hrm lesson 1.pdf

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THE COOPERATIVE UNIVERSITY COLLEGEOF

KENYA

DIRECTORATE OF COMPUTING AND eLEARNINGP.O. Box 24814-00502

Karen, NairobiE-mail: [email protected]

LAST REVISION ON February 3, 2015

http://elearning.cuck.ac.ke/

http://elearning.cuck.ac.ke

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This presentation is intended to covered within one week.The notes, examples and exercises should be supplementedwith a good textbook. Most of the exercises have solu-tions/answers appearing elsewhere and accessible by click-ing the green Exercise tag. To move back to the samepage click the same tag appearing at the end of the solu-tion/answer.

Errors and omissions in these notes are entirely the respon-sibility of the author who should be contacted through theDepartment of eLearning (DeL) and suggested correc-tions may be e-mailed to [email protected].



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LESSON 1Introduction

Outcomes:

1. To identify various concepts

2. To understand the HRM activities

3. To discuss the scope of HRM



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Definition. – Integration “HRM is a series of integrated decisionsthat form the employment relationships; their quality contributesto the ability of the organizations and the employees to achievetheir objectives.”

Definition. – Influencing “HRM is concerned with the people di-mensions in management. Since every organization is made up ofpeople, acquiring their services, developing their skills, motivat-ing them to higher levels of performance and ensuring that theycontinue to maintain their commitment to the organization areessential to achieving organizational objectives. This is true, re-gardless of the type of the organization – government, business,education, health, recreational, or social action.”

Definition. – Applicability “HRM planning, organizing, direct-ing and controlling of the procurement, development, compensa-tion, integration, maintenance and separation of human resourcesto the end that individual, organizational and social objectives



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are accomplished.”

1. Meaning of Hrm

HRM is management function that helps managers to recruit,select, train and develop members for an organization. ObviouslyHRM is concerned with the people’s dimensions in organizations.HRM refers to set of programs, functions, and activities designedand carried out.

1.1. Core elements of HRM

1. People: Organizations mean people. It is the people whostaff and manage organizations.

2. Management: HRM involves application of managementfunctions and principles for acquisitioning, developing, main-taining and remunerating employees in organizations.



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Section 1: Meaning of Hrm 6

3. Integration & Consistency: Decisions regarding people mustbe integrated and consistent.

4. Influence: Decisions must influence the effectiveness of orga-nization resulting into betterment of services to customersin the form of high quality products supplied at reasonablecost.

5. Applicability: HRM principles are applicable to business aswell as non-business organizations too, such as education,health, recreation and the like.

1.2. Objectives of Hrm:

1. Societal Objectives: To be ethically and socially responsibleto the needs and challenges of the society while minimizingthe negative impact of such demands upon the organization.

2. Organizational Objectives: To recognize the role of HRMin bringing about organizational effectiveness. HRM is only



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means to achieve to assist the organization with its primaryobjectives.

3. Functional Objectives: To maintain department’s contribu-tion and level of services at a level appropriate to the orga-nization’s needs.

4. Personal Objectives: To assist employees in achieving theirpersonal goals, at least in so far as these goals enhance theindividual’s contribution to the organization. This is neces-sary to maintain employee performance and satisfaction forthe purpose of maintaining, retaining and motivating theemployees in the organization.

1.3. Scope of Hrm:

From Entry to the Exit of an employee in the organization Scopeof HRM can be described based on the following activities ofHRM. Based on these activities we can summarize the scope of



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HRM into 7 different categories as mentioned below after the ac-tivities. Lets check out both of them.

• HRM Activities

1. HR Planning

2. Job Analysis

3. Job Design

4. Recruitment & Selection

5. Orientation & Placement

6. Training & Development

7. Performance Appraisals

8. Job Evaluation

9. Employee and Executive Remuneration

10. Motivation

11. Communication



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12. Welfare

13. Safety & Health

14. Industrial Relations

• Categories of Scope of HRM

1. Introduction to HRM

2. Employee Hiring

3. Employee and Executive Remuneration

4. Employee Motivation

5. Employee Maintenance

6. Industrial Relations

7. Prospects of HRM



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2. Role of Hrm

1. Advisory Role: HRM advises management on the solutionsto any problems affecting people, personnel policies and pro-cedures.

(a) Personnel Policies: Organization Structure, Social Re-sponsibility, Employment Terms & Conditions, Com-pensation, Career & Promotion, Training & Develop-ment and Industrial Relations.

(b) Personnel Procedures: Relating to manpower planningprocedures, recruitment and selection procedures, andemployment procedures, training procedures, manage-ment development procedures, performance appraisalprocedures, compensation procedures, industrial rela-tions procedures and health and safety procedures.

2. Functional Role: The personnel function interprets and helpsto communicate personnel policies. It provides guidance to



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Section 2: Role of Hrm 11

managers, which will ensure that agreed policies are imple-mented.

3. Service Role: Personnel function provides services that needto be carried out by full time specialists. These services con-stitute the main activities carried out by personnel depart-ments and involve the implementation of the policies andprocedures described above.

2.1. Role of HR Managers (Today)

1. Humanitarian Role: Reminding moral and ethical obliga-tions to employees

2. Counselor: Consultations to employees about marital, health,mental, physical and career problems.

3. Mediator: Playing the role of a peacemaker during disputes,conflicts between individuals and groups and management.



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4. Spokesman: To represent of the company because he hasbetter overall picture of his company’s operations.

5. Problem Solver: Solving problems of overall human resourcemanagement and long-term organizational planning.

6. Change Agent: Introducing and implementing institutionalchanges and installing organizational development programs

7. Management of Manpower Resources: Broadly concernedwith leadership both in the group and individual relation-ships and labor-management relations.

2.2. Role of HR Managers (Future)

1. Protection and enhancement of human and non-human re-sources

2. Finding the best way of using people to accomplish organi-zational goals



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3. Improve organizational performance

4. Integration of techniques of information technology with thehuman resources

5. Utilizing behavioral scientists in the best way for his people

6. Meeting challenges of increasing organizational effectiveness

7. Managing diverse workforce



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• Functions of Hrm Along With ObjectivesHRM Objectives Supporting HRM Functions

Social Objectives (3)Legal Compliance

BenefitsUnion Management

Relations

OrganizationalObjectives (7)

Human Resource PlanningEmployee Relations

Recruitment & SelectionTraining & DevelopmentPerformance AppraisalsPlacement & OrientationEmployee Assessment

Functional Objectives(3)

Performance Appraisals

EmployeeAssessmentPersonal

Objectives (5) Training &Development PerformanceAppraisals Placement &

Orientation CompensationEmployee Assessment

Personal Objectives(5)

Training & DevelopmentPerformance AppraisalsPlacement & Orientation

CompensationEmployee Assessment



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2.3. Managerial Functions of HRM

1. Planning: Plan and research about wage trends, labor mar-ket conditions, union demands and other personnel benefits.Forecasting manpower needs etc.

2. Organizing: Organizing manpower and material resourcesby creating authorities and responsibilities for the achieve-ment of organizational goals and objectives.

3. taffing: Recruitment & Selection

4. Directing: Issuance of orders and instructions, providingguidance and motivation of employees to follow the pathlaid-down.

5. Controlling: Regulating personnel activities and policies ac-cording to plans. Observations and comparisons of devia-tions



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• Operational Functions of HRM

1. Procurement: Planning, Recruitment and Selection, Induc-tion and Placement

2. Development: Training, Development, Career planning andcounseling.

3. Compensation: Wage and Salary determination and admin-istration

4. Integration: Integration of human resources with organiza-tion.

5. Maintenance: Sustaining and improving working conditions,retentions, employee communication

6. Separations: Managing separations caused by resignations,terminations, lay offs, death, medical sickness etc.



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• Challenges of Hrm In An Economy or Challenges ofModern Management

1. Globalization: - Growing internationalization of businesshas its impact on HRM in terms of problems of unfamiliarlaws, languages, practices, competitions, attitudes, manage-ment styles, work ethics and more. HR managers have achallenge to deal with more functions, more heterogeneousfunctions and more involvement in employee’s personal life.

2. Corporate Re-organizations: - Reorganization relates to merg-ers and acquisitions, joint ventures, take over, internal re-structuring of organizations. In these situations, it is diffi-cult to imagine circumstances that pose a greater challengefor HRM than reorganizations itself. It is a challenge tomanage employees’ anxiety, uncertainties, insecurities andfears during these dynamic trends.

3. New Organizational forms: - The basic challenge to HRM



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comes from the changing character of competitions. Thecompetition is not between individual firms but betweenconstellations of firm. Major companies are operating througha complex web of strategic alliances, forgings with local sup-pliers, etc. These relationships give birth to completely newforms of organizational structure, which highly depend upona regular exchange of people and information. The challengefor HRM is to cope with the implications of these newlynetworked relations more and more, in place of more com-fortable hierarchical relationships that existed within theorganizations for ages in the past.

4. Changing Demographics of Workforce: - Changes in work-force are largely reflected by dual career couples, large chunkof young blood between age old superannuating employees,working mothers, more educated and aware workers etc.These dynamic workforces have their own implications for



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HR managers and from HRM point of view is a true chal-lenge to handle.

5. Changed employee expectations: - With the changes in work-force demographics, employee expectations and attitudeshave also transformed. Traditional allurements like job se-curity, house, and remunerations are not much attractivetoday, rather employees are demanding empowerment andequality with management. Hence it is a challenge for HRMto redesign the profile of workers, and discover new methodsof hiring, training, remunerating and motivating employees.

6. New Industrial Relations Approach: - In today’s dynamicworld, even unions have understood that strikes and mili-tancy have lost their relevance and unions are greatly af-fected by it. The trade union membership has fallen dras-tically worldwide and the future of labor movement is indanger. The challenge before HRM is to adopt a proactive



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industrial relations approach which should enable HR spe-cialist to look into challenges unfolding in the future and tobe prepared to convert them into opportunities.

7. Renewed People Focus: - The need of today’s world andbusiness is the people’s approach. The structure, strategy,systems approach which worked in post war era is no morerelevant in today’s economic environment which is charac-terized by over capacities and intense competition. Thechallenge of HR manager is to focus on people and makethem justifiable and sustainable.

8. Managing the Managers: - Managers are unique tribe inany society, they believe they are class apart. They demanddecision-making, bossism, and operational freedom. How-ever in the post liberalization era, freedom given to man-agers is grossly misused to get rid of talented and hard work-ing juniors. The challenge of HRM is how to manage this



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tribe? How to make them realize that the freedom given tothem is to enable them make quick decisions in the interestof the organization and not to resort to witch-hunting.

9. Weaker Society interests: - Another challenge for HRM isto protect the interest of weaker sections of society. Thedramatic increase of women workers, minorities and otherbackward communities in the workforce has resulted in theneed for organizations to reexamine their policies, practicesand values. In the name of global competition, productivityand quality the interests of the society around should not besacrificed. It is a challenge of today’s HR managers to seethat these weaker sections are neither denied their rightfuljobs nor are discriminated against while in service.

10. Contribution to the success of organizations: - The biggestchallenge to an HR manager is to make all employees con-tribute to the success of the organization in an ethical and



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socially responsible way. Because society’s well being to alarge extent depends on its organizations.

ò Example 4. State the Operational Functions of HRM?

Solution:Procurement: Planning, Recruitment and Selection, Inductionand Placement

Development: Training, Development, Career planning andcounseling.

Compensation: Wage and Salary determination and adminis-tration

Integration: Integration of human resources with organization.Maintenance: Sustaining and improving working conditions,

retentions, employee communicationSeparations: Managing separations caused by resignations,

terminations, lay offs, death, medical sickness �



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Revision Questions

�Exercise 1. � What are the activities involved in humanresource management

�Exercise 2. � What are the challenges facing HRM in the21st century.

�Exercise 3. � What is the scope of HRM

�Exercise 4. � State the Operational Functions of HRM?



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Solutions to �Exercises

�Exercise 4.Procurement: Planning, Recruitment and Selection, Inductionand Placement

Development: Training, Development, Career planning andcounseling.

Compensation: Wage and Salary determination and adminis-tration

Integration: Integration of human resources with organization.Maintenance: Sustaining and improving working conditions,

retentions, employee communicationSeparations: Managing separations caused by resignations,

terminations, lay offs, death, medical sickness �Exercise 4



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