LESSON 1: Introduction to HRM

Supplemental Notes

I. Manager explained.

As a manager you must put on many hats and be flexible.

Imagine you are blindfolded and walking through a forest. Could you imagine how many
times you would hit a tree or trip because you have no direction? It is your job to help employees
navigate. If they trip, it is the manager's job to help them stand up and motivate them to achieve
their goals. A manager who watches his or her employee trip and fail without helping them is not
the kind of manager you want to be. Employees will feed off their manager's energy, and that
positive energy will help create a successful work environment.

The absolute goal of management is for managers to achieve high performance from
themselves and from employees. High performance is usually driven by a positive work
environment. Employees should have the ability to address problems and concerns for
management to fix. It is important for managers to create an environment that is professional.
Managers must make sure employees are doing what is necessary to fulfill the company's goals. A
good manager does not have to yell at employees but can talk to them and motivate them to be
successful. Motivating employees helps give them the confidence to succeed within the company.

To be a great leader, you can work on the qualities like:

✓ A motivator.

Two types of Motivation: Intrinsic & Extrinsic

➢ Extrinsic motivators include salary, job perks/benefits, status, and work conditions.
➢ Intrinsic motivators include things like recognition, challenging work, purposeful
work, achievement, and opportunities for personal growth.

✓ Being optimistic.

➢ Practice better communication

You can’t motivate if you’re not a good communicator. And a large part of communication, both
positive and negative, involves the language you use.

If you’re always the negative voice – “We can’t do that,” “We’ve tried that and it didn’t work,” “We’ve
always done it this way” – adjust your mindset and your words to “How do we make this work?”

Ask why something failed. Suggest trying it again on a limited basis or with a smaller audience.
Gather feedback instead of shooting ideas down. Give your team the space to think outside the
box. The craziest idea may just be the best idea.

✓ Confident.

➢ Confident managers allow employees to accomplish tasks, make decisions, and assume
responsibility.
 When something goes wrong, or is simply heading in the wrong direction, they step up
and give guidance, focusing on results and clear goals to grow their employees’ skills.
✓ Resilient.
➢ Being flexible
Flexibility is a key element to showing resilience. Sometimes, that means being ready to
take a new route or test a different approach if things aren't working out as you'd like them
to.
Example: Your colleague has deadlines approaching but is sick and can't complete them to the best
of their ability. You can build resilience to this unexpected issue by asking if they'd like you to pick up
some of their tasks and reorganizing your schedule to accommodate for the additional workload.
➢ Viewing criticism as a learning opportunity
People who demonstrate resilience are often skilled at taking rejection or criticism with
grace.
Example: Beth felt like she was a brilliant candidate for a job, but she didn't get the position. Instead
of feeling embarrassed and avoiding the company, she decided to email her contact and ask what
she could do better next time around. The feedback she received helped her improve her interview
skills and land a new position.

As a manager you must be ready to take on any task that is handed to you. Suppose you
are a manager at an advertising agency. Two employees have called out sick and there is a big
presentation later in the day. What should you do? Should you run for the hills and scream? Of
course not! As a manager, you must come up with the next best option. You may have to fill in
for an employee, learn the information fast, and present the meeting. A manager does what is
necessary to achieve his or her goals.

II. Types of Leadership in an Organization.

✓ Transformational Leadership – is very effective style of leadership, it leads to a wide

variety of positive outcomes. Followers of transformational leaders are motivated,
engaged, satisfied, have positive attitude, experience less stress, and perform at higher
than expected.
➢ FOUR COMPONENTS:
▪ Idealized Influence/Charismatic – Idealized influence describes leaders who
have charisma, are curious, and deliver messages with simplicity and tact.
These leaders are exemplary role models and are readily trusted and
respected by all members of the team.
▪ Inspirational Motivation – Inspirational motivation describes leaders that
are motivating and willing to commit to a vision. They encourage team
members to also commit to this vision by raising team spirit, fostering
community and a sense of purpose.
▪ Intellectual Stimulation – Intellectual stimulation describes leaders who
encourage their members to think outside the box and be innovative.
Stimulating followers promote critical thinking and problem-solving skills
to improve the group or organization.
▪ Individual Consideration – Individual consideration is the degree to which
a leader attends to each follower’s personal needs. Transformational
leadership encourages members by focusing on the way each person
effects the overall goal.
This means recognizing and valuing the motivations, desires, and
needs of individual members.
Example of Transformational Leadership:

o Apple’s Steve Jobs

Steve Jobs is one of the best examples of transformational leadership in the 21st century. From
wearing pairs of the same clothing each day for increased productivity, to designing the break-
through idea of the iCloud, Steve Jobs was the brain behind the success of Apple.

With Steve Jobs’ legacy guiding the company, the company shifted from product-based
identification to more services and brand loyalty services. Apple is a 2 trillion-dollar company
today, and in the next few years, this is only expected to expand.

✓ Situational Leadership – is a leader who considers the uniqueness of every situation and
the experience level of their followers when deciding upon how to lead them best.

o leaders modify their leadership to fit the current work

condition or the requirements of the team members.

o Every situation is different, so it is necessary to change one’s

colors to match the environment.

➢ Characteristics of a Situational Leader:

▪ They are flexible. Situational leadership is characterized by constant

modification of leadership to suit the current work environment, which
necessitates a leader to be flexible.
▪ They have delegation skills. A leader can identify each participant's abilities
and delegate work for their independency to complete tasks. Delegation
is enhanced through leadership modification as the leader carries out
more contact.

Example:

a. Projects can start out as complex and the team unconfident. So, a leader needs to
be directive and a skilled motivator and trainer. However, as the project progresses
and the team becomes more familiar with the tasks, the leader needs to change
and become more hands-off.
b. In the arena of political campaigns, this usually means modifying political
statements to match the voters being spoken to in that moment.
c. if the situational leader has determined that his team is highly motivated but lack
the necessary skills to get the job done, they may see to it that the team receives
the necessary training (e.g., a coaching style of leadership).
✓ Any great leader understands that most projects are complex and fluid. Circumstances
change and the individuals on the team all have unique personalities and skillsets.

III. Functions of Management

Management involves far more than just telling others what to do. For some of us, we only see the
final two - leading and controlling - but you should know that for every managerial behavior you
do see, there is an equal amount that you do not. Behind the manager's closed door, he or she
spends a good deal of his or her time planning and organizing, so that he or she can effectively
carry out the functions of leading and controlling.

1. The first of the managerial functions is planning. In this step, the manager will create a
detailed action plan aimed at some organizational goal.
a. For example, let's say Melissa the marketing manager has a goal of increasing sales
during the month of February.

✓ Melissa needs to first spend time mapping out the necessary steps she and her team of
sales representatives must take so that they can increase sales numbers. These steps might
include things like increasing advertisements in a particular region, placing some items on
sale, increasing the amount of required customer-to-sales rep contact, or contacting prior
customers to see if they are interested in purchasing additional products. The steps are
then organized into a logical pattern so that Melissa and her team can follow them.

✓ Planning is an ongoing step, and can be highly specialized based on organizational goals,
division goals, departmental goals, and team goals. It is up to the manager to recognize
which goals need to be planned within his or her individual area.

2. The second of the managerial functions is organizing.

a. This step requires Melissa to determine how she will distribute resources and
organize her employees according to the plan.

✓ Melissa will need to identify different roles and ensure that she assigns the right number
of employees to carry out her plan.

3. The third function is staffing.

a. As a manager, melissa need to give the right job to the right person.

✓ Melissa will also need to delegate authority, assign work, and provide direction so that her
team of sales representatives can work towards higher sales numbers without having
barriers in their way.

4. The fourth function of management is leading.

a. In this step, Melissa spends time connecting with her employees on an interpersonal
level.

✓ This goes beyond simply managing tasks; rather, it involves communicating, motivating,
inspiring, and encouraging employees towards a higher level of productivity. Not all
managers are leaders. An employee will follow the directions of a manager because they
must, but an employee will voluntarily follow the directions of a leader because they believe
in who he or she is as a person, what he or she stands for, and the way they are inspired by
the leader.

5. The last function is controlling.

a. Melissa evaluated their performances, checking if they improved.

 ✓ Controlling t is to compare the actual performances with the expected results. Melissa
continued evaluating the performances of her employees. So that in case of errors they can
immediately address the error.

IV. Development of HRM

17th Century – During ancient times and for a long period in the medieval era, production of
goods was done mainly by skilled artisans and craftsmen. Working arrangements involved
close relationships between mentors and apprentices dedicated to a particular trade.
Apprentices were often required to live in the shop or home of the master craftsperson.

The ancient and a major part of the medieval period also witnessed prevalence of certain other
distinct types of laborers.

A brief description of the way they were treated and managed will be relevant for a proper
understanding of human resource management in a historical perspective.

1. Managing Slaves: Slaves comprised an important source of manpower in almost all ancient
civilizations. They could be sold and purchased like commodities. Their main purchasers
were the wealthy rulers, landlords, tribal chiefs, and effluent businessmen. The purchasers
of slaves had a rather complete control over their slaves.
2. Managing Serfs: Serfs were engaged by landlords mainly in agricultural operations and
allied activities. The landlords would usually give them a piece of land for their habitat and
often, some land for their own cultivation. In many cases, a paltry sum of money was
advanced to them in order that they could remain attached to their masters.

Development of the term HRM:

1. Labor Welfare Stage:

Workers worked long hours in strenuous working conditions that led to the formation of
trade unions. These trade unions focused on protecting and promoting workers’ interests
but faced resistance from the management of businesses thus leading to industrial disputes
and conflicts.

2. Personnel Management Stage:

When labor welfare issues were provided legal assurances, organizations began focusing
on behavior of employees at all levels at an individual, group and overall organizational
basis. A “Personnel” was appointed to manage the employee-employer relationship by
managing issues related to human resource planning, recruitment and selection, training
and development, performance and potential appraisal, promotions, transfers, quality of
working life, compensation, compliances to labor laws and legislations.

3. HRM Stage:
Human Resource Management or HRM is a mix of labor welfare and personnel
management. HRM aims at maximizing employee performance in accordance with the
objectives set by an organization. HRM emphasizes that employees need to be treated as
the primary resource of an organization.
 V. The 5P Model of HRM

The 5P Model of HRM describes how HRM operates under the five headings of:

1. HR Philosophy – a statement of how the organization regards its HR, the role they play in
the overall success of the business, and how they should be treated and managed.
Revolves around management's beliefs and assumptions about people – their nature, needs,
value and their approach to work.

2. HR Policies – are written guidance on how a wide range of issues should be handled within
an organization.
They include a description of principles, rights and responsibilities for managers and
employees. They play a key role in supporting fairness and consistency across an
organization.

3. HR Programmes – these are shaped by HR Policies; it is the valuable way to gain the
necessary skills and knowledge for managing “human capital.

4. HR Practices – these are activities carried out in implementing HR policies and

programmes.
HR practices are based on legal compliance requirements, company goals and human
resources professions best practices. HR departments use the practices to guide their
activities, which include hiring, firing, payroll, benefits, wellness, morale-building and other
day-to-day tasks. Example: Providing security to employees

5. HR Processes – these are the formal procedures and methods used to put HR strategic
plans and policies into effect.
Example: On Acquisition: HR Planning – Recruitment – Screening – Selection – Placement

VI. Theory X & Theory Y

Douglas McGregor spent the end of the 1950’s and the early 1960’s working on his motivation
theory. Curiously titled Theory X Theory Y, his theory outlines two opposing views on human
behavior in the workplace. Each of the viewpoints addresses a different way of meeting everyone’s
motivational needs. McGregor believed that a manager’s assumptions about their employees
determined their leadership style in the workplace.

The first part of McGregor’s theory is Theory X. Managers have many assumptions about their
employees in Theory X:

• Workers dislike their jobs, and they are inherently lazy.

• Workers have little motivation and prefer direction from their superiors.
• Workers need consistent rewards and punishments to ensure their task is completed.
• Workers do not have a desire to grow or achieve personal or professional goals.
 Figure 1. Theory X & Theory Y

a person refusing to work (“X”) and a person cheering the opportunity to work (“Y”)

Many of these assumptions are based on basic physical needs. Businesses who utilize a Theory X
approach often have multiple levels of management with a low rate of delegation. Workers are
often micromanaged and have very little autonomy in the organization. There is often a central
authority base, and managers follow an authoritative leadership style.

The next part of McGregor’s theory is Theory Y. Managers also have assumptions about their
employees in Theory Y:

• Workers are willing to accept challenges and are proud of the work that they do.
• Workers do not need to be micromanaged; they are self-directed.
• Workers are eager to participate in decision-making.
• Workers are happy to contribute and feel internally satisfied.

These assumptions lead to a better managerial approach and this greater satisfaction in the
workplace. McGregor encouraged organizations to adopt more of a Theory Y leadership style. It is
much more decentralized and requires more participation from the managers but assumes that
workers would also be committed to the long-term goals of the company. He believed that by
following Theory Y, supervisors could motivate their workers to achieve their highest potential.

There are many similarities between Theory X Theory Y and Abraham Maslow’s Hierarchy of Needs.
Maslow’s theory uses a pyramid to describe the different types of needs that need to be met. Each
level, or type of human need, can only be achieved if all the levels below are satisfied, starting with
basic needs at the bottom.

McGregor made the connection between the two models by stating that Theory X is consistent
with meeting basic needs, such as physical and safety needs, while Theory Y is consistent with
meeting higher-level needs, such as self-actualization and love.
 Figure 2. Hierarchy of Needs

VII. The Four C’s Model (Harvard Model)

FOUR C'S FOR EVALUATING HUMAN RESOURCES

To evaluate the effectiveness of the HRM process within an organization, the Harvard researchers
have proposed a "four C's" model: competence, commitment, congruence, and cost effectiveness.
Examples of questions related to each of the four C's, and some methods for measuring them, are
given in the following list.

1. Competence.

How competent are employees in their work? Do they need additional training? Performance
evaluations by managers can help a company determine what talent it has available, to what extent
do HRM policies attract, keep, and develop employees with skills and knowledge needed now and
in the future?

2. Commitment.

How committed are employees to their work and organization? Surveys can be conducted through
interviews and questionnaires to find answers to this question. Additional information can be
gained from personnel records about voluntary separation, absenteeism, and grievances. To what
extent do HRM policies enhance the commitment of employees to their work and organization?

3. Congruence.

Is there congruence, or agreement, between the basic philosophy and goals of the company and
its employees? Is there trust and common purpose between managers and employees?
Incongruence can be detected in the frequency of strikes, conflicts between managers and
subordinates, and grievances. A low level of congruence results in low levels of trust and common
purpose; tension and stress between employees and managers may increase. What levels of
congruence between management and employees do HRM policies and practices enhance or
retain?

4. Cost effectiveness.
Are HRM policies cost-effective in terms of wages, benefits, turnover, absenteeism, strikes, and
similar factors? Even more difficult than addressing and measuring the extent of the four C's within
a company is the problem of assessing HRM outcomes. In other words, how do you make
judgments about the long-term consequences of HRM policies on employee and societal well-
being and organizational effectiveness? How, for example, do you go about the formidable task of
assigning a value to employee commitment or to an organizational climate and culture that
encourages motivation and employee growth? In the final analysis, managers need the
participation of a broad range of stakeholders (including management, unions, and governmental
agencies) to obtain the data needed to evaluate the impact of HRM practices and policies. At Sony,
it is important to pay attention to the impact of HRM practices if it is to be successful in its
worldwide approach. By shaping HRM policies to enhance commitment, competence, congruence,
and cost-effectiveness, an organization increases its capacity to adapt to changes in its
environment. GO High commitment, for example, means better communication between
employees and managers. Mutual trust is enhanced, and all stakeholders are responsive to one
another's needs and concerns whenever changes in environmental demands occur. High
competence means that employees are versatile in their skills and can take on new roles and jobs
as needed. They are better able to respond to changes.in environmental demands. Cost
effectiveness means that human resource costs, such as wages, benefits, and strikes, are kept equal
to or less than those of competitors. Finally, higher congruence means that all stakeholders share
a common purpose and collaborate in solving problems brought about by changes in
environmental demands. This capacity to collaborates crucial in an ever-changing environment.