Early employee specialists were called personnel managers (or personnel administrators), and

this term is still in use in various discourses. ‘Personnel management’ refers to a set of functions or
activities (e.g. recruitment, selection, training, salary administration, industrial relations) often
performed effectively but with little relationship between the various activities or with overall
organizational objectives. Personnel management in the United Kingdom and the United States
developed earlier than in Australia and Asia Pacific countries in response to their earlier and more
widespread adoption of mass production work processes.

Power-driven equipment and improved production systems enabled products to be

manufactured more cheaply than before. This process also created many jobs that were monotonous,
unhealthy or even hazardous, and led to divisions between management and the ‘working class’. The
concentration of workers in factories served to focus public attention upon conditions of employment,
and forced workers to act collectively to achieve better conditions. The Humanitarian, Cooperative
and Marxist theories of the early 1900s highlighted the potential conflicts between employee and
employer interests in modern industry – situations that laid the foundations for the growth of trade
unionism and industrial relations systems which are important elements of contemporary HRM
(Nankervis et.al (2011).

Governments in both the United Kingdom and the United States became involved in these
issues and passed a series of laws to regulate the hours of work for women and children, to establish
minimum wages for male labour and to protect workers from unhealthy or hazardous working
conditions.

During this period, management theorists in the United States and United Kingdom began to
examine the nature of work and work systems, and to develop models based upon emerging
psychological and sociological research. The ways in which these theories have developed, and have
been applied by both general management and HR professionals, reflect changing attitudes to jobs,
work processes and organizational structures.

Scientific Management

The Classical school (or ‘Scientific Management’, founded by Frederick Taylor, and best
exemplified by Henry Ford in his vehicle manufacturing plants) puts its emphasis on the job itself and
the efficient adaptation of workers to work processes. Through job design, structured reward systems,
‘scientific’ selection techniques espoused by scientific management personnel management practice
were refined especially in the recruitment and placement of skilled employees.

Hawthorne Studies

The Behavioral school (for example, Elton Mayo’s Hawthorne Studies) focuses on workers
themselves, and the satisfaction of their needs, to achieve greater organizational productivity. In the
1930’s, rise of motivation practices occasioned by the Hawthone studies, various attempts at employee
satisfaction begin to be implemented such as better wages and good working conditions. These
activities were supported by the new human relations theories that were filtering into Australia from
the United States. HRM is a product of the human relations movement of the 1940’s, when researchers
began documenting ways of creating business value through the strategic management of the
workforce.
The conceptual framework of HRM

The question of how to achieve competitive advantage is the dominant concern of strategic
management. In the 1980s this came to particular prominence through the research of Michael Porter.
A related economic theory, the resource-based view, which re-emerged at this time holds that
competitive advantage is achieved if a firm’s resources are valuable, rare and costly to imitate. Both
these theories impacted on thinking in respect of people management in organizations.

Firstly, approaches and initiatives in respect of people management should be consistent with
the overall strategy of the organization (Fombrun at al, 1984) and secondly, that all resources, but in
particular human resources, contribute to the unique character of organisations and can therefore
support competitive advantage. This led to a recognition of people and investment in them as a source
of ‘human capital advantage’ (Boxall and Purcell, 2016) rather than a cost to be minimized as much as
possible.

The other side of the HRM concept emerged from organization behavior theory. Organization
behavior (OB) is the study of how organisations function and how people behave in them. In other
words, the interface between human behavior and the organization and how these impacts on the
performance of the organization. Areas of concern for HRM, including organization design,
organization culture and leadership all have their roots in OB. However, most critical to the original
concept of HRM are the areas of employee commitment and motivation, more recently described
under the ‘catch-all’ term of employee engagement.

Criticisms of HRM

When the term HRM first became popular there was criticism of it as it referred to people as
resources, as if they were any other factor of production to be leveraged into economic value.
However, Boxall and Purcell (2016) regard this as a misunderstanding of the term. They suggest that it
is not people that are referred to as ‘human resources’, rather their knowledge, skills and energies
which they use in their daily roles: ‘People are not human resources. On the contrary, people are
independent agents who possess human resources, which are the talents they can deploy and develop
at work and which they take with them when they leave the organization’. However, the authors add
that referring to people as human resources is ‘a mistake made in a variety of textbooks and
dictionaries.

HRM has also been widely criticized for reasons beyond its terminology. The main
reservations are summed up by Armstrong and Taylor (2015) as ‘HRM promises more than it delivers
and its morality is suspect’. In respect of the first point HRM has been variously (and contradictorily)
described as overly prescriptive, uncertain and imprecise, and simplistic. In respect of the second
point, it has been claimed that HR overemphasizes business needs and that it is manipulative in
seeking to shape human behavior at work.

However, much of the criticism has subsided. According to Armstrong (2016) this is because
‘HRM is no longer governed by the original philosophy – if it ever was’. According to Storey (2007),
HRM in its generic, broad and popular sense simply refers to the system of people management that
pertains in an organization. Elsewhere Armstrong comments (2016), ‘HRM is here to stay, even if it is
applied diversely or only used as a label to describe traditional personnel management practices. HRM
has largely become something that organizations do rather than an aspiration or a philosophy, and the
term is generally in use as a way of describing the process of managing people’.
HRM practice today

HRM practice is no longer governed by the original philosophy – if it ever was. It is simply what HR
people and line managers do. Few references are made to the HRM conceptual framework. This is a
pity – an appreciation of the goals, philosophy and underpinning theories of HRM and the various
HRM models provides a sound basis for understanding and developing HR practice. But account
needs to be taken of the limitations of that philosophy as expressed by the critics of HRM.

Defining Human Resource Management

Human Resource Management (HRM) is defined as the process of employing people, training them,
compensating them, developing workplace policies, and creating strategies to retain employees. HRM
has undergone many changes over the last twenty years, giving it an even more important role in
today's organization. In the past, HRM means processing payroll, sending birthday gifts to
employees, arranging company outings, and making sure forms were filled out correctly - in other
words, more of an administrative role rather than strategic role crucial to the success of the
organization (Frasch, et al., 2010). In strategic role, HRM is more involved in developing talent,
creating policies, planning for the future and improving performance.

HRM plays a vital role in aligning human resources with the strategic goals of an organization,
focusing not only on administrative functions but also on planning and executing strategies to ensure
the right people are in the right jobs at the right time.

HRM's primary roles in organizations include these followings;

1. Staffing: Staffing involves hiring the right people for the right positions within an
organization. This includes developing a staffing plan, creating policies for diversity and inclusion,
recruiting qualified candidates, and selecting the most suitable individuals. Effective staffing ensures
the organization has the necessary workforce to meet its strategic goals.

2. Workplace Policies: HRM is responsible for developing and enforcing workplace policies to
ensure fairness, safety, and compliance with laws. These policies may cover areas such as discipline,
dress code, ethics, internet use, and vacation time. HR managers work with other departments to
create clear guidelines that maintain a positive work environment.

3. Compensation and Benefits: HRM manages employee compensation and benefits, ensuring
that pay is fair, competitive, and aligned with industry standards. This includes setting up pay
systems, administering health benefits, retirement plans, bonuses, and other types of compensation.
Proper management of compensation helps attract and retains talent.
4. Retention: Retention focuses on keeping employees engaged and motivated to reduce
turnover. HRM develops strategies such as competitive compensation, positive workplace culture, and
professional development opportunities to retain top talent. Addressing employee concerns and
creating a supportive work environment are crucial for retention.

5. Training and Development: Training and development are aimed at improving employee
skills and performance. HRM organizes job-specific training, leadership development,
communication workshops, and team-building activities. Continuous learning opportunities help
employees grow and contribute effectively to organizational success.

6. Compliance with Employment Laws: HRM ensures the organization complies with all
employment laws and regulations, such as those related to discrimination, workplace safety, and
minimum wage. By staying updated on legal changes and educating the workforce, HRM helps avoid
legal issues and promotes a fair workplace.

7. Worker Protection: HRM is responsible for maintaining a safe and healthy work
environment. This includes implementing safety standards, managing workplace hazards, and
ensuring compliance with health and safety laws. Protecting workers is essential for minimizing
accidents, injuries, and related costs.

Human Resource Management (HRM) is a strategic, integrated, and comprehensive approach to

managing people within an organization (Boxall and Purcell, 2003). It involves aligning human
resource strategies with the organization's overall business objectives to achieve goals and maintain
long-term sustainability. HRM encompasses all activities related to the employment, development,
and well-being of employees, including talent acquisition, training and development, performance
management, and fostering positive employment relationships.

HRM aims to:

1. Support organizational objectives by effectively managing human capital to align with the business
strategy.

2. Foster a high-performance culture that emphasizes quality, flexibility, and continuous

improvement.

3. Ensure talent acquisition and retention through strategies that attract, develop, and engage skilled
individuals.

4. Promote positive employee relations built on mutual trust and respect.

5. Apply ethical practices in people management, ensuring fairness, equity, and social responsibility.

This approach positions human resources as key assets, recognizing that effective management of
people is vital for achieving competitive advantage and organizational success.

Human Resource Management (HRM) is the process of ensuring that an organization is able to attract,
utilize, and maintain a workforce with the right knowledge, skills, attitudes and behavior to achieve
organizational objectives. The process is enabled by organizational policies, practices and systems
(Supangco et al., 2021).

Human Resource Management Functions

After a thorough discussion about the historical background and the definition of Human
Resource Management, let’s proceed to its functions and responsibilities.

HRM functions were categorized into to, those that are generally defined by the job, and those
that cut across jobs in the organization.

A. Job-based functions
 Job design identifies the general ways of how work will be done by defining the specific tasks to
be performed. On the other hand, job redesign involves changing an existing job design. Job analysis
examines the tasks and responsibilities involved in undertaking a job, the relationship of the job to
other jobs, and the environment in which the job is done.

• Human resource planning estimates human resource needs in terms of number and type of
individuals required achieving the objectives of the organization, and the necessary actions to
ensure that the right individuals are available when needed.
• Recruitment attracts qualified applicants to join the organization.
• Selection appoints the best talent who fits the organization and a target role.
• Performance management aligns organizational and employee expected behaviors and
outcomes, evaluates performance against these expectations, and provides appropriate actions.
• Training entails a planned intervention to prepare an employee or group for an immediate or
current need.
• Development consists of planned interventions focused on enabling long-term growth of the
employee, teams, and the organization.
• Compensation is the total reward, financial or otherwise, an employee gets in exchange for
one’s services rendered to the organization.
• Benefits are a component of the total reward received by an employee. Unlike salaries and
wages, benefits are part of the financial compensation given to employees by virtue of one’s
membership in an organization and not because of the amount of work rendered.

B. Organization-based functions

• Health and safety focus on providing a work environment that adheres to safety standards,
and promotes employees physical, psychological, and social health and well-being.
• Employee relations ensure that a positive employer-employee relationship is maintained to
enhance performance and satisfaction.
• Labor relations pertain to the relationship between the employer and the representatives of
employees.
• Employee retention is the process of keeping employees in the organization and minimizing
the magnitude and effect of employee separation.

Responsibilities of Human Resource Management

Who are responsible for managing the organization’s human resources? The responsibility of
implementing HR policies and systems belongs to line managers who manage the day-to-day affairs
of the organization. In organizations where a human resource management department exists, the
development of policies is jointly done by the HR department and the line managers. In a study of
selected organizations in the Philippines, HR and line managers share the responsibility of developing
major policy decisions about pay and benefits, recruitment and selection, training and development,
and industrial relations. However, line managers take the lead with the support of HR in workforce
reduction and expansion (Supangco 2012).

The complexity of the structure of an HR unit depends upon factors such as the size of the
organization, available technology, and strategy of the organization. Other things being equal, larger
organizations are expected to have departments or sections dedicated to the major functions of HR.
One can final the following units in large organizations: Recruitment, Compensation and Benefits
Training and Development, and Industrial Relations. In smaller organizations, one finds specialization
assigned to individuals in the HR department. In organizations that do not have specific department
dedicated to undertaking the HR functions, such functions are done either by the head of the
organization or are distributed to the different managers in the organization. Some functions easily
lend themselves to outsourcing whether in terms of the development of systems or the actual delivery
of services. Development of systems in training and development, performance management,
compensation, and industrial relations can be handled by third-party service providers. In addition,
recruitment and selection, training and development, and payroll are services that can be undertaken
by a third party for the organization.

Technology also influences the delivery of HR services. More organizations have

computerized their human resource information system (HRIS). In the Philippines, the most common
application of the HRIS is in the areas of attendance, personal records, benefits administration, and
payroll (Supangco 2012).

The strategy of the organization also influences the structure of the HR department.
Organizations that place a high premium on their human resources would have units or individuals
dedicated to specific functions. For example, if an organization competes in terms of innovation, an
organization will have dedicated units or specialized personnel to look into its compensation system to
attract and retain individuals who possess creativity and innovation. In addition, it will also pay
attention to enhancing the knowledge, skills, and attitudes of employees, and provide the proper
environment where creativity and innovation thrive and grow. On the other hand, those that pursue a
cost strategy may allot a minimal budget for HR to fund HR activities. An HR department may be
nonexistent or may be small relative to the rest of the organization. No dedicated units or persons may
be assigned to study the appropriate policies and mix of practices to enhance performance. Human
resources and their management are most likely also considered as costs to be minimized.

Skills needed for Human Resource Management (HRM)

One of the major factors of a successful manager or human resource (HR) manager is an array of
skills to deal with a variety of situations. It simply isn’t enough to have knowledge of HR, such as
knowing which forms need to be filled out. It takes multiple skills to create and manage people, as
well as a cutting-edge human resource department.

The skills for a successful manager or human resource (HR) manager are:

• Organization: The ability to arrange and structure information, tasks, and resources
effectively. This includes maintaining organized files, managing time efficiently, and
prioritizing tasks.
• Time-management: The skill of effectively planning, scheduling, and using time to achieve
goals. This involves setting priorities, allocating time wisely, and avoiding procrastination.
• Multitasking: The ability to handle multiple tasks simultaneously without compromising
quality. This requires the ability to switch between tasks efficiently and manage competing
demands.
 • People skills: The ability to interact effectively with others, build relationships, and
understand human behavior. This includes active listening, empathy, communication skills,
and conflict resolution.
• Conflict resolution: The ability to manage disagreements and disputes constructively. This
involves identifying the root cause of conflict, facilitating open communication, and finding
mutually acceptable solutions.
• Coaching: The ability to guide and support individuals in their professional development.
This involves providing feedback, setting goals, and empowering employees to reach their full
potential.
• Communication: The ability to convey information clearly and effectively, both verbally and
in writing. This includes active listening, clear articulation, and the ability to adapt
communication style to different audiences.
• Understanding specific job areas: Knowledge of the specific tasks and responsibilities
associated with different roles within the organization. This includes understanding job
descriptions, performance expectations, and relevant industry regulations.
• Knowledge of employment laws: Familiarity with legal requirements related to employment,
including labor laws, discrimination laws, and workplace safety regulations.
• Strategic planning: The ability to develop and implement long-term plans that align with the
organization's goals. This involves analyzing trends, identifying opportunities, and setting
strategic objectives.
• Strategic mind-set: The ability to think critically and holistically about the organization's
overall goals and how HR can contribute to their achievement. This involves understanding
the business context, anticipating future challenges, and proactively adapting HR strategies.
• Ethics: The adherence to moral principles and values in all aspects of professional conduct.
This involves making fair and impartial decisions, upholding confidentiality, and promoting a
culture of ethical behavior.
• Fairness: The ability to treat all individuals with respect and impartiality. This involves
making unbiased decisions, ensuring equal opportunities, and promoting a just and equitable
workplace.

References
Boxall, P., Purcell, J., & Wright, P. (2007). The goals of HRM. In P. Boxall, J. Purcell, & P. Wright
(Eds.), The Oxford handbook of human resource management (pp. 48-67). Oxford University Press.

Frasch, K. et al., (2010). "There's No Whining in HR”. Human Resource Executive Online. August 31,
2024 from www.hreonline.com/HRE/story.jsp?storyId=227738167.

Supangco, V., Los Baños J., & Ocampo, K. (2021). Human Resource Management in the Philippines
Context. University of the Philippine Press.

The Saylor Foundation. Skills Needed for HRM. (name of publisher). August 31, 2024 from
http://www.saylor.org.books

Riordan, J. (2017). The Practice Of Human Resource Management

Rotich, K. (2015). Global Journal of Human Resource Management vol.3, No.3, pp.58-73.