Evolution of Human Resource Management

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.

Main Trends in the HR Profession

• 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.