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HUMAN RESOURCES

MANAGEMENT

By: SARA BABIKER _ May,2014

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► Preface

► The Importance of HRM

► From Traditional to Modern HRM

► Human Resources Management HRM

► The Benefits and Goals of HRM

► HRM Landscape

► Characteristics of HRM (4 Ps)

► Challenges in HRM

Outlines:

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Preface

Human Resources Management is a management of work

and people towards desired ends, is a fundamental

activity in any organization in which human beings are

employed. It is not something whose existence needs to

be elaborately justified; HRM is a certain consequence of

starting and growing an organization. While there are

many of variations in the ideologies, styles, and

managerial resources engaged, HRM happens in some

form or other.

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Human Capital Value

Organization Image

Performance Improvement

Managing Disputes

Sustaining Business

Budget Control

The Importance of

HRM

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►Human Capital Value

Having human resources function is important. An internal

human resources staff or expert can increase the

understanding of how important human capital is to the

organization’s bottom line.

In particular, human capital is critical because so many

organizations have employees who perform cross-functional

duties.

With a smaller workforce, if just one person leaves, it leaves

the organization with a huge gap to fill and a potential

threats.

The Importance of HRM

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►Budget Control

Human resources curbs excessive spending through

developing methods for trimming workforce management

costs, which includes negotiating better rates for benefits

such as health care coverage.

In addition, human resources ensures competitive and

realistic wage-setting based on studying the labor market,

employment trends and salary analysis based on job

functions. As some organization have budget constraints,

this human resources function is especially helpful.

The Importance of HRM

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► Organization Image(Brand)

Organizations want to be known as the "employer of

choice." Employers of choice are the organizations that

receive recognition for the way they treat employees;

they are the organization for whom people want to work.

Becoming an employer of choice means human

resources balances attracting and acquiring the most

qualified applicants, selecting the most suitable

candidates and retaining the most talented employees.

The Importance of HRM

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► Sustaining Business

Through succession planning that human resources

develops, the organization identifies employees with the

promise and requisite capabilities to eventually transition

into leadership roles.

This is an important function as it can guarantee the

organization's stability and future success.

The Importance of HRM

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The Importance of HRM► Performance Improvement

HRM develops performance management systems in the

organization, a cornerstone of the management and appraisal of

an employee’s performance is the inculcation of a desire for

continuous improvement.

The ongoing coaching is an integral aspect of performance

management, while performance appraisal is the time period in

which to summarize the overall progress that an employee has

made as a result of being coached, and to agree on the new goals

that should be set.

Without a human resources specialist to construct a plan that

measures performance, employees can wind in jobs that aren't

suitable for their skills and expertise.

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The Importance of HRM

►Managing Disputes

In an organization, disputes are almost unavoidable, given the

diversity of personalities, work styles, backgrounds and levels

of experience among employees.

It is the human resource HR department which acts as a

consultant and mediator to sort out those issues in an effective

manner.

They first hear the complaints of the employees, then they come

up with suitable solutions to sort them out. In other words, they

take timely action, prevent things from going out of hands and

restore positive working relationships.

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From Traditional to Modern HR

Traditional Approach-Personnel: was basically an

administrative function focused on direction and

coordination of human relations of the organization with

view to getting the maximum necessary production with

minimum of effort

It’s an administration routine distinctly human matters like

hiring, firing, maintaining personal records, decision upon

terms of employment contract with an eye to the

organization’s benefits.

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From Traditional to Modern HR

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At the beginning of the twenty-first century, the situation is

transformed. Not only has the idea of HRM spread across the

world, it is now recognized and practiced as a fundamental

part of any organization

The purpose of modern HRM practices is to develop or

acquire this human capital and influence the relationships and

behaviors of the employees so that they can contribute to the

strategic goals of the organization. HRM practices must be

strategically aligned so as to contribute directly to competitive

advantage.

From Traditional to Modern HR

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From Traditional to Modern HR

Administration

Support

Consulting

Strategy

Traditional Approach Modern HR

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► All planned and controlled activities of an

organization to build and maintain the relation

between employees and the organization in order to

meet both business objectives and employee

expectations

Human Resources Management HRM

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The Benefits and Goals of HRM

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The Benefits and Goals of HRM

► In this framework, specialists set their own priorities in

HRM based on the interplay of stakeholder interests and

situational factors.

► HR outcomes, in turn, are seen as having longer-term

impacts on organizational effectiveness and on societal

and individual well-being

► At the most basic level, the mission of HRM is to support

the viability of the firm through stabilizing a cost-effective

and socially legitimate system of labor management

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HRM Landscape

HR Controlling

HR Organization

HR-ITPolicy & Procedure

Talent Acquisition

Compensation & Benefits Retention

Change Management

Candidate Selection

HR-Strategy & Planning

Learning & Talent

DevelopmentHR

Infrastructure

HR Activities

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► Talent Acquisition: is the process of seeking and attracting a

pool of talent applicants from which the qualified candidates

for job vacancies within orgnization can be selected. HRM

includes the tranditional approch (Job Ad.) , and guides

organizations to position and present itself as an attractive

place to work through building an employer brand

► Candidate Selection: involves choosing from the available

candidates the individual predicted to be most likely to

perform successfully in the job. HRM applies variety of

selection criteria and methods

HRM Landscape

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HRM determines the quality of a selection method in terms of

objectivity, reliability and validity

► Compensation & Benefits: refers to cash and non-cash

rewards; It can help to reinforce the organization‘s culture

and key values and to facilitate the achievement of strategic

business objecctives

► Learning & Talent Development: activities help employees

learn how to perform their jobs, improve their performance

and prepare themselves for more challenged positions. This

activities can substantially enhance employee knowledge,

skills, competitiveness

HRM Landscape

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► Change Management: HRM has been transfromed to deal

creatively and practically with emerging challenges. By

accomplishing talented roles and acquiring new

competencies

► Retention: refers to ability of an organization to retain the

most talent employees.

HRM Landscape

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HRM Landscape

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Characteristics of HRM (4 Ps)

Polite The politest people in the organization

Police The protectors of organization policies & procedures

PartnerHR professionals helping the business lines solve their human issues

PlayerCritical role in helping to develop any business strategy

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Innovation

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Innovation

?

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► World is always changing and advancing!

► iPhone is not the last product invented by Apple in coming

years, surely it will produce more and more modern and

sophisticated products.

► The development witnessed in train structure and railway

networks will not stop at Shanghai train.

► Many organizations survive in the market because of

producing an innovative idea/product/service created by

talent, skilled, competent human recourses as recently

called (Human Capital)

Innovation

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From Hand Work to Knowledge Work

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From Hand Work to Knowledge Work

► The economy previously used to run on manual work

more than knowledge work. Now work is shifting

incrementally to type of think, know and communicate

► Knowledge work is how individuals and groups use

ideas, expertise, information, and relationships to get

things done. It includes techniques as brainstorming,

analysis..etc

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Web 2.0 – User-generated Content

Web 1.0 Web 2.0

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Web 2.0 – User-generated Content

►Web 1.0 did not allow Web users to add or modify information contained in Web sites. Users only had the ability to use Web sites to gather information

►The Web 2.0 environment allows Web site visitors to make contributions and changes to existing Web content and to interact with other members of those Web site

►This development caused significant change in the way of hiring “qualified” employees as well as the way that used by organizations to share or exchange ideas or information