PART ONE INTRODUCTION

PART ONE INTRODUCTION

C H A P T E R

T O n e

Introduction to Human Resource Management

1

Lecture Outline Strategic Overview

Human Resource Management at Work What is HR Management?What is the state of HRM in Arab countries?Why is HR Management Important to all Managers?Line and Staff Aspects of HRM Line Managers’ HR Duties A Human Resource Manager’s Duties

Cooperative Line & Staff HRM: An Example

From Line Manager to HR Manager The Changing Environment of HR Management Globalization Trends Technological Trends Trends in the Nature of Work Workforce Demographic Trends The Changing Role of HR Management Strategic HRM Creating High-Performance Work Systems Measuring the HRM Team’s Performance Managing with the HR Scorecard Process The HR Manager’s Proficiencies Four Proficiencies HR Certification Managing Within the Law Managing Ethics

In Brief: The main purpose of this

chapter is to provide an introductory overview of what HR management is, in Arab countries specifically, and why it is important to all managers. HR management activities such as hiring, training, compensating, appraising, and developing employees are part of every manager’s job. HR management is also seen as a separate business function, usually with its own human resource or ‘HR’ manager. The main topics include the manager’s HR management jobs, global and competitive trends affecting HRM, and how managers use modern HR management methods to create high-performance companies and work systems.

Interesting Issues: Human Resources

play a key role in helping companies meet the challenges of global competition. Strategic objectives to lower costs, improve productivity and increase organizational effectiveness are changing the way every part of the organization, including the HR department, does business.

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LEARNING OBJECTIVES

• Explain what human resource management is and how it relates to the management

process.

• Give at least eight examples of how all managers can use human resource management

concepts and techniques.

• Illustrate the human resource responsibilities of line and staff (HR) managers.
• Provide a good example that illustrates HR’s role in formulating and executing company

strategy.

• Write a short essay that addresses the topic: Why metrics and measurement are crucial

to today’s HR managers.

ANNOTATED OUTLINE

• Human Resource Management at Work – The Management process

involves the following functions: planning, organizing, staffing, leading, and

controlling. The “people” or personnel aspects of management jobs involve conducting job analyses; planning labor needs and recruiting job candidates; selecting job candidates; orienting and training new employees; managing wages and salaries; providing incentives and benefits; appraising performance; communicating; training and developing managers; and, building employee commitment;

• What is the State of HR Management in Arab Countries? In Arab

countries, macro-contextual elements such as culture, history, economy, political issues, local policies such as nationalization, as well as religion, all influence the management of people. Therefore, most companies are now required to understand how to manage their people according to local and global understandings.

• Why Is HR Management Important to All Managers? Managers don’t

want to make mistakes while managing, such as hiring the wrong person, having their company taken to court because of discriminatory actions, or committing unfair labor practices.

• Line and Staff Aspects of HRM – Although most firms have a human

resource department with its own manager, all managers tend to get involved in activities like recruiting, interviewing, selecting, and training.

• Line Versus Staff Authority – Authority is the right to make decisions,

to direct the work of others, and to give orders. Line managers are authorized to direct the work of subordinates. Their subordinates are generally involved in work that directly produces or sells the company’s product or service, like Sales or Manufacturing. Staff managers are authorized to assist and advise line managers in accomplishing their basic goals. The subordinates of staff managers are generally involved in work that supports the products or services, in departments like Purchasing, or Quality Control. HR managers are generally staff managers.

• Line Managers’ HR Duties – Most line managers are responsible for line

functions, coordinative functions, and some staff functions.

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• A Human Resource Manager’s Duties – Human Resource Managers also

have line, coordinative and staff functions. However, they exert line authority only within the HR department. They have implied authority with line managers due to the fact that they have the ear of top management on many important issues contributing to organizational health.

F. Cooperative Line and Staff HR Management: An Example – In recruiting

and hiring, it is generally the line manager’s responsibility to specify the qualifications employees need to fill specific positions. Then the HR staff takes over. They develop sources of qualified applicants and conduct initial screening interviews. They administer appropriate tests, then refer the best applicants to the supervisor (line manager), who interviews and selects the ones he/she wants. In Arab countries, employers split most HR duties between HR and line managers. HR managers in Bahrain, Oman, and Saudi Arabia play a key role in applying labor nationalization policies.

• From Line Manager to HR Manager – Line managers may make career

stopovers in staff HR manager positions.

➢ NOTES Educational Materials to Use

II. The Changing Environment of HR Management - Human Resource responsibilities have become broader and more strategic over time in response to a number of trends. Changes are occurring today that are requiring HR managers to play an increasing central role in managing companies. These changes or trends include globalization, changes in the nature of work, and technology.

• Globalization Trends – Globalization refers to the tendency of firms to

extend their sales, ownership, and/or manufacturing to new markets abroad. Globalization of the world economy and other trends has triggered changes in how companies organize, manage and use their HR departments. The rate of globalization continues to be high, and has several strategic implications for firms.

• Globalization’s Implications – More globalization means more

competition, and more competition means more pressure to lower costs, make employees more productive, and do things better and less expensively. This trend is increasingly evident in the Arab world.

• Technological Trends – Virtual online communities, virtual design

environments and Internet-based distribution systems have enabled firms to become more competitive. HR faces the challenge of quickly applying technology to the task of improving its own operations. Thus, countries like Saudi Arabia have set regulations on e-transactions in order to enhance the use of technology in businesses.

• Trends in the Nature of Work – Jobs are changing due to new

technological demands. Dramatic increases in productivity have allowed manufacturers to produce more with fewer employees.

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• Service Jobs – Most newly created jobs are and will continue to be

in the service sector. Today, a large number of people in the Arab countries are employed in producing and delivering services rather than products—the result has been an increase in both service and manufacturing businesses in the Arab world.

• Knowledge Work and Human Capital – refers to the knowledge,

education, training, skills, and expertise of a firm’s workers. There is a growing emphasis on knowledge workers and more skills. The HR function must employ more sophisticated and creative means to identify, attract, select, train and motivate the required work force.

3. Nature of Work: Implications for HR – Because it is the HR function

that traditionally recruits, selects, trains, and compensates employees, the above changes make employers highly reliant on more sophisticated and effective HR management—focusing on improving performance through motivated, committed employees.

• Workforce Demographic Trends – The average fertility rate in the Arab

region remains high despite the decline in birth rate. Unemployment remains high for young graduates, and many emigrate within and outside the Arab world are in search of jobs. Aging is also applicable in some Arab countries such as Bahrain, Kuwait, and Qatar. There is also a large influx of women into the workforce, aided by flexible work hours. In the Arab region, emplyers will have to take similar steps to fill openings left by retiring employees – by encouraging them to stay on, or rehiring them.

➢ NOTES Educational Materials to Use

III. The Changing Role of HR Management – HR’s central task is always to provide a set of services that make sense in terms of company strategy.Trends of globalization, technology, nature of work and workforce demographics have implications for how companies now organize, manage, and rely on their HR operations. The HR manager’s job has grown broader and more strategic over time. HR managers must partner with top managers to design and implement company strategies. The focus on operational improvements means that all managers must be more adept at expressing their departmental plans and accomplishments in measurable terms. The emergence of labor unions in many Arab countries has added challenges to the HR department’s responsibilities.

• Strategic HRM – HR supports a company’s new strategy to make the

company a success.

• What is Strategic Planning? – A company’s strategic plan is how it

will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage.

• What is Strategic HRM? – Strategic HRM means formulating and

executing HR policies and practices the company needs, to achieve

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