Chapter 1: Definition and Scope of Human Resource Management PDF

CHAPTER 1 Definition and Scope of Human Resource Management 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...

CHAPTER 1 Definition and Scope of Human Resource Management 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 on 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. 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. Define ….. Personnel management (PM) primarily focuses on managing employees as a resource, dealing with administrative tasks such as hiring, training, and maintaining personnel records. Human Resource Management (HRM) adopts a more strategic approach, emphasizing the overall management of an organization's human resources to align individual goals with organizational objectives  Scope of Functions Personnel Management is more limited, focusing on essential administrative tasks such as payroll and employee relations. HRM encompasses a broader range of functions, including recruitment, performance management, training, legal compliance, and fostering a positive organizational culture View of Employees In Personnel Management, employees are viewed as tools or machines that can be replaced when needed, which reflects a transactional mindset. HRM regards employees as valuable assets of the organization, focusing on their development, motivation, and long-term retention  Differences between: PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT (HRM) Personnel refers to the people manning the organization. HRM is the effective supervision and management of Managing them is referred to as personnel management employees’ capabilities and other attributes PM is conventional and concentrates on supervisory HRM is a non-stop function directed at developing the administration of people 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 PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT (HRM) 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 Motivational activities and team-building activities are top people priorities for HRM PM is particularly involved with recruitment, selection, and In HRM, a fulfilling job is the antecedent and job satisfaction administration of the workforce is the outcome PERSONNEL MANAGEMENT (PM) HUMAN RESOURCE MANAGEMENT (HRM) Primary stimuli in PM are monetary and non monetary rewards In HRM, there is a great relationships 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 HRM regards employees as excellent contributors to the more profit organization’s wellness, and thus acknowledges their 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 exchange for money the organization and its employees, which extends 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 Human Resource Management (HRM) Human Resource Development HRM focuses on enhancement of employees, potential from HRD is concerned with enhancing the capabilities of a long-term perspective. employees that will result in positive behavior change. HRM gives attention to the effective utilization of employees HRD sees to it that there is continuing opportunities for and their capabilities. 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 demands resulting in HRD promotes upscaling of skills and knowledge resulting in increased satisfaction and productivity. outstanding performance.