Chapter 2

HRM
MBA 72
Spring 2024
 THE EVOLUTION OF PERSONNEL AND
HR MANAGEMENT
Social Justice

Humane Bureaucracy

Negotiated Consent

Organization

human resource management

Personnel management traditionally focuses on administrative tasks like staffing,

payroll, and compliance, with a reactive and short-term perspective. In contrast,
Human Resource Management (HRM) takes a strategic and proactive approach,
emphasizing employee development, engagement, and alignment with
organizational goals. HRM prioritizes fostering a culture of commitment and self-
control, aiming for long-term success rather than just fulfilling administrative
functions.
 The psychological contract
I will work hard for and act with loyalty
towards my employer. In return I expect to
be retained as an employee provided I do
not act against the interests of the
organisation. I also expect to be given
opportunities for development and
promotion should circumstances make this
possible.

I will bring to my work effort and creativity.

In return I expect a salary that is appropriate
to my contribution and market worth. While
our relationship may be short term, I will
remain for as long as I receive the
developmental opportunities I need to build
my career
 Key Environmental Developments

There are two areas which are particularly

important:

• Labour market trends

• The evolution of employment regulation

Personnel management is mainly
about basic administrative tasks
like hiring, paying, teaching, and
making sure everyone gets
along. HRM, on the other hand,
focuses on measuring the needs
of the company and constantly
reviewing and changing all
systems to reach a single goal.
 Conventional Personnel Management."

Planning:
Planning means determination of personnel program in advance.

Organizing:
Organizing means establishing an organization by designing the
structure of relationships among job, personnel and other physical
factors to attain the company objectives.

Directing:
Directing means guiding the people to do the work effectively.

Controlling:
Controlling means regulating the activities in accordance with the
plan.
The personnel/HR process
Role and Objectives of HRM
 DEBATES IN HRM

How are organisations dealing with the issues that they face in
terms of the management of their people?

What HR managers should be doing. Are new or radical changes

in policy and practice necessary

Longer-term future developments

 Discussion

How would you characterize your current psychological

contract at work?

To what extent and in what ways does it differ from

psychological contracts
you have experienced in previous jobs or from those of your
friends and
family?