Evolution of Human Resource Management
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Questions and Answers

Which of the following describes the primary impact of Information Technology (IT) on the HR profession?

  • IT primarily automated payroll functions and had little effect on other areas of HR.
  • IT has streamlined HR processes, improved service delivery, and enhanced the strategic importance of HR in gaining a competitive advantage (correct)
  • IT reduced the need for interpersonal skills in HR, making technical expertise the most valued asset.
  • IT decreased the importance of a quality workforce.

    • What was the initial focus of HR information systems in the 1960s?

  • Integrated HR applications across different departments.
  • Computerizing payroll administration. (correct)
  • Web-based recruitment and online testing.
  • Using powerful databases for talent management.

    • How did the Internet and the Web impact HR systems and applications?

  • They had minimal impact as most HR functions remained manual.
  • They led to a decline in the use of HR technology due to security concerns.
  • They generated an explosion of HR systems and applications. (correct)
  • They reduced the need for HR professionals.

    • According to studies, what is increasingly defining competitive advantage for organizations?

    <p>The quality of the workforce. (C)</p> Signup and view all the answers

    Which of the following is NOT typically a benefit of e-recruitment?

    <p>Losing personal relationship with applicants. (B)</p> Signup and view all the answers

    What is the primary goal of e-selection?

    <p>To identify the best job candidates with the right skills and abilities. (B)</p> Signup and view all the answers

    Which of the following is a potential disadvantage of using web-based recruitment methods?

    <p>A potential increase in application quantity without a guaranteed increase in applicant quality. (A)</p> Signup and view all the answers

    In what decade did HR applications begin to integrate, increasing the popularity of IT in HR functions?

    <p>1980s (C)</p> Signup and view all the answers

    Which of the following is the MOST direct benefit for companies when tapping into new labor pools like parents with young children or persons with disabilities?

    <p>Access to a wider range of skills and perspectives. (C)</p> Signup and view all the answers

    An employee who starts telecommuting reports experiencing less stress and greater work autonomy. How might the company BEST leverage this information?

    <p>Develop a program to measure and promote these benefits to attract new talent. (C)</p> Signup and view all the answers

    What is the PRIMARY function of a Human Resource Information System (HRIS)?

    <p>To centralize and manage employee data for informed decision-making. (C)</p> Signup and view all the answers

    How does HRIS contribute MOST to the efficiency of HR activities?

    <p>By automating data compilation and expediting information access. (A)</p> Signup and view all the answers

    IBM's use of HRIS to connect global employees and implement online enrollment MOST directly resulted in:

    <p>Reduced printing and mailing costs, leading to significant annual savings. (C)</p> Signup and view all the answers

    Toshiba America Medical Systems (TAMS) implemented an HRIS that allowed them to move all benefit information online. What was a notable outcome of this initiative?

    <p>TAMS received awards for excellence in electronic benefits communication. (C)</p> Signup and view all the answers

    Which of the following best describes the evolving perspective of top executives regarding HRM's role in organizational strategy?

    <p>HRM practices significantly influence the ability to formulate and implement strategy, while other strategic decisions also affect the firm's HR. (C)</p> Signup and view all the answers

    What is the significance of a top HR executive holding a vice presidential or executive vice presidential status within a company?

    <p>It demonstrates that the HR executive is a fully contributing member of the executive committee, influencing major policy decisions and corporate strategy. (C)</p> Signup and view all the answers

    What aspect of payroll administration is MOST improved by implementing an HRIS solution?

    <p>Ensuring accuracy, timeliness, and effective financial controls. (A)</p> Signup and view all the answers

    An organization is considering implementing an HRIS. Which of the following factors should be given the HIGHEST priority when evaluating different HRIS solutions?

    <p>The system’s ability to improve the speed and ease of access to HR information for management decision-making. (C)</p> Signup and view all the answers

    What is the key shift in management behavior that reflects the view of employees as assets rather than costs?

    <p>Investing in employee development and recognizing their value as contributors to the organization's success. (C)</p> Signup and view all the answers

    Which statement best defines 'competencies' in the context of organizational success?

    <p>Competencies are tangible attributes, such as skills and knowledge, combined with intangible attitudes and values, predicting superior performance. (A)</p> Signup and view all the answers

    According to Thomas Davenport, what is a key distinction between 'assets' and 'workers'?

    <p>Assets are easily replaced, whereas workers take increasingly active control over their lives. (B)</p> Signup and view all the answers

    How does 'human capital,' in contrast to 'human resources,' influence an employee's value to their employer?

    <p>Human capital refers to the attributes gained by a worker which creates economic value for their employer, while human resources focuses on administrative functions. (A)</p> Signup and view all the answers

    Given the context of globalization and technological innovations, what is a key challenge for HRM?

    <p>Adapting to borderless operations, global competition, outsourcing, and communication issues. (A)</p> Signup and view all the answers

    Which of the following scenarios best exemplifies the application of 'human capital' principles in an organization?

    <p>A company provides tuition reimbursement and mentorship programs to enhance employees' skills, knowledge, and competencies. (B)</p> Signup and view all the answers

    An organization is restructuring and wants to clearly define reporting relationships. Which of the following uses of an organization chart would be MOST beneficial?

    <p>Monitoring reporting relationships for accountability. (D)</p> Signup and view all the answers

    To ensure compliance and proper handling of employee benefits, which organizational department typically holds primary jurisdiction over the application, inquiries, and processing of insurance claims?

    <p>The Human Resources Department (B)</p> Signup and view all the answers

    A company with multiple branches decides to allow each branch to manage its own employee relations and recruitment processes independently. This approach is an example of:

    <p>Decentralization (C)</p> Signup and view all the answers

    What role is primarily responsible for the direct production of goods and services?

    <p>Line Management (D)</p> Signup and view all the answers

    A company aims to streamline its HR processes. What strategy consolidates the design and administration of HR functions within a single organizational unit.

    <p>Centralization (B)</p> Signup and view all the answers

    In an organization with a centralized HR structure, what is the typical role of HR generalists?

    <p>Handling all HR activities across various departments. (A)</p> Signup and view all the answers

    Which of the following scenarios BEST describes a situation where an organization chart would be beneficial in gaining access to information?

    <p>Identifying the reporting structure after a departmental merger. (B)</p> Signup and view all the answers

    A growing startup needs to establish its HR department. What factor will MOST significantly influence the specific roles and responsibilities within their HR department?

    <p>The size and location of the organization. (B)</p> Signup and view all the answers

    An organization is considering implementing an Electronic Performance Support System (EPSS). Which of the following is the MOST significant benefit they can expect regarding performance management?

    <p>Enhanced communication and establishment of KRAs, objectives, and competencies. (D)</p> Signup and view all the answers

    A company wants to improve its employee training program using e-learning. Which of the following correctly identifies both an advantage and a disadvantage of using e-learning?

    <p>Advantage: Better tracking of training; Disadvantage: Isolation reducing networking (A)</p> Signup and view all the answers

    A company is integrating its performance management system with salary and payroll administration. What is the MOST direct benefit of this integration?

    <p>Automated calculation of pay raises based on performance data. (B)</p> Signup and view all the answers

    What is a primary challenge HR executives face when integrating information from social networking sites into HR practices?

    <p>Balancing potential benefits with issues of privacy and data accuracy. (D)</p> Signup and view all the answers

    A company is considering implementing telecommuting for its employees. Which of the following is the MOST significant employer benefit they can expect?

    <p>Decreased infrastructure costs due to reduced office space requirements. (A)</p> Signup and view all the answers

    A manufacturing company wants to use IT to improve customer involvement. Which of the following strategies would be MOST effective?

    <p>Posting company updates and service offerings on social networking sites. (B)</p> Signup and view all the answers

    How does an employment kiosk primarily benefit employees?

    <p>By offering updates on employee status and access to pertinent information initiated by employees. (C)</p> Signup and view all the answers

    Which of the following best describes the core concept of telecommuting or teleworking?

    <p>Substituting telecommunications and/or computers to establish a remote or virtual office. (C)</p> Signup and view all the answers

    How did the perception of employees change as human resource management evolved?

    <p>They were recognized as a valuable asset and a source of competitive advantage. (A)</p> Signup and view all the answers

    What was the main role of personnel departments during the 1930s and 1940s?

    <p>To handle hiring processes and administer basic HR functions like pay and benefits. (A)</p> Signup and view all the answers

    Which factor primarily drove the shift from personnel management to human resource management?

    <p>Rapid advances in technology and communication. (C)</p> Signup and view all the answers

    Why was personnel management not initially considered a critical function in most business organizations during the 1990s?

    <p>It was viewed primarily as a routine clerical and bookkeeping function. (A)</p> Signup and view all the answers

    In what decade did human resource management emerge as a distinct field, reacting against the functional approach of personnel management?

    <p>The 1970s (D)</p> Signup and view all the answers

    Which department was typically responsible for hiring new workers and administering basic HR activities in the early to mid-20th century?

    <p>Personnel Department (D)</p> Signup and view all the answers

    What term was used to describe the head of the personnel department during the period when these departments were first established?

    <p>Personnel Manager (D)</p> Signup and view all the answers

    How did the 'personnel' departments get their name?

    <p>From an old French word meaning 'person'. (A)</p> Signup and view all the answers

    Flashcards

    Information Technology (IT)

    Field managing how information is accessed, analyzed, and communicated.

    Evolution of IT in HR

    Gradual incorporation of IT in HR functions over four decades, enhancing efficiency.

    HR Information Systems

    Software tools for managing HR data such as payroll and employee records.

    E-recruitment

    Online platforms for posting jobs, submitting resumes, and recruiting candidates.

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    Advantages of E-recruitment

    Includes increased applicant quality, reduced costs, and wider reach.

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    Disadvantages of E-recruitment

    May lead to higher application numbers but lower quality and less personal connections.

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    E-selection

    Use of technology to streamline the process of selecting job candidates.

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    Competitive Advantage in HR

    Edge gained by improving HR service delivery, influenced by workforce quality.

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    Human Resources Management (HRM)

    HRM involves managing the workforce to improve productivity and competitiveness.

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    Role of Top Executives in HRM

    Top executives now see HRM as crucial for formulating and implementing strategy.

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    Human Capital

    Human capital includes the skills, knowledge, and attributes gained by workers.

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    Competencies

    Competencies are the attributes that predict superior performance.

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    Employee Value

    Employees are regarded as valuable assets rather than costs.

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    Global Competition

    Organizations face challenges due to globalized HRM brought by technology.

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    Davenport's View on HR

    Thomas Davenport argues that workers actively control their careers and should be seen as assets.

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    Management Behavior Shift

    Management now recognizes employees as valuable contributors to success.

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    New labor pools

    Opportunities to recruit from diverse groups such as parents or persons with disabilities.

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    Employee benefits of HRIS

    Saves employees money and time, reducing stress and commuting issues.

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    HRIS

    A system that stores essential employee information for accessible HR management.

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    Purpose of HRIS

    To streamline and enhance the efficiency of HR data management and decisions.

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    IBM HRIS application

    Connected 340,000 employees, saving $1.2 million through online systems.

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    Toshiba America Medical System HRIS

    Used HRIS to move benefits information online, improving access and communication.

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    Salary and Payroll Administration

    Management of payroll processes requiring accuracy and financial control.

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    Benefits of HRIS solutions

    Streamlined operations, enhanced communication, and cost savings for HR tasks.

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    HR Department Functions

    Various roles and responsibilities performed by HR departments, which can range from 30 to 40 based on multiple factors.

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    Line Management

    Managers directly responsible for producing goods and services in an organization.

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    Staff Management

    Managers responsible for indirect or support functions within an organization, influencing costs.

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    Centralization of HR

    A structure where HR responsibilities are located in a single unit, with generalists handling all HR activities.

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    Decentralization of HR

    A structure where each unit designs and administers its own personnel system independently.

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    Purpose of Organization Charts

    Charts used by HR and others to design departments, monitor relationships, and gain insights about management structures.

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    Blurring Management Distinctions

    The trend where the clear lines between line and staff management are less defined in organizations.

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    E-learning

    A method that offers just-in-time learning opportunities to employees.

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    Advantages of E-learning

    Increased flexibility, control, reduced costs, and improved training management.

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    Disadvantages of E-learning

    Can isolate training, reducing networking and career enhancement.

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    Electronic Performance Support System (EPSS)

    An online system providing coaching, mentoring, and organization info access.

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    E-HR

    Electronic Human Resource Management transactions conducted via the internet.

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    Telecommuting

    Working remotely using technology, moving work to employees instead of vice versa.

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    Benefits of Telecommuting

    Includes increased productivity, less travel, better morale, and decreased turnover.

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    Corporate Communication

    Email has become essential for internal and external business communication.

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    Personnel Departments

    Units established in the 1930s-1940s focused on hiring and HR activities.

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    Personnel Management

    Management function focusing on personnel responsibilities in organizations.

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    Evolution of HRM

    HR management evolved from a clerical function to a strategic role.

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    HR as Competitive Advantage

    Employees are seen as valuable resources for gaining business advantage.

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    Technology Impact on HRM

    Advances in technology influence HR processes and employee assessment.

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    HRM in the 1990s

    Seen as less critical; mainly for clerical tasks by many organizations.

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    Human Resource Information System (HRIS)

    System for managing HR activities and information.

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    Labor Relations

    Relationship between management and employees regarding work conditions.

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    Study Notes

    Chapter 1: Changing Perspective of Human Resource Management

    • The chapter focuses on the evolving perspective of Human Resource Management (HRM).
    • The objectives of the chapter include learning about the evolution of HRM, the connection between Information Technology (IT) and HRM, applications of IT in HRM, Human Resource Information Systems (HRIS), labor relations, social contribution, HR department organization charts and structures.

    Evolution of HRM (Att. Arnulfo Rayos)

    • During the 1930s and 1940s, HR units evolved to personnel departments.

    • Personnel departments were responsible for hiring, determining pay and benefits.

    • Personnel management emerged as a new management function.

    • Personnel managers led personnel departments.

    • During the 1990s, personnel management was not a critical function but a routine clerical and bookkeeping function.

    • Hiring, paperwork, and payroll were main tasks.

    • However, the role of HRM changed, becoming more important in organizations.

    • HRM emerged in the late 1970s as a reaction against the more functional approach of personnel management.

    • Management shifted their view of employees from a supervised group to a valued resource.

    • Employees were viewed as a source of competitive advantage.

    • Managers became concerned with improving productivity and realized that employees needed satisfaction and growth.

    • Top executives now understood that HRM practices significantly affected strategic decisions.

    • Vice presidents and executive vice presidents are now major policy decision-makers and set corporate strategy.

    • Employee handbooks often state that HR are the company's greatest asset.

    • Management now treats employees as assets rather than costs.

    • Organizations maximize competencies (underlying attributes) to predict performance.

    • Competencies range from tangible skills to intangible values like teamwork.

    • Thomas Davenport emphasized human capital as assets instead of human resources.

    • Human capital refers to work attributes from education and experience impacting performance.

    • Human capital attributes include competencies, knowledge, and personality attributes influencing economic value produced.

    • HRM has grown more complex due to global competition, communication, outsourcing and down-sizing. These lead to challenges and opportunities in HRM.

    • The "computer age" has dramatically altered the availability and process of acquiring information.

    • Information Technology (IT) focuses on accessing, gathering, analyzing, and communicating information.

    • IT use in HRM increased over time, beginning in the 1960s.

    • Early HRIS (Human Resource Information Systems) systematized payroll and administration.

    • The 1980s saw greater HR applications use of IT, as computerization costs decreased.

    • The advent of the internet and the web lead to explosion of HR systems and applications.

    • Improving HR service delivery became a competitive advantage.

    • Organizations now consider workforce quality a competitive advantage over processes.

    Application of IT in HRM

    • E-Recruitment: Use of job boards; applicants access job vacancies and application procedures online; resumes submitted, and often quick interactive screenings, online testing.
    • Advantages: Efficiency, Cost reduction, expanded applicant base, convenient.
    • Disadvantages: Increased application quantity; might lose personal relationship, not necessarily applicant quality.
    • E-Selection: IT enhances effective identification of qualified candidates, knowledge, skills, and abilities match job requirements.
    • Employment Kiosk: Provides updates on employee status; initiated and made by employees.
    • E-Learning: Facilitates just-in-time learning and provides control of employee learning.
    • Advantage: Increased employee flexibility, control over learning, training cost reduction, and efficient training management.
    • Disadvantage: Isolates training, reduce career enhancement through networking.
    • EPSS (Electronic Performance Support Systems): Facilitates online coaching, mentoring, organizational information access, and performance management.
    • Salary and Payroll Administration: HRIS links salary and payroll with performance, time, and attendance, and employee benefits using time sheets.
    • Social Media: Utilizing social media sites for posting company updates, services, or company presence.
    • Telecommuting/Teleworking: Substituting work locations with remote or virtual offices, flexible options.
    • Employer Benefits: Increased productivity, lower absenteeism, better employee concentration, less work distractions, less travel time improved employee efficiency, decreased turnover, incentive to hire, access to and potentially wider pool of talent.
    • Employee Benefits: Savings on fuel, car maintenance and insurance, reduced stress, increased personal time, opportunity for family time, fewer distractions, greater work autonomy, relaxed work environment, time efficiency.
    • HRIS: HRM as a discipline merged with IT; centralized employees' data; provides information to support HR decisions.
    • Purposes: Increased efficiency, rapid and easy information access, improved management decision-making.
    • Examples: IBM, Toshiba America Medical Systems

    HR Departments Organization Charts and Structures

    • Organizations traditionally divide their managers into Line and Staff functions.

    • Line managers direct goods and service production.

    • Staff managers support and provide indirect functions.

    • Many organizations now blur the distinction between line and staff responsibilities.

    • HR departments have diverse roles, depending on company size, workforce, industry, or management.

    • Some HR functions are wholly handled by HR, while others are shared with other departments or supervisors.

    • Organizations can use organizational charts for various purposes.

    • Centralization: Design and administration responsibility for HR is centralized in one organizational unit.

    • HR generalists handle all HR functions.

    • Decentralization: Each organizational unit is responsible for designing and administering its own personnel systems.

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    Chapter 1: Changing Perspective of Human Resource Management PDF

    Description

    Explore the evolving role of Human Resource Management (HRM) from the 1930s to the 1990s, focusing on the shift from personnel departments to strategic organizational functions. Learn about the increasing importance of HRM in the modern workplace.

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