Essentials of Human Resource Management

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John De La Cruz
University of the Philippines in Diliman

I.1. Management Essentials
Management involves setting goals and allocating scarce resources to achieve them. •Management is the process of efficiently achieving the objectives of the organization with and through people. •Primary Functions of Management

Planning – establishing goals
Organizing – determining what activities need to be done
Leading – assuring the right people are on the job and motivated Controlling – monitoring activities to be sure goals are met

2.What is Human Resource Management?

Human Resource Management (HRM) is a subset of the study of management that focuses on how to attract, hire, train, motivate and maintain employees. Strong employees become a source of competitive advantage in a global environment facing change in a complex ways at a rapid pace. DeCenzo et al (2010:1)

"Human resource/personnel management may be defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished." Edwin B.Elippo •‘All those activities associated with the management of employment relationships in the firm’Boxall and Purcell (2003: 1) •‘The management of work and people in organizations’Boxall et al (2007.7) HRM as ‘an inevitable process that accompanies the growth oforganizations’Boxall and Purcell (2010: 29) •The policies, practices,and systems thatinfluence employees’ behavior, attitudes, and performance.Noe et al (2011.1)

HRM covers activities such as
human capital management,
knowledge management,
organization design and development,
resourcing (workforce planning, recruitment and selection, and talent management), •performance management,
learning and development,
reward management,
employee relations and employee well-being.
HRM has a strong conceptual basis drawn from the behavioural sciences and from human capital and industrial relations theories.

The philosophy of human resource management
As conceived by the pioneers in the 1980s, HRM is fundamentally different from the personnel management practices of the time. •Beer et al (1984: 1) (the ‘Harvard school’)started with the proposition that: ‘Human resource management (HRM) involves all management decisions and actions that affect the nature of the relationship between the organization and employees – its human resources’. They suggested that HRM had two characteristic features:

(1) line managers accept more responsibility for ensuring the alignment ofcompetitive strategy and HR policies; (2) HR has the mission of setting policies that govern how HR activities are developed and implemented in ways that make them more mutually reinforcing. •Fombrun et al (1984) – developed what has been termed their ‘matching model’, which indicated that HR systems and the organization structure should be managed in a way that is congruent with organizational strategy. ‘The critical management task is to align the formal structure and human resource systemsso that they drive the strategic objectives of the organization’ (ibid: 37). •Hendry and Pettigrew (1990: 20) observed that: ‘What HRM did at this point was to provide a label to wrap around some of the observable changes, while providing a focus for challenging deficiencies – in attitudes, scope, coherence, and direction – of existing personnel management’. •Legge(1989: 25), whose analysis of a number of HRM models identified the following common themes: That human resource policies should be integrated with strategic business planning and used to reinforce an appropriate (or change an inappropriate) organizational culture, that human resources are valuable and a source of competitive advantage, that they may be tapped most effectively by mutuallyconsistent policies that promote...
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