ADM2337 – Chapter 1
Human Resource Management – Managing human capital (knowledge, education,
training, skills, expertise) to achieve organizational goals.
- Performance appraisal and discipline
External Environmental Influences
- Economic conditions:
o Employment levels
o Productivity levels
o Growth of the service sector
- Labour market issues:
o Increasing diversity
o Rules and regulations for employee-employer relationships are set.
- Globalization and Environmental concern
o No more geographic boundaries.
o There are different rules in different countries, if you need to manage
people in other countries you must understand, respect, and
implement the laws of their countries.
Brief History of HRM
- Scientific Management (Early 1900’s)
o “Scientifically” analyzing manufacturing processes to reduce costs and
pay based on performance levels. (Frederic Taylor)
o HRM played a minor role of hiring, firing, payroll, etc. (Personal
- Human Relations Movement (1920’s-1950’s)
o Concern for people
o Increase in unionization; new focus on employee relations,
orientation, performance appraisal.
- Human Resources Movement (1960’s-Present)
o (Strategic and operational component both included)
o Joint focus – concern for people and productivity