Chapter 1 HRM

CHAPTER 1
• DEFINITION AND SCOPE OF HUMAN

RESOURCE MANAGEMENT
Human Resource
Management
• Is the organizational function of
managing and handling one of the most
valuable assets of the organization- its
employees.
Human Resource Management
• Is composed of Human Resource

Practices that aid its firm in leading its
people successfully and reasonably
through their stay/journey during the 3
stages of employment cycle:
• Pre-hiring
• Hiring
• Post-hiring
Pre-hiring stage
• Organization determines the right

number and type of people needed to fill
up positions in the organization along
with the required qualifications
Hiring Stage
• Companies or organization establish

policies that will help managers fulfill
the staffing needs of the company which
leads to recruiting and selecting the
qualified applicants.
Frederick Taylor
• The father of Scientific Management

• From his book “The Shop Management ”
featured the proper selection and
trainings of employees in the scientific
way.
HRM Historical
Breaktroughs
• 1890-1910 Frederick Taylor introduced a
management approach known as scientific
management that focuses on the idea of
scientific selection of employees based on
their capabilities. This system provides
that workers will be paid additional
compensation when they exceed the
standard level of output for a given job,
with the aim of motivating them.
• 1910-1930 – most companies started to
develop departmental units focused on
maintaining the well-being of employees
. The field of industrial psychology,
together with the beginning of World
War I, led to the development of
employment tests and selection
techniques.
• 1930-1945 – the Hawthorne Studies
started to have a tremendous effect on
management studies and principles
such that much attention was given to
personal and social interactions in the
work-place that affect and influence
worker productivity and level of
performance
• 1945-1965 – this period marked the
birth of union membership that gave
considerable importance to employee-
employer relationships. Pays and
benefits programs slid in a very notable
value as organized unions bargained for
paid work leaves, health and welfare
coverage.
• 1965-1985 – The Civil Rights Act of 1964
reached its highest point when it
prohibited discriminatory practices based
on an individual’s age, sex, color, religious
affiliation, race and physical or mental
disabilities. Employers were advised to
adhere to equal employment opportunity
provisions and take affirmative steps to
avoid workplace discrimination.
• 1985- present – diverse labor force,
globalization, and strategic HRM
functions were three pressing concerns
during this period. Employers, primary
aim is to effectively cope with the
intense demands and affects of change,
competition and job efficiency.
Importance of Studying
Human Resource Management
• Entrepreneurs
• The qualities that mark an entrepreneur are
numerous, Motivation and Persistence
however an entrepreneur has its own
Rewards and Motivation
• Employees
• It is important to know that people will always be one of
the company’s valuable assets. It is essential for
employees to understand HR management so they may
gain a better understanding of their rights and
privileges as thinking, feeling. And doing individuals in
an organization.
• Supervisors and Leaders
• HRM involves designing various productivity
improvement programs that could provide learning and
enhancement in the quality of life and level of
performance of employees.
• Studying HRM provides a competitive edge, especially
in the aspect of recruitment.
Best Features of HRM
• 1. it is prevalent in nature –
this means that HRM is present and
performed in all operational and
functional areas of management w/in an
organization on a continuous basis.
• 2. It is dynamic –
• HRM moves! HRM acts! It does not
depend on written rules and policies to
solve problems.
• 3. It is individually-oriented
each employee is considered a human
being that is worthy of respect and
compassion
• 4. it is employee- oriented
employees are the doing individuals of
an organization.
• 5. it is forward-looking
organizations HRM function to be
successful, it should effectively envision
and assess labor needs for a given
period of time
• 6. it is growth-oriented
for an organization’s HRM process is
to yield success, it should constantly
enhance the conceptual and analytical
skills of its employees.
Differences Between Personnel Management and Human
Resource Management
Personnel Management (PM) Human Resource
Management(HRM)
Personnel refers to the people man- HRM is the effective supervision and
ning the organization. Managing management of employees’ capabili-
them is referred to as personnel ties and other attributes
management
PM is conventional and concentrates HRM is a non-stop function directed
on supervisory administration of at developing the knowledge and
people skills of employees
Pm is a separate purpose with sepa- HRM is an indispensable part of the
rate sub-function entire organization
Pm is seen as a supplementary ac- HRM anticipates and effectively

tivity handles adverse situations even be-
fore they arise
PM reacts to adverse situations as HRM sees the organization as one
they arise that embodies a dynamic personality
PM takes complete authority in peo- HRM sees to it that both personal

ple management and professional needs of employees
are addressed correctly in order to
Personnel Management (PM) Human Resource
Management(HRM)
PM has a limited range as it only fo- Motivational activities and team-

cuses on administration of people building activities are top priorities
for HRM
PM is particularly involved with re- HRM, a fulfilling job is the an-
cruitment, selection and, administra- tecedent and job satisfaction is the
tion of the workforce outcome
Primary stimuli in PM are monetary There is great relationship between
and non-monetary rewards productivity and satisfaction and
employees social well-being
High level of contentment means Considers people as valuable assets
better performance
Regards employees as tools for the Regards employees as excellent con-
organization to make more profit tributors to the organization’s well-
ness, acknowledges their contribu-
tions through growth and advance-
ment opportunities
Treats employees as commodities There is a constant healthy relation-
that can be bought in exchange for ship bet. The organization and its
money employees, which extends to the
family members of the employees
Personnel Management (PM) Human Resource Manage-
ment(HRM)
PM treats people as an expen- Encouraging all forms of com-

sive, thus employers have the munications is driving force in
power to manage the cost HRM
DIFFERENCES BETWEEN HUMAN
RESOURCE MANAGEMENT (HRM) AND
HUMAN RESOURCE DEVELOPMENT (HMD)
HUMAN RESOURCE HUMAN RESOURCE

MANAGEMENT DEVELOPMENT
• 1. HRM focuses on • 1. HRD is concerned with
enhancement of enhancing the capabilities
employees, potential from of employees that will
a long term perspective. result in positive behavior
change
• 2. HRM gives attention to

the effective utilization of • 2. HRD sees to it that there
is continuing opportunities
employees and their
for growth and
capabilities.
development
HRM HRD
• 3. HRM takes • 3. HRD depends on
decisions on HRD the decision of HRM
plans • 4. the goal of HRD is
anchored to that of
HRM, which boils
• 4. HRM at its center down the benefit of
HRD the workers
• 5. HRD promotes
• 5. HRM attends to upscaling of skills and
every employee knowledge resulting in
demand resulting in outstanding
increased satisfaction performance.
and productivity.

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CHAPTER 1

• DEFINITION AND SCOPE OF HUMAN

• Is composed of Human Resource

• Organization determines the right

• Companies or organization establish

• The father of Scientific Management

Pm is seen as a supplementary ac- HRM anticipates and effectively

PM takes complete authority in peo- HRM sees to it that both personal

PM has a limited range as it only fo- Motivational activities and team-

PM treats people as an expen- Encouraging all forms of com-

HUMAN RESOURCE HUMAN RESOURCE

• 2. HRM gives attention to

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