FM-AA-CIA-15 Rev.

0 10-July-2020

Study Guide in BAC 101 – HUMAN RESOURCE MANAGEMENT Module No. 1

1
STUDY GUIDE FOR MODULE NO. ___

DEFINITION AND SCOPE OF HUMAN RESOURCE MANAGEMENT

MODULE OVERVIEW

We value our people. Employees are at the heart of the company. Having chosen personnel with
commitment to the highest standards, through teamwork, we aim to create corporate understanding and loyalty
to one another (Nissan Philippines, Inc., 2014).

This module emphasizes the history of HRM, its importance, scope, and its difference to Personnel
Management. Human Resource Management (HRM) is a collective term for all the formal systems created to
help in managing employees and other stakeholders within a company.

Human Resources Management embraces a wide range of basic business ideas that include
recruitment, selection, and training and development, performance appraisal, compensation, safety and health,
and other productivity improvement programs.

MODULE LEARNING OBJECTIVES

At the end of this Module, you should be able to:

1. Explain the role of human resource management in organizations.

2. Describe human resource management as a strategic component of every business organization.
3. Discuss how human resource management can make a difference by adding value to an
organization.
4. Describe the best features of HRM
5. Explain the differences between Human Resource Management and Personnel Management.

LEARNING CONTENTS (DEFINITION OF HRM)

Did you know that the term “human resource management” is a more recent term? Prior to the emergence of
the term was what we refer to as “personnel administration.” HRM came to the fore because of the so many
developments in the field.

But before that, let us first define the scope of what HRM means.

HRM has been defined in a variety of ways. Some adopt a process view or a functional approach to HRM
defining it in terms of its major functions and processes. But generally, HRM, according to one of your readings,
Mathis & Jackson (2008, p.4):

“… the systematic planning, development, and control of a network of interrelated processes

affecting and involving all members of the organization. In entails designing management systems
to ensure that human talent is used effectively and efficiently to accomplish organizational goals.”

Before we proceed to history, take note of our first Learning Activity to help you gain more understanding of
the concept of HRM.

PANGASINAN STATE UNIVERSITY 1

 FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in BAC 101 – HUMAN RESOURCE MANAGEMENT Module No. 1

LEARNING CONTENTS (HRM Historical Breakthroughs)

Now let us discuss the milestones in the development of HRM.

Frederick W. Taylor pioneered the study of scientific management and eventually became known as the father
of scientific management. His work played a very important role in the advancement of the people function in
the early 1900s.

As Taylor was starting with his concepts about scientific management, other proponents were also employing
related principles of psychology in recruiting, selecting, training, and developing workers.

Moreover, the significant historical breakthroughs in HRM development was identified. These are (1) Scientific
Management, (2) Industrial Psychology, (3) Hawthorne studies, (4) Birth of Union Membership, (5) Equal
Employment Opportunity (EEO), (6) Labor force, globalization and strategic HRM function. (Lauron, Doris P.,
2019)

The Hawthorne Studies, which were conducted in the 1920s and 1930s at Western Electric, sparked an
increased emphasis on the social and informal aspects of the workplace. Interpretations of the studies
emphasized "human relations" and the link between worker satisfaction and productivity.

For further reading about the milestones in the development of HRM, kindly search this link:
http://www.whatishumanresource.com/historical-milestones-in-hrm-development

Importance of Studying Human Resource Management

The organization is made up of people. The main goal of any organization is to provide goods and services
effectively. It is the people who are linked in a formal structure and managerial leadership. People are vital to
an effective personnel management program. The development of an effective organization hinges on the
proper selection, development, and utilization, rewarding, and maintaining capable people (Ferrer, et.al., 2015).

For further reading about the importance of HRM, read the whole chapter 1 of Human Resource
management Principles and Practices or log on to https://study.com/academy/course/human-resource-
management

It is important to know that people will always be one of the company’s valuable assets. Hence, it is
essential for employees to understand HR management so they may gain a better understanding of their rights
and privileges as thinking, feeling, and doing individuals in an organization. Thus, studying HR management
can provide supervisors and leaders a competitive edge, especially in the aspect of recruitment. (Lauron, Doris
P., 2019)

Let us move on to the next topic which is about the significant features of HRM.

According to V. P. Michael, the feature of the human resource management is to “reflect a new
philosophy, a new outlook, approach and strategy, which views an organization’s manpower as its resources
and assets and not as liabilities or mere hands”. Thus, human resource or manpower is considered today to be
the vital resource to develop the organization.

Human Resource Management is a continuing process of managing people and their activities at
work while squeezing out the best potential from them so they become productive individuals. Some of the
important features of HRM are:

1. It is prevalent in nature
2. It is dynamic
3. It is individually-oriented
4. It is employee-oriented
5. It is forward-looking
6. It is growth-oriented

The next topic that we’ll discuss is to determine the difference between Personnel Management and Human
Resource Management.

PANGASINAN STATE UNIVERSITY 2

 FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in BAC 101 – HUMAN RESOURCE MANAGEMENT Module No. 1

In an organization, a group of people (employers and employees) work together with a common motive i.e. to
achieve their organizational goal, which is only possible when efforts of all the people in the organization are
efficiently managed.

Personnel management is an administrative function which exists in an organization to ensure right personnel
at right organizational activity. It is a traditional approach of managing employees which focuses on adherence
to policies and rules of organization. On the other hand,
Human resource management is a modern approach of managing people at workplace which focuses on
acquisition, development, utilization and maintenance of human resource. It combines physical energies and
their strengths with human competencies. In simple words, human resource management can be referred as
the policy which ensures right quality and quantity of human resource in the organization. Like personnel
management, human resource management is also concerned with planning, job analysis, recruitment and
selection, hiring and socialization, training, performance appraisal, rewarding, and compensation management.

Personnel management is conventional and concentrates on supervisory administration of people. Human

resource management is a non-stop function directed at developing the potentials of employees. It is the
effective supervision and management of employees’ capabilities and other attributes.

SUMMARY

• Human resource management is the organizational function of handling and managing one of the most
valuable assets of the organization.
• Human resource management is composed of various HR practices that aid the firm in successfully and
reasonably leading its people in their journey during the three stages of the employment cycle.
• Human resource management encompasses a wide range of basic business ideas that includes
recruitment, selection, training and development, appraisal of performance, compensation and benefits
administration, and other productivity improvement programs.
• Frederick Taylor pioneered the study of scientific management and eventually became known as the father
of scientific management.
• Personnel refers to the people manning the organization and managing these people is referred to as
personnel management. Human resource management is a non-stop function directed at developing the
potentials of employees.
• Human resource management makes decisions about human resource development (HRD) plans, while
HRD depends on the decisions of HRM.

REFERENCES

Lauron, D.P. (2019). Human Resources Management (Principles and Practices). Manila, Philippines: Rex
Bookstore.

Diamante, M. M. (2015). Managing Human Resources Local and Global Perspectives (Outcomes-Based
Learning). Manila, Philippines: C&E Publishing, Inc.

Marchington, M. (2016). Human Resource Management at Work (6th edition). Broadway London:
Chartered Institute of Personnel and Development (CIPD)

3G ELearning FZ LLC. (2016) Human Resource Management in Small Business. Unired Arab Emirates

Ferrer, M.P., et.al. (2015). Human Resource Management. Manila, Philippines:, Unlimited Books
Library Services and Publishing Inc.

Barboza, N., et. al (2019) Job Analysis and Design. Manila, Philippines:, Unlimited Books Library
Services and Publishing Inc.

Electronic Sources:

The Internal Structure of an HR Department

Retrieved from:

PANGASINAN STATE UNIVERSITY 3

 FM-AA-CIA-15 Rev. 0 10-July-2020

Study Guide in BAC 101 – HUMAN RESOURCE MANAGEMENT Module No. 1

https://study.com/academy/lesson/common-structures-of-hr-in-organizations.html

Human Resource Management: Definition, Objectives & Responsibilities

Retrieved from:
https://study.com/academy/lesson/human-resource-management- definition-objectives-responsibilities.html

What Is Human Capital? - Importance to An Organization

Retrieved from:
https://study.com/academy/lesson/what-is-human-capital-importance-to-an-organization.html

Features of Human Resource Management

Retrieved from:
https://www.businessmanagementideas.com/human-resource-management-2/features-of-hrm/features-of-
human-resource-management/19436

PANGASINAN STATE UNIVERSITY 4