Human Resource Management Chapter 1

1. Human Resource
Management

2. Chapter 1
The Strategic Role of
Human Resource
Management

3. 1. What is human resource management?
Definition of HRM:
Human resource management is to make the most
productive use of human resource to the greatest
benefits of the organization and individuals.
Organization: profits and social commitments.
Individuals: development and achievement.

4. Organization and individual
(1) Organization needs: Profits, productivity and markets.
(2) Individual needs: Maslows Need Hierarchy
Physiological needs, security, belonging, self-respect
and self-actualization.
(3) Coordinating organization and individual needs: goal of
HRM.

5. The importance of HRM
(1) People is the key factor of production.
(2) Productivity is the key to measure a nation’s economic
growth potential, and labor quality is the key to
improving productivity.
(3) Competition today is the competition for talents.
(4) Since man is the most uncontrollable and unpredictable
variable of all production variables, organizational
success depends on the management of people.

6. People and productivity
(1) Productivity: the measurement of economic growth
potential.
(2) Productivity formula: input : output
(3) Measurement of productivity:
a. Productivity of worker is the output per hour.
b. Productivity of equipment is the output per every dollar invested.
c. Productivity of energy is the output per every unit of energy
consumed.

7. Employee quality and productivity
Employee skill determines productivity.
Man and tools.
Employee motivation affects productivity.
Willingness to perform.
Employee creativity and initiatives improve productivity.
innovation is the key to improvement.

8. Functions and divisions of HRM
(1) Management process
a. Planning.
b. Organizing.
c. Staffing.
d. Leading.
e. Controlling.

9. (2) Functions of HRM
a. Conducting job analysis.
b. Planning future needs and supplies.
c. Recruiting and selecting employees.
d. Orienting and training employees.
e. Managing wages and benefits.
f. Performance appraisal.
g. Communicating (discipline and services).
h. Building employee commitment (incentives).

10. (3) Line managers’ HRM responsibilities
a. Job placing.
b. Orienting new employees.
c. On-job training of employees.
d. Interpreting company policies and
procedures.
e. Conducting job appraisals.
f. Controlling labor costs.
g. Labor protection and disciplines.

11. (4) Staff managers’ HRM responsibilities
a. A line function: directing and managing people in the
HRM department.
b. A coordinating function: coordinating HRM activities
across the organization.
c. Staff functions:
Same as the HRM functions plus labor relations and
collective bargaining with the trade unions.

12. 3. Evolution of HRM
(1) Industrial Revolution:
a. Adam Smith: specialization and division of labor.
b. Robert Owens: Pioneer of HRM, performance appraisal
and pay for performance (fair treatment of employees)

13. (2) Scientific management
Frederic Taylor: Father of scientific management
a. Definition:
Systematic analysis and breakdown of work into the
smallest mechanical components and rearranging
them into the most efficient combination.
b. Steps:
Job analysis—selection—training—rewards.

14. (4) Human behavior and relations
a. The Hawthorne Studies by Westing House
The happy workers are the most productive workers.
(The Pet Milk theory)
b. Max Weber: the Ideal Bureaucracy.
c. Chris Argyris: Individual and organization—mutual
adjustment.
d. Affected by the theories of behavioral science and
system theory.

15. File Management (1900-
1964):collecting and storing
data of each employee.
Government Accountability
(1964-1980): Compliance to
government regulations.
Human Resource
Management:
Treating human resource as
an asset.
Emphasizing joint
responsibilities of line
managers and staff
managers.

17. Key Words :
management process
The five basic functions of planning, organizing, staffing,
leading, and controlling.
human resource management
The policies and practices one needs to carry out the
“people” or human resource aspects of a management
position, including recruiting, screening, training, rewarding,
and appraising.

18. authority
The right to make decisions, direct others’ work, and give
orders.
ling manager
A manager who is authorized to direct the work of
subordinates and responsible for accomplishing the
organization’s goals.
staff manager
A manager who assists and advises line managers.

19. line authority
The authority exerted by a personnel manager by directing
the activities of the people in his or her own department
and in service areas (like the plant cafeteria).
implied authority
The authority exerted by a personnel manager by virtue of
others’ knowledge that he or she has access to top
management (in areas like testing and affirmative action).
functional control
The authority exerted by an HR manager as coordinator of
personnel activities.

20. employee advocacy
HR must take responsibility for clearly defining how management
should be treating employees, make sure employees have the
mechanisms required to contest unfair practices, and represent
the interests of employees within the framework of its primary
obligation to senior management.
globalization
The tendency of firms to extend their sales or manufacturing to
new markets abroad.
competitive advantage
Any factors that allow an organization to differentiate its product
or service from those of its competitors to increase market share.

21. cost leadership
The enterprise aims to become the low-cost leader in an
industry.
differentiation
A firm seeks to be unique in its industry along dimensions
that are widely valued by buyers.