Managing

Human
Resource
OBJECTIVES:
After studying this topic, you should be able to:
1. Comprehend and define what human
resource management is.
2. Explain the strategic role of human
resource management and its three
broad activities.
3. Identify its importance and functions
in the organization.
 WHAT IS
HRM?

- is defined as ‘‘ the management of man’’

- or “it is the process of managing people in organizations in

a structured and thorough manner.”

- “the management of people in organizations from a macro

perspective, i.e. managing people in the form of a collective
relationship between management and employees.’’
In simple words,
Human Resource
Management is
management
function that In general terms,
helps manager to Human resource
recruit, select, management is
train and develop ‘concerned with the
organization people dimension in
members. management’.
 HUMAN RESOURCES: MEANING
-the collection of people and their
characteristics at work or ‘‘people at work’’
or the employee in the organization
 STRATEGIC HUMAN RESOURCE MANAGEMENT
THREE BROAD ACTIVITIES

Company Strategy

Find the Right People

HRM Planning
Job Analysis
Forecasting
Recruiting
Selecting

Maintain an Effective Workforce

Wages and Salaries
Manage Talent
Benefits Training
Labor Relations
Appraisal
Terminations
HRM Three Broad Goals/Activities

1. Finding the right people

2. Managing talent
3. Maintaining an effective workforce
 HRM THREE BROAD GOALS/ACTIVITIES
1. FINDING THE RIGHT PEOPLE
1.1 HRM Planning
-analyzes an organization’s HR needs and how to
best fill them.
 Steps in the HR planning process:
 Step 1 — review organizational mission, objectives, and
strategies.
 Step 2 — review HR objectives and strategies.
 Step 3 — assess current HR needs.
 Step 4 — forecast HR needs.
 Step 5 — develop and implement HR plans.
1.1 HRM Planning

-objective of HR Planning is to ensure that the

organization has the right types of persons at the
right time at the right place.
The foundation of human resource planning is job
analysis. Job analysis provides information for
developing:
Job descriptions- a clear and concise summary of
the specific tasks, duties, and responsibilities:
definition of work
Job specifications -identifies the attributes of
persons who will be most suitable for each job
which is defined by job description.
1.2 Recruitment
 Activities designed to attract a qualified pool of
job applicants to an organization.
Two Types
1. External recruiting- managers look outside the firm for
people who have not worked at the firm before.
2. Internal Recruiting- positions filled within the firm
 Steps in the recruitment process:
 Advertisement of a job vacancy.
 Preliminary contact with potential job candidates.
Initial screening to create a pool of qualified
applicants.
1.3 Selecting
 Select desired employees from the
pool of recruited applicants.
 Selection Steps
 Completion of a formal application form.
 Interviewing.
 Testing.
 Reference checks.
 Physical examination.
 Final analysis and decision to hire or
reject.
 Selection Tools

Application Form/
Background Info.

Interviews Physical
Ability tests

Selection
References
Employment Test

Performance tests
Selection Tools

 Application form – declares individual to be a

job candidate, includes information of the
applicant’s education, previous job experience,
and other background characteristics and
personal résumés may be included.
 Interview - exchange of information between
job candidate and key members of the
organization , opportunity for job candidate
and organizational members to learn more
about each other.
Selection Tools
 Employment Test- may include intelligence
tests, aptitude and ability tests, and
personality inventories
 Performance Test- measure job performance
-typing speed test is one example
 References- outside people provide candid
information about candidate.
 Physical Test- measure strength and
endurance, good for physically demanding
jobs.
Criteria for selection tools, should be reliable
and valid.
 2. MANAGING TALENT
2.1 Training and Development
-involves an organized attempt to find out
training needs of individuals to meet the
knowledge and skill which is needed not only to
perform current job but also to fulfill the future
needs of the organization.
On-the-Job Training-the most common method,
an experienced employee is asked to take a new
employee “under his or her wing” and show the
newcomer how to perform job duties.
 Corporate Universities
-an in-house training and education facility that
offers broad-based learning opportunities for
employees and frequently for customers,
suppliers, and strategic partners as well
throughout their careers.
 Promotion from Within
-helps companies retain and develop
valuable people.
-Promotions provide more
challenging assignments, prescribe
new responsibilities, and help
employees grow by expanding and
developing their abilities.
 Mentoring and Coaching
with mentoring , an experienced
employee guides and supports a
newcomer or less experienced
employee, while coaching a method
of directing, instructing, and training
a person with the goal to develop
specific management skills.
2.2 Performance Appraisal
-process of evaluating employee performance

 job related strengths

 development needs
 progress toward goals
 determine ways to improve performance
 Pay an promotion decisions
WHO APPRAISES PERFORMANCE?

Supervisors

Peers Customers &

Clients
Sources of
performance
appraisals

Self Subordinates
3. MAINTAINING AN EFFECTIVE WORKFORCE
Compensation refers to: (1) all monetary
payments and (2) all goods or commodities
used in lieu of money to reward employees.
3.1 Wage and Salary Systems
Base Wage
 Job Based Pay-paid for the job that is done
 Competency Based Pay-pay is linked to job-
relevant skills, knowledge, and experience
3.2 Benefits
-such as health insurance, vacations, and
such things as onsite daycare or fitness
centers

3.3 Termination
-retirement, others will depart voluntarily
for other jobs, and still others will be
forced out through mergers and
cutbacks or for poor performance
IMPORTANCE OF HRM
1. Social Significance:
- proper management of personnel enhances
their dignity by satisfying their social needs
2.Professional Significance:
-lies in developing people and providing
healthy environment
3.Organization Significance
-it can help the organization in accomplishing
its goals
 OBJECTIVES OF HRM
 Personal Objectives:
-to assist employees in achieving their personal
goals
 Functional Objectives:

-to maintain department contribution in

organizational effectiveness
 Organizational Objectives:

-to recognize the role of HRM in bringing about

organizational effectiveness.
 Societal Objectives:

-to be ethically & socially responsible for the

needs and challenges of society .
HRM OBJECTIVES

Societal Objectives

Organizational
Objectives

Functional
Objectives

Personal
Objectives

Source: Aswathappa, 2008, p.8

THANK YOU 