Human Resource Management

MGT - 501
Lecture 6

Personnel Management
Prof. Dr. Mukhtar Ahmed
mgt501@vu.edu.pk
Virtual University Pakistan
www.vu.edu.pk

Lecture Outline

The Concept of
Personnel Management
History of Personnel
Management
Shifting from Personnel
Management to HRM

Dr. Mukhtar Ahmed

Personnel Management

Is the study of how employers obtain,

develop, utilize, maintain, and retain the
right numbers and types of workers

Dr. Mukhtar Ahmed

Prior to the mid-1960s, personnel

departments were perceived as the
Health

and happiness crews

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Primary activities

Planning company picnics

Scheduling vacations
Enrolling workers for healthcare coverage
Planning retirement parties

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History

Management thinking until the 1950s

Hawthorne studies, Western Electric Company
Shift towards behavioral science movement in the 1950s
and 1960s.
In 1970s , the job of the HR manger was prepare policies
and rules & regulation to keep their companies out of
court.
From the 1970s onwards, change was the primary
concern
The emergence of HRM was part of a major shift in the
nature and meaning of management towards the end of
the 20th century.
Organizations changed with Time
Dr. Mukhtar Ahmed

Primary Concern

Time Period

Before 1900
1900 - 10
1910 - 20
1920 - 30
1930 - 40
1940 - 50
1950 - 60
1960 - 70
1970 - 80
1980 - 90
1990 - 2000
2000 -

Primary Concern
Production Technologies
Employee Welfare
Task Efficiency
Individual Differences
Unionization, Productivity
Economic Security
Human Relations
Participation, Employment Laws
Task Challenge, QWL
Employee Displacement
Productivity, Efficiency, Quality
????
Dr. Mukhtar Ahmed

Shifting from personnel

management to HRM

1940s-50s

Mechanistic period

1960s 70s

Legalistic period

1980s

Organistic period

1990s

Strategic period

2000+

Catalytic period
Dr. Mukhtar Ahmed

Mechanistic period 1940s-50s

Manufacturing was the driver of industry,

and HR was performed in a mechanical
way.
Known as Personnel or Industrial
Relations.
Human Asset is seen as a commodity
(Frederick Taylor)

Dr. Mukhtar Ahmed

Legalistic period
1960s 70s

Unprecedented amount of legislation

begins the trend toward regulation of
workplace beyond union rules.
Profound change in role of HR becomes
complex and impacting.
Legislation focused on Human Relations.
Extensive management time spent in
negotiation.
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Organistic period 1980s

Tremendous organizational change

downsizing, etc. throws workplace into
chaos.
Rapid and constant change.
Increasing diversity, work & family issues.
HR carrying out directives not strategic.

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Strategic period 1990s

Strategic planning allows a more orderly

approach to corporate change and
organizational growth.
Organizational change is a way of life.
TQM and Re-engineering are commonly
heard words.
HR becoming truly strategic function.
Simplification and delegation.
Dr. Mukhtar Ahmed

Catalytic period 2000+

What is the emerging role of Human

Resources?
More mergers and acquisitions change
agents.
Increased international exposure
workforce needs to be comfortable in and
with other cultures.
Employees increasingly selective in career
choices.
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Teams a way of life.

HR professionals are visionary, global and
customer focused.
HR serves a business consultant.

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For simplification we can

divide the development of
personnel to HR
management into three
different stages
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Stages of HRM/personnel
development
STAGE 1

Records and
administration
Admin. Service Manager
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Stages of HRM/personnel
development
STAGE 2

Regulative
accountability
Contracts Service Manager
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Stages of HRM/personnel
development
STAGE 3

Competitive
Advantage
Strategic Manager
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Differences
Based on
emphasis and
approach rather
than one of
substance.
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Why the Emphasis Today on

Strategic Role of HR?
Recognition of the Competitive
Advantage that May be Derived
Through People

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Enough for today. . .

Dr. Mukhtar Ahmed

Human Resource Management

MGT - 501
Lecture 6

Personnel Management
Prof. Dr. Mukhtar Ahmed
mukhtar59@yahoo.com
Virtual University Pakistan
www.vu.edu.pk