Professional Documents
Culture Documents
PART I
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
(HRM)
CHAPTER1
DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT
Human Resource Management or HRM
= is the organizational function of managing and handling one ot the most valuable assets of the
organization-its employees.
= It tackles various undertakings performed by a business firm to make certain that workers are handled
and managed as human beings worthy of respect and compassion throughout their employment life
(i.e., from entry to separation).
= HRM is composed of human resource (HR) practices that aid the firm in leading its people successfully
and reasonably throughout their journey during the three stages of the employment cycle: the pre-
hiring, hiring and post-hiring.
Pre-hiring stage = organizations determine the right number and type of people
needed to fill up positions in the organization along with their required qualifications. It
includes activities performed prior to hiring, such as human resource planning and job
analysis.
Hire stage = companies establish policies that will help managers fulfil
the staffing needs of the company, eventually leading to recruiting and selecting.
Post-hiring stage = companies carry out certain HRM practices and other productivity programs that
enhance employees' performance level, such as training and development,
performance appraisal, compensation and benefits administration, employee health and
safety, and separation.
Frederick Taylor introduced people management through his bock The Shop
Management, which featured the proper selection and training of employees in a
scientific way.
= He pioneered the study of scientific management and eventually became known as the father of
scientific management.
= His work played a very important role in the advancement of the people function in the early 1900s.
= He also addressed critical issues on incentives that encouraged the compensation of workers for
meeting and/or surpassing performance criteria. These events laid the basic foundation for later HRM
development.
(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 1, led to the
development of employment tests and selection techniques.
(1930-1945)
During this period, 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. It Was also during this period that pay 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 effects of change,
competition and job efficiency.
As Taylor was starting with his concepts about scientific management, other proponents were also
employing related principles of psychology in recruiting, selecting training and developing workers. The
growth of the field of industrial psychology and its utilization in the work place came to realization
during the World War as preliminary technical and job-related tests were used to appoint military hires
to the right tasks.
The Hawthorne studies were a series of studies done between 1920s and 1930. This
period sparked an increase in the importance of the social and psychological relationships
in the workplace. Evaluations of the studies led researchers to believe that "human
relations" greatly influence workers' level of satisfaction and productivity.
Entrepreneurs
The qualities that mark an entrepreneur are numerous. Motivation and persistence are among them.
However, just as being an entrepreneur has its rewards, it also has its own drawbacks. Entrepreneurs
have to need a lot of challenges in handling and managing their workers, especially in training, designing
a compensation structure, or building a friendly company culture. Thus, the study of human resource
management will give these enterprising individuals useful insights and a thorough understanding of the
employment cycle, and a broader idea about various human resource practices in order to meet present
and future challenges head on.
Employees
Itis important to know that people will always be one of the company's valuable assets. Hence, 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.
CHAPTER SUMMARY
1. Human resource management is the organizational function of handling and managing one of the
most valuable assets of the organization: its employees It tackles various undertakings performed by a
business firm to make certain that workers are handled and managed as human beings worthy of
respect and compassion throughout their employment life -that is, from entry to separation.
2. Human resource management is composed of various HR practices that aid the firm
in successfully and reasonably leading its people in their journey during the three
stages of the employment cycle: the pre-hiring stage, the hiring stage, and the post-
hiring stage.
6. Among the best features of human resource management are as follows: it iss
prevalent in nature, it is dynamic, it is individually-oriented, it is employee-oriented,
it is torward-looking. and it is growth oriented.
7. Personnel refers to the people manning the organization and managing these
people is referred to as personnel management. Human resource management is a
non-stop function directed at developing the potentials of employees.