HUMAN RESOURCES MANAGEMENT
CHAPTER 1: THE ROLE OF HRM IN AN ORGANIZATION
1st Semester | A.Y. 2025-2026 | BSBA – 2I
interrelated policies with an ideological and
The Human Resources Department or Unit philosophical underpinning'. He suggests four
handles many necessary functions of an aspects that constitute the meaningful version of
organizations. These functions are critical because HRM:
without those functions being completed, the
organization would not be able to meet the essential o a particular constellation of beliefs and
needs of management and staff. assumptions;
o a strategic thrust informing decisions about
The activities under the Department falls people management;
under Human Resource Management or People o he central involvement of line managers; and
Management. In this manual, the term “Human o reliance upon a set of levers' to shape the
Resources Management" will be used throughout employment relationship.
discussion of some of the theories, principles and
concepts underlying it. HUMAN RESOURCE SYSTEM
A. DEFINITION OF HUMAN RESOURCES Human resource management operates
AND HUMAN RESOURCES through human resource systems that bring together
MANAGEMENT (HRM) in a coherent way:
HR philosophies describing the primary
Human Resources refer to the workers and
values and guiding principles adopted in
employees who create an organization. They are the
managing people.
people who take charge in the planning, organizing,
HR strategies defining the direction in which
directing, controlling and implementing the over-all
HRM intends to go.
strategies of the organization. Hence, the success of
HR policies, which are the guidelines defining
the workplace depends on them based on how they
how these values, principles and the
efficiently and effectively work, how they deliver
strategies should be applied and
quality service to their clients/customers, and on how
they accomplish the company's short-term and long-
term objectives.
Human Resources also refers to the people and
the staff that operates an organization, it
also refers to human capital. (Cabulay & Carpio,
2009)-
Human Resources Management is
defined by a lot of gurus and experts. Below is
a summary based from different broad
implemented in specific areas of HRM.
definitions,
HR processes consisting of the formal
procedures and methods used to put HR
1. HRM is management of people. It is the art and
strategic plans and policies into effect.
science of acquiring, motivating, maintaining,
HR practices comprising the informal
and developing people in their jobs in light of
approaches used in managing people.
their personal, professional and technical
HR programmes, which enable HR strategies,
knowledge, skills, potentialities, needs and values
policies and practices to be implemented
and in synchronization with the achievement of
according to plan.
individual, organization and society's goals,
(Martirez, 2015)
HRM is the efficient and effective utilization of
employees in order to achieve goals of the
2. It deals with people so that they can manage the
organization, It is about managing people at work,
other resources within the domain of
being the human side of organizational management
responsibility efficiently and effectively.
having philosophies, policies, procedure, processes,
practices and programmers influencing employees of
3. Defined as a strategic and coherent approach to
the organization.
the management of an organization's most
valued assets - the people working there who
POLICY GOALS OF HUMAN RESOURCE
individually and collectively contribute to the
achievement of its objectives, Storey (1989) MANAGEMENT
believes that HRM can be regarded as a 'set of
HUMAN RESOURCES MANAGEMENT
CHAPTER 1: THE ROLE OF HRM IN AN ORGANIZATION
1st Semester | A.Y. 2025-2026 | BSBA – 2I
The models of HRM, the aims set out above
and other definitions of HRM have been distilled by 1. People constitute an organization's most
Caldwell (2004) into 12 policy goals: important and vital factor in its SUCCESS or
FAILURE.
1. Managing people as assets that are 2. Human factor determines an organization's
fundamental to the competitive advantage of INPUT and OUTPUT
the organization. 3. Through and by men, the M's are acquired
2. Aligning HRM policies with business policies and utilized.
and corporate strategy. 4. Man creates or bypasses opportunities and
3. Developing a close fit of HR policies, scenarios.
procedures and systems with one another. 5. People power contributes to the development
4. Creating a flatter and more flexible of the organization
organization capable of responding more 6. Unlike material and financial assets, human
quickly to change. resources, by their nature are highly dynamic
5. Encouraging team working and co-operation 7. Through human resources, an organization
across internal organizational boundaries. becomes financially viable.
6. Creating a strong customer-first philosophy
throughout the organization. INSTITUTIONAL VARIABLES THAT AFFECT
7. Empowering employees to manage their own PRODUCTIVITY OF HUMAN RESOURCES
self-development and learning.
8. Developing reward strategies designed to 1. Workplace
support a performance-driven culture. 2. Work Design
9. Improving employee involvement through 3. Relationships between and among individuals
better internal communication. and organization groups
10. Building greater employee commitment to 4. Reward System
the organization. 5. Continuing Training
11. Increasing line management responsibility for 6. Career System
HR policies.
12. Developing the facilitating role of managers The success and growth of an organization
as enablers, depends on three factors: People, Capital and
Technology. Whereas, Capital and Technology may
CHARACTERISTICS OF HUMAN RESOURCE be easily available, it is very difficult to source skilled
MANAGEMENT persons. Therefore, the role of human resources
management is critical and strategic to build up
diverse; human capital and to create organizational
strategic with an emphasis on integration; competitive advantage. Today's customers are highly
commitment-oriented; quality conscious and look towards value for the
based on the belief that people should be money. Hence, quality is customer satisfaction built
treated as assets (human capital); through employee participation.
unitarist rather than pluralist, individualistic
rather than collective in its approach to Review Questions:
employee relations; 1. Management of human resources does play a
a management-driven activity - the delivery pivot role on quality, More important of
of HRM is a line management responsibility; those, how you organize the people in the
focused on business values organization play even a bigger role in
improving both quality and productivity,
WHY IS HUMAN RESOURCES MANAGEMENT Explain.
RELEVANT TO ALL MANAGERS? 2. What are the future challenges before human
resources managers?
1. Employee Performance is the command
responsibility of every manager. C. SCOPE OF HUMAN RESOURCES
1. Productivity of employees is a major concern MANAGEMENT
of top management.
2. HR costs have risen due to mistakes in hiring, Below is a Paradigm of Human Resources
training and disciplining employees. Management as explained by Concepcion Martirez, a
Human Resource Management practitioner and
B. THE IMPORTANCE OF HUMAN expert.
RESOURCES MANAGEMENT
HUMAN RESOURCES MANAGEMENT
CHAPTER 1: THE ROLE OF HRM IN AN ORGANIZATION
1st Semester | A.Y. 2025-2026 | BSBA – 2I
5 FUNCTIONS OF HUMAN RESOURCE Personnel are these employed in the workplace.
MANAGEMENT Personnel Management is an administrative function
which exist in an organization to ensure right
personnel at right organizational activity. It is a
1. Job organization and information - it is traditional approach of managing employees which
related to jobs. In job analysis, every job is focuses on adherence to policies and rules of
defined in terms of duties and responsibilities organization.
and of the qualifications of the job holder. This
function also includes job design and job 2. HUMAN RESOURCES MANAGEMENT
evaluation.
is a modern approach of managing people at
2. Acquisition (or procurement function) - workplace which focuses on acquisition,
starts with the planning of human resources in development, utilization and maintenance of human
relation to available jobs. resources. It combines physical energies and their
strengths with human competencies, In simple
3. Maintenance function - compromises words, human resource management can be referred
motivation, compensation administration, as policy which ensures right quality and quantity of
rewards and sanctions, performance evaluation, human resources in the organization.
benefits, services, maintenance of discipline and
working conditions that are necessary for worker Like personnel management, HRM is also concerned
retention. with planning, job analysis, recruitment and
selection, hiring and socialization, training,
4. Development function - includes training and performance appraisal, rewarding, and compensation
education that aim to upgrade knowledge and management.
skills and improve attitudes of both the managers
and the rank and file. Human resources management, just like
personnel management, involves only man.
5. Research function - supplies facts, theories and Personnel management is subsumed in human
principles on human resources management that resources management and both are areas of
are needed to improve the policies and practices general management which is generally and curtly
of the first four functions. termed management.
Review Questions: Lastly the term General Management is about
1. Among the five functions of management overseeing everything that goes on in a
which do you consider as the most vital in company and making sure that all departments are
human resources management. working together to achieve/ the organization's goals
2. The challenge of management is not so much and objectives.
in its money, machines, methods, markets
but in its PEOPLE. Explain this good Below is a matrix showing the differences
statement. between personnel management from Human
Resources Management along different factors such
D. GENERAL MANAGEMENT, as People Involved, hours of worked, place
PERSONNEL MANAGEMENT AND of work, types of service, department head or officer-
in-charge, department staff qualifications, level of
HUMAN RESOURCES MANAGEMENT:
reporting, goals, technology, strategies, and
A DIFFERENTIATION philosophy.
In an organization, a group of people (employers Factors Personnel Human
and employees) work together with a common Management Resources
motive- to achieve their organizational goal, which is Management
only possible when efforts of all the people in the
organization goal are efficiently managed, there are
two basic approaches that employers adopt to
manage people or employee in their company, they
are:
1. PEOPLE MANAGEMENT
HUMAN RESOURCES MANAGEMENT
CHAPTER 1: THE ROLE OF HRM IN AN ORGANIZATION
1st Semester | A.Y. 2025-2026 | BSBA – 2I
Mostly rank and All people Executive Officer
file working for and Accomplishment Accomplishment
with the of organization of organization
8. Goals
organization goals being and individual
including the emphasized goals
1. Scope:
Board, top Mechanistic: Developmental:
People
management, Reactive, Proactive, socio-
Involved
consultants or structural, technical
resource persons, inflexible, orientation,
middle 9. Technology technical, flexible,
management, control oriented participatory,
rank and file and creative and
2. Hours of Full-time work Full-time, part- organization- innovative
work time, flex-time oriented
Formal setting: Formal and Personally Objective and
3. Place of
office, informal settings subjective scientific based
work
factory/plant based on on individual and
Few and simple: Varied and management's organization
10. Strategies
personnel complex: needs and culture, total
information, Job organization values, system approach
recruitment and and information: compartmentali You sent
screening, social job analysis, job zed approach
activities, design and job Traditional work Humane with
management evaluation. orientation with emphasis on
labor Acquisition of priorities on respect for
relationships human organization and individual and
resources: management society's well
human resources 11. Philosophy welfare mainly being People:
planning, for profit An investment
recruitment, People: and a resource
screening, An expense and
selection and a factor of
placement. production
Maintenance:
4. Types of orientation, The emphasis, however, should not be made
service/funct motivation,
on the differences between personnel and human
ion assessment and
evaluation, resources management but on how a personnel
compensation man/department could develop or be effectively
administration, "turned into" a human resources man/department.
movement
analysis benefits, Review Questions:
participation and
services
1. What is the difference between a general
programs,
manager from a human resource manager?
management-
labor relations. 2. Explain how their duties and responsibilities
Development: are connection with each other
Training and
education, career
planning, testing
and counseling.
Research on
human resources
Administrative Separate Human
5. Department officer or Chief Resources
Head or Executive Office department
Officer-in- manned by
charge human resources
specialist
6. Department Lawyer, Records Behavioral
staff: Clerk scientist, Social
Qualification science
s researcher
Lower level to Higher level to
7. Level of
Line Managers General Manager
reporting
or Chief