Chapter 1 for meeting and/or surpassing performance
DEFINITION AND SCOPE OF HUMAN
RESOURCE MANAGEMENT
Human Resource Management
➔ It is the organizational function of managing
and handling 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.
➔ It is composed of human resource practices
that aid the firm in leading its people
successfully and reasonably throughout their
journey during the three stages of the
employment cycle
3 STAGES OF EMPLOYMENT CYCLE
1. 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.
2. Hiring Stage
➔ Companies establish policies that will
help managers fulfill the staffing needs
of the company, eventually leading to
recruiting and selecting.
3. 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
book 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's function in the
early 1900s.
➔ He also addressed critical issues on incentives
that encouraged the compensation of workers
criteria.
HRM Historical Breakthroughs
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
➔ 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.
➔ This period sparked an increase in the
importance of the social and psychological
relationships in the workplace.
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 very notable values 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.
Importance of Studying Human Resource
Management
1. Entrepreneurs.
➔ Motivation and persistence are among
them. 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.
2. Employees
➔ It is essential for employees to
understand HRM so they may gain a
better understanding of their rights and
privileges as thinking, feeling, and
doing individuals in an organization.
3. Supervisors and Leaders
➔ A good boss should always bear in
mind that every HR decision they
make and policies they formulate
should be anchored to what the job
requires and not on certain biases.
Thus, studying HR management can
provide supervisors and leaders a
competitive edge, especially in the
aspect of recruitment.
Features of Human Resource Management
development, and other productivity
improvement schemes. In effect, both intrinsic
and extrinsic motivation is increased.
It is employee-oriented
● Employees are the doing individuals of an
organization. Rewarding them for their
contributions to organizational success is a
strong reinforcement to increase the level of
job performance. A firm’s HRM strategy that
empowers employees makes them feel
appreciated for the job they do.
It is forward-looking
➔ For an organization’s HRM function to be
successful, it should effectively envision and
assess labor needs for a given period of time.
Doing so will assure the managers that only
the competent, motivated people with the right
match of qualifications are joining the
company.
It is growth-oriented
➔ For an organization’s HRM process to yield
success, it should constantly enhance the
conceptual and analytical skills of its
employees. A carefully planned design for
employee development is almost compulsory
if the organization aims for excellence. Job
rotation is one way for employees to learn
various skills.
Differences Between Human Resource
Management and Human Resource Development

It is prevalent in nature HUMAN RESOURCE HUMAN RESOURCE

● This means that HRM is present and MANAGEMENT DEVELOPMENT
performed in all operational and functional
areas of management within an organization HRM focuses on HRD is concerned with
on a continuous basis. In other words, it is not enhancement of enhancing the
an on-off function that is performed only when employees' potential from capabilities of
needed. a long-term perspective. employees that will
result in
It is dynamic positive behavior
● It does not depend on written rules and change.
policies to solve problems; rather, it focuses on
what can be done through logical and HRM gives attention to HRD sees to it that there
well-grounded solutions and decisions. IT the effective utilization is continuing
constantly finds ways to change situations and of employees and their opportunities for growth
events for the betterment of the organization capabilities. and development.
and its employees.
HRM takes decisions on HRD depends on the
It is individually-oriented HRD plans. decisions of HRM.
● In HRM, each employee is considered a
human being that is worthy of respect and HRM at its center has The goal of HRD is
compassion. HRM works toward getting the HRD. anchored to the HRM,
best out of each employee by seeing to it that which boils down the
they are continually offered the opportunity to benefit of the workers.
be equipped with new skills through training,
HRM attends to every HRD promotes
employee demand upscaling of skills and
resulting in increased knowledge resulting in
satisfaction and outstanding
productivity. performance.

Differences Between Personnel Management and

Human Resource Management