MILTON MARGAI TECHNICAL UNIVERSITY

CONGO CROSS CAMPUS

Lecture Note 1

BACHELOR OF SCIENCE IN BUSINESS

ADMINISTRATION/ACCOUNTING &FINANCE/BANKING AND
FINANCE & INSURANCE
YEAR 1 (BSC. 1)
 Lecture Summary

This session's primary goal is to familiarize

you with the philosophy and concept of human
resources management, including its history,
key concepts, and other dynamics.

A key component of human resources

management is the "people aspect of the
organization."
 Lecture Content

 The definition and objectives of HRM

 The origin of HRM
 Historical development of human resources management.
 Function of the Human Resource Management.
 The similarities and differences between HRM and Personnel
Management (PM)
 The value of people in an organization
 Reservations about HR
 Individual differences, Perception, Industrial psychology, and
Behavioral theory in HRM
 Analysis of the Haw throne experiment.
 INTRODUCTION
Greetings and welcome to the exciting field of human resource management (HRM) for
first-year students at Milton Margai Technical University. Through efficient management of
an organization's most valuable asset—its people—HRM is a dynamic field that
significantly influences the success and sustainability of businesses. Studying HRM will
expose you to the many facets of managing human resources in businesses. You will learn
about employee relations, performance management, training and development,
recruitment, and strategic workforce planning, among other subjects.

You will learn about the many theories, tenets, and practices that support human resource
management (HRM) during your academic career. This will provide you the information
and abilities you need to successfully negotiate the complexity of today's workplace
dynamics. In addition to theoretical knowledge, you will have the chance to work on real-
world applications, case studies, and practical exercises. These experiences will help you
hone the critical thinking, problem-solving, and interpersonal skills that are necessary for
success in the HRM industry. Whatever your career goals—corporate HR departments,
consulting firms, or start-ups—your HRM education will equip you with the skills
necessary to add value to businesses and improve the lives of employees. Prepare yourself
to set out on a fulfilling journey of learning and development in the HRM domain!
Armstrong (2011)
HRM is a strategic, integrated, and coherent
approach to the employment, development, and
well-being of the people working in
organizations. HRM is the systematic approach to effectively
managing people at work

The purpose of human resource management, or HRM

for short, is to optimize employee performance within
an organization to support the strategic goals of the
employer. Johanson (2008)
HR is primarily focused on policies and systems and is concerned
with how people are managed within organizations. Collings &
Wood 2009.

Beer et al (1984)

Human Resources Management involves all management decisions

and actions that affect the nature of the relationship between the
organization and its employees – its human resources.

“HRM is the management of the

employment relationship”
 THE OBJECTIVES OF HRM
The overall purpose of human resource management is to ensure that
the organization can achieve success through people. HRM aims to
increase organizational effectiveness and capability – the capacity of
an organization to achieve its goals by making the best use of the
resources available to it. The objective of HRM is summarized below:

➢ To help the organization reach its goals

➢ To employ the skills and abilities of the workforce efficiently
➢ To provide the organization with well-trained and well-motivated employees
➢ To increase to the fullest the employee's job satisfaction and self-actualization
➢ To develop and maintain a quality work-life
➢ To communicate HR policies to all employees
➢ To be ethically and socially responsive to the needs of society
 THE ROLES OF HRM
HRM serves four key roles in the organization:
➢ Strategic Contributor: HRM contributes to organizational strategy through
activities such as HR planning, aligning workforce capabilities with business
goals, and developing talent to meet future needs.
➢ Administrative Specialist: HRM handles administrative tasks such as
payroll, benefits administration, and dispute resolution to ensure
compliance with policies and regulations and maintain smooth
operations.
➢ Change Agent: HRM leads change management initiatives, facilitating
organizational transitions, and supporting employees through periods of
change, such as restructuring or implementing new technologies.
➢ Employee Advocate: HRM advocates for employees' interests by
championing fair treatment, representing their management concerns,
and advocating for initiatives such as salary increases, benefits
enhancements, and work-life balance programs.
 CHALLENGES FOR HRM:
Introducing the diverse field of human resource management (HRM), where
successful people management is essential to the success of organizations. It is
important to explore the various issues affecting HRM in the fast-paced workplace
of today below:

❑ Growing global competition

❑ Rapidly expanding technologies
❑ Increased demand for individual, team, and organizational
competencies
❑ Faster cycle times
❑ Increasing legal and compliance scrutiny
❑ Higher customer expectations
❑ Cultural Diversity
❑ Employee Engagement, Talent Retention etc.,
❑ knowledge-based workforce
 Emergence of HRM
It was from the traditional personnel management techniques that Human
Resource Management (HRM) emerged as a separate field in the early 20th
century. At first, HRM was mostly concerned with administrative duties like
payroll, keeping track of employees, and adhering to labor laws (Schuler, 1992).
But as industrialization progressed and scientific management theories—which
Frederick Taylor and others helped to establish—rose to prominence, HRM's
function grew (Budhwar & Debrah, 2001). As technology advanced,
organizations came to understand how important it was to maximize human
capital as well, which prompted the creation of methodical methods for managing
employees in the workplace.

HRM's function changed along with the industrial landscape, moving more
toward strategic workforce management. HRM started to participate more and
more in tasks like performance management, training, recruitment, and workforce
planning (Ulrich, 1997).
As a result of the understanding that workers are important assets to the company,
HRM has become a strategic tool for achieving organizational success by
coordinating human resources with business goals. To increase productivity and
competitiveness, this strategic approach to HRM placed a strong emphasis on the
value of talent development, employee engagement, and cultivating a positive work
environment.

HRM is still changing in the modern business environment in response to shifting

market dynamics and advances in technology. Globalization, quick technical
advancement, and shifting labor demographics present new opportunities and
challenges for HRM (Boxall & Purcell, 2011). Talent acquisition, diversity and
inclusion programs, employee development, and organizational change
management are just a few of the many tasks that are now included in HRM.
Human resource management (HRM) is a crucial component of organizational
strategy and performance excellence, as businesses increasingly understand the
importance of human capital in attaining sustainable growth and competitive
advantage.
 HUMAN RESOURCE MANAGEMENT VS PERSONNEL MANAGEMENT

Although both human resource management (HRM) and personnel management (PM) are
methods for managing people within organizations, there are important differences
between them in terms of their philosophies, practices, and strategic orientations.

Personnel Management (PM): Considering employees as resources that need to be

managed, PM focuses on administrative duties and upholding discipline within the
company. There is a single point of decision-making, job-specific training, and regular
performance reviews.

The distinction between HRM and PM: HRM is a more proactive and strategic
approach to managing people in organizations. HRM places a strong emphasis on the
strategic role that human capital plays in accomplishing organizational goals and
objectives, in contrast to PM, which is largely concerned with administrative duties and
upholding order. Employees are seen as important resources and strategic partners in the
success of the company in HRM. HRM encompasses a wider range of activities, including
organizational development, workforce planning, talent management, and employee
relations. HRM decision-making is more decentralized, incorporating feedback from
management and staff to guarantee that choices are in line with business goals and worker
requirements. HRM gives opportunities for learning, development, and career
advancement a high priority to support employee development.
 Human Resource Management
Aspect Personnel Management
(HRM)
HRM emphasizes the strategic importance of Personnel management views employees
Philosophy
employees as assets as a cost to be controlled
HRM focuses on aligning human capital with Personnel management primarily deals
Scope
organizational goals with administrative tasks
HRM takes a proactive approach to managing Personnel management is reactive and
Strategic Orientation
people task-oriented
HRM emphasizes employee involvement and Personnel management focuses on
Employee Relations
empowerment maintaining discipline and order
HRM involves employees in decision-making Personnel management decisions are made
Decision Making
processes by top management
HRM emphasizes employee development and Personnel management provides training
Training and Development
career growth for immediate job tasks

HRM uses performance management systems to Personnel management relies on traditional

Performance Evaluation
assess employee contributions performance appraisals

Time and planning Short term, reactive, ad hoc , marginal Long term, proactive, strategic and
perspective integrated.

Psychological contract Compliance Commitment

Employee Relations Pluralist, collective , low trust Unitary , individualist, high trust.
Perspective

Preferred structure Bureaucratic/mechanistic, centralized, Organic, devolved and flexible roles.

formal/defined roles
There is general agreement among consultants, experts,
and managers of human resources that an organization's
people resources are its most valuable assets because they
are the primary source of the following:

• Productivity
• Profitability
• Improving service quality
• Improving customers’ satisfactions
• Improving competitive advantage
 RESERVATIONS ABOUT HRM
HRM PROMISES MORE THAN IT CAN DELIVER

• Guest (1991) argues that HRM is an ‘optimistic but ambiguous

concept’; it is all hype and hope. According to some critics, putting
the concept of HRM into practice involves strategic integration,
developing a coherent and consistent set of employment policies,
and gaining commitment. It is challenging to meet these criteria.

• Gratton et al (1999) researched this theme and concluded that the

concept of HRM is ‘hyperbole and rhetoric’. Armstrong (1987)
commented it is just new wine in old bottles (i.e. personnel
management under another name).
 THE MORALITY OF HRM
• HRM is accused by many academics of being manipulative if not
positively immoral.

• Willmott (1993) remarked that HRM operates as a form of insidious

‘control by compliance’ when it emphasizes the need for employees to be
committed to doing what the organization wants them to do.

• It preaches mutuality but the reality is that behind the rhetoric it exploits
workers. It is, as Keenoy (1990) asserted, a wolf in sheep’s clothing.

• Scott (1994) thought that HRM was a form of deceit, ‘using subtle
approaches to incorporate workers in an organizational way of thinking
and effect brainwashing them to become willing slaves’.
 INDIVIDUAL DIFFERENCES, PERCEPTION, INDUSTRIAL
PSYCHOLOGY, AND BEHAVIORAL THEORY IN RELATION TO HRM

INDIVIDUAL DIFFERENCES: To foster inclusive workplaces and capitalize on

the advantages of diversity, human resource management (HRM) must recognize and
manage individual differences among employees. These variations cover a wide
range of topics, including values, attitudes, skills, abilities, and personality traits, all
of which add to the diversity and complexity of the workforce. HR specialists are
essential in identifying and appreciating these differences to create a work
atmosphere where each individual feels appreciated and can make a meaningful
contribution to the success of the company.

Think about a situation where you have a team of people from different cultural
backgrounds. Every member contributes distinct viewpoints, communication
philosophies, and methods for approaching problem-solving that are shaped by their
cultural background. To make sure that these distinctions are valued and taken
advantage of, HR professionals need to encourage candid communication and
cultural sensitivity training.
 PERCEPTION: A crucial component of human resource management (HRM) is
perception, which has an impact on several important processes like hiring,
performance reviews, and handling conflict. HR professionals need to be very
conscious of how people perceive and interpret their environment because this has a
big influence on how they act and make decisions at work. HR professionals can
enhance fairness and effectiveness by customizing their communication strategies,
feedback mechanisms, and conflict resolution approaches by gaining insight into
perceptions. For instance, based on their interactions with HR representatives, the
company website, or reviews from current or former employees, candidates may
develop impressions about the culture, values, and work environment of the
organization during the recruitment process. To attract top talent, HR professionals
need to make sure that these perceptions match the organization's desired employer
brand.

 INDUSTRIAL PSYCHOLOGY: Organizational psychology, or industrial

psychology, is comparable to the unseen workings of human resource management. It
all comes down to figuring out how individuals think and act in the workplace. Let's
take an example where there is a company and the workers don't seem motivated. An
industrial psychology-trained HR specialist could look into the reason. They may
discover that because they don't have chances for advancement or recognition, workers
feel underappreciated. Equipped with this knowledge, HR can put tactics like employee
recognition programs or career development programs into practice to increase
motivation and job satisfaction.
 BEHAVIORAL THEORY: HRM's behavioral theory is centered on
figuring out why employees act in certain ways at work and applying that
understanding to improve working conditions. Let's take an example where
an organization observes a high rate of employee absenteeism. HR may
look into the underlying causes using behavioral theory. They may discover
that staff members are disengaged from their jobs or don't think it's worth
coming in every day. HR can address this by putting in place motivating
tactics to boost engagement and attendance, like career advancement
opportunities or recognition programs.

 Similar to this, HR can use behavioral theories to find the root causes of
tension in a team that is prone to conflicts. It could be a difference in work
styles or an absence of clear communication channels. HR may assist staff
members in understanding one another's viewpoints and cooperating more
successfully by organizing team-building activities and offering training in
conflict resolution.
The Hawthorne experiments were a set of research projects that transformed the field of
human resource management (HRM). They were carried out at the Western Electric
Company's Hawthorne Works in Chicago between 1924 and 1932. The purpose of these
studies was to look into how motivational and environmental factors affected worker
satisfaction and productivity. The Hawthorne effect, a phenomenon where employees'
performance improved merely because they were being observed and included in the
research process, was what made the Hawthorne experiments especially groundbreaking.

The prevailing belief at the time, which held that better lighting in the office would
inevitably boost output, was refuted by this discovery. Instead, regardless of whether
lighting levels were raised or lowered, researchers discovered that workers' productivity
increased. This resulted in the understanding that employee behavior and performance were
significantly influenced by social and psychological factors, such as attention, recognition,
and participation.
The Hawthorne experiments emphasized the value of taking human factors into
account in organizational settings and the drawbacks of using only mechanical
methods of employee management. They illustrated how social dynamics,
channels of communication, and a sense of belonging within the company affect
employees and make them more than just inert parts in a machine.

Furthermore, the Hawthorne experiments served as a model for contemporary

HRM techniques that emphasize worker participation and engagement.
Companies started to see the benefits of giving workers a voice in decision-
making, giving them opportunities for feedback and recognition, and creating a
positive work atmosphere. These methods, which have their roots in the findings
from the Hawthorne experiments, are now a crucial part of HRM strategies meant
to improve worker motivation, contentment, and general organizational
performance.

Essentially, the Hawthorne experiments opened the door for a more people-
centric approach to organizational management and revolutionized HRM by
highlighting the significance of taking social and psychological factors into
account when managing employees.
 ENDS HERE

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