1. Meaning & definition of HRM
2. The development of HRM concept
3. Personnel management Vs HRM
4. HRM functions
Meaning & Definition of HRM
• Meaning of HRM
HRM is concerned with the management of human
energy and competencies. It aims at achieving
organizational objectives through the productive
contribution of people.
Competencies consist of Knowledge, skills, attitude
Knowledge: (What the employee needs to know.
Knowledge can be professional, technical or
• Skills: (Ability of the employee. It can be
intellectual, mental, perceptual, social)
• Attitude :( disposition of employee to perform
• Potentials :( Capabilities to face challenges)
Definition of HRM
Human resource management is comprised of
the acquisition, development, motivation and
-DeCenzo and Robbins
The development of HRM concept
• Early scientific management era
Rowntree and Cadbury business houses began
appointment of welfare officer in the 18th
century. They also made provision for
unemployment benefit, sick pay and subsidies
housing for employees.
• Industrial revolution started from the late 18th
century. Labors were treated as commodities.
The main feature of industrial revolution was
advent of machine power, mass production
and efficient transportation.
• At the end stage of industrial revolution
emphasis was given to administer the
personnel matters such as recruitment of
qualified labor, welfare management and
enough compensation scheme to support mass
Scientific Management Era
F.W Taylor invented principles of scientific
management in the 19th century. He suggested
to plan work and gave methods to maximize
productivity and minimize inefficiencies.
That was the earliest effort in the development
of personnel management.
Time & Motion study
Scientific selection of labors
Human Relations Movement
• Elton Mayo studies the causes of low
productivity. The Hawthrone studies (1927-
1932) laid the foundation for the human
relations movement .
• Informal relationship at work place,
• Value to the workers
• Importance of relations between individual
sentiment towards working environment.
• During 1935-60 a labor relations movement in
the form of presence of labor union and
collective bargaining practice emerged.
• The HRM era began in 1950’s. Peter Drucker
had suggested how an effective management
contributes to direct all managers towards a
Human Capital Concept (T. Schulz)
Theodore Schulz invented human capital
theory and cited examples of how qualified
and committed human resources contributed in
the post war economy of Germany and Japan.
Concept of corporate culture
• Concept of corporate
culture(values, belief, attitudes and behavior
held by its members)
• The book “The art of Japanese management
written by Pascale and Athos in 1981 stated
the shared values of management and workers
are the secrete of Japanese management.
The New HRM Era
• US industries were challenged by inside and
outside competition 1970s.
• Mainly due to adverse union-management
relations, lower employee motivation etc.
• It challenged the traditional American
• The new HRM practices developed in the
1980. It arrived in UK around 1985-1986
Personnel Mgmt Vs. HRM
• The personnel mgmt was used from the early
• During 1900 and 1935 personnel mgmt and
industrial relations were just professional
• At the time of WWI labor shortage increased.
To retain employees, personnel mgmt and
industrial department emerged as a strong
professional service department.
• Again, at the time of great depression, demand
of goods declined and that created problem of
labor cut, increased unemployment and
declining working condition in factory.
• To encounter with these problems, between
1935 and 1960, personnel mgmt enjoyed
dominant position in various organizations.
• In 1989, the American society for personnel
Administration(ASPA) voted to change its
name to the society for Human Resource
Personnel Mgmt Vs. HRM
employees, their pay roll
and employment law
Deals with mgmt of
work force and
Focuses on personnel
Focuses on team work
Administers people or
Build dynamic culture
Independent from an An integral part of a
Regards investments in
people as a variable cost.
Regards investment in
people is a social capital
capable of development.
Aims at non managers-
professionals- to increase
the skills of employee.
More concerned with
the managers specifically
In a unionized
The concern of HRM is
• A) Staffing function(hiring qualified
i) Strategic HR planning ii) Recruiting iii)
• B) Training and development
i) Orientation ii)Employee training iii)
Employee development iv)Career
i) Performance appraisal ii) Reward and
compensation iii) Employee benefit
i) Safety and health ii) Communication iii)