HRM (WK1) Flashcards
Concerned with the personnel policies and managerial practices and systems that influence the workforce
Human Resource Management
The process of acquiring, training, appraising and compensating employees, and of attending to their labor relations, health and safety, and fairness concerns.
Human Resource Management
*The set of organizational activities directed at attracting, developing and maintaining an effective workforce.
Human Resource Management
Parts of Human Resource
● PEOPLE
● WORKFORCE
● TALENT
Core Elements of HRM
- ORGANIZATION
- PEOPLE
- MANAGEMENT
HRM Objectives
- Achieve an organizational mission, vision, goals and objectives using people as valuable resources.
- Utilize staff capacity.
- Ensure that employees are committed to their jobs, teams, departments and the entire organization.
- Ensure that organizational systems, processes and activities are integrated and synergized through a strong organizational culture.
- Optimal utilization of available resources.
- Enable managers to be flexible and adapt to changes required in pursuing excellence in human resource management functions.
HRM Philosophies
- HRM is and has to be owned and driven by the top management in the interests of the key stakeholders.
- Business or organizational strategies form the basis for human resource strategies.
- Consider employees as assets rather than liabilities.
- Get additional value from employees.
- Employee commitment
- Build a strong organizational culture.
1900 Employee Welfare is called
Welfare officer
1920-1930 Personnel administration is called
Personnel Administrator
1940-1960 Personnel management is called
Personnel Manager
1970-1980 Personnel/Human Resource Management is called
Personnel/HR Manager
1990 Human resource management is called
HR Manager
2000 Strategic human resource management is called
Strategic Human Resource Manager
PM or HRM: Traditional Approach
Personnel Management
PM or HRM: Focuses on personnel administration, employee welfare and labor relation
Personnel Management
PM or HRM: People as input for achieving a desired output.
Personnel Management
PM or HRM: Personnel function is undertaken for employee satisfaction
Personnel Management
PM or HRM: Job design is done on the basis of division of labor
PM or HRM: Employees are provided with less training and development opportunities.
Personnel Management
PM or HRM: Decisions are made by the top management as per rules and regulation of the organization.
Personnel Management
PM or HRM: Focuses on increased production and satisfied employees
Personnel Management
PM or HRM: Concerned with personnel manager
Personnel Management
PM or HRM: Routine function
Personnel Management
PM or HRM: Modern Approach
Human Resource Management
PM or HRM: Focuses on acquisition, development, motivation and maintenance of human resources in the organization
Human Resource Management
PM or HRM: People as an important and valuable resource for achieving output.
Human Resource Management
PM or HRM: Administrative function is undertaken for goal achievement
Human Resource Management
PM or HRM: Job design function is done based on group work/team work.
Human Resource Management
PM or HRM: Employees are provided with more training and development opportunities
Human Resource Management
PM or HRM: Decisions are made collectively
Human Resource Management
PM or HRM: Focuses on effectiveness, culture, productivity and employee’s participation
Human Resource Management
PM or HRM: Concerned with all level of managers from top to bottom
Human Resource Management
PM or HRM: Strategic function
Human Resource Management
PERSONNEL MANAGEMENT ASPECT
● Manpower Planning
● Recruitment
● Selection
● Placement
● Transfer
● Promotion
● Training & Development
● Lay off & Retrenchment
● Remuneration
● Incentives
● Productivity
EMPLOYEE WELFARE ASPECT
● Canteens
● Rest rooms
● Lunch rooms
● Housing
● Transport
● Medical Assistance
● Education
● Health & Safety
● Recreation Facilities
INDUSTRIAL RELATIONS ASPECT
● Union Management Relations
● Joint Consultation
● Collective Bargaining
● Grievance and Disciplinary Procedures
● Settlement of Disputes
Aspects of HRM
- INDUSTRIAL RELATIONS ASPECT
-EMPLOYEE WELFARE ASPECT
-PERSONNEL MANAGEMENT ASPECT
Goals of HRM
- Complying with legal and social obligations
- Facilitating organizational effectiveness
- Enhancing productivity & quality
- Promoting individual growth and development
Guiding theories in Human Resource Management
A. Organization Life Cycle Theory
B. Role Behavior Theory
C. Resource Dependency Theory
D. Institutional Theory
E. Transaction Cost Theory
F. General Systems Theory
G. Human Capital Theory
H. Strategic Contingency Theory
I. Organizational Change Theory
J. Organizational Learning Theory
THEORY: characterizes organizational development from formation, growth, maturity, decline and death.
Organization Life Cycle Theory
THEORY: According to the theory, the driving force in all these stages is the nature of workforce
Organization Life Cycle Theory
THEORY: Aims to explain and predict the behavior of individuals and teams in organizations, which, in turn, inform managers for the purposes of decision making, and what steps they take on people management as well as the expected consequences.
Role Behavior Theory
THEORY: Rewards = promote positive behavior
Role Behavior Theory
THEORY: Punishment = control negative behavior
Role Behavior Theory
THEORY: Some of the key ideas focus on the need to improve the working environment including the resources in order to stimulate new behavior in employees in order for them to cope with new demands (Prachaska et al. 1982), it includes the use of rewards to induce and promote positive work behavior, and punishments to control negative behavior (Rogers 1983)
Role Behavior Theory
THEORY: Resources are key to organizational success
Resource Dependency Theory
THEORY: Employees are scarce resources, which should be carefully managed.
Resource Dependency Theory
THEORY: The more organizations were able to harness resources, the more competitive they became
Resource Dependency Theory
THEORY: overdependence on external resources appeared to be risky due to the uncertainties that cannot be controlled by the organization
Resource Dependency Theory
THEORY: Commons (1931) defines “institutions” as “collective action in control,
liberation and expansion of individual action”
Institutional Theory
THEORY: Institutions could be formal and have explicit rules, contracts, laws and
rights or informal in the sense of social conventions that are not designed
by anybody.
Institutional Theory
THEORY: These institutions establish relationships of rights, duties, no rights, and no duties which influence behavior of individuals. ‘The major role of institutions in society is to reduce uncertainty by establishing a stable (not necessarily efficient) structure to human interaction
Institutional Theory
THEORY: Organizations should set an appropriate institutional framework that will bind and influence the behavior of employees towards an organizational commitment to excellence.
Institutional Theory
THEORY: based on the economic view of the costs of conducting business transactions.
Transaction cost theory
THEORY: Employment relationships that may lead to high costs of exchange should be minimized.
Transaction cost theory
THEORY: The thesis is that companies will grow if the costs of exchanging resources in the company are cheaper in comparison to competitors
Transaction cost theory
THEORY: No organization can survive without interacting with its environment
THEORY: Organizations are seen as systems with components and parts that are related and interconnected; failure of a component or part leads to the failure of another.
THEORY: The system approach to understanding organizations considers the human resource department as a component of the organization’s system that also has other departments such as accounting, engineering, marketing etc.
