Introduction to HRM

Business Organization
Objective:
Survival and growth consistent with
the expectations of its stakeholders

Importance of
Managing Human Resources
Competitive Advantage
When all or part of the market prefers the firms
products and/or services.

Ways firms can use HRM to gain sustainable

competitive advantage:
Maximize the value added by employees
Acquire rare employees
Develop a culture that cant be copied.

Competitive Advantage through

People
The idea that organizations compete through
people highlights the fact that achieving
success increasingly depends on an
organizations ability to manage its human
resources.

The HRM Cycle

If management treats employees well, employees will treat
the customers well.
Happy customers typically become repeat customers, which
can positively impact the companys financial performance,
which can help the company improve its compensation and
benefits packages.
If management does not treat employees well, employees will
not treat the customers well.
Unhappy customers often take their business elsewhere,
which can negatively impact the bottom line.

Human Resource Management:

Concept
Refers to the policies, procedures, practices,
and systems that influence employees
behavior, attitudes and performance
The process of managing people to achieve
organizational objectives
HRM Content
HRM Philosophy
HRM Process

HRM Content (Functions)

The individual practices that make up HRM
constitute the HRM content

Human Resource Acquisition

Human Resource Development
Employee Compensation
Understanding employees' needs and Integration
Labour/Employee Management Relations
Health, Safety and security
Separation

HRM Model
Stakeholder
Interests

-Mgt
.
-Employees
- Govt.,
-Community

Situational factors

-Workforce
-Labor market
-Business conditions
-Technology
-Mgt. Philosophy
-Unions
-Laws

HRM Policy
Choices
-Employee
Influence
-HR flow
-Reward system
-Work system

HR Outcomes
-Commitment
-Competence
-Congruence
-Cost
effectiveness

Long term
Consequences
-Individual
Well being
-Ognl.
Well being
-Societal
well being

Human Resource Management,

Talent Management and Human
Capital Management

Talent Management
Attracting, retaining, developing and
motivating highly skilled employees and
managers

Human Capital Management

Human capital: Economic value of:

Employees' knowledge
Education & training
Work related know-how
Work related competencies

Human capital is intangible, but valuable

because
Is based on company-specific skills.
Is gained through long-term experience.
Can be expanded through development