What is HRM?
• Leadership and management of people within an organization using systems, methods,
procedures, and process that enables employee to optimize their contribution to goals.
• Supports and enables organization to meet its long and short term goals.
• Its employee satisfaction, productivity and selection
Do all companies have HR department?
• No not all companies have HR department, mostly medium-large organization have it.
• Organizations that specialize in to sub-department with major activities such as: training
and development has it.
• Head of HR department is usually a vice president director.
The role of the HR department:
1) Staff authority:
- HR is a service department
- Authority to advice not to direct
2) Line authority
- Possessed by managers of operating department
- Authority of make decision about production, performance, and people.
3) Functional authority
- Authority that allows staff experts to make decision and take actions normally
reserved for line or top managers.
Why study HRM?
• People (HR) are common element in all social organizations.
• They create the objective, innovation and accomplishment
• Organizational success is depend on careful attention to HR
Human resources management process
Step 1: Environmental scan
• Continuous monitoring the business environment for economic, technological,
demographic, legal and cultural forces.
Economic force: Economic cycle o Canadian economy goes through boom and bust cycle. During the boom
cycle, HR must consider how to convert and develop talent.
o During recessionary period, HR faces special challenges. They have to carry
out the task of layoffs, wage allowance.
Economic forces: Globalization
o Trade agreements
Economic forces: productivity improvement
o Productivity improvement is essential for long-term success