentives and benefits
Appraising performance
Communicating (interviewing, counseling, disciplining)
Training and developing managers
Building employee commitment
And what a Manager should know
Employment Laws
Equal opportunity and affirmative actions
Employee Health and safety
Handling grievances and labor relations
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Why HRM Concept is important for Managers?
Why HR concepts and techniques important to all managers? It is easier to
answer by listing some “personnel mistakes” which Managers don’t want
while managing..
Hire the wrong person for the job
Experience high turnover
Have your people not doing their best
Waste time with useless interviews
Have your company in court because of discriminatory actions
Have your company receive penalties for unsafe practices
Have some employees think their salaries are unfair and unequal relative to
others in the organization (inequity)
Allow a lack of training to undermine your department’s effectiveness
Commit any unfair labor practices
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Authority
Line Authority
Staff Authority
Functional Authority
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Authority:
Authority is the right to make decisions, to direct the work of others,
and to give orders.
the power or right to give orders, make decisions, and enforce obedience
Established and legal power inherent in a particular job, function, or
position that is meant to enable its holder to successfully carry out his or
her responsibilities.
Types of Authority:
In Management we usually distinguish between line and Staff authority
Line Authority: line authority gives mangers the right to issue orders to
other managers or employees. It creates superior-subordinate relationship
It consists of the right to make decisions and to give order concerning the
production, sales or finance related behavior of subordinates.
In general, line authority relates to matters directly involving management
system production, sales, finance etc., and as a result with the attainment of
objectives.
People directly responsible for these areas within the organization are
delegated line authority to assist them in performing their compulsory
activities.
Line managers have line Authority 12
Staff Authority:
Staff authority gives the manager the right to advise other managers or
employees. It creates an advisory relationship
the right to advise or assist those who possess line authority as well as
other staff personnel.
Staff authority enables those responsible for improving the effectiveness of
line personnel to perform their required tasks.
Functional Authority:
Functional authority consists of the right to give orders within a segment of
the organization in which this right is normally non existent.
This authority is usually assigned to individuals to supplement the line or
staff authority they already possess.
Functional Authority generally covers only specific task areas and is
operational only for designated amounts of time. It is given to individuals
who, in order to meet responsibilities in their own areas, must be able to
exercise some control over organization members in other areas.
Limits of Authority:
HRM have staff authority (Overhead function)
Line authority takes precedence (priority)
Scope of authority – how far (how much) can you authorize? 13
LINE – STAFF RELATIONSHIPS
Line and Staff personnel must work together closely to maintain the
efficiency and effectiveness of the organization.
To ensure that line and staff personnel do work together productively,
management must make sure both groups understand the organizational
mission, have specific objectives, and realize that they are partners in
helping the organization reach its objectives.
Example:
A plant manager has line authority over each immediate subordinate, human
resource manager, the production manager and the sales manager.
However, the human resource manager has staff authority in relation to the
plant manger, meaning the human resource manager has staff authority in
relation to the plant manager, human resource manager possesses the right
to advise the plant manager on human resource matters.
Still final decisions concerning human resource matters are in the hands of
the plant manager, the person holding the line authority.
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Authority
(right to make decision)
Staff mangers
Line mangers (supportive
..purchasing , HRM,
(Sales n production) TQM)
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Functions of the HR Manager
In Most of Organizations HR Manager carries out three distinct functions
with respect to practice of authority.
1. A line function
The HR manager directs the activities of the people in his or her own
department and in related service areas (like the plant cafeteria).
2. A coordinative function
The authority exerted by an HR manager as coordinator of personnel
actives.
HR managers also coordinate personnel activities, a duty often referred
to as functional control. Here he/she ensure that line managers are
implementing the firm’s HR polices and practices ( e.g., observing to its
harassment policies).
3. Staff (assist and advise) functions
Assisting and advising line managers is the heart of the HR manager’s job.
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Examples of HR Job Duties
Recruiters
Search for qualified job applicants.
Equal employment opportunity (EEO) coordinators
Investigate and resolve EEO complaints, examine organizational
practices for potential violations, and compile and submit EEO reports.
Job analysts
Collect and examine information about jobs to prepare job descriptions.
Compensation managers
Develop compensation plans and handle the employee benefits
program.
Training specialists
Plan, organize, and direct training activities.
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HRM FUNCTIONS AND OBJECTIVES
Societal Objectives
Organizational
Objectives
Functional
Objectives
Personal
Objectives
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HRM Functions and Objectives
1 Societal objectives: Societal objectives of HRM make sure that the
organization is socially and ethically responsible:-
• Minimizing negative impact of societal demands on organizations; For
example: EEO laws forces organizations to be ethical in recruitment, to
minimize the discrimination against hiring based on ethnicity, race, and
religion etc.
2 Organizational objectives: To determine the role of HRM in organizational
effectiveness Its purpose is to assist/serve organization:-
HR department also serve other departments
3 Functional objectives: To maintain department contribution in organizational
effectiveness
• HR department services must fit into the organizational needs.
4 Personal objectives:
• To assist employees in achieving their personal/individual goals
• Maximum contribution to organization
• Personal objectives are achieved when employees are satisfied,
motivated and retained
• Satisfied employees excellent services excellent organizational performance
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HRM Functions and Objectives
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Current and Future HR Management Challenges
To grow and thrive in today's competitive environment; organization must
deal with several major challenges.
Meeting challenges is necessary to create value and to gain competitive
advantages.
Value: In management, business value is an informal term that contains all forms of value that
determine the health and well-being of the firm in the long run.
Traditionally value was only a function of accounts (profit).
Current definition: How human resource is managed; is critical to the long term value of a
company.
Current definition of value includes not only profits but employees growth, satisfaction, and
career development opportunities.
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Current and Future HR Management Challenges
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Outsourcing HR Activities:
Outsourcing or Sub-contracting: Transfer activities to specialist
organizations
Reasons
• Restructuring, Downsizing, Growth in business, Decline in business
Benefits
• Cost efficiency, Access to experts
Total Quality Management (TQM): A system of management based on the principle that
every member of staff must be committed to maintaining high standards of work in every aspect of
a company's operations. In a TQM effort, all members of an organization participate in improving
processes, products, services, and the culture in which they work.
Six Sigma: is a quality-control program developed in 1986 by Motorola that emphasizes cycle-
time improvement and the reduction of manufacturing defects.
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is
a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard
deviations between the mean and the nearest specification limit) in any process – from manufacturing to
transactional and from product to service.
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Current and Future HR Management Challenges (cont…)
2. Globalization of Organizations:
Globalization is a term in business that refers to the integration of an
organization's operations, processes and strategies into diverse cultures, products,
services and ideas.
Because of its emphasis on diversity, globalization also has a deep impact on the
way companies manage their employees.
An expatriate
A host-country national
A third-country national
More diverse racially and ethnically, more women and the average age
in workforce are increasing.
– Racial/Ethnic Diversity
– Women in the Workforce
– Aging Workforce
An ethnic group or ethnicity is a category of people who identify with each other based on
similarities, such as common family, language, social, cultural or national experiences
Ethnic diversity means variety of different ethnic groups.
The major ethnic groups of Pakistan in numerical size include: Punjabis, Pakhtuns,
Sindhis, Saraikis, Muhajirs, Balochis, Chitralis, Gujarati and other smaller groups
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Current and Future HR Management Challenges (cont…)
4. Technology
Technology overcome geographic distance as well as language
and cultural differences as internet, global contacting, video
conferencing etc.
Technology will dramatically affect how and where work is done
through Tele conferencing and shared data sources.
Technology is the use of scientific knowledge for practical purposes or applications, whether
in industry or in our everyday lives. So, basically, whenever we use our scientific knowledge to
achieve some specific purpose, we're using technology
we can describe technology as products, processes or organizations.
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Current and Future HR Management Challenges (cont…)
HR Technology
Human Resource Management System (HRMS)
– An integrated system providing information used by HR management
in decision making.
– A Human Resources Management System (HRMS) is a software
application that combines many human resources functions, including
benefits administration, payroll, recruiting and training, and
performance analysis and review into one package.
Purposes of HRMS Data Collection
– Administrative and operational efficiency
– Availability of data for HR strategic planning
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Current and Future HR Management Challenges (cont…)
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Old Myths New Reality
• People go into HR because they like • HR people must create the practices that
people. make employees more competitive, not
more comfortable.
• HR deal with the soft side of a business • The impact of HR practices on business
and is therefore not accountable. results can and must be measured. HR
professionals must learn how to translate
their work into financial performance.
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Some terms to be remember
Globalization: the tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad.
Multinational corporations(MNC): corporations with significant operations in more
than one country.
Knowledge workers: individuals whose jobs are designed around the acquisition
and application of information
Human Capital: the knowledge, education, training, skills, and expertise of a firm’s
workers.
Workforce diversity: the varied personal characteristics that make the workforce
heterogeneous.
Downsizing: an activity in an organization aimed at creating greater efficiency by
eliminating certain jobs.
Rightsizing: linking employee needs to organizational strategy. The process of a
corporation re-organizing or re-structuring their business by cost-cutting, reduction of
workforce, or reorganizing upper-level management.
The term rightsizing is often used by companies instead of downsizing because it sounds
less drastic. "The company felt that rightsizing was necessary after four quarters of losses.“
Outsourcing: sending work out side the organization to be done by individuals not
employed full time with the organization. 0r obtain (goods or a service) by contract
from an outside supplier.
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Some terms to be remember
Contingent workforce: the part-time , temporary, and contract workers
used by organizations to fill high staffing need or perform work not done by
core employees.
Core Employees: An organization's full-time employees.
Offshoring: the process of moving jobs out of one country and in to another
country.
Merger: joining ownership of two companies
Acquisition: the transfer of ownership and control of one organization to
another.
Ethics: A set of rules or principles that defines right and wrong conduct.
Code of Ethics: A formal document that states an organization's primary
values and the ethical rules, it expects organizational members to follow.
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“Never Give up; Today is hard, Tomorrow will be worse, but the day
after tomorrow will be Sunshine”
(Jack Ma, founder of Alibaba & Asian Richest person)
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