Week 2 Definition & Scope of Human Resource Management PDF

WEEK 2 DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT LEARNING OUTCOMES 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 mak...

WEEK 2 DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT LEARNING OUTCOMES 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 make certain that workers are handled and managed as human beings worthy of respect and compassion throughout their employment life (i.e., from entry to separation). 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 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. His work played a very important role in the advancement of the people function in the early 1900s. 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. Table 1 on the next page identifies the significant breakthroughs in HRM development TABLE 1. 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 Hawthorne 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 work-place 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 provisions 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. As Taylor was starting with his concepts about scientific management, other proponents were also employing related principles of psychology in recruiting, selecting, training, and developing workers. The growth of the field of industrial psychology and its utilization in the work place came to realization during the World War I as preliminary technical and job-related tests were used to appoint military hires to the right tasks. The Hawthorne studies were a series of studies done between 1920s and 1930. This period sparked an increase in the importance of the social and psychological relationships in the workplace. Evaluations of the studies led researchers to believe that \"human relations\" greatly influence workers\' level of satisfaction and productivity. **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. However, just as being an entrepreneur has its rewards, it also has its own drawbacks. Entrepreneurs have to meet a lot of challenges in handling and managing their workers, especially in training, designing a compensation structure, or building a friendly company culture. Thus, the study of human resource 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 meet 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 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** Human resource management involves designing 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 HR management can provide supervisors and leaders a competitive edge, especially in the aspect of recruitment. **BEST FEATURES OF HUMAN RESOURCE MANAGEMENT** Human resource management is a continuing process of managing people and their activities at work while squeezing out the best potential from them so they become productive individuals. It has the following features: 1. 2. 3. 4. 5. 6. Table 2. Differences Between Personnel Management and Human Resource Management PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT (HRM) --------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Personnel refers to the people manning the organization. Managing them is referred to as personnel management HRM is the effective supervision and management of employees\' capabilities and other attributes PM is conventional and concentrates on supervisory administration of people HRM is a non-stop function directed at developing the knowledge and skills of employees PM is a separate purpose with separate sub-function HRM is an indispensable part of the entire 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 management HRM sees to it that both personal and professional needs of employees are addressed correctly in order to achieve work-life balance PM has a limited range as it only focuses on administration of people Motivational activities and team-building activities are top priorities for HRM PM is particularly involved with recruitment, selection, and administration of the workforce In HRM, a fulfilling job is the antecedent and job satisfaction is the outcome Primary stimuli in PM are monetary and non-monetary rewards In HRM, there is a great relationship between productivity and satisfaction and employees\' social well-being In PM, a high level of contentment means better performance HRM considers people as valuable assets PM regards employees as tools for the organization to make more profit HRM regards employees as excellent contributors to the organization\'s wellness, and thus acknowledges their contributions through growth opportunities. and advancement PM treats employees as commodities that can be bought in exchange for money HRM sees to it there is a constant healthy relationship between the organization and its employees, which extends to the family members of the employees PM treats people as an expense, thus, employers have the power to manage the cost Encouraging all forms of communications is the driving force in HRM **DIFFERENCES BETWEEN HUMAN RESOURCE MANAGEMENT (HRM) AND HUMAN RESOURCE DEVELOPMENT (HRD) HUMAN RESOURCE MANAGEMENT** HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE DEVELOPMENT --------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- HRM focuses on enhancement of employees, potential from a long-term perspective. HRD is concerned with enhancing the capabilities of employees that will result in positive behavior change. HRM gives attention to the effective utilization of employees and their capabilities. HRD sees to it that there is continuing opportunities for growth and development. HRM takes decisions on HRD plans. HRD depends on the decisions of HRM. HRM at its center has HRD. The goal of HRD is anchored to the that of HRM, which boils down the benefit of the workers. HRM attends to every employee demand resulting in satisfaction and productivity. HRD promotes upscaling of skills and knowledge resulting in outstanding performance.