Prepared by: Safaa S.Y. Dalloul
E-HRM | Intro.| Unit 1
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2013-2014
HRM
Introduction
HRM
Functions
HRM
Perform Task
HR
Diversity
HRM and
Environment
HRIS
HRM
INTRODUCTION
Human Capital Management, Human Capital Assets, and HRM Definition
For Your Information
The Capital is every thing can be converted to value.
Types of Capital
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Financial Capital
Natural Capital
Social Capital
Instructional Capital
Human Capital
Examples
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Obligation, Liquidity of Money
Ocean, River
Brand Value, Goodwill
Knowledge (Academic)
Social, Instructional, and Individual
Human Capital Management
It is the task of measuring the cause and effect of
relationship of various HR programs and policies on the
bottom line of the firm.
Human Capital Management
Continued
A company's human capital asset: is the collective sum
of the attributes, life experience, knowledge,
inventiveness, energy and enthusiasm.
Note: HCM attempts to obtain additional productivity from
workers, so HR plays a significant role.
Definition Of HRM
HRM: is the utilization of a firm's human resources to achieve
organizational objectives and it is an individual dealing with
human resources matters faces a multitude of challenges.
Define the following:
Human Capital Management
Human Capital Asset
HRM
HRM
FUNCTIONS
Staffing, HR Development, Compensations and Benefits, PA, Safety, Employee Relations, HR Research
HRM Functions | Staffing
The process through which an organization ensures that it always
has the proper number of employees with the appropriate skills
in the right jobs at the right time to achieve the organization's
objectives.
HRM Functions | HR Development
It consists of not only training and development, but also of
individual career planning and development activities,
organization development and performance appraisal.
Note: Human resources development is a major HRM function.
HRM Functions | Compensation and Benefits
A well-thought-out compensation system provides employees
with adequate/suitable and equitable rewards for their
contributions to meet organizational goals.
HRM Functions | Compensation and Benefits
Pay: the money that a person receives for performing a job.
Continued
HRM Functions | Compensation and Benefits
Benefits: Additional financial rewards;
differ from base pay, including paid
vacations, sick leave holidays and
medical insurance.
Continued
HRM Functions | Compensation and Benefits
Continued
Non-financial rewards; Non-monetary rewards; such as
enjoyment of the work performed or a satisfactory of
workplace environment that provides flexibility.
HRM Functions | Performance Appraisal
It is a formal system of review and evaluation of individual or
team task performance.
The focus of PA in most firms remains on the individual
employees.
HRM Functions | Performance Appraisal
An effective appraisal system
evaluates accomplishments and
initiates plans for development,
goals, and objectives.
HRM Functions | Safety and Health
Safety: involves protecting employees from injuries
caused by work-related accidents.
Health: refers to the employees' freedom from
physical or emotional illness.
HRM Functions | Employee and Labor Relations
A business firm is required to
recognize a union and bargain
with it in good faith if the firm's
employees want the union to
represent them.
HRM Functions | HR Research
Although human resource research is not a distinct HRM
function, it pervades all functional areas, and the
researcher's laboratory is the entire work environment.
Summarize the HR Functions
ENVIRONMENT
FACTORS
Environment Factors
 Internal Factors
 External Factors
• The factors that affect a firm's
human resources from inside
organization's boundaries.
• The factors that affect a firm's
human resources from outside
organization's boundaries.
– Discuss
– Discuss
Environment Factors That Affect HRM
The labor
forces
Unions
Shareholders
Competition
Customers
Technology
Economy
Legal
Society
The labor force is a pool of external individuals to the firm
from which the organization obtains its workers.
As new employees are hired from outside the firm, the
labor force is considered an external environmental factor.
Legal Consideration
Refers to federal, state and local legislation. Many court
decisions interpreting this legislation, in addition to
presidential executive orders.
Society exerts/uses pressure on HRM.
To remain a company acceptable to the
general public, it must accomplish its
purpose while complying with societal
norms.
Continued
Social responsibility: the implied enforced or felt obligation of
mangers, acting in their official capacity to serve or protect the
interests of groups rather than themselves.
Ethics: The discipline dealing with what is good and bad or right
and wrong or with moral duty and obligation.
 Union: comprise of employees who have joined together for the
purpose of dealing with their employer.
 Unions become a third party when dealing with the company.
 In a unionized organization, the union negotiates an agreement
with management.
 Shareholders: The owners of a corporation.
 As they invest money in the firm, they may
challenge at times programs considered by
management to be beneficial to the
organization.
Firms may face intense competition in both their product or
services and labor markets.
The people who actually use a firm's goods and services.
As sales are crucial to the firm's survival, management has the task
of ensuring that its employment practices do not antagonize its
customers.
 Technology affects every area of a business
including HRM.
 Technological changes occur so rapidly nowadays.
 HR technology has the potential to either increase or
decrease an organization's worth.
 The economy is a major environmental factor affecting HRM.
 When the economy is booming, recruiting qualified workers is more
difficult, and when downturn is experiences, more applicants are
typically available.
Students Time
HRM TASK
How Performs the HRM Task?, HR Designations, HR Functions in Organization (Size)
How Performs the HRM Task?
The person or units who perform the HRM tasks have changed
dramatically in recent years.
Restructuring resulted in a shift which carries out each function.
How Performs the HRM Task?
 HR Manager
 Shared Services Center
 Outsourcing Firms
 Line Manager
Continued
HRM Task| HR Manager
An individual who normally acts in an advisory or staff
capacity, working with other mangers regarding human resource
matter.
Historically, HR department perform the functions internally.
HRM Task| HR Manager
Continued
HR Manager is primarily responsible for coordinating the
management of human resources to help the organization
achieves its goals.
There is a shared responsibility between line managers and
human resource professionals.
HRM Task| Shared Services Center
Shared Services Centers: A center that takes routine,
transaction-based
activities
disperses
throughout
organization and consolidates them in one place.
the
HRM Task| Outsourcing Firms
Outsourcing: the process of transferring responsibility for an
area of service and its objectives to an external provider.
Outsourcing increases in order to reduce costs caused by
sluggish earnings or tighter budgets, mergers and acquisitions
that have created many redundant systems.
HRM Task| Line Manager
Individual directly involved in accomplishing the primary
purpose of the organization.
HR Designations
 An Executive
 A Generalist
 A Specialist
HR Designation| Executive
An executive: is a top-level manager who reports directly to a
corporation's chief executive officer or to head of a major
division.
HR Designation| Generalist
A person who performs tasks in a variety of human resourcerelated areas.
HR Designation| Specialist
An individual who may be a human resource executive, a
human resource manager, or a manger and who is typically
concerned with only one of the HRM functions.
How are the HR Functions conducted in
the organization regarding to its size?
HR Functions in Organizations
 Small Business
 Medium Business
 Large Business
HR Functions| Small Business
Small businesses seldom have a formal HR units and HRM
specialists.
Managers in the company handle HR functions, and the focus of
their activities is generally on hiring and retaining capable
employees.
HR Functions| Small Business
Continued
Some functions may actually be more significant in smaller
firms than in larger ones.
HR Functions| Medium Business
As a firm grows, a separate staff function may be required to
coordinate HR activities.
HR staff is expected to handle most of the HR activities.
HR Functions| Large Business
When the firm's HR functions becomes too complex for one
person, separate sections have historically been created and
placed under a human resource executive.
HR Functions| Large Business
Continued
These sections typically perform tasks involving training and
development, compensation and benefits, safety and health, and
labor relations.
In large organizations, every HRM function may have a
manager and staff reporting the HR executive.
DIVERSITY
Diversity
Any perceived difference among people: age, race, religion,
functional specialty, profession, sexual orientation, geographic
origin, lifestyle, tenure with organization, or position, and any
other perceived difference.
Note: Tenure = Job, Post, Position
Diversity Management
Ensuring factors are in place to provide for and encourage
continued development of diverse workforce by melding actual
and perceived differences among workers to achieve maximum
productivity.
Managing Diverse Workforce and Various Components:
 Single Parents & Working Mothers
 Persons with Disabilities
 Women in Business
 Immigrants
 Dual Career Families
 Young Persons with Limited
 Workers of Color
 Older Workers
Education/Skills
 Educational Level of Employees
Single Parents & Working Mothers
 Number is growing
 Many marriages end in divorce
 Widows and widowers who have children
 Need alternative child-care arrangements
 72% of mothers with children under 18 are in work
force
Women in Business
 Account for 45% of workforce
 Hold half of all management, professional, and related
occupations
 Over 9 million women-owned businesses
 Increasing number of nontraditional households
 Organizations must address work/family issues
Dual Career Families
 Both husband and wife have jobs and family responsibilities
 Majority of children growing up today have both parents
working outside home
 Some have established long-distance jobs
 Want more workplace flexibility
 Revised nepotism policy
Workers of Color
 Often experience stereotypes
 Often encounter misunderstandings and expectations
 Bicultural stress
 Socialization in one’s culture of origin can lead to misunderstandings
in workplace
Older Workers
 Population is growing
 Long-term labor shortage is developing
 Many organizations actively courting older employees to remain on
job longer
 Needs and interests may change
 May require retraining
Persons with Disabilities
 Limits amount or kind of work person can do or makes its achievement
unusually difficult
 Perform as well as unimpaired in productivity, attendance and average
tenure
Persons with Disabilities
 ADA prohibits discrimination against qualified individuals with
disabilities
 Serious barrier is bias, or prejudice
 Manager can set the tone
Note: ADA = American With Disability
Continued
Immigrants
 Large numbers of immigrants from Asia and Latin America have
settled in many parts of United States
 Newer immigrants require time to adapt
 Managers must work to understand different cultures and languages
Young Persons with Limited Education/Skills
 Many thousands of young, unskilled workers are hired
 Poor work habits
 Tardy or absent
 Can do many jobs well
 Jobs can be de-skilled
Educational Level of Employees
 Bipolar country with regard to education
 Half of new jobs need some education beyond high school
 Those with limited education will be left out of empowerment effort
Note: Bipolarity is a distribution of power in which two states
have the majority of economic, military, and cultural influence
internationally or regionally.
Study Question:
What are individual differences
and how are they related to
workforce diversity?
Personality
The overall profile or combination of characteristics that capture
the unique nature of a person as that person reacts and interacts
with others.
Combines a set of physical and mental characteristics that
reflect how a person looks, thinks, acts, and feels.
Personality
Predictable relationships are expected between people’s
personalities and their behaviors.
How do personalities differ? (Discuss)
“Big Five” Personality Dimensions.
1) Extraversion
2) Agreeableness.
3) Conscientiousness.
4) Emotional stability.
5) Openness to experience.
“Big Five” Personality Dimensions.
Extraversion
Being outgoing, sociable, assertive.
Agreeableness.
Being good-natured, trusting, cooperative.
Conscientiousness.
Being responsible, dependable, persistent.
Emotional stability.
Being unworried, secure, relaxed.
Openness to experience.
Being imaginative, curious, broad-minded.
Continued
Challenge of Work Diversity
 Respecting individuals’ perspectives and contributions and promoting a
shared sense of organizational vision and identity.
 As workforce diversity increases, the possibility of stereotyping and
discrimination increases.
 Example of stereotype: All women will get 40 days for maternity
leave (Gender)
Demographic characteristics may serve as the basis for
stereotypes.
 Equal employment opportunity.
 Nondiscriminatory employment decisions.
 No intent to exclude or disadvantage legally protected groups.
 Affirmative action.
 Remedial actions for proven discrimination or statistical imbalance in
workforce.
Demographic characteristics.
 The background characteristics that help shape what a person becomes.
 Important demographic characteristics for the workplace.

Gender.

Age.

Able-bodied-ness.

Race.

Ethnicity.
Organization Culture| Definition
“A set of shared values, beliefs, norms, artifacts and patterns of
behavior that are used as a frame of reference for the way one
looks at, attempts to understand, and works within an
organization.”
Organization Culture| OC and Work Diversity
What is the impact of increasing workforce diversity on
organizational culture?
People from diverse cultures (or subcultures) often possess
different assumptions, values, beliefs, and experiences.
 What can be gained from this richness of experience?
 What are the potential problems with such diversity?
Organization Culture| Discrimination
Access discrimination
Jobs are unavailable (or less available) to people with
certain characteristics or backgrounds.
Treatment discrimination
People are treated differently after they are hired (e.g., in the
training or promotion opportunities available).
Organization Culture| Discrimination
Treatment discrimination against women in organizations
 Promotion
 Pay
 Sexual Harassment
Organization Culture| Discrimination
Treatment discrimination against minorities in organization
 Promotion
 Racial Harassment
HRIS
HRIS
HRIS| Introduction
An integrated system designed to provide information used in
HR decision making.
Computers have simplified the task of analyzing vast amounts
of data, and they can be invaluable aids in HR management,
from payroll processing to record retention.
HRIS| Introduction
Continued
With computer hardware, software, and databases, organizations
can keep records and information better, as well as retrieve them
with greater ease.
HRIS| Purposes
An HRIS serves two major purposes in organizations.
One relates to administrative and operational efficiency, the
other to effectiveness.
Efficiency: Doing the Thing Right
Effectiveness: Doing the Right Thing
Which is the
best?
HRIS| Purposes
Continued
The first purpose of an HRIS is to improve the efficiency with
which data on employees and HR activities is compiled.
 Many HR activities can be performed more efficiently and with less
paperwork if automated. When on-line data input is used, fewer forms
must be stored, and less manual record keeping is necessary.
HRIS| Purposes
Continued
 Much of the reengineering of HR activities has focused on identifying
the flow of HR data and how the data can be retrieved more efficiently
for authorized users.
 Workflow, automation of some HR activities, and automation of HR
record keeping are key to improving HR operations by making
workflow more efficient.
HRIS| Purposes
Continued
The second purpose of an HRIS is more strategic and related
to HR planning.
 Having accessible data enables HR planning and managerial decision
making to be based to a greater degree on information rather than
relying on managerial perception and intuition.
HRIS| Purposes
Continued
 For example, instead of manually doing a turnover analysis by
department, length of service, and educational background, a specialist
can quickly compile such a report by using an HRIS and various sorting
and analysis functions.
HRIS| Purposes
Continued
 HR management has grown in strategic value in many organizations;
accordingly, there has been an increased emphasis on obtaining and
using HRIS data for strategic planning and human resource forecasting,
which focus on broader HR effectiveness over time.
HRIS| Uses
 An HRIS has many uses in an organization.
 The most basic is the automation of payroll and benefit activities.
 With an HRIS, employees’ time records are entered into the system, and the
appropriate deductions and other individual adjustments are reflected in the
final paychecks.
HRIS| Uses
Continued
 As a result of HRIS development and implementation in many
organizations, several payroll functions are being transferred from
accounting departments to HR departments.
HRIS| Uses – HR Planning and Analysis
Organization Charts
Absenteeism Analysis
Staffing Projections
Restructuring Costing
Skills Inventories
Internal Job Matching
Turnover Analysis
Job Description Tracking
HRIS| Uses - Staffing
 Recruiting Sources
 Applicant Tracking
 Job Offer Refusal Analysis
HRIS| Uses – HR Development
 Employee Training Profiles
 Training Needs Assessments
 Succession Planning
 Career Interests and Experience
HRIS| Uses – Health, Safety, and Security
 Safety Training
 Accident Records
 OSHA 200 Report (Occupational Safety and Health Administration (OSHA))
 Material Data Records
HRIS| Uses – Employee and Labor Relations
 Union Negotiation Costing
 Auditing Records
 Attitude Survey Results
 Exit Interview Analysis
 Employee Work History
HRIS| Uses – Equal Employment
 Affirmative Action Plan
 Applicant Tracking
 Workforce Utilization
 Availability Analysis
The Next Lecture
Succession Planning
Job Analysis
 Job Analysis Information
 Job Analysis Methods
 Timeliness of Job
Analysis
 Job Description
HR Planning Process
 Strategic Planning
 HR Planning
• HR Forecasting
Techniques
• Forecasting HR
Requirements
 Forecasting HR Availability
• Surplus Of Employee
Forecasted
• Shortage Of Employee
Forecasted
 Accelerated Succession Planning
 Job Design Concepts
Enterprise resource planning systems
 Introduction
 Benefits of enterprise resource
systems to lodging operations
 Planning for implementation
 Selecting an ERPS
 Implications and conclusion
Career Planning
It is an ongoing process whereby an individual sets
career goals and identifies the means to achieve them.
Back
Organization Development
It is the planned process of improving an organization
by developing its structures, systems and processes to
improve effectiveness and achieving designed goals.
Back
Performance Appraisal
It is a formal system of review and evaluation
individual or team task performance.
Back
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