This document outlines several key principles of human resource management. It discusses classical management approaches like Adam Smith's division of labor theory. It also examines theoretical approaches like Maslow's hierarchy of needs and McGregor's Theory X and Y. Finally, it notes how factors like technology, education, the economy, and social changes have impacted the development of HR practices over time.

1. KEY PRINCIPLES OF
HUMAN RESOURCE
MANAGEMENT (HRM)
WRITTEN AND PRODUCED BY MOHAMMED MIAH 23 NOVEMBER 2012

2. DEFINITIONS & BACKGROUND:
• Personnel management deals with the
employment of people within an organisation. It
is concerned with the transactional and
administrative aspects of HR and is used in
many government agencies and non-profit
sectors.
• While Human Resource Management (HRM)
relates to the management of an organisations
workforce and human resources.
• HR has evolved from human relations
movement of the early 20th century, when
researchers began documenting ways of
creating business value using different
strategies.

3. KEY PRINCIPLES OF
MANAGEMENT:
• The classical approach to management includes
Adam Smith’s Division of Labour. The theory
was first used in a pin factory to increase
efficiency. Smith explained that traditional pin
makers could produce only a few dozen pins a
day.
• However when organised in a factory with each
worker performing a limited operation they
could produce tens of thousands a day.

4. KEY PRINCIPLES OF
MANAGEMENT:
• Specialisation is a technique whereby workers
concentrate on performing a few tasks and then
exchange their production for other goods and services.
• The Command and Control form of management is based
on the idea that people do what you tell them to do, and if
they don’t, you yell at them until they do it.
• This is also known as micromanagement where managers
watch their employees carefully in a strict manner.
• This type of management illustrates authority i.e.
managers must be able to give orders and authority gives
them that right.

5. THEORETICAL APPROACHES:
• Good discipline from employees is a result of
effective leadership.
• This can be achieved by applying Abraham
Maslows (1943) Hierarchy of human needs and
Douglas McGregor's (1960) Theory X and Y.
Both of these theories are classified as a
Human Relations Approach.
• Maslow explained that if certain human needs
are covered, such as Physiological,
Safety/Security, Belongingness, Self-Esteem
and Self-Actualisation, this will increase
motivation.

6. THEORETICAL APPROACHES:
• McGregor developed a theory for human motivation
and it relates to the perceptions of managers
received from their employees, it is primarily
concerned with attitudes not attributes.
• Theory X suggests that workers need to be closely
supervised and comprehensive systems of controls
developed. (This corresponds with the Command
and Control form of management discussed earlier).
• Therefore a hierarchical structure is needed with a
narrow span of control at each and every level.

7. THEORETICAL APPROACHES:
• A Theory Y manager believes that, given the
right working conditions most people will excel
in different areas.
• Charles Handy’s (1999) Role Culture offers
employees security and the opportunity to
acquire specialist expertise; performance up to
a required standard is rewarded on the
appropriate pay scale and possibly by promotion
within the functional area.

8. KEY PRINCIPLES OF
MANAGEMENT:
• System Theory is a term used to describe the
combination of both the classical approach and
the human relations approach to create optimal
results.
• Unity of Command states that every employee
should receive orders from only one superior.
Like from top to bottom in an organisation.

9. THEORETICAL APPROACHES:
• I would assume Charles Handy’s Role Culture can be used
here, where he describes an organisation by having strong
functional or specialised areas, coordinated by a narrow
band of senior management at the top.
• In other words he is explaining a top down approach to
management.

10. KEY PRINCIPLES OF
MANAGEMENT:
• The Scalar Chain is another example of
principles of management; it represents the line
of authority from top management to the lowest
ranks.
• Unity of Direction suggests that each group of
organisational activities that have the same
objective should be directed by one manager
using one plan.

11. A THEORETICAL APPROACH:
• Charles Handy’s Power Culture is relevant here
because he describes the power culture as a
spider’s web with the all-important manager
sitting in the centre because the key to the
whole organisation sits in the centre.
• A power culture is more like a dictatorship and
in my opinion it fits in perfectly with unity of
direction.

12. OTHER KEY PRINCIPLES OF
MANAGEMENT:
• Subordination of individual interests to the general
interest. (The interests of an employee or a group of
employees should not outweigh the interests of an
organisation as a whole).
• Initiative – Employees must use common sense.
• Remuneration
• Centralisation – Relates to which subordinates are
involved in the managerial decision making process.
• Order is needed because disorder causes chaos.

13. CHANGES AND DEVELOPMENT:
• In the beginning during agricultural stages
of trading and commerce human resources
management functioned differently.
• Since then technological advancement has
changed how things operate in the HR
department.
• For e.g. Microsoft Windows keeps upgrading
its operating software.
• Hence the relevant departments will have to
embrace and make adjustments to new
operating systems.

14. CHANGES AND DEVELOPMENT:
• Recently the government has made some
changes to pension schemes such as SERPS in
its annual budget. (This will affect how HR fills
in certain forms).
• Education has changed and developed HR, by
giving people the correct skills and knowledge
to carry out their work.

15. CHANGES AND DEVELOPMENT:
• The economy and its recessions also play a
huge part in shaping HR in terms of being
flexible and re-structuring the whole
organisation.
• In addition social factors such as cultural
values (people’s beliefs, gender and
personal background) have affected HR over
the years.