Human Resource Management (HRM)

Introduction to Human Resource Management (HRM)

• HRM, taught by Prof. Dr. Rafique Ahmed Khan (BS Department, BUIC), is a 3-credit course for BBA-5A/B/F students
• Contact information is [email protected] or 0519260002 ext:1337 / 03212386601

What is HR?

• HR encompasses all employees, whether permanent or temporary, who contribute to an organization's goals

What is HR Management?

• HR Management involves acquiring, training, appraising, and compensating employees
• It also includes managing employee relations, health and safety, and fairness concerns
• HR Management ensures optimal utilization of employees by maintaining their professional competence and motivation to achieve the best possible results

What is an Organization?

• An organization comprises individuals with formally assigned roles working together to achieve common goals
• A manager is responsible for accomplishing the organization's goals by managing the efforts of its people
• Managing involves five basic functions: planning, organizing, staffing, leading, and controlling, which together constitute the management process
• Planning involves establishing goals and standards, developing rules and procedures, and creating plans and forecasts
• Organizing entails assigning specific tasks to subordinates, establishing departments, delegating authority, creating communication channels, and coordinating subordinate work
• Staffing involves determining the types of people to hire, recruiting, selecting, setting performance standards, compensating, evaluating, counseling, training, and developing employees
• Leading means motivating subordinates and maintaining morale to get the job done
• Controlling involves setting standards like sales quotas, checking actual performance against these standards, and taking corrective action when needed

Defining HRM

• Human Resource Management (HRM) is the process of acquiring, training, appraising, compensating, and retaining employees
• HRM also addresses employee relations, health and safety, and fairness issues

Basic HRM Model

• The basic HRM model consists of four components: obtaining, developing, utilizing, and retaining employees

Importance of HRM

• Managing HR leads to achieving desired results
• HR creates value by promoting employee behaviors aligned with the company's strategic goals
• Managers should avoid hiring the wrong person, experiencing high turnover, and having deficient employees

Why HRM is Important for Managers

• To avoid wasting time with useless interviews during and after hiring
• To prevent the company from being taken to court for violating labor laws (discrimination/EEO violations)
• To prevent the company from being cited under occupational safety laws for unsafe practices
• To prevent employees from feeling their salaries are unfair
• To prevent lack of training from undermining department effectiveness
• To prevent the use of any unfair practices

The New HR Manager

• The new HR manager is a strategic partner dealing with several challenges.
• Focus is on strategic, big-picture issues, acting as a Strategic HR Manager (SHRM) to formulate and execute HR policies that drive employee competencies and behaviors to achieve company goals.
• They concentrate on enhancing performance and measuring HR performance and results
• They use evidence-based HRM for all HR-related decisions
• They add value, continually raising standards
• HR managers use new technologies to support HR activities, providing HR services in novel ways
• They adopt a talent management approach that integrates planning, recruiting, developing, managing, and compensating employees in a goal-oriented manner
• They oversee employee engagement, ensuring employees are mentally and emotionally invested in their work for the employer's success
• They manage ethics by setting standards of acceptable conduct
• They understand their HR philosophy to provide talent development opportunities and have new competencies for horizontal growth

Line and Staff Authority

• Authority is the right to make decisions, direct work, and give orders
• Line authority is exerted by HR managers by directing activities within their departments
• Staff authority is the advisory and consulting role given to a manager to advise other managers and employees, all HRM units including HRD have staff authority
• A Line Manager directs subordinates work and oversees firm goals.
• A Staff Manager assists and advises line managers

Authority Types

• Implied authority is exerted by HR managers because of their perceived access to top management
• Functional Authority/Control is the power to act as a coordinator of personnel activities, ensuring line managers adhere to firm policies

Line Manager’s HRM Responsibilities

• Placing the right person in the right job
• Starting new employees in the organization with proper orientation
• Training employees for new job roles
• Improving individual job performance
• Fostering creative cooperation and smooth working relationships
• Interpreting company policies and procedures
• Controlling labor costs
• Developing employee abilities

Trends in Human Resource Management

• Workforce Demographics and Diversity Trends
• Trends in Jobs People Do
• Globalization Trends
• Economic Trends
• Technology Trends

Workforce Demographics and Diversity Trends

• There is a lack of younger workers to replace older ones
• Variations exist in worker ratios across different regions
• Diversity enhances innovation but challenges HR to enforce acceptable policies and ethical standards

Trends in Jobs People Do

• Work has shifted from manufacturing to service industries; over two-thirds of the U.S. workforce is in service delivery
• There`s a rise in on-demand workers or gigs; Uber and Upwork use freelancer/contractor gig workers

Globalization Trends

• Globalization extends company sales and manufacturing to new markets abroad (e.g., Toyota in Kentucky, Apple in China)
• Increased competition from globalization puts pressure on companies to lower costs and increase productivity

Economic Trends

• Variations in economic conditions impact HR Management, affecting hiring processes and compensation packages

Technology Trends

• Employers use social media tools like Twitter, Facebook, and LinkedIn to recruit new employees
• Social media such as LinkedIn recruit up to 80% new hires letting line managers bypass HR in recruiting