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1. Lecture 2
Dr. Menatallah Darrag

2. 1.Explain what human resource management is and how it relates to
the management process.
2.Give examples of how all managers can use human resource
management concepts and techniques.
3.Illustrate the human resource responsibilities of line and staff (HR)
managers.
4.Illustrate HR’s role in formulating and executing company strategy.
5.Understand metrics and measurement that are crucial to today’s
HR managers.
After studying this chapter, you should be able to:
Learning
Objectives

4. •The policies and practices involved in carrying out the ‘people’ or human resource
aspectsof a management position, including:
Screening. recruiting, managing, developing, orienting, training, rewarding, and
appraising employees at work.
•The bottom line of managing is getting results.
•HR creates valueby engaging in activities that produce the employee behaviors that
the company needs, to achieve its strategic goals.

5. Staffingistheprocessthrough
whichanorganizationensures
thatitalwayshastheright
numberofemployees,withthe
appropriateskills,intherightjobs
attherighttime,toachieve
organizationalobjectives.
•Jobanalysis
•Humanresourceplanning
•Recruitment
•Selection
HumanResourceDevelopment
isamajorHRMfunctionconsistingof
traininganddevelopment,career
planningandrelatedorganization
developmentactivities.
•Training & Development
•Career planning
•Career development
•Organization development (OD)
Martocchio, 2019

6. PerformanceManagement:
Goal-orientedprocesstoensure
organizationalprocessesarein
placetomaximizeproductivity.
CompensationManagement:
Allrewardsthatindividualsreceive
asaresultoftheiremployment
•Financialcompensation:Direct(core)
compensation(e.g.wages&salaries)
•Indirectcompensation(e.g.paid
vacations,sickleave,holidays,and
medicalinsurance).
•Nonfinancialcompensation:Thingsthat
anemployeereceivesorderivesfrom
thejobortheorganizationthatdonot
havecostfortheorganization(e.g.
employee,psychologicalwell-being,or
enjoyment of the physical
environment).
Martocchio, 2019

7. Safety&Health:Nowadays,
legislationsreflectssocietal
concern,andmostorganizations
havebecomeattentivetotheir
employees’safetyandhealth.
•Safety:Protectingemployees
frominjuriescausedbywork-
relatedaccidents
•Health:Employees'freedom
fromillnessandtheirgeneral
physicalandmentalwell-being
Employee & Labor Relations:
Human resource activity with a
union is often referred to as labor
relations, where businesses are
required by law to recognize a union
and bargain with it in good faith if
the firm’s employees want union
representation.
Martocchio, 2019

8. •AllHRMfunctionsarehighlyinterrelatedandmanagement
mustrecognizethatdecisionsinoneareaaffectotherareas.
•Forinstance,afirmthatemphasizesrecruitingtop-quality
candidates butneglects toprovide satisfactory
compensation iswastingtimeandmoney.
•Ifafirmpaysbelow-marketwages,thefirmwillalwaysbe
hiringandtrainingnewemployees,onlytoseethebest
leaveforhigherwages.
Martocchio, 2019

9. •Conducting job analyses
•Planning labor needs and recruiting job
candidates
•Selecting job candidates
•Orienting and training employees
•Training and developing managers
•Appraising performance
•Managing wages and salaries
•Providing incentives and benefits
•Communicating (interviewing, counseling,
disciplining)
•Building employee commitment

10. •Wastetimewithuselessinterviews.
•Hirethewrongpersonforthejob.
•Experiencehighturnover.
•Haveyourpeoplenotdoingtheirbest.
•Haveyourcompany takentocourtbecauseof
unfairactionsagainstemployees.
•Havesomeemployees thinktheirsalariesare
unfairrelativetoothers’intheorganization.
•Allowalackoftrainingtoundermine your
department’seffectiveness.
•Commitanyunfairlaborpractices
To avoid Personnel Mistakes like:

11. Line Authority Staff Authority
Gives managers
the right to issue
orders to other
managers or
employees.
Gives a manager
the right to
adviseother
managersor
employees.
Authority:
Is the right to make
decisions, to direct the work
of others, and to give orders

12. Line Manager
–A manager who is
authorized to directthe
work of subordinates
and is responsible for
accomplishing the
organization’s tasks
Staff Manager
–A manager who assists
and advisesline
managers
(Superior-subordinate relationship) (Advisory relationship)
Line AuthorityStaff Authority

13. 1.Placingtherightpersonintherightjob
2.Startingnewemployeesintheorganization(orientation)
3.Trainingemployeesforjobsthatarenewtothem
4.Improvingthejobperformance ofeachperson
5.Gaining creativecooperation and developing smooth working
relationships
6.Interpretingthecompany’spoliciesandprocedures
7.Controllinglaborcosts
8.Developingtheabilitiesofeachperson
9.Creatingandmaintainingdepartmentmorale
10.Protectingemployees’healthandphysicalcondition

14. 1.AssistingandadvisinglinemanagersistheheartoftheHRmanager’sjob.
2.HRassistsinstrategydesignandhelpCEOtounderstandthepersonalaspect
ofthecompany.
3.HRassistsinhiring,training,evaluating,rewarding,counselingandfiring
employees.
4.HRadministersdifferentprogram (retirement,vacation,healthinsurance,etc.).
5.HRprovidesuptodateinformationonnewmethodsofsolvingproblems.
6.HRplaysanemployeeadvocacy

15. 15
Functions of
HR Managers
Line Function
Line Authority
Implied Authority
Staff Functions
Staff Authority
Innovator
Coordinative Function
Functional Authority
Managing the HR department
Assistance to Top Management
Coordinate with different departments/line
managers

16. 16
1. A line function
•HR manager directs activities of
people in his or her own
department. In this case, he/she
exerts line authority.
Implied authority: This is earned
by virtue of others’ knowledge
of the HR manager’s access to
top management.
2. A coordinative function
HR managers coordinate
personnel activities, referred to as
functional control/authority.
Functional control/authority:
The authority of the HR
manager; as a hand of top
management; to ensure
implementing firm’s objectives
by coordinating the HR function
activities.
Act as right hand of CEOto ensure
implementing firm’s objectives.
3. Staff function (assist
and advise role)
Staff authority:
•HR assists in strategy design and
help CEO to understand the
personal aspect of the company.
•HR assists in hiring, training,
evaluating, rewarding, counseling
and firing employees.
•HR administers different programs
(retirement ,vacation ,health
insurance, etc.).
•HR helps line managers to comply
with health and safety law
•HR provides up to date
information on new methods of
solving problems, thus serving as
an innovator.
Line Function
Line Authority
Implied Authority
Coordinative
Function
Functional Authority/Control
Staff Functions
Staff Authority
Innovator

17. Recruiters
Labor Relations Specialists
Training Specialists
Job Analysts
Compensation Managers
Human Resource
Specialties

18. •Linemanagers:Everythingfromrecruitmentandselectiontoperformance appraisal
andemployeedevelopment canbeautomatedtoassistlinemanagers.
•HROutsourcing:Thekeytoitssuccessistodeterminewhichfunctionstooutsource,
theextenttowhichtheyshouldbeoutsourced,andwhichfunctionstokeepin-house.
HRoutsourcingfocusesprimarilyonroutine,transaction-orientedprocessesand
clericalwork.ThispermitsHRtofocusonmorestrategicareas.
•SharedServiceCenter(SSCs)takesroutineactivitiesdispersedthroughout the
organizationandconsolidatestheminoneplace.SSCsprovideanalternativetoHR
outsourcingandcanoftenprovidethesamecostsavings.
•Professionalemployerorganization(PEO)isacompanythatleasesemployeestoother
businesses.BecausethePEOistheemployees’legalemployer,ithastherighttohire,
fire,discipline,andreassignanemployee.However,theclientcompany maintains
enoughcontrolsoitcanruntheday-to-dayoperationsofitsbusiness.

19. FIGURE 1-1
HR Organization Chart for a Large Organization
•The size of the organization affects the HR
department size.
•For large organizations, usually there is one
HR employee per 100 employee.

20. FIGURE 1-2 HR Organizational Chart for a Small Organization
•In small organizations, line managers can
conduct all HR duties without aid from HR
professionals or via one person. This gets
changed as the organization grows.
•For small organizations/manufacturers, the
HR department can include 5 -6 employees.

21. Changes and Trends in Human
Resource Management

22. •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 changesin how companies
organize, manage and use their HR departments.
•The rate of globalization continues to be high, and has severalstrategic implications for firms
•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.
•Globalization therefore brings both benefits and threats
•For consumersit means lower pricesand higher quality
•For workersit means working harder, less secure jobs.

23. •Technology changed almost everything we do.
•We use smartphonesand iPadsto communicate with the
office
•We use technology for many human resource management
type applications, such as looking for jobs.
•HR faces thechallenge of quickly applying technologyto
the task of improving its own operations.

24. •Jobs are changingdue to new technological demands.
•Machines are automatedand computerized and not
manual.
•Just-in-time manufacturing link manufacturing schedules
to supplier , squeezing and reducing inventory needs.
•Dramatic increases in productivity have allowed
manufacturers to produce more with fewer employees
Service Jobs
Nature of Work
Knowledge Work & Human Capital

25. •Unemployment remains high for young graduates
•Emigratewithin and outside the Arab world are in
search of jobs.
•Large women into the workforce , aided by flexible
work hours.
•In the Arab region, employers will fill openings left by
retiring employees –by encouraging them to stay on, or
rehiring them.
•DEI Practices.
•Any insights about the Arab world?
https://archive.unescwa.org/sites/www.unescwa.org/files/page_attachments/demographics-ageing-arab-region-final-en_0.pdf#page=3.09

27. Strategic
Planning
Strategic
HRM
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.
Formulating HR policies
and practices that
achieves the strategic
goal
HR provides quantified
evidence that HR is
contributing in positive
way to achieving the
firm’s strategic aims.
Adapted from Noe(2024)

28. HRM policies
and practices
that produce
superior
employee
performance.
•Selectivehiring
•Extensivetraining
•Self-managed teams /decentralized decision
making
•Information sharing
•Pay-for-performancerewards
•Transformationalleadership
•Emphasis on high-quality work

29. •Reduces wasta(use of family ‘nepotism’ and other close networks ‘wasta’
to obtain work-related favors unrelated to merit)
•Generates more job applicants
•Provides more/better training and lower employee turnover
•Links pay more explicitly to performanceand appraisals
•Fostersa saferwork environment
•Produces more qualified applicantsper position
•Results in higher profitsand lower operating costs

30. •HR managers need a set of quantitative
performance measures (metrics) they
can use to assess their operations.
•These metrics allow managers to
measure their HR units’ efficiency.

31. •The HR Scorecard is a concise measurement system ,
showing quantitative standards or “metrics” used to
measure HR activities, and employee behaviorsresulting
from these activities
•It measures organizational outcomes of those employee
behaviors.
•The scorecard highlights the causal linkbetween HR
activities,emergent employee behaviors , and the
resulting firm-wide strategic outcomes and performance.

32. Martocchio, 2019

33. Thank You!
Any questions?