Chapter 01 Bba Hrm

7/31/2019 Chapter 01 Bba Hrm

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Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Chapter 1

The Dynamic Environment

of Human ResourceManagement (HRM)

Suggested Level: Chapter 01, HRM, Decenzo & Robins


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Groups working in an organization

Humans are the most importantresources of any organization in order

to progress towards the organizational

goals.

Two main groups or parties work inside

an organization.

Management or employers

Workers or employees


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Employer

Employees

HRMfield


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Employer

The definition of employer differs from

economy to economy. Employer is

normally defined in the industrial relations

laws of the country.

Generally employer is a person or group of

persons that offer employment to

individual in an organization OR those whoare involved in management process.


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Owners, directors, managers and

supervisors/controllers are the common

examples of employers.


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Employee

Employee is a person or group of persons

who are directly involved in the operation

of a business. They implement the

decisions made by the management. Theydont have any direct role in the

management process. Support staff,

clerical staff and factory workers are thecommon examples of employees.


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HRM field

Personnel or HRM field includes activities orinteractions of the two groups (employer andemployee) in order to maintain a balance. Forexample;

Conflict resolution Increments in salaries

Training programmes

Transfers and promotions

Hiring of new staff Benefits and facilities


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Defining HRM

Personnel or Human Resource

Management is the organizational function

of recruitment & selection, training &

development, motivation and retention ofeffective human resources.


9/23Fundamentals of Human Resource Management, 10/e, DeCenzo/Robbins

Introduction

Strong employees = competitive advantage.

HRM is a subset of management. It has five main

goals:

Goals

of

HRM

hireemployees

attractemployees

retainemployees

motivateemployees

trainemployees



HRM helps employees understand other countries

political and economic conditions.

Understanding Cultural Environments

Countries have different

values

morals

customs

political, economic, and legal systems

HRM operates in a global business environment.



The Changing World of Technology

HRM operates in a technologically changingenvironment.

Thomas Friedman:

Globalization 1.0(1492-1800)

Driven by transportation

Globalization 2.0(1800 -2000)

Driven by communication

Globalization 3.0(2000 -????)

Driven by technology

3.0 fueled by instant communication and the Internet.
























HRMinformation systems help to

facilitate HR plans

make decisions faster

clearly define jobs

evaluate performance

provide desirable, cost-effective benefits




HR managers use technology to:

recruit, hire, and train employees

motivate and monitor workers

research fair compensation packages

communicate throughout the organization

evaluate employees performance



Workforce Diversity

The workforce (human resources) belong toa diverse group of values and lifestyle.

As per the modern research the workforce do not

set aside their cultural values and lifestyle

preferences when they come to work.



Continuous Improvement Programme

Organizational commitment to continuouslyimproving the quality of products andservices.

HRM plays a vital role in CIP by preparingindividuals for the change. Changes need to be

communicated;

Why the change is occurring

What is its effect on employees performance



Continuous Improvement Programs

HRmanagers help workers adapt to continuous improvement changesthrough retraining, providing answers, and monitoring expectations.

continuous

improvement

components

empowermentof employees

accurate

measurement

concern for

total quality

focusoncustomer

concern forcontinuous

improvement



Employee Involvement

Its all about employee empowerment through

involvement, which increases worker productivityand loyalty.

Seehttp://workhelp.org/joomla/content/view/284/formanagerial tips on empowering employees.

Employee Involvement Concepts

delegation participative management

work teams goal setting employer training
http://workhelp.org/joomla/content/view/284/http://workhelp.org/joomla/content/view/284/



Important terms

Downsizing:Rightsizing :Outsourcing:Contingent workforce:Core employees:Ethics::


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Downsizing

What is Downsizing? A downsizing strategy reduces the scale

(size) and scope of a business to improve

its financial performance (Robbins &Pearce, 1992).

A reduction of the workforce is one of only

several possible ways of improvingprofitability or reducing costs.


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Rightsizing

What is Rightsizing?

Bringing the necessary adjustments in the

size of workforce. It may include a small

reduction as well. Rightsizing can be

achieved by a number of painless meanssuch as:

Freezing recruitment

Releasing the early retirement Releasing poor performers


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Contingent Workforce

The part time, temporary and contractworkers used by organizations to fill peak

staffing needs or perform work not done

by the core employees.


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Core Employees

An organizations full time employeepopulation.


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Ethics

A set of rules or principles that defines aright and wrong conduct.

Chapter 01 Bba Hrm

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