Industrial Psychology 144
Chapter 1- Human Resources: Past and
Present
1. Scientific Management
The first radical change in what most owners and managers of the early
1900s generally considered the most effective means of managing employees o
Constant supervision and the threat of the loss of their jobs
Before scientific management
o All employees were considered equally productive
o If their productivity did not measure up, their employment deserved to be quickly
terminated
Instead of relying of fear and intimidation, managers should take a scientific and
objective approach in studying how work could be most efficiently designed
Workers who produce output above the standard must receive additional incentive
pay
Industrial Psychology 144 1
, The results of scientific management techniques received widespread praise in the
newspapers around the world and its principles spread quickly, generally with
success
This approach resulted in work methods and techniques that showed great concern
for employee output but little concern for employee satisfaction
The concept of the economic man held that a worker is motivated primarily by
economic gain and that a worker’s output can be maximised only through financial
incentives
Taylor created the differential piece-rate system whereby workers would receive a
higher rate of pay per piece produced after the daily output standard had been
achieved
The personnel departments of large companies had the traditional responsibilities of
recruiting, selection, training and health and safety; but the main focus of their
activities was the implementation of scientific management techniques
During this period, many personnel departments also actively supported welfare
programmes that addressed the needs of the employee
1. Human relations
During the 1930s and 1940s, management’s attention shifted from scientific
management to human relations
The Hawthorne studies o Employee productivity was affected not only by the way
the job was designed and the manner in which employees were rewarded
economically but also by certain social and psychological factors
Employee’s feelings, emotions and sentiments were strongly affected by such
work conditions as group relationships, leadership styles and support from
management and that those feelings could have a significant impact on
productivity
Treating employees with dignity would both enhance employee satisfaction and
enable the achievement of higher productivity
The personnel department was primarily responsible for designing and
implementing programmes such as the supervisory training programmes
Industrial Psychology 144 2
, The shift to human relations was also influenced by the growing strength of unions
in SA and all over the world during this period
With unionisation came formal grievance procedures, which provided employees
with a measure of protection against arbitrary or despotic supervision
The human relations approach achieved only minimal success in increasing worker
output and enhancing job satisfaction
This is attributable to o The approach was based on an oversimplified concept of
human behaviour in an organisational setting
The approach failed to consider the concept of individual differences
The approach failed to recognise the need both for job structure and for controls
on employee behaviour
The approach failed to recognise that good human relations are but one of
many conditions necessary to sustain a high level of employee motivation
3. The human resources approach
Organisations benefit in two significant ways from this approach o An increase in
organisational effectiveness o The satisfaction of each employee’s needs
The human resource approach holds that organisational goals and human needs
are mutual and compatible
The term became popular in the 1970s o Research in the behavioural sciences
showed that managing people as resources rather as factors of production, or as
human beings who act solely on the basis of emotions, could result in real benefits
to both the organisation and the employee
Principles that provide the basis for a HR approach o Employees are investments
that will provide long-term rewards for the organisation in the form of greater
productivity
Policies, programmes and practices must be created that satisfy both the
economic and emotional needs of employees
A working environment must be created in which employees are encouraged to
develop and utilise their skills to the maximum extent
Industrial Psychology 144 3
, HR programmes and practices must be implemented with the goal of balancing
the needs and meeting the goals of the organisation and the employee
Strategic Human Resource Management
Involves making those decisions that define the overall mission and objectives of
the organisation, determining the most effective utilisation of its resources, and
crafting the strategy in ways that produce the intended results
SRHM activities addresses a wide variety of people issues relevant to the business
strategy
Strategic HR problems are the responsibility of every manager in every department
The HR staff are themselves resources to be called on in support of operating
managers
To be successful, the HR manager will need to acquire a complementary set of
competencies which can be classified as follows o Business mastery
HR manager will need to know the business of their organisation thoroughly and
their strategies
HR mastery
HR manager will have to keep abreast of changes relating to issues such
as staffing, development, appraisals, rewards,team-building and
communication
Change mastery
HR manager will have to be able to manage change processes so that HR
activities are effectively merged with the business needs of the organisation
Personal credibility
HR manager must establish personal credibility
Human Resource Functions
Activities that are most likely to be assigned exclusively to the HR department are o
Compensation and benefits issues o Affirmative action and employment equity
Industrial Psychology 144 4
Chapter 1- Human Resources: Past and
Present
1. Scientific Management
The first radical change in what most owners and managers of the early
1900s generally considered the most effective means of managing employees o
Constant supervision and the threat of the loss of their jobs
Before scientific management
o All employees were considered equally productive
o If their productivity did not measure up, their employment deserved to be quickly
terminated
Instead of relying of fear and intimidation, managers should take a scientific and
objective approach in studying how work could be most efficiently designed
Workers who produce output above the standard must receive additional incentive
pay
Industrial Psychology 144 1
, The results of scientific management techniques received widespread praise in the
newspapers around the world and its principles spread quickly, generally with
success
This approach resulted in work methods and techniques that showed great concern
for employee output but little concern for employee satisfaction
The concept of the economic man held that a worker is motivated primarily by
economic gain and that a worker’s output can be maximised only through financial
incentives
Taylor created the differential piece-rate system whereby workers would receive a
higher rate of pay per piece produced after the daily output standard had been
achieved
The personnel departments of large companies had the traditional responsibilities of
recruiting, selection, training and health and safety; but the main focus of their
activities was the implementation of scientific management techniques
During this period, many personnel departments also actively supported welfare
programmes that addressed the needs of the employee
1. Human relations
During the 1930s and 1940s, management’s attention shifted from scientific
management to human relations
The Hawthorne studies o Employee productivity was affected not only by the way
the job was designed and the manner in which employees were rewarded
economically but also by certain social and psychological factors
Employee’s feelings, emotions and sentiments were strongly affected by such
work conditions as group relationships, leadership styles and support from
management and that those feelings could have a significant impact on
productivity
Treating employees with dignity would both enhance employee satisfaction and
enable the achievement of higher productivity
The personnel department was primarily responsible for designing and
implementing programmes such as the supervisory training programmes
Industrial Psychology 144 2
, The shift to human relations was also influenced by the growing strength of unions
in SA and all over the world during this period
With unionisation came formal grievance procedures, which provided employees
with a measure of protection against arbitrary or despotic supervision
The human relations approach achieved only minimal success in increasing worker
output and enhancing job satisfaction
This is attributable to o The approach was based on an oversimplified concept of
human behaviour in an organisational setting
The approach failed to consider the concept of individual differences
The approach failed to recognise the need both for job structure and for controls
on employee behaviour
The approach failed to recognise that good human relations are but one of
many conditions necessary to sustain a high level of employee motivation
3. The human resources approach
Organisations benefit in two significant ways from this approach o An increase in
organisational effectiveness o The satisfaction of each employee’s needs
The human resource approach holds that organisational goals and human needs
are mutual and compatible
The term became popular in the 1970s o Research in the behavioural sciences
showed that managing people as resources rather as factors of production, or as
human beings who act solely on the basis of emotions, could result in real benefits
to both the organisation and the employee
Principles that provide the basis for a HR approach o Employees are investments
that will provide long-term rewards for the organisation in the form of greater
productivity
Policies, programmes and practices must be created that satisfy both the
economic and emotional needs of employees
A working environment must be created in which employees are encouraged to
develop and utilise their skills to the maximum extent
Industrial Psychology 144 3
, HR programmes and practices must be implemented with the goal of balancing
the needs and meeting the goals of the organisation and the employee
Strategic Human Resource Management
Involves making those decisions that define the overall mission and objectives of
the organisation, determining the most effective utilisation of its resources, and
crafting the strategy in ways that produce the intended results
SRHM activities addresses a wide variety of people issues relevant to the business
strategy
Strategic HR problems are the responsibility of every manager in every department
The HR staff are themselves resources to be called on in support of operating
managers
To be successful, the HR manager will need to acquire a complementary set of
competencies which can be classified as follows o Business mastery
HR manager will need to know the business of their organisation thoroughly and
their strategies
HR mastery
HR manager will have to keep abreast of changes relating to issues such
as staffing, development, appraisals, rewards,team-building and
communication
Change mastery
HR manager will have to be able to manage change processes so that HR
activities are effectively merged with the business needs of the organisation
Personal credibility
HR manager must establish personal credibility
Human Resource Functions
Activities that are most likely to be assigned exclusively to the HR department are o
Compensation and benefits issues o Affirmative action and employment equity
Industrial Psychology 144 4
