This document provides an overview of human resource management. It defines HRM and traces its historical evolution from personnel management. The key topics covered include the definitions of HRM, the distinction between personnel management and HRM, the functions of HR managers, the fields and approaches of HRM, and the evolution of HRM over time from its origins in employee guilds and the industrial revolution to modern strategic HRM practices. The document also outlines the main functions and components of an HRM system and different viewpoints on managing human resources.

1. Human Resource Management
By Ms. D. D Lokuge
Department of Management and Finance
18.11.2020
General Sir John Kotelawala Defence University
Ratmalana
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2. Introduction
Lesson 01
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3. Contents:
• Introduction to HRM
- Definitions
- Historical Evolution
- Personnel Management vs. HRM
- Line vs. Staff Aspects of HRM
- Insourcing vs Outsourcing HRM
- HR Manager’s competencies
- Functions of HRM
- Fields of HRM
- Approaches of HRM
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4. Introduction to HRM
• Two questions:
– Does it matter?
– Why does it matter?
• What is HRM?
– Organization’s methods and procedures for managing people to
enhance skills and motivation.
– Efficient and effective utilization of human resources to achieve
goals of an organization.
– Activities to enhance the organization’s ability to attract, select,
retain and motivate people with effective and efficient
utilization of resources to achieve organizational goals and
objectives .
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5. A Brief History of HRM
• HRM can be traced to England, where
craftspeople organized guilds
– They used unity to improve working conditions
• The Industrial Revolution in the 18th century
laid the basis for a new, complex industrial
society
– Changing work conditions, social patterns, and labor
created a gap between workers and owners
• During the world wars era, scientific
management, and welfare work merged
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6. A Brief History of HRM ctd...
• Frederick W. Taylor, the father of scientific
management, summarized scientific management
as:
– Science
– Harmony
– Cooperation
– Maximum output
• Industrial psychology, initiated in 1913, focused
on:
– The worker
– Individual differences
– The maximum well being of the worker
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7. A Brief History of HRM ctd…
• Industrial psychology –study and evaluate a
company’s culture, employee behaviour and
work processes and create or recommend
programmes and practices to improve employee
productivity and organizational performance.
Industrial psychologist work with HR department
in recruitment, efficient personnel selection,
employee training and development, employee
satisfaction and work life balance, better work
environment, and greater work place
corporation.
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8. A Brief History of HRM ctd...
• Personnel departments were created to deal
with:
_ Pay and record keeping
– Drastic changes in technology
– Organizational growth
– The rise of unions
– Government intervention
concerning working people
• Around the 1920s, more organizations
noticed and acted on employee-management
conflict
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9. A Brief History of HRM ctd...
• The Hawthorne studies (1924 to 1933):
– Were to determine the effects of
illumination on workers and their output
– Rather, it pointed out the importance of
social interaction on output and satisfaction
• Until the 1960s, the personnel function was
concerned only with blue-collar employees
– File clerk, house-keeper, social worker, firefighter,
and union trouble defuser
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10. A Brief History of HRM ctd...
• Talent management is an organization's
commitment to recruit, hire, retain, and develop
the most talented and superior employees
available in the job market. So, talent
management is a useful term when it describes
an organization's commitment to hire, manage,
develop, and retain talented employees.
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11. A Brief History of HRM ctd...
• Human Capital Management
Set of practices related to people resource
management. These practices are focused on
the organizational need to provide specific
competencies and are implemented in three
categories: workforce acquisition,
workforce management and workforce
optimization.
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12. A Brief History of HRM ctd...
• Strategic HRM refers to HR that is co-
ordinated and consistent with the overall
business objectives in order to improve
business performance. SHRM focuses on
actions that differentiate the business from its
competitors.
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13. A Brief History of HRM ctd...
Emotional Intelligence
• The ability to monitor one's own and other
people's emotions, to discriminate between
different emotions and label them appropriately,
and to use emotional information to guide
thinking and behavior". This definition was later
broken down and refined into four proposed
abilities: perceiving, using, understanding, and
managing emotions.
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14. A Brief History of HRM ctd...
• Emotional intelligence is the ability to
understand, use, and manage emotions in
positive ways to relieve stress, communicate
effectively, empathize with others, overcome
challenges and defuse conflict.
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15. Distinguishing Between HRM and PM
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16. Key Levers
Personnel / IR HRM
Selection Separate, marginal task Integrated, key task
Pay Job evaluation (fixed
grades)
Performance related
Conditions Separately negotiated Harmonisation
Labour management Collective bargaining
contracts
Towards individual contracts
Thrust of relations with
stewards
Regularised through
facilities and training
Marginalised (with exception
of some bargaining for
change models)
Job categories and
grades
Many Few
Communication Restricted flow Increased flow
Job design Division of labour Teamwork
Conflict handling Reach temporary truces
(agreements)
Manage climate and culture
Training and
development
Controlled access to
courses
Learning companies
Foci of attention for
interventions
Personnel procedures Wide ranging cultural,
structural and personnel
strategies
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17. Strategic Importance of HRM
• Strategic HRM differs significantly from
traditional HRM
– In traditional arrangements, responsibility for
managing human resources lies with different
specialists in each department or division
– In a strategic approach, people management rests
with an individual who is in direct contact with
workers or line managers
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18. Strategic Importance of HRM
Investment in human assets
Cost centers
Accountability
Developing people
Following the rules
Major emphasis
Open, participative,
empowerment
Bureaucratic, top-down,
centralization
Culture
Flexible, based on human
resources
Rules, policies, position power
Control
Short, intermediate, long term
Short-term results
Time focus
Lead, inspire, understand
Respond to needs
Role of HRM area
Improved understanding and use
of human assets
Better performance
Objective
Specialist
Generalist
Responsibility for human
resources
Strategic HRM
Traditional HRM
Item
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19. The Human Resource Manager’s
Proficiencies
– HR proficiencies
– Business proficiencies
– Leadership proficiencies
– Learning proficiencies
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20. The Human Resource Manager’s
Proficiencies (cont’d)
• Managing within the Law
– Equal employment laws
– Occupational safety and health laws
– Labor laws
• Managing Ethics
– Ethical lapses
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21. Personnel Versus Human Resource
Management
• Sometimes means the same things.
• HRM can mean a particular philosophy
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22. Line and Staff Aspects of HRM
• Line manager
– A manager who is authorized to direct the work of
subordinates and is responsible for accomplishing
the organization’s tasks.
• Staff manager
– A manager who assists and advises line managers.
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23. Outsourcing HR
• Would it just make more sense to outsource
HR functions?
• Many organizations are doing just this
– Recordkeeping and administrative, perhaps
– Basic functions…..
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24. Functions of HRM
1. Job design
2. Job analysis
3. Human Resource Planning
4. Recruitment
5. Selection
6. Hiring
7. Induction
8. Performance Evaluation/Appraisal
9. Training and Development
10. Career Management
11. Pay Management
12. Welfare Management
13. Management of Incentives
14. Employee Movements
15. Health and Safety Management
16. Discipline Management
17. Grievance Handling
18. Labour Relations
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25. Fields of HRM
• Employment planning –
(Job design, Job analysis, HRP)
• Staffing
(Recruitment, Selection, Hiring and Induction)
• Human Resource Development
(Performance evaluation, Training and Development, Career
Management)
• Rewards Management
(Pay Management, Welfare Management, Incentives Management)
• Employee & Labour relations
(Employee Movements, H&S Management, Grievance Handling, Labour
Relations)
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26. Viewpoints of HRM
• Human resource Approach
• Management Approach
• Systems Approach
• Proactive Approach
• Strategic Approach
• Soft Approach
• Hard Approach
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