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Human Resource Management

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1 Human Resource Management

The focus of human resource management (HRM) is on managing people within the employer-employee relationship. Specifically, it involves the productive use of people in achieving the organization’s strategic business objectives and the satisfaction of individual employee needs.  

HRM can be a major contributor to the success of an enterprise because it is a key position ‘to affect customer, business results and ultimately shareholders values. Likewise, ineffective HRM can be a major barrier to employee satisfaction and organization success. HRM is thus either a part of the problem or part of the solution in gaining the productive contribution of people. 

The HR Manager, as with any other functional manager in marketing, production or finance, is responsible for performance. His or her position exists basically to achieve the strategic business objectives of the organization. If it does not, the position will become redundant.

5 People go into HR because they like people.
Old myths New Realities People go into HR because they like people. HR departments are not designed to provide corporate therapy or asocial or health-and –happiness retreats. HR professionals must create the practices make employers more competitive, not more comfortable. Anyone can do HR. HR activates are based on theory and research. HR professionals must master both theory and practice. HR deals with the soft side of a business and therefore is not accountable. The impact of HR practices on business results can and must be measured. HR Professionals must learn how to translate their work into financial performance. HR focuses on costs, which must be controlled. HR practices must create value by increasing the intellectual capital within the firm. HR professionals must add value, not reduce costs.

6 HR is staffed by nice people.
HR’s job is to be the policy police and the health and-happiness patrol. The HR function does not own compliance-mangers do. HR practice do not exist to make employees happy but to help them become committed. HR professionals must help mangers commit employees and administer policies. HR is full of fads. HR practices have evolved over time. HR professionals must see their current work as part of an evolutionary chain and explain their work with less jargon and more authority. HR is staffed by nice people. At times, HR practices should force vigorous debates. HR professionals should be confrontative and challenging as well as supportive. HR is HR’s job. HR work is as important to lines managers as are finance, strategy, and other business domains. HR professionals should join with managers in championing HR issues.

7 The new role of HR mangers
As HRM becomes more business oriented and strategically focused, four key roles for HR managers can be identified. Strategic Partner Administrative Expert Employee Champion Change Agent

8 Strategic Human Resource Planning
The process of formulating HR strategies and establishing programs or tactics to implement them.

9 The Benefits of HR Planning

10 Encouragement of Proactive Rather than Reactive Behavior
Explicit Communication of Company Goals Stimulation of Critical Thinking and Ongoing Examination of Assumption Identification of Gaps Between Current Situation and future Vision Encouragement of line Managers’ Participation Identification of HR Constraints and Opportunities

11 The Challenges of HR Planning

12 Maintaining a Competitive Advantage
Reinforcing Overall Business Strategy Avoiding Excessive Concentration on Day-to-Day Problems Developing HR strategies Suited to Unique Organizational Features Getting Easier with the Environment Securing Management Commitment Translating the Strategic Plan into Action Accommodating Change

13 Challenges to Human Resource Manager
Environmental Organizational Individual

14 What risks does this type of “Shock Absorber” approach to
Environmental How much responsibility does an organization have to shields its employees from the effect of rapid change in the environment? What risks does this type of “Shock Absorber” approach to Management entail? Rapid Change Work Force Diversity Globalization Legislation Evolving Work and Family Roles Skill Shortages and the rise of the Service Sector

15 Organizational Competitive Position; Cost, Quality, Distinctive Capabilities. Decentralization Downsizing Organizational Restructuring Self-managed Work Teams Organizational Culture Technology

16 Individual Matching People and Organization
Ethical Dilemmas & Social Responsibility Productivity Empowerment Job Insecurity

17 HR Choices The Options Available to a Firm in Designing its
Human Resources System

18 Performance Appraisal Training and Development Compensations
Work Flows Staffing Employee Separations Performance Appraisal Training and Development Compensations Employee Relations Employee Rights Internal Management Does an Employer have an Ethical Duty to Help Employees Prepare for the Change that is Certain to come?

19 Building Managerial Skills
Selecting HR Strategies to increase firm’s Performance

20 Ethical Issue? The dark side of strategic planning is that workers are sometimes thought of as numbers on a page or dollars in a budget rather than as flesh-and-blood human beings. When divisions are spun off or merged, individual employees are dramatically affected. What responsibility does the employer have toward its employees in situation like these?

21 Effective HR Strategy Formulation & Implementation
Organizational Strategies Consistency Environment FIT FIT HR Strategies Improved Firm Performance Consistency Consistency FIT FIT Organizational Characteristics Organizational Capabilities Consistency


23 HRM policies are general statements, which serve to guide decision making. As such, they direct the actions of the HRM function towards achieving its strategic objectives. HRM policies are generally put in writing and communicated to all employees. They typically serve three major purposes: To reassure employees that they will be treated fairly and objectively To help managers make quick and consistent decisions To give managers the confidence to resolve problems and to defend their decisions.

24 Subjects covered by HRM policies include transfers, promotions, terminations and pay increases. The statement for example, “It is the policy of this organization whenever feasible to promote from within”, gives a clear guideline to managers and employees about how promotional opportunities will be handled.

25 An Issue! Retention of Top Talent is a critical element in the strategy of today’s leaner Organizations. How Career Development activities can contribute to Retention?

26 An Issue! Many believe that top managers care little about Human Resources. Compared to such areas as Finance, Production, Marketing and Engineering. What might account for this perception and what would you do to change it? Ahsan Ali

27 An Issue! Many countries have Government regulations that make it very difficult to lay-off employees unless the lay-off can be justified business reasons. Do you think that Pakistan should develop a similar policy? Why or why not?

28 That's All

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