MHR 523 Lecture Notes - Lecture 1: Human Relations Movement, Hawthorne Effect, Scientific Management
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Lecture 1: The Strategic Role of HRM
• Define psychological contract and explain how this concept is important in the
workplace.
o The psychological contract refers to the unwritten set of expectations of the
employment relationship as distinct from the formal, codified
employment contract.
• Discuss some common misconceptions about HR
o HR is a useless department
o HR does’t ot uderstad usiess
o People go ito the field of HR siply eause they like workig with people
• Define Human Resource Management and Human Capital
o Human Resources Management: The management of people within an
organization to drive successful organization performances and achieve the
orgaizatio’s strategi goals.
o Human Capital: The knowledge, education, skills, and training of an
orgaizatio’s workfore.
• Briefly describe each of the functional areas of HR
o Job analysis and job design
o Compensation
o Recruitment and selection
o Talent management and succession planning
o Employee engagement, motivation and wellness
o Performance appraisals
o Discipline and discharge
o Labour relations
• Discuss the change in attitudes towards Labour (employees) from Scientific
Management (Fredrick Taylor) to the Hawthorne Studies (be able to explain the
Hawthorne experiment and its main finding) through to the modern understanding of
HRM.
o “ietifi aageet is the proess of sietifially aalyzig aufaturig
processes, reducing production costs, and compensating employees based on
their performance levels.
o Emphasized task simplification and performance based pay. These incentives
should have led to higher wages, increased profits and workplace harmony.
o Led to unionization, human relations movement, and outsourcing.
• Describe some external (i.e. economic conditions) and internal (i.e. Organizational
Culture) influences on HR (Note: we discuss more detail on this point in lecture 3).
o External Factors:
▪ Productivity
• Primary, Secondary, and Tertiary sectors
▪ Workforce
• Increasing workforce diversity
▪ Demographic
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