MGNT102 – HUMAN RESOURCE MANAGEMENT

Chapter 1 - Changing Perspectives of HRM

Topic Outline:

 Introduction and Overview of HRM

 Evolution of HRM
 Main Trends in the HR Profession
 Human Resource Information System (HRIS)
 Business Process Outsourcing in the Philippines and HR
 HR Departments’ Organization Charts and Structures

HUMAN RESOURCE MANAGEMENT

- a process that involves the acquisition, development, maintenance, and utilization
of valuable human resources necessary for organizational success.

The objective of HRM is to help make an organization more effective by means of:

1. integrating comprehensive human resource policies with overall organization

plans and strategies; and
2. implementing responsive human resource programs with a growing
sensitivity to the economic and policy needs of the organization as well as
responsive to the changing technology.

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Evolution of HRM
 The first serious study of management practice during the early years of the
twentieth century was based on scientific management by Frederick W. Taylor.

 Scientific management was concerned with:

1. standardization of jobs;
2. time and task study;
3. systematic selection and training of workers; and
4. pay incentives of employees to maximize efficiency and productivity.

 The Human Relations Movement era succeeded scientific management as the

dominant approach to management during the 1930s—a concentrated effort by
some managers and their advisors to become more sensitive to the needs of
employees or treat them in a more humanistic manner.

The Human Relations Movement

1. The Threat of Unionization

The Wagner Act of 1935 legalized union-management collective bargaining,

promoting the growth of unions, and union avoidance by firms. Early human
relations thinking presented this possibility: satisfied employees would be less
inclined to join labor unions.

2. The Hawthorne Studies (Elton Mayo)

Reported that productivity was strongly affected by workers’ attitudes; turned

management toward the humanistic and realistic viewpoint of the “social
man” model.

3. The Philosophy of Industrial Humanism

Douglas McGregor’s Theory X and Theory Y:

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  Theory X: the management’s traditionally negative view of
employees as unmotivated and unwilling workers

 Theory Y: the positive view of employees as energetic,

creative, and willing workers

Evolution of the Human Resource Management Function

 As businesses grew bigger, specialized units were created to cope with their
hiring needs to deal with government regulations and behavioral issues of
workers.

 During the 1930s and 1940s, these units gradually began to be called
Personnel Department, and gave rise to a new type of management
function: Personnel Management.

 During the latter part of 1970s, human resource management emerged as a

reaction against the more functional approach embodied in personnel
management.

 Top HR executives today have vice presidential or executive vice presidential

status and are fully contributing member of the firm’s executive committee.

 Management no longer treated employees as costs but assets. Human

resources are the greatest asset of the company.

 In the recent years, treating HR as assets has been assailed by management

experts. “Assets are passive—bought, sold, and replaced at the whim of their
owners. Human capital in reference to workers now takes the place of
human resources” (Davenport 1999).

Human Capital
 Refers to all present and future workforce participants who need to develop to their
full potential for the benefit of everyone

 refers to the attributes gained by a worker through education and experience

HR Departments’ Organizational Charts and Structures

 Centralization – a centralized strategy that locates the design and
administration responsibility of the HR in a single organizational unit. HR
generalists handle all HR activities rather than specializing in a single area
such as compensation or recruiting.

 Decentralization – gives each unit the responsibility to design and

administer its own personnel system.

 Organization chart – a visual display of an organization’s positions and

lines of authority that is useful as a blueprint for deploying human resources

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 Line and Staff Positions - Line managers make decisions and staff
personnel provide advice and support.