CHAPTER 1Personnel and Human Resource

Management

INTRODUCTION Organizations are established to achieve specific objectives. Many of them compete with one another in the attempt to reach their goals. When they are not in competition, they try their best to survive. Success comes as a result of effective and efficient use of resources. Most often, however, the outcome is attributed to the performance of the organization’s human resources. This happens even in the presence of various constraints like those concerning equipment, materials, and money.

MANAGEMENT FUNCTIONS AND HUMAN RESOURCE MANAGEMENT

Management is the process of working with and through people in the achievement of organizational objectives. Human resource management is part of this larger discipline and so it must be viewed in the context of the basic management functions. This means that in the attempt to pursue the practice of human resource management, management functions of planning, organizing, and controlling must be considered.

WHAT IS HUMAN RESOURCE MANAGEMENT? HRM is that management function

concerned with making sure that the human component of the organization is able to achieve the goals assigned to it.

HRM is distinguished from other management functions of marketing, finance, and production. It is different from marketing which is concerned with the generation of sufficient volumes of sales to keep the company as a viable concern.

THE CENTRAL FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Staffing (strategic human resource

planning, recruitment and selection) Training and development, Motivation

Motivation and job design Performance and evaluation Rewards and compensation Employee benefits

Maintenance Safety Health Communication programs

THE EXTERNAL ENVIRONMENT OF HRM Economic forces Government legislation Advances in technology Labor unions Management thought

Henri Fayol in 1961-managerial functions and fourteen management principles.

Frederick Taylor espoused “scientific management” (refers to the devt of performance standards on the basis of systematic observation and experimentation

Thomas Hawthorne in 1924 – made to find answers to what affects productivity

PERSONNEL MANAGEMENT VS. HUMAN RESOURCE MANAGEMENT Personnel management

Recruitment, training, remuneration, and discipline

HRM Personnel management activitiesA view that regards

People as the major organizational asset, and Workers as instinctively willing and able to be

developed Integration of the personnel management

function into the strategic management of the organization.

ORGANIZING THE HRM DEPARTMENT The HRM department is the unit

assigned to implement the organization’s HRM policies. Its size and structure depend on several factors such as: Available resources Number of company employees Philosophy management

HRM FUNCTIONS IN VARIOUS SIZES AND STRUCTURES In a small organization In a growing organization In a large organization

SUMMARY The objectives of any organization may

be achieved depending on the motivation and ability of its individual members. Providing the organization with the right members is the responsibility of human resource management.

HRM is a function that has evolved from the traditional personnel management concept, and it is now a very important activity of any organization .

SUMMARY As the basic management functions of

planning, organizing, leading, and controlling are applied to management in general, so it is equally applicable to HRM.

HRM may be defined as that function concerned with making sure that executives and employees of the organization are able to achieve the goals expected of them.

The external environment affects HRM. This consists of economic forces, government legislation, technological advances, labor unions, and management thought.