BACHELOR OF BUSINESS ADMINISTRATION

HUMAN RESOURCE MANAGEMENT

INTRODUCTION

Prepared

By

Oguta James
 Introduction

 Human beings are social beings and hardly ever live and work in isolation.
 We always plan, develop and manage our relations both consciously and
unconsciously.
 The relations are the outcome of our actions and depend to a great extent upon our
ability to manage our actions.
 From childhood each and every individual acquire knowledge and experience on
understanding others and how to behave in each and every situations in life.
 Later we carry forward this learning and understanding in carrying and managing
relations at our workplace.
 The whole context of Human Resource Management revolves around this core matter
of managing relations at work place.
 Since mid-1980’s (HRM) has gained acceptance in both academic and
commercial circle.
 HRM is a multidisciplinary organizational function that draws theories
and ideas from various fields such as management, psychology, sociology
and economics.
 There is no best way to manage people and no manager has formulated
how people can be managed effectively, because people are complex
beings with complex needs.
 Effective HRM depends very much on the causes and conditions that an
organizational setting would provide.
 Any Organization has three basic components, People, Purpose, and
Structure.
 In 1994, a noted leader in the (HR) field made the following
observation:
 Yesterday, the company with the access to most capital or the
latest technology had the best competitive advantage;
 Today, companies that offer products with the highest quality
are the ones with a leg up on the competition;
 But the only thing that will uphold a company’s advantage
tomorrow is the caliber of people in the
organization.
 That predicted future is today’s reality.
 Most managers in public- and private sector firms of all sizes
would agree that people truly are the organization’s most important asset.
 Having competent staff on the payroll does not guarantee that a firm’s
human resources will be a source of competitive advantage.
 However in order to remain competitive, to grow, and diversify an
organization must ensure that its employees are qualified, placed in
appropriate positions, properly trained, managed effectively, and
committed to the firm’s success.
 The goal of HRM is to maximize employees’ contributions in order to
achieve optimal productivity and effectiveness, while simultaneously
attaining individual objectives (such as having a challenging job and
obtaining recognition), and societal objectives (such as legal compliance
and demonstrating social responsibility).
 Definitions of HRM

 HRM is a management function concerned with hiring, motivating and

maintaining people in an organization. It focuses on people in organizations.
 Human resource management is designing management systems to ensure that
human talent is used effectively and efficiently to accomplish organizational
goals.
 HRM is the personnel function which is concerned with procurement,
development, compensation, integration and maintenance of the personnel of an
organization for the purpose of contributing towards the accomplishments of the
organization’s objectives.
 Therefore, personnel management is the planning, organizing, directing, and
controlling of the performance of those operative functions (Edward B. Philippo).
 According to Invancevich and Glueck, “HRM is concerned
with the most effective use of people to achieve organizational
and individual goals. It is the way of managing people at work,
so that they give their best to the organization”.
 In short Human Resource Management (HRM) can be defined
as the art of procuring, developing and maintaining competent
workforce to achieve the goals of an organization in an
effective and efficient manner.
 Evolution of HRM
 The evolution of the concept of Human Resource Management is
presented below;
 Period before industrial revolution –
 The society was primarily an agriculture economy with limited
production.
 Number of specialized crafts was limited and was usually carried out
within a village or community with apprentices assisting the master
craftsmen.
 Communication channel were limited.
 Period of industrial revolution (1750 to 1850) – Industrial revolution marked the
conversion of economy from agriculture based to industry based. Modernization and
increased means of communication gave way to industrial setup. A department was
set up to look into workers wages, welfare and other related issues. This led to
emergence of personnel management with the major task as;
 Worker’s wages and salaries
 Worker’s record maintenance
 Worker’s housing facilities and health care
 An important event in industrial revolution was growth of Labour Union
(1790)
 The workers working in the industries or factories were subjected to long
working hours and very less wages.
 With growing unrest, workers across the world started protest and this led
to the establishment of Labour unions.
Post Industrial revolution – The term Human resource Management saw
a major evolution after 1850. Various studies were released and many
experiments were conducted during this period which gave HRM
altogether a new meaning and importance. A brief overview of major
theories released during this period is presented below;
 Frederick W. Taylor gave principles of scientific management (1857 to
1911) led to the evolution of scientific human resource management
approach which was involved in
 Worker’s training
 Maintaining wage uniformity
 Focus on attaining better productivity.
 Hawthorne studies, conducted by Elton Mayo & Fritz Roethlisberger
(1927 to 1940). – Observations and findings of Hawthrone experiment
shifted the focus of Human resource from increasing worker’s
productivity to increasing worker’s efficiency through greater work
satisfaction.
 Douglas McGregor Theory X and Theory Y (1960) and Abraham
Maslow’s Hierarchy of needs ( 1954) – These studies and observations led
to the transition from the administrative and passive
Personnel Management approach to a more dynamic Human Resource Ma
nagement approach
which considered workers as a valuable resource. As a result of these
principles and studies, Human resource management became increasingly
line management function, linked to core business operations.
CHARACTERISTICS OF HRM;
The characteristics of the HRM concept as they emerged from the writings of the
pioneers and later commentators are that it is:
 diverse;
 strategic with an emphasis on integration;
 commitment-oriented;
 based on the belief that people should be treated as assets (human capital);
 unitarist rather than pluralist, individualistic rather than collective in its approach to
employee relations;
 a management-driven activity – the delivery of HRM is a line management
responsibility;
 focused on business values.
HRM versus Personnel Management
Human resource management is the new version of personnel management. There is
no any watertight difference between human resource management and personnel
management. However, there are some differences in the following matters.
 Personnel management is a traditional approach of managing people in the
organization. Human resource management is a modern approach of managing
people and their strengths in the organization.
 Personnel management focuses on personnel administration, employee welfare
and labor relation. Human resource management focuses on acquisition,
development, motivation and maintenance of human resources in the
organization.
 Personnel management assumes people as an input for achieving desired output.
Human resource management assumes people as an important and valuable
resource for achieving desired output.
 Under personnel management, personnel function is
undertaken for employee's satisfaction. Under human
resource management, administrative function is undertaken
for goal achievement.
 Under personnel management, job design is done on the basis
of division of labor. Under human resource management, job
design function is done on the basis of group work/team
work.
 Under personnel management, employees are provided with
less training and development opportunities. Under human
resource management, employees are provided with more
training and development opportunities.
 In personnel management, decisions are made by the top
management as per the rules and regulation of the organization.
In human resource management, decisions are made collectively
after considering employee's participation, authority,
decentralization, competitive environment etc.
 Personnel management focuses on increased production and
satisfied employees. Human resource management focuses on
effectiveness, culture, productivity and employee's participation.
 Personnel management is concerned with personnel manager.
Human resource management is concerned with all level of
managers from top to bottom.
 Personnel management is a routine function. Human resource
management is a strategic function.
Activities of HRM
 Human Resource Planning: The objective of HR Planning is to ensure that the
organization has the right types of persons at the right time at the right place. It
prepares human resources inventory with a view to assess present and future needs,
availability and possible shortages in human resource. Thereupon, HR Planning
forecast demand and supplies and identify sources of selection. HR Planning develops
strategies both long-term and short-term, to meet the man-power requirement.
 Design of Organization and Job: This is the task of laying down organization
structure, authority, relationship and responsibilities. This will also mean definition of
work contents for each position in the organization. This is done by “job description”.
 Selection and Staffing: This is the process of recruitment and selection of staff. This
involves matching people and their expectations with the job specifications and career
path available within the organization.
 Training and Development: This involves an organized attempt to find out training
needs of the individuals to meet the knowledge and skill which is needed not only to
perform current job but also to fulfill the future needs of the organization.
 Organizational Development: This is an important aspect
whereby “Synergetic effect” is generated in an organization i.e.
healthy interpersonal and inter-group relationship within the
organization.
 Compensation and Benefits: This is the area of wages and
salaries administration where wages and compensations are
fixed scientifically to meet fairness and equity criteria.
 Employee Assistance: Each employee is unique in character,
personality, expectation and temperament. By and large each
one of them faces problems every day. Some are personal some
are official. In their case he or she remains worried. Such
worries must be removed to make him or her more productive
and happy.
 Union-Labour Relations: Healthy Industrial and Labour
relations are very important for enhancing peace and
productivity in an organization. This is one of the areas of HRM.
 Personnel Research and Information System: Knowledge on
behavioral science and industrial psychology throws better
insight into the workers expectations, aspirations and behaviour.
Advancement of technology of product and production methods
have created working environment which are much different
from the past. Globalization of economy has increased
competition many fold. Thus, continuous research in HR areas is
an unavoidable requirement. It must also take special care for
improving exchange of information through effective
communication systems on a continuous basis especially on
moral and motivation.
1.6 Objectives of HRM: The primary objective of HRM is to ensure the availability of
competent and willing workforce to an organization. The specific objectives include the following:
1) Human capital: assisting the organization in obtaining the right number and types of employees
to fulfill its strategic and operational goals
2) Developing organizational climate: helping to create a climate in which employees are
encouraged to develop and utilize their skills to the fullest and to employ the skills and abilities of the
workforce efficiently
3) Helping to maintain performance standards and increase productivity through;
 effective job design;
 providing adequate orientation,
 training and development;
 providing performance-related feedback; and
 ensuring effective two-way communication.
4) Helping to establish and maintain a harmonious employer/ employee relationship
5) Helping to create and maintain a safe and healthy work environment
6) Developing programs to meet the economic, psychological, and social
needs of the employees and helping the organization to retain the
productive employees
7) Ensuring that the organization is in compliance with provincial/territorial
and federal laws affecting the workplace (such as human rights,
employment equity, occupational health and safety, employment standards,
and labour relations legislation).
8) To provide organization with well-trained and well-motivated employees
9) To increase the employees satisfaction and self-actualization
10) To develop and maintain the quality of work life
11) To communicate HR policies to all employees.
12) To help maintain ethical polices and behavior
Role of HR Manager
The role of HRM is to plan, develop and administer policies and
programs designed to make optimum use of an organizations human
resources. The primary responsibilities of Human Resource managers
are:
 To develop a thorough knowledge of corporate culture, plans and
policies.
 To act as an internal change agent and consultant
 To initiate change and act as an expert and facilitator
 To actively involve in company’s strategy formulation
 To keep communication line open between the HRD function and
individuals and groups both within and outside the organization.
 To identify and evolve HRD strategies in consonance with overall business
strategy.
 To facilitate the development of various organizational teams and their working
relationship with other teams and individuals.
 To try and relate people and work so that the organization objectives are achieved
efficiently and effectively.
 To diagnose problems and determine appropriate solution particularly in the
human resource areas.
 To provide co-ordination and support services for the delivery of HRD
programmes and services
 To evaluate the impact of an HRD intervention or to conduct research so as to
identify, develop or
test how HRD In general has improved individual and organizational
performance.