LEARNING UNIT 1:
HUMAN RESOURCE MANAGEMENT : AN OVERVIEW
1.1.1. UNIT OVERVIEW
This unit commences with a brief introduction of what human resource management is. The history
and development of HRM is explained, starting with a discussion of scientific management and
thereafter the human relations approach. This is followed by a discussion on the agility and flexibility
of HRM in a contemporary work environment. This unit offers insight into a South African
perspective of HRM by taking a closer look at both the microenvironment and the
macroenvironment (internal and external factors) that have an influence on HRM and the world of
work today. The unit provides a sound introduction to HRM as a field of study, and ends with insight
into the possible careers that could be pursued in HRM.
1|Page
Unit 1: What is Human Resource Management?
CORE CONCEPT 1 CORE CONCEPT 2 CORE CONCEPT 3
Scientific Management Human Relations Human Resources
Approach Approach
CORE CONCEPT 4 CORE CONCEPT 5 CORE CONCEPT 6
Macro environment Microenvironment Careers in HRM
Figure 1: Concept Map Template
1.1.2. UNIT-SPECIFIC STUDY MATERIAL
Unit 1 consists of specific preparation material and content material that will assist each student in
understanding the key concepts of this unit. It is the responsibility of each student to ensure that
he/she familiarises him/herself with unit-specific study material.
[Link]. P REPARATION MATERIAL
Please read Chapter 1 of the textbook.
1.1.3. UNIT SUMMARY
The following learning and assessment opportunities will be completed in this unit:
DESCRIPTION OF THEME LEARNING OPPORTUNITIES
What is Human Resource Lecture & Tutorial Session
Management?
Blackboard quiz
Online activity
The time and dates of learning opportunities will be made available on Blackboard.
1.1.4. Q UESTIONS TO CONSIDER IN THIS UNIT
LEARNING OUTCOMES ASSESSMENT CRITERIA
1. Interpret what human resource 1.1 Explain what human resource
management is. management (HRM) is and provide a
definition.
1.2 Summarise the historical development
of HRM.
1.3 Discuss the importance of agility and
flexibility of HRM in a contemporary
environment.
1.4 Outline the fundamental focus areas of
HRM.
1.5 Discuss how the macroenvironment
affects organisations in South Africa.
1.6 Describe how the microenvironment
influences HRM in a South African
organisation.
1.7 Identify possible careers in HRM.
Topics to you will cover in this unit:
1.1 What is human resource management?
Human resource management (HRM) can be described as a specific approach to managing
employees with the understanding that those employees are vital assets to the organisation. It is
frequently said that an organisation is only as effective as its employees. HRM thus forms a critical
part of maintaining or improving the welfare of the organisation. HR (human resources) can also
3|Page
refer to either the human capital (employees) of the organisation or the specific department within
the organisation. This department is responsible for managing all matters related to the employees
of the organisation.
1.2 HRM past and present
In this section, you will learn more about the historical development of HRM. You will learn how
vastly different HRM today is from employee management approaches in the past. The section starts
off with a discussion of the scientific management approach, followed by the human relations
approach. The section concludes with the preferred approach of managing employees in the
contemporary work environment.
1.2.1 Scientific management
Frederick W. Taylor published his book on the principles of scientific management. Taylor, the father
of scientific management, was one of the first theorists to study the process of work scientifically.
Taylor and other scientists, such as Henry Gantt, Lilian Gilbreth and Frank Gilbreth, considered how
work was performed, and then observed how this influenced employee productivity. The main
concern of this school of thought was to increase productivity through greater efficiency and
effectiveness.
1.2.2 The human relations approach
The human relations approach emerged as a result of criticism of the scientific management
approach which focused on tasks, productivity and organisational structure but neglected to
consider the well-being of the employees. The new approach was also advanced by the growing
strength of trade unions during the time. At that stage, trade unions began to question and contest
the fairness and legitimacy of the scientific approach of employee management.
1.2.3 The human resource (HR) approach
During the mid-twentieth century, people started to realise that organisational goals and employees’
needs cannot be separated. This is the essence of the human resources (HR) approach. Researchers
and practitioners started to understand that you will not achieve organisational goals if you neglect
or ignore the needs of your employees. The HR approach is a system of managing employees that
recognises that the success of the organisation depends on its human resources (i.e. its people or
human capital). The primary role of HRM is to make the organisation more effective and, at the same
time, to satisfy each employee’s needs. Employees who are motivated and skilled will produce good
work, which in turn will help the organisation to make a profit. If the organisation shows increased
profits, the employees will benefit through financial rewards and recognition.
Activity 1:
Fill in the appropriate information in the table below. Remember to write down only the most
important characteristics of each approach. Tip: identify aspects that these approaches may have
in common and the ideas which are completely different.
Scientific Management Human Relations Approach Human Resource Approach
4|Page
1.3 Human resource management in South Africa
In this section, we will explain how both the macroenvironment and the microenvironment impact
organisations in South Africa specifically. You need to understand that the world has changed
immensely over the last few decades and that today we indeed live in a global society. This will
inevitably influence the way in which all organisations function.
1.3.1 Macroenvironment
The macroenvironment refers to the external factors that have an influence on the organisation and
the strategies it needs to follow to ensure the continuous existence and success of the business.
These external factors beyond of the control of the organisation, but still play a definite role in its
success.
The endeavour of the organisation to examine and evaluate the external environment is frequently
referred to as a strategic analysis. While there are various approaches that could be considered for
such an undertaking, we prefer the STEEPLE. The STEEPLE analysis approach focuses on accessing
the following components: Sociological, Technological, Economical, Environmental, Political, Legal
and Ethical.
5|Page
Activity 2:
Summarize five key principles of the STEEPLE components.
Sociological Technological Economical Political Legal Ethical Environmental
6|Page