PART I

INTRODUCTION TO
HUMAN RESOURCE
MANAGEMENT
CHAPTER 1
DEFINITION AND
SCOPE OF
HUMAN RESOURCE
MANAGEMENT
 LEARNING OUTCOMES (LO) CHAPTER 1:
AFTER READING THE CHAPTER, STUDENTS
SHOULD BE ABLE TO:

LO 1: Define Human Resource Management, Its

nature and scope.
LO 2: Synthesize historical breakthroughs
in human resources management development
LO 3: Describe the importance of studying human
resources management
LO 4: Identify the different features of human
resources management
LO 5: Compare and contrast the differences between
personnel management, human resource
management and human resource development.
HUMAN RESOURCE MANAGEMENT
(HRM)

It is an 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 life – that is
from entry to separation. HRM is composed of HR
practices that aid the firm in leading its people
successfully and reasonably throughout their journey
during the three stages of the employment cycle -the hire,
the pre-hire,
the post-hire.
 HRM HISTORICAL BREAKTHROUGHS
Year Events
1890 – 1910 Frederick Taylor introduced a management approach known as scientific management
that made known the idea of the scientific selection of employees based on their
capabilities. This system provides that workers will be paid additional compensation
when they exceeded the standard level of output for a given job, in 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, in such that much attention was put on the personal
and social interactions in the work place that affect and influence workers’ productivity
and level of performance.

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 a very notable value 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 prohibits 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 to take affirmative steps to avoid workplace discrimination.

1985 – present Diverse labor force, globalization and HRM strategic 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.
 WHY IS THE STUDY OF HUMAN RESOURCE
MANAGEMENT IMPORTANT EVEN TO NON-HR
PERSONNEL

ENTREPRENEURS

Entrepreneurs have to meet a lot of challenges in handling and

managing their workers, especially in training and designing a
compensation structure, or building a friendly company culture.
Thus, the study of human resources 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 cope with present
and future challenges head on.
 EMPLOYEES

It is important to know that people will always be one of the

company’s valuable assets. Hence, it is essential for these
employees to understand HR management so they may gain a
better preview of their rights and privileges as the thinking,
feeling, and doing individuals in an organization.

SUPERVISORS AND LEADERS

Human resources management involves designing of various

productivity improvement programs that could provide learning
and enhancement in the quality of life and level of performance of
employees. Hence, 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 about HR management can provide supervisors and
leaders the competitive edge especially in the aspect of
 BEST FEATURES OF
HUMAN RESOURCE MANAGEMENT

1. It is prevalent in nature. It is present and performed in all

operational and functional areas of management within an
organization on a continuous basis.

2. It is dynamic. It does not depend on written rules and policies to

get problems solved, rather, it focuses on what can be done
through logical and well-grounded solutions and decisions.

3. It is Individually-oriented. HRM works on getting the best out of

each employee by seeing to it that they are continually offered the
opportunity to be equipped with new skills through training,
development and other productivity improvement schemes.
4. It is employee oriented. A firm’s HRM strategy that
empowers employee make them feel appreciated for the
job they do.

5. It is forward looking. An organization’s HRM function to be

successful should effectively envision and assess its labor
needs for a given period of time.

6. 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.
 DIFFERENCES BETWEEN PERSONNEL MANAGEMENT (PM) AND
HUMAN RESOURCE MANAGEMENT (HRM)
PERSONNEL MANAGEMENT HUMAN RESOURCE MANAGEMENT
Personnel refers to the people manning the organization. HRM is the effective supervision and management of employees’
Managing them is referred to as personnel management capabilities and other attributes

PM is conventional and concentrates on supervisory HRM is a non-stop function directed at developing the knowledge
administration of people and skills of employees

PM is a separate purpose with separate sub-function
PM is seen as a supplementary activity
PM reacts of adverse situations as they arise
Pm takes complete authority in people management
HRM is an indispensable part of the entire organization
HRM anticipates and effectively handles adverse situations even
before they arise
HRM sees the organization as one that embodies a dynamic
personality
HRM sees to it that both personal and professional needs of
employees are addressed rightfully in order to achieve a work-life
balance equation

PM has a limited range as it only centers on administration Motivational activities and team building activities are top
of people priorities for HRM

PM is particularly involved with recruitment, selection and In HRM, a fulfilling job is the antecedent and job satisfaction is the
administration of the workforce outcome

Primary stimuli in PM are monetary and non-monetary In HRM, there is a great relationship between productivity and
rewards satisfaction and employees’ social well being

In PM, high level of contentment means better performance HRM considers people as valuable assets
PM regards employees as tools for the organization to make HRM regards employees as excellent contributors to the
more profit organization’s wellness thus, acknowledges there contributions
through growth and advancement opportunities

PM treats employees as commodities that can be bought in HRM sees to it there is a constant healthy relationship between the
exchange of money organization and its employees, extending to the family members
of the employees

PM treats people as an expense, thus, employers have the Encouraging all forms of communications is the driving force in
power to manage the cost HRM
 DIFFERENCES BETWEEN
HUMAN RESOURCE MANAGEMENT (HRM) AND
HUMAN RESOURCE DEVELOPMENT (HRD)
HUMAN RESOURCE MANAGEMENT
1. HRM focuses on enhancement of
employees potentials
2. HRM gives attention to the effective
utilization of employees and their
capabilities
3. HRM takes decisions on HRD plans
4. HRM at its center has HRD
5. HRM attends to every employee
demand resulting to increased
satisfaction and productivity.
HUMAN RESOURCE DEVELOPMENT
1. HRD is concerned with enhancing
the capabilities of employees that will
result to positive behavior change
2. HRD sees to it that there is
continuing opportunities for growth
and development
3. HRD depends on the decisions of
HRM
4. The goal of HRD is to anchor to that
of HRM that will boil down to the
benefit of the workers
5. HRD promotes up-scaling of skills
and knowledge resulting to
outstanding performance