Topic 1:

Introduction to Human
Resource and Personnel
Management
• 18th Century - “The Welfare Officers:” The Industrial Revolution of the
18th century shifted economics from agriculture to factories and required
organizations to show absolute results for effort, relate them to costs,
and sell them competitively. It also required a system to hire, pay wages,
record employee work hours, and provide housing and health care.
Worker oversight was managed by Welfare Officers or the Welfare
Department.

• 19th Century - “Personnel Management:” Business and factory

expansion led to a labor shortfall. Employees worked long hours under
difficult conditions. To look for a solution, scientific ideas were applied to
increase labor outputs, specifically the Scientific Management
Theory advocated by Frederick Taylor related to Personnel Management.
• 20th Century -“Human Resource Management:” Elton
Mayo’s Hawthorne Studies disproved Taylor’s Scientific Management
approach to increasing productivity and found that the primary drivers of
motivation and productivity were not monetary factors. A host of new
theories emerged based on this behavioral perspective and the term
human resource management came into use.

• 21st Century - “Strategic Human Resource Management” and “Human

Capital Management:” The increase in technology- and knowledge-
based industries is intensifying global competition. At the same time,
there’s a shortage of workers with appropriate skill sets. Consequently,
many organizations have adopted strategic human resource
management practices to make a long-term impact on corporate success
and refer to their human resources activities as human capital
management.
 Personnel Management Human Resource Management
Focus Focus
Helping to achieve strategic goals
Administering of policies
through people
HRM training programs that are
Stand-alone programs, such as
integrated with company's mission and
training to specific job position
values

Line managers share joint responsibility

Personnel department responsible
in all areas of people hiring and
for managing people
management.

Creates a cost within an Contributes to the profit objectives of the

organization organization.
According to Michael Armstrong (1988),
“Human resource management is defined as a
strategic and coherent approach to the
management of an organization’s most valued
assets – the people working there who
individually and collectively contribute to the
achievement of its objectives.”
According to the Invancevich and Glueck,
“HRM is concerned with the most effective use
of people to achieve organizational and
individual goals. It is the way of managing
people at work, so that they give their best to
the organization.”
According to Dessler (2008), the policies and
practices involved in carrying out the “people” or
human resource aspects of a management
position, including recruiting, screening,
training, rewarding, and appraising comprises of
HRM.
• Monitoring employee welfare
• Improves productivity
• Reduces costs
• Strengthens the brand
• Enables Financial and Intellectual Company
Growth
• Manages transformation and change.
• Organized
• Multitask
• People skills
• Understanding specific job areas
• Strategic mind-set
• Ethics and sense of fairness
• Knowing the business strategy
• Organizational effectiveness
• Human capital management
• Knowledge management
• Reward Management
• Employee relation
• Meeting diverse needs
• Bridging the gap between rhetoric and reality
HRM policy distilled by Caldwell (2004) into 12 goals:
1. Managing people as assets that are fundamental to the
competitive advantage of the organization.
2. Aligning HRM policies with business policies and corporate
strategy.
3. Developing a close fit of HR policies, procedures and
systems with one another.
4. Creating a flatter and more flexible organization capable of
responding more quickly to change.
5. Encouraging team working and co-operation across
internal organizational boundaries.
6. Creating a strong customer-first philosophy throughout the
organization.
7. Empowering employees to manage their own self-
development and learning.
8. Developing reward strategies designed to support a
performance-driven culture.
9. Improving employee involvement through better
internal communication
10. Building greater employee commitment to the
organization.
11. Increasing line management responsibility for HR
policies.
12. Developing the facilitating role of managers as enablers.
Source: https://www.slideshare.net/Amare_Abebe/fundamentals-of-human-resource-management-94714103