Chapter 1: Definition and Scope of Human Resource Management PDF

CHAPTER 1 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 make certain that...

CHAPTER 1 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 make certain that workers are handled and managed as human beings worthy of respect and compassion throughout their employment life (l.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 Events 1890-1910 Frederick Taylor Iritroduced 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 pald 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 MAN, 3/22 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 bullding 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. 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. Table 2 describes the differences between Human Resource Management and Personnel Management.