2. DEFINITIONS & BACKGROUND:DEFINITIONS & BACKGROUND:
Personnel management deals with thePersonnel management deals with the
employment of people within an organisation. It isemployment of people within an organisation. It is
concerned with the transactional andconcerned with the transactional and
administrative aspects of HR and is used in manyadministrative aspects of HR and is used in many
government agencies and non-profit sectors.government agencies and non-profit sectors.
While Human Resource Management (HRM)While Human Resource Management (HRM)
relates to the management of an organisationsrelates to the management of an organisations
workforce and human resources.workforce and human resources.
HR has evolved from human relations movementHR has evolved from human relations movement
of the early 20th century, when researchers beganof the early 20th century, when researchers began
documenting ways of creating business value usingdocumenting ways of creating business value using
different strategies.different strategies.
3. KEY PRINCIPLES OFKEY PRINCIPLES OF
MANAGEMENT:MANAGEMENT:
The classical approach to managementThe classical approach to management
includes Adam Smith’s Division of Labour.includes Adam Smith’s Division of Labour.
The theory was first used in a pin factory toThe theory was first used in a pin factory to
increase efficiency. Smith explained thatincrease efficiency. Smith explained that
traditional pin makers could produce only atraditional pin makers could produce only a
few dozen pins a day.few dozen pins a day.
However when organised in a factory withHowever when organised in a factory with
each worker performing a limited operationeach worker performing a limited operation
they could produce tens of thousands a day.they could produce tens of thousands a day.
4. KEY PRINCIPLES OFKEY PRINCIPLES OF
MANAGEMENT:MANAGEMENT:
Specialisation is a technique whereby workers concentrateSpecialisation is a technique whereby workers concentrate
on performing a few tasks and then exchange theiron performing a few tasks and then exchange their
production for other goods and services.production for other goods and services.
The Command and Control form of management is basedThe Command and Control form of management is based
on the idea that people do what you tell them to do, and ifon the idea that people do what you tell them to do, and if
they don’t, you yell at them until they do it.they don’t, you yell at them until they do it.
This is also known as micromanagement where managersThis is also known as micromanagement where managers
watch their employees carefully in a strict manner.watch their employees carefully in a strict manner.
This type of management illustrates authority i.e. managersThis type of management illustrates authority i.e. managers
must be able to give orders and authority gives them thatmust be able to give orders and authority gives them that
right.right.
5. THEORETICALTHEORETICAL
APPROACHES:APPROACHES:
Good discipline from employees is a result ofGood discipline from employees is a result of
effective leadership.effective leadership.
This can be achieved by applying AbrahamThis can be achieved by applying Abraham
Maslows (1943) Hierarchy of human needs andMaslows (1943) Hierarchy of human needs and
Douglas McGregor's (1960) Theory X and Y. Both ofDouglas McGregor's (1960) Theory X and Y. Both of
these theories are classified as a Human Relationsthese theories are classified as a Human Relations
Approach.Approach.
Maslow explained that if certain human needs areMaslow explained that if certain human needs are
covered, such as Physiological, Safety/Security,covered, such as Physiological, Safety/Security,
Belongingness, Self-Esteem and Self-Actualisation,Belongingness, Self-Esteem and Self-Actualisation,
this will increase motivation.this will increase motivation.
6. THEORETICALTHEORETICAL
APPROACHES:APPROACHES:
McGregor developed a theory for humanMcGregor developed a theory for human
motivation and it relates to the perceptions ofmotivation and it relates to the perceptions of
managers received from their employees, it ismanagers received from their employees, it is
primarily concerned with attitudes not attributes.primarily concerned with attitudes not attributes.
Theory X suggests that workers need to be closelyTheory X suggests that workers need to be closely
supervised and comprehensive systems of controlssupervised and comprehensive systems of controls
developed. (This corresponds with the Commanddeveloped. (This corresponds with the Command
and Control form of management discussedand Control form of management discussed
earlier).earlier).
Therefore a hierarchical structure is needed with aTherefore a hierarchical structure is needed with a
narrow span of control at each and every level.narrow span of control at each and every level.
7. THEORETICALTHEORETICAL
APPROACHES:APPROACHES:
A Theory Y manager believes that, given theA Theory Y manager believes that, given the
right working conditions most people willright working conditions most people will
excel in different areas.excel in different areas.
Charles Handy’s (1999) Role Culture offersCharles Handy’s (1999) Role Culture offers
employees security and the opportunity toemployees security and the opportunity to
acquire specialist expertise; performance upacquire specialist expertise; performance up
to a required standard is rewarded on theto a required standard is rewarded on the
appropriate pay scale and possibly byappropriate pay scale and possibly by
promotion within the functional area.promotion within the functional area.
8. KEY PRINCIPLES OFKEY PRINCIPLES OF
MANAGEMENT:MANAGEMENT:
System Theory is a term used to describeSystem Theory is a term used to describe
the combination of both the classicalthe combination of both the classical
approach and the human relations approachapproach and the human relations approach
to create optimal results.to create optimal results.
Unity of Command states that everyUnity of Command states that every
employee should receive orders from onlyemployee should receive orders from only
one superior. Like from top to bottom in anone superior. Like from top to bottom in an
organisation.organisation.
9. THEORETICALTHEORETICAL
APPROACHES:APPROACHES:
I would assume Charles Handy’s RoleI would assume Charles Handy’s Role
Culture can be used here, where heCulture can be used here, where he
describes an organisation by having strongdescribes an organisation by having strong
functional or specialised areas, coordinatedfunctional or specialised areas, coordinated
by a narrow band of senior management atby a narrow band of senior management at
the top.the top.
In other words he is explaining a top downIn other words he is explaining a top down
approach to managementapproach to management
10. KEY PRINCIPLES OFKEY PRINCIPLES OF
MANAGEMENT:MANAGEMENT:
The Scalar Chain is another example ofThe Scalar Chain is another example of
principles of management; it represents theprinciples of management; it represents the
line of authority from top management to theline of authority from top management to the
lowest ranks.lowest ranks.
Unity of Direction suggests that each groupUnity of Direction suggests that each group
of organisational activities that have theof organisational activities that have the
same objective should be directed by onesame objective should be directed by one
manager using one plan.manager using one plan.
11. A THEORETICAL APPROACH:A THEORETICAL APPROACH:
Charles Handy’s Power Culture is relevantCharles Handy’s Power Culture is relevant
here because he describes the powerhere because he describes the power
culture as a spider’s web with the all-culture as a spider’s web with the all-
important manager sitting in the centreimportant manager sitting in the centre
because the key to the whole organisationbecause the key to the whole organisation
sits in the centre.sits in the centre.
A power culture is more like a dictatorshipA power culture is more like a dictatorship
and in my opinion it fits in perfectly withand in my opinion it fits in perfectly with
unity of direction.unity of direction.
12. OTHER KEY PRINCIPLES OFOTHER KEY PRINCIPLES OF
MANAGEMENT:MANAGEMENT:
Subordination of individual interests to the generalSubordination of individual interests to the general
interest. (The interests of an employee or a groupinterest. (The interests of an employee or a group
of employees should not outweigh the interests ofof employees should not outweigh the interests of
an organisation as a whole).an organisation as a whole).
Initiative – Employees must use common sense.Initiative – Employees must use common sense.
RemunerationRemuneration
Centralisation – Relates to which subordinates areCentralisation – Relates to which subordinates are
involved in the managerial decision makinginvolved in the managerial decision making
process.process.
Order is needed because disorder causes chaos.Order is needed because disorder causes chaos.
13. CHANGES ANDCHANGES AND
DEVELOPMENT:DEVELOPMENT:
In the beginning during agricultural stages ofIn the beginning during agricultural stages of
trading and commerce human resourcestrading and commerce human resources
management functioned differently.management functioned differently.
Since then technological advancement hasSince then technological advancement has
changed how things operate in the HR department.changed how things operate in the HR department.
For e.g. Microsoft Windows keeps upgrading itsFor e.g. Microsoft Windows keeps upgrading its
operating software.operating software.
Hence the relevant departments will have toHence the relevant departments will have to
embrace and make adjustments to new operatingembrace and make adjustments to new operating
systems.systems.
14. CHANGES ANDCHANGES AND
DEVELOPMENT:DEVELOPMENT:
Recently the government has made someRecently the government has made some
changes to pension schemes such as SERPSchanges to pension schemes such as SERPS
in its annual budget. (This will affect how HRin its annual budget. (This will affect how HR
fills in certain forms).fills in certain forms).
Education has changed and developed HR,Education has changed and developed HR,
by giving people the correct skills andby giving people the correct skills and
knowledge to carry out their work.knowledge to carry out their work.
15. CHANGES ANDCHANGES AND
DEVELOPMENT:DEVELOPMENT:
The economy and its recessions also playThe economy and its recessions also play
a huge part in shaping HR in terms ofa huge part in shaping HR in terms of
being flexible and re-structuring the wholebeing flexible and re-structuring the whole
organisation.organisation.
In addition social factors such as culturalIn addition social factors such as cultural
values (people’s beliefs, gender andvalues (people’s beliefs, gender and
personal background) have affected HRpersonal background) have affected HR
over the years.over the years.
