ASIAN DEVELOPMENT FOUNDATION COLLEGE

P. Burgos St., Tacloban City

LESSON #1: EC 6
(Human Resource Management)

Topic: Definition and Scope of Human Resource Management

 Human Resource Management or HRM 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 maker certain that workers are handled and managed as human
beings worthy of respect and compassion throughout their employment life.
 HRM is composed of human resource (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 pre-hiring, hiring, and post hiring.
 In the pre-hiring stage, organizations determine the right number and type of people needed to fill
up the positions in the organization along with their required qualifications. It includes activities
performed prior to hiring, such as human resource planning and job analysis.
 In the hire stage, companies establish policies that will help managers fulfill the staffing needs of
the company, eventually leading to recruiting and selecting.
 In the 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. Later, he pioneered the
study of scientific management and eventually became known as the father of scientific
management.
 he also addressed critical issues on incentives that encouraged the compensation of workers
for meeting and/or surpassing performance criteria. These events laid the basic foundation
for later HRM development.

HRM Historical Breakthroughs

Year Events
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 Hawthrone 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 workplace that affect and influence worker
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 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 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

 Human Resource Management embraces a wide range of basic business ideas that include
recruitment, selection, training, and development, performance appraisal, compensation, safety
and health, and other productivity improvement programs. It is important even to non-HR
personnel such as employees, supervisors, and leaders.
 Entrepreneurs
 The qualities that mark an entrepreneur are numerous. Motivation and persistence are among
them. The study of human resource management will give these enterprising individuals
useful insights and 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.
 Employees
 It is essential for employees to understand HR management so they may gain a better
understanding of their rights and privileges as thinking, feeling, and doing individuals in an
organization.
 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.

 Best Features of Human Resource Management

 1. It is prevalent in nature. This means that HRM is present and performed in all operational and
functional areas of management within an organization on a continuous basis. In other words, it is
not an “on-off” function that is performed only when needed.
2. It is dynamic. HRM moves! HRM acts! It does not depend on written rules and policies to solve
problems; rather, it focuses on what can be done through logical and well-grounded solutions and
decisions. It constantly finds ways to change situations and events for the betterment of the
organization and its employees.
3. It is individually-oriented. In HRM, each employee is considered a human being that is worthy of
respect and compassion. In this sense, HRM works toward 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. In effect, both
intrinsic and extrinsic motivation is increased.
4. 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.
5. 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.
6. It is growth-oriented. For an organization’s HRM process is 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 Personnel Management and Human Resource Management

PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT (HRM)

Personnel refers to the people manning the HRM is the effective supervision and management
organization. Managing them is referred to of the employees’ capabilities and other attributes.
as personnel management.
PM is conventional and concentrates on HRM is a non-stop function directed at developing
supervisory administration of people. the knowledge and skills of employees.
PM is a separate purpose with separate sub- HRM is an indispensable part of the entire
function. organization.
PM is seen as a supplementary activity. HRM anticipates and effectively handles adverse
situations even before they arise.
PM reacts to adverse situations as they arise HRM sees the organization as one that embodies a
dynamic personality.
PM takes complete authority in people HRM sees to it that both personal and professional
management. needs of employees are addressed correctly in order
to achieve work-life balance.
PM has a limited range as it only focuses on Motivational activities and team-building activities
administration of people. are top priorities for HRM.
PM is particularly involved with recruitment,In HRM, a fulfilling job is the antecedent and job
selection, and administration of the workforce.
satisfaction is the outcome.
Primary stimuli in PM are monetary and non- In HRM, there is a great relationship between
monetary rewards. productivity and satisfaction and employees’ social
well-being.
In PM, a high level of contentment means HRM considers people as valuable assets.
better performance.
PM regards employees as tools for the HRM regards employees as excellent contributors
organization to make more profit. to the organization’s wellness, and thus
acknowledges their contributions through growth
and advancement opportunities.
PM treats employees as commodities that can HRM sees to it there is a constant healthy
be bought in exchange for money. relationship between the organization and its
employees, which extends to the family members of
the employees.
PM treats people as an expense, thus, Encouraging all forms of communications is the
employers have the power to manage the cost. driving force in HRM.

Differences Between Human Resource Management (HRM) and Human Resource Development
(HRD)

Human Resource Management Human Resource Development

1. HRM focuses on enhancement of 1. HRD is concerned with enhancing the
employees, potential from a long-term capabilities of employees that will result in
perspective. positive behavior change.
2. HRM gives attention to the effective 2. HRD sees to it that there is continuing
utilization of employees and their opportunities for growth and development.
capabilities.
3. HRM takes decisions on HRD plans. 3. HRD depends on the decisions of HRM.
4. HRM at its center has HRD. 4. The goal of HRD is anchored to that of
HRM, which boils down the benefit of the
workers.
5. HRM attends to every employee’s demand 5. HRD promotes upscaling of skills and
resulting in increased satisfaction and knowledge resulting in outstanding
productivity. performance.