Unit 1:

Definition and Scope of HRM

 What is Human Resource
Management?

 The art of procuring, developing, and maintaining

competent workforce to achieve the goals of an
organization in an effective and efficient manner.

 the process of managing people in organizations in a

structured and thorough manner, from a macro
perspective

 HRM is employee management with an emphasis on

those employees as assets of the business
It consists of practices that help the organization to deal effectively with its people during
the various phases of employment cycle including:
• Pre-hiring stage
Human resource planning
Job analysis design
• Hiring stage
Recruitment and Selection
Orientation and Induction

• Post-hiring stage
Training and Development
Appraisal of Performance
Compensation
Other productivity improvement programs
 What is/are the nature of HRM?

 Human Resource Management is pervasive in nature

because it is there in all enterprises.

 It focuses on the results rather than focusing on the rules and

regulations.

 It helps the employees in order to develop them in a full-

fledged way.

 It makes sure that the employees work hard towards their

goals
FREDERICK WINSLOW TAYLOR
(1856-1915)
• Was a mechanical engineer who was very interested in efficiency.
• “FATHER OF SCIENTIFIC MANAGEMENT”
• In his book, shop management, Taylor advocated the ‘scientific’
selection and training of workers
• He proposed that by optimizing and simplifying jobs, productivity
would increase
• promoted the idea of “a fair days pay for a fair day’s work” and
that there is “one right way” to do something
• Pioneered the study of scientific management and incentive
systems
• His principles laid the ground-work for future HRM development
 FOUR PRINCIPLES OF SCIENTIFIC
MANAGEMENT

1. Look at each job or task scientifically to determine the

“one best way” to perform the job.

2. Hire the right workers for each job, and train them to work
at maximum efficiency.

3. Monitor worker performance, and provide instruction and

training when needed.

4. Allocate the work between managers and workers.

 Historical Milestones in HRM

1890- 1910- 1930-

Greater 1945-
emphasis is placed on the 1965- 1985-
1910 1930 social1945 1965
and informal aspects of the Passage present
1985 of Civil Rights Act, equal
Development of Taylor’s ideas on workplace affecting worker employment opportunity and
scientific management productivity affirmative action
Features of Human Resource Management

 it is prevalent in nature
It is dynamic
It is individually-oriented
It is employee-oriented
It is forward-looking
It is growth-oriented
PERSONNEL MANAGEMENT AND HUMAN
RESOURCE MANAGEMENT

Personnel Management
- personnel are those who are employed in the workplace. It is a traditional
approach of managing employees which focuses on adherence to policies and rules
of organization.

Human Resource Management

- a modern approach of managing people at workplace which focuses on
acquisition, development, utilization and maintenance of human resource.
Key Differences between
Personnel Management
and
Human Resource
Management
 Basis of Difference Personnel Management Human Resource Management

Meaning It is a traditional approach of managing It is a modern approach of managing people at

people at workplace and is concern of workplace and is concern of managers of all
personnel department. level (from top to bottom).

Nature It is a routine function. It is a strategic function.

Focus Efficient management is given priority. Human values and individual needs are given
priority.

objective It manages people in accordance with It determine human resource needs and
organization’s goal. formulate policies by matching individuals
needs with organizations needs.

Perspective It regards people as basic input to make It regards people as strategic and valuable
desired output. resource to make desired output.

Result Organizational goal is achieved and Organizational goal is achieved and both
employees are satisfied. employers and employees are satisfied.
Key Differences between
Human Resource
Management and Human
Resource Development
 Basis for comparison HRM HRD
(Human Resource Management) (Human Resource Development)

Meaning HRM refers to the application of HRD means a continuous

principles of management to manage
the people working in the
organization.
What is it? Management Function
development function that intends to
improve the performance of people
working in the organization.
Subset of Human Resource
Management

Function Reactive Proactive

Objective To improve the performance of the To develop the skills, knowledge and
employees. competency of employees.

Process Routine Ongoing

Concerned with People Only Development of the entire

organization.