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Human Resource Management

Dr. Karim Kobeissi

Islamic University of Lebanon - 201

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!"a#ter 1

Human Resource Management$ %n &vervie'

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Human Resource Management (HRM) - Definition

Human Resource Management

is *t"e +esign of formal

systemsin an organi,ation to

ensure t"e effective an+

efficient use of "uman

resource to accom#lis"

organi,ational goals Mat"is

/acson 2012.

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Efficiency & Effectiveness

Doing t"e 3ob efficientlymeans *+oing t"ings rig"t so

t"at t"e organi,ation4s resources5its #eo#le money

an+ e6ui#ment5are use+ to t"eir ma7imum.

8etting t"ings +one effectively means *+oing t"e rig"t

t"ings t"at is tass t"at "el# an organi,ation reac"

its goals.

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Ho' 9ffectiveness 9fficiency Relate to :ro+uctivity;

:ro+uctivity is +oing t"e rig"t t"ings (effectiveness) in t"e rig"t

'ay (efficiency).

&nce you ensure em#loyees are being effective an+ efficient

you 'ill see a rise in #ro+uctivity.

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="e >ature of Human Resource Management

Human resources include all the

experience, skills, judgments, abilities,

knowledge, contacts, risk taking, and

wisdom of the individuals associated

with the organization.

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="e >ature of Human Resource Management (con)

%ll managers in organi,ations get t"ings

+one t"roug" t"e efforts of ot"ers.

!onse6uently managers at every level

must concern t"emselves 'it" Human

esource !anagement, or H!.

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8oals of HR Management

="e to# concerns of HR managers are$

1) :ro+uctivity

&ne of t"e to# goals of HRM is to ma7imi,e t"e #ro+uctivity of t"e organi,ation

by o#timi,ing t"e effectiveness of its em#loyees '"ile simultaneously

im#roving t"e 'or life of em#loyees an+ treating em#loyees as valuable

resources.

2) ?uality an+ @ervices

Aecause "uman resources are t"e ones #ro+ucing t"e #ro+ucts or servicesoffere+ by an organi,ation management "as t"e tas of ensuring t"at its HR

#ractices en"ance t"e ability of its 'orforce to #rovi+e to#-6uality goo+s

an+ services.

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HRM Bunctions

="e five functional areas

associate+ 'it" effective

HRM are$ (I) staffing (II)

"uman resource

+evelo#ment (III)

com#ensation (IC) safety

an+ "ealt" an+ (C)

em#loyee an+ labor

relations.

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I- @taffing

"taffing is t"e #rocess t"roug" '"ic" an

organi,ation ensures t"at it al'ays "as (1)

t"e rig"t number of em#loyees (2) 'it"

t"e a##ro#riate sills () in t"e rig"t 3obs

() at t"e rig"t time to ac"ieve

organi,ational ob3ectives.

="e staffing #rocess involves (%) 3ob

analysis (A) "uman resource #lanning (!)

recruitment an+ selection.

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%. /ob %nalysis

#ob analysis is t"e systematic #rocess of

+etermining sills +uties an+ no'le+ge

re6uire+ for #erforming 3obs in organi,ation

#ob analysis im#acts virtually every as#ect of

HRM inclu+ing #lanning recruitment an+

selection.

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A. Human Resource :lanning

Human resource planning is t"e systematic#rocess of matc"ing internal an+ e7ternal su##ly

of #eo#le 'it" antici#ate+ 3ob o#enings over

s#ecifie+ #erio+ of time

="e +ata collecte+ as #art of t"e "uman resource

#lanning enables t"e recruitment #rocess an+

ot"er HR actions.

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!. Recruitment an+ @election

ecruitment$ is t"e #rocess of attracting

asufficient number of6ualifie+#eo#le to

a##ly for 3obs 'it" an organi,ation.

"election$ is t"e #rocess of c"oosing in+ivi+ual best

suite+ for a #articular #osition an+ for t"e organi,ation ingeneral.

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II- Human Resource Develo#ment

Human resource development is a ma3or HRM

function consisting of $

%) =raining an+ Develo#ment

A) !areer #lanning an+ +evelo#ment

!) &rgani,ational +evelo#ment

D) :erformance management

9) :erformance a##raisal

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%. =raining an+ Develo#ment

%raining is +esigne+ to #rovi+e em#loyees 'it" t"e

no'le+ge an+ sills t"ey nee+ to be effective in

t"eir #resentroles.

evelopmentinvolves long-term

learning an+ #rofessional gro't"

t"at goes beyon+ t"e em#loyees4current 3obs.

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A. !areer :lanning an+ Develo#ment

'areer planning is an ongoing

#rocess '"ereby in+ivi+uals set

career goals an+ i+entify 'ays to

ac"ieve t"em.

'areer development is a formal a##roac" use+ byt"e organi,ation to ensure t"at #eo#le 'it" t"e

#ro#er 6ualifications an+ e7#eriences are available

for #romotion or reassignment '"en nee+e+.

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!. &rgani,ational Develo#ment

(rganizational evelopment (&D) is a +eliberately #lanne+

organi,ation-'i+e effort to increase an organi,ationEs

effectiveness an+For efficiency an+For to enable t"e organi,ation

to ac"ieve its strategic goals. It is a learning an+ +evelo#ment

strategy inten+e+ to c"ange t"e basics of beliefs attitu+es an+

relevance of values an+ structure of t"e current organi,ation to

better absorb +isru#tive tec"nologies s"rining or e7#lo+ing

maret o##ortunities an+ resulting c"allenges an+ c"aos.

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D. :erformance Management

)erformance management is a goal-oriente+ #rocess

t"at is +irecte+ to'ar+ ensuring t"at organi,ational

#rocesses are in #lace to ma7imi,e t"e #ro+uctivity of

em#loyees teams an+ ultimately t"e organi,ation.

%##lies to em#loyees teams an+ ultimately t"e

organi,ation

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9. :erformance %##raisal

)erformance appraisal is a formal system of revie' an+

evaluation of in+ivi+ual #erformance. @ometimes it also

inclu+es team #erformance. It affor+s em#loyees t"e

o##ortunity to receive fee+bac on t"eir strengt"s an+ areas for

+evelo#ment. :erformance a##raisal "el#s em#loyees stay on

trac '"ic" often lea+s to greater

satisfaction an+ #ro+uctivity.

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III- !om#ensation

%ll re'ar+s t"atin+ivi+uals receive as a

result of t"eir em#loyment.

'ompensation consists

of (%) +irect financial

com#ensation in+irect

financial com#ensationan+ (A) nonfinancial

com#ensation.

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%. Binancial !om#ensation

&rgani,ations #rovi+e t'o ty#es of financial

com#ensation to em#loyees$

irect compensation is t"e #ay t"at an em#loyee

receives in t"e form of 'ages salaries

commissions or bonuses.

*ndirect compensation is often referre+ to as

benefits an+ inclu+es t"ings suc" as #ai+vacations sic leave "oli+ays an+ me+ical

insurance.

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A. >onfinancial !om#ensation

+onfinancial compensation inclu+es t"e t"ings t"at an

em#loyee receives or +erives from t"e 3ob or t"e

organi,ation t"at +o not "ave cost for t"e organi,ation.

="ese coul+ inclu+e t"e satisfaction t"at an em#loyee

receives from +oing t"e 3ob itself t"e #syc"ological 'ell-

being an em#loyee feels from 'oring on a team or

en3oyment of t"e #"ysical environment in '"ic" t"eem#loyee 'ors.

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IC- @afety an+ Healt"

"afety$ :rotecting

em#loyees from in3uries

cause+ by 'or-relate+

acci+ents

Health$ 9m#loyeesE

free+om from illness an+

t"eir general #"ysical an+

mental 'ell-being

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C- 9m#loyee Labor Relations

*nternal employee relations are t"e HRM

activities associate+ 'it" t"e movement of

em#loyees 'it"in t"e organi,ation suc" as$

G :romotions

G Demotions

G =erminations

G Resignations

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9m#loyee Labor Relations (con)

Ausinesses are re6uire+ by la' to

recogni,e a union an+ bargain 'it" it in

goo+ fait" if t"e firm4s em#loyees 'ant t"e

union to re#resent t"em.

Human resource activity 'it" a union is

often referre+ to as industrial or labor

relations, '"ic" "an+les t"e 3ob ofcollective bargaining.

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Interrelations"i#s of HRM Bunctions

%ll H! functions are highly interrelated an+

management must recogni,e t"at +ecisions in

one area affect ot"er areas.

Bor instance a firm t"at em#"asi,es recruiting to#-

6uality can+i+ates but neglects to #rovi+e

satisfactory com#ensation is 'asting time an+

money. If a firm #ays belo'-maret 'ages t"e

firm 'ill al'ays be "iring an+ training ne'

em#loyees only to see t"e best leave for "ig"er

'ages.

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+-!*' H!-+ E"('E

!-+-/E!E+% E+0*(+!E+%

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Environment of Human esource !anagement

="e firm often "as little if any control over "o' t"e external

environment im#acts t"e tas of managing its "uman

resources. 97ternal factors inclu+e t"e legal

consi+erations labor maret society #olitical #arties

unions s"are"ol+ers com#etition customers tec"nology

t"e economy an+ unantici#ate+ events.

Each factor, either separately or in combination with

others, can enable or obstruct the accomplishment of

H! tasks within the firm.

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9nvironment of Human Resource Management

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Legal !onsi+erations

% significant e7ternal force affecting HRM relates to

fe+eral state an+ local legislation an+ t"e court

+ecisions inter#reting t"is legislation.

="ese legal considerations affect virtually t"e entires#ectrum of "uman resource #olicies.

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Labor Maret

:otential em#loyees locate+ 'it"in certain geogra#"ic

area from '"ic" em#loyees are recruite+ com#rise t"e

labor market.

="e labor maret is al'ays c"anging an+ t"ese s"ifts

inevitably cause c"anges in t"e 'orforce '"ic" can

affect t"e 'ay management must +eal 'it" t"e

'orforce.

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@ociety

% ="e #ublic +oes not acce#t 'it"out 6uestion t"e

actions of firms in t"e business 'orl+ to+ay.

=o remain acce#table to t"e general #ublic a firm

must accom#lis" its #ur#ose '"ile acting et"ically an+

res#onsibly (!or#orate social res#onsibility).

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Unions

% union is com#rise+ of em#loyees '"o "ave 3oine+

toget"er for t"e #ur#ose of +ealing collectively 'it"

t"eir em#loyer.

In a unioni,e+ organi,ation t"e union5rat"er t"an t"e

in+ivi+ual em#loyee5acts as a t"ir+ #arty to negotiate

'or agreements (age levels benefits..) 'it"

management.

@" " l+

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@"are"ol+ers

Aecause s"are"ol+ers "ave investe+ money in t"e firm

t"ey may at times c"allenge +ecisions ma+e by

management '"ic" may be force+ to 3ustify t"e merits

of a #articular #rogram in terms of "o' it 'ill affect

future #ro3ects costs revenues #rofits an+ even "o'

it 'ill benefit society as a '"ole.

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!om#etition

Birms may face intense competition in bot" t"eir

#ro+uct or service an+ labor marets.

=o com#ete effectively a firm must also com#ete for

an+ retain com#etent em#loyees.

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!ustomers

Aecause sales are crucial to a firm4s survival

management "as t"e tas of ensuring t"at its

em#loyment #ractices en"ance t"e ability of its

'orforce to #rovi+e to#-6uality goo+s an+ services.

="is ca#acity is +irectly relate+ to t"e sills an+

motivation of t"e organi,ation4s em#loyees.

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HR =ec"nology

="e +evelo#ment of tec"nology #laces #ressures on

firms to ee# alongsi+e 'it" ne' HR tec"nology.

=ec"nology "as come to t"e ability of +esigning more

useful "uman resource information systems (HRI@).

HRI@

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HRI@ % system '"ic" sees to merge t"e activities associate+ 'it"

"uman resource management (HRM) an+ information

tec"nology (I=) into one common +atabase t"roug" t"e use of

enter#rise resource #lanning (9R:) soft'are.

="e goal of HRI@ is to merge t"e +ifferent #arts of "umanresources inclu+ing #ayroll labor #ro+uctivity an+ benefit

management into a less ca#ital-intensive system t"an t"e

mainframes use+ to manage activities in t"e #ast.

H*" are use+ to obtain an+ trac relevant information for

"uman resource +ecisions.

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9conomy

"en economy is booming it is often more

+ifficult to recruit 6ualifie+ 'orers.

In economic +o'nturn more a##licants are

ty#ically available.

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Unantici#ate+ 9vents

nanticipated events are occurrences in t"e e7ternal

environment t"at cannot be foreseen (e.g.

eart"6uaes). ="ese events cause ma3or

mo+ifications in t"e #erformance of many "uman

resource functions in t"e affecte+ firms.

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H1" 'H-+/*+/ "%-%E/*' (2E

HR4s !"anging Role$ ?uestions

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HR s !"anging Role$ ?uestions=o+ay t"ere is no longer a ty#ical HR +e#artment. Many organi,ations

continue to #erform t"e ma3ority of HR functions internally but not

al'ays by t"e HR +e#artment itself. %s internal o#erations aree7amine+ 6uestions are raise+ suc" as$

1) !an some HR tass be #erforme+ more efficiently by line managersor outsi+e ven+ors;

2) !an some HR tass be centrali,e+ or eliminate+;

) !an tec"nology #erform tass t"at 'ere #reviously +one by HR#ersonnel;

&ne a##arent fact is t"at all functions are being e7amine+ for efficiency

an+ are sub3ect to cost-cutting inclu+ing HR.

Human Resource Manager

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Human Resource Manager

Historically t"e HR manager 'as res#onsible for eac"

of t"e five HR functions.

%cts in a+visory or staff ca#acity.

ors 'it" ot"er managers to "el# t"em +eal 'it"

"uman resource matters.

=o+ay HR +e#artments continue to get smallerbecause ot"ers outsi+e t"e HR +e#artment are no'

#erforming certain HRM functions.

HR & t i

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HR &utsourcing

H outsourcing is t"e #rocess of "iring e7ternal HR

#rofessionals to +o t"e HR 'or t"at 'as #reviously +one

internally. %his permits H to focus on more on operational

and strategic roles.

="e ey to HR outsourcing success is to +etermine '"ic"

functions to outsource t"e e7tent to '"ic" t"ey s"oul+ be

outsource+ an+ '"ic" functions to ee# in-"ouse.

HR outsourcing is +one in t"ree 'ays$ (1) +iscrete services (2)

multi-#rocess services an+ () business #rocess outsourcing.

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1) Discrete @ervices

it" discrete services one element of a

business #rocess or a single set of "ig"-volume

re#etitive functionsis outsource+ to a t"ir+ #arty

=y#ically transactional HR activities

97am#le$ :ayroll retirement #lan a+ministration

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2) Multi-:rocess @ervices

!om#lete outsourcing

of one or more "uman

resource #rocesses. 97am#le$ :rocter

8amble outsource+

training o#erations.

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) Ausiness :rocess &utsourcing

3usiness process outsourcing 43)(5 re#resents

t"e transfer of t"e ma3ority of HR services to a t"ir+

#arty.

97am#le$ Kraft Boo+s Inc. an+ IAM signe+ a multi-

year A:& agreement in '"ic" IAM #erforms

'orforce a+ministration com#ensation an+

#erformance re#orting for all of Kraft4s J000

em#loyees s#rea+ across 2 countries.

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HR @"are+ @ervice !enters (@@!s)

% shared service center

taes routine HR activities

+is#erse+ t"roug"out t"e

organi,ation an+

consoli+ates t"em in one

#lace.

: f i l 9 l & i ti

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:rofessional 9m#loyer &rgani,ation

% professional employer organization 4)E(5 is a com#any

t"at leases em#loyees to ot"er businesses. "en a +ecision is ma+e to

use a :9& t"e com#any releases its em#loyees '"o are t"en "ire+ by

t"e :9&. ="e :9& t"en manages t"e a+ministrative nee+s associate+

'it" em#loyees #ays t"eir salaries an+ manages t"eir benefits.

="e :9& ty#ically c"arges a fee base+ on t"e number of lease+

em#loyees. Aecause t"e :9& is t"e em#loyees4 legal em#loyer it "as t"e

rig"t to "ire fire +isci#line an+ reassign an em#loyee. Ho'ever t"e client

com#any maintains enoug" control so it can run t"e +ay-to-+ay o#erations

of its business.

Li M : f i

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Line Managers :erforming

HR =ass

Involve+ 'it" "uman resources

by nature of t"eir 3obs

>o' #erforming some +uties

ty#ically +one by HR

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E0(2%*(+ (6 H!-+ E"('E

!-+-/E!E+%

Human Resource 97ecutives

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Human Resource 97ecutives

8eneralists an+ @#ecialists

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=ra+itional Human Resource Bunction in Large Birms

Inclu+e+ se#arate sections.

@ections are #lace+ un+er an HR manager.

9ac" HR function may "ave a su#ervisor an+ staff.

HR manager 'ors closely 'it" to# management in

formulating #olicy.

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="e 9volving HR &rgani,ation

HR outsourcing

HR s"are+ service

centers

:rofessional em#loyer

organi,ation

Line manager

HR becoming more

strategic

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% :ossible 9volving HR &rgani,ation 97am#le

:resi+ent

an+ !9&

Cice

:resi+ent

erations

Cice:resi+ent

@trategic

Human

Resources

Cice

:resi+ent

Binance

Director

of @afety

an+

Healt"

=raining

Develo#ment

(&utsource+)

!om#ensation

(@"are+ @ervice

!enters)

@taffing (Line Managers use of

%##licant =racing @ystems)

Cice

:resi+ent

Mareting