1. HUMAN RESOURCE
MANAGEMENT (HRM).
Presented by: Yahya Z. Alshehhi
Presented to: Dr. Szabados, Gyorgy

2. Outline
 Definition of HRM
 Milestones in the Development of HRM
 Why Is HRM Important?
 The role of HRM (Strategic Approach)
 HRM Process
 Human Capital
 How to build Human Capital?
 Manage Talent
 Conclusion

3. Management Books
Encyclopedia of Management
(2009)
Management, by kinaki Williams (2010)
Management, by Stephen P.
Robbins (2012)
Management, Richard L. Daft
(2008)
Management, by Rickey Griffin
(2005

4. Definitions of HRM
 Human resource management (HRM) The set of
organizational activities directed at attracting,
developing, and maintaining an effective
workforce(Ricky W. Griffin, 2005).
 The term human resource management (HRM) refers to
the design and application of formal systems in an
organization to ensure the effective and efficient use of
human talent to accomplish organizational
goals(Richard daft, 2008).

5. Definitions of HRM
 Human resource management (HRM), also called
personnel management, consists of all the activities
undertaken by an enterprise to ensure the effective
utilization of employees toward the attainment of
individual, group, and organizational goals
(Encyclopedia,2009).
 Human resource management consists of the activities
managers perform to plan for, attract, develop, and
retain an effective workforce. (Kinaki. Williams, 2010).

6. Milestones in the Development of
Human Resource Management
1890-1910
Frederick Taylor develops his ideas on scientific
management. Taylor advocates scientific selection of
workers based on qualifications and also argues for
incentive-based compensation systems to motivate
employees.
1910-1930
Many companies establish departments devoted to maintaining the
welfare of workers.
The discipline of industrial psychology begins to develop.
Advancements in employment testing and selection.
1930-1945
The interpretation of the Hawthorne Studies begins to have an
impact on management thought and practice. Greater emphasis
is placed on the social and informal aspects of the workplace
affecting worker productivity.
Source: Encyclopedia of Management (2009).

7. 1945-1965
In the U.S., a tremendous surge in union membership between 1935
and 1950 leads to a greater emphasis on collective bargaining
and labor relations within personnel management.
Compensation and benefits administration also increase in
importance as unions negotiate paid vacations, paid holidays,
and insurance coverage.
1965-1985
The Civil Rights movement in the U.S. reaches its peak with
passage of the Civil Rights Act of 1964. The personnel function is
dramatically affected by Title VII of the CRA, which prohibits
discrimination on the basis of race, color, sex, religion, and
national origin. In the years following the passage of the CRA,
equal employment opportunity and affirmative action become
key human resource management responsibilities.
Milestones in the Development of
Human Resource Management (cont.)
Source: Encyclopedia of Management (2009).

8. 1985-PRESENT
Three trends dramatically impact HRM.
The first is the increasing diversity of the labor force, in terms of
age, gender, race, and ethnicity. HRM concerns evolve from EEO
and affirmative action to “managing diversity.”
A second trend is the globalization of business and the
accompanying technological revolution. These factors have led to
dramatic changes in transportation, communication, and labor
markets.
The third trend, which is related to the first two, is the focus on
HRM as a “strategic” function. HRM concerns and concepts
must be integrated into the overall strategic planning of the firm
in order to cope with rapid change, intense competition, and
pressure for increased efficiency.
Milestones in the Development of
Human Resource Management (cont.)
Source: Encyclopedia of Management (2009).

9. Why Is HRM Important?
 As a significant source of competitive advantage
 People-oriented HR creates superior shareholder
value
 As an important strategic tool
 Achieve competitive success through people by
treating employees as partners
 To improve organizational performance
 High performance work practices lead to both high
individual and high organizational performance
Source: Stephen P. Robbins

10. The Role of HRM (Strategic
Approach)
 The strategic approach to human resource
management recognizes three key elements.
 First, all managers are involved in human resource
management.
 Second, employees are viewed as assets. Employees,
not buildings and machinery, give a company its
competitive edge.
 Third, HRM is a matching process, integrating the
organization’s strategy and goals with the correctSource: Richard Daft.

11. Strategic Human Resource
Management
Source: Richard Daft.

12.  An organization’s HRM function focuses on the
people side of management. It consists of practices
that help the organization to deal effectively with its
people during the various phases of the employment
cycle, including:
 Pre-hire.
 Staffing.
 Post-hire.
 The pre-hire phase involves planning practices.
HRM (Function, Activities,
Strategic).
Source: Encyloedia.

13.  This system includes activities undertaken to
attract, develop, and maintain an effective
workforce. Managers have to find the right
people, place them in positions where they
can be most effective, and develop them so
they contribute to company success.
HRM (Function, Activities, Strategic),
cont.
Source: Richard Daft.

14.  According to kinaki Williams, that HRM
concerned with something more than simply
hiring people on an "as needed" basis.
 Strategic human resource planning consists
of developing a systematic, comprehensive
strategy for :
 Understanding current employee needs and
 Predicting future employee needs.
HRM (Function, Activities, Strategic),
cont.
Source: Kinaki. Williams.

15. The Strategic HRM Process
Purpose: Get optimal work performance to help realize company's
mission & vision
Perform appraisals of people
Orient, train, & develop
Recruit & select people
Plan human resources needed
Formulate the strategic plans
Establish the grand strategy
Establish the mission & the vision
Source: Kinaki. Williams.

16. HRM Process
Source: Stephen P. Robbins

17. Human Capital
What is Human Capital?
 Human capital refers to the economic value
of the combined knowledge, experience, skills,
and capabilities of employees. Source: Richard Daft.

18. How to build Human Capital?
 To build human capital, HRM develops
strategies:
 Finding the best talent.
 Enhancing their skills and knowledge with training
programs.
 Create opportunities for personal and
professional development.
 Providing compensation and benefits that support
the sharing of knowledge
 Reward people for their contributions to the
organization. Source: Richard Daft.

19. Managing Talent
The goal of HRM is to develop employees into
an effective workforce. Key development
activities include:
 Training.
 Performance appraisal.
Source: Richard Daft.

20. Managing Talent
The 1st key of development activities:
Training and development represent: a
planned effort by an organization to facilitate
employees’ learning of job-related skills and
behaviors.
Source: Richard Daft.

21. Tradition
al
Training
Methods
On-the-job
Job
Rotation
Mentoring
And
Coaching
Experienti
al
Exercises
Workbook
s/Manuals
Classroom
Lectures
Managing Talent (cont.)
Traditional Training Methods
Source: Stephen P. Robbins

22. Technology
-Based
training
Methods
CD-ROM/DVD/video
tapes/audio
types/podcasts
Video
conferencing/telec
onferencing/satellit
e TV
E-learning
Managing Talent (cont.)
Technology-Based training Methods
Source: Stephen P. Robbins

23. Managing Talent (cont.)
Types
Of
Trainin
g
Communication
Skills Computer
systems
application and
programming
Customer
Service
Executive
Development
Management
Skills And
Development
Personal
Growth
Sales
Supervisory
Skills
Technological
Skills And
Knowledge
Source: Stephen P. Robbins
Types Of Training

24. Managing Talent (cont.)
The 2nd key of development activities:
 Performance Appraisal: The process of
observing and evaluating an employee’s
performance, recording the assessment, and
providing feedback to the employee.
Source: Richard Daft.

25. Managing Talent (cont.)
Source: Richard Daft.
ASSESSING PERFORMANCE
ACCURATELY
- 360 degree feedback
PERFORMANCE EVALUATION
ERRORS
- Stereotyping
- Halo effect
- Behaviorally anchored rating
scale
Generally, HRM professionals concentrate on two things to make
performance appraisal a positive force in their organizations:

26. Conclusion
 Human resource management (HRM) consists
of an organization’s “people practices”
 HRM influences who works for the
organization and how those people work.
 HR departments have responsibility for a
variety of functions related to acquiring and
managing employees.
 Training and development is one of he main
functions of HRM professionals.

27. References
 Management, 8the, by Rickey Griffin (2005),ch.14, pg.436
 Management, Richard L. Daft (2008), ch.14, pg.307
 Encyclopedia of Management (2009), 8the, pg:369
 Management, 5the, by kinaki Williams (2010), ch.9, pg.270
 Management, 11the, by Stephen P. Robbins (2012), ch.12,pg.310

28. Thank you for listening.
Please ask me questions
otherwise will be boring!