HRM Chapter 1 Summary PDF

HRM Summary Julia Lebrasseur Murphy 1. The balancing act of managing human resources 1.1. What is Human Resource Management? Human Resource Management (HRM) oversees ac;vi;es from hiring to departure, aiming to enhance both individual and organiza;onal performance. Its key func;ons include: 1. Job Setup: Designing roles to align with goals and meet employee needs. 2. Recruitment: AIrac;ng and selec;ng the right candidates. 3. Training: Providing learning opportuni;es for employee growth. 4. Performance Review: Managing and evalua;ng employee output. 5. Rewards: Designing incen;ves to mo;vate and retain talent. 6. Employee Well-being: Ensuring employee welfare and health. HRM involves cri;cal decision-making, focusing on: Sourcing Talent: Finding suitable candidates. Mo@va@on: Rewarding and encouraging employee eﬀec;veness. Skills Development: Iden;fying necessary skills and fostering growth. Career Advancement: Recognizing and nurturing deserving employees. Engagement: Structuring jobs for sa;sfac;on and commitment. Understanding Departures: Learning from employee exits for reten;on improvement. In essence, HRM strategically manages employees throughout their journey in an organiza;on, impac;ng individual and company success. HRM Summary 1 1.2. Human resources ma7er Human resources are the people working for a company. Human resource prac;ces are the ac;ons companies take to manage and use their employees eﬀec;vely to achieve their goals. Some prac;ces include hiring strategies, training programs, feedback systems, and performance-based pay. Many say that "people are a company's most important asset." This means that employees are crucial for a company's success and its ability to stay ahead of compe;tors. However, even though people are seen as vital, the Human Resources (HR) department oYen doesn't have much say in the big decisions within a company. Some;mes, HR is mostly involved in administra;ve tasks that could be done by other external par;es at a lower cost. One reason for this might be that many HR managers aren't well-versed in business maIers. They might not fully understand how employees contribute to a company's goals. Another reason could be that HR focuses too much on eﬃciency (doing things quickly and cheaply) rather than on crea;ng real value for the company. For instance, an HR manager might boast about providing a lot of training hours to employees, but they might not know if these trainings actually helped the company in any way. Addi;onally, HR some;mes tries to treat everyone the same way, using standard rules and pay scales. This can lead to average performance becoming the norm instead of encouraging employees to excel. Lastly, some senior execu;ves see HR as only dealing with 'soY' maIers like organizing team events, which makes it harder for HR to be taken seriously in strategic decision-making. Overall, many agree that employees are crucial for a company's success, but there's doubt about how well HR manages them. HR needs to focus not only on rou;ne tasks but also on helping employees add real value to the company's goals. 1.3. The main message (spoiler alert) In this course, we'll discuss how companies can gain a compe;;ve edge by aligning HR prac;ces with business strategies. We'll emphasize the importance of having HR strategies that match the company's goals. We'll argue that speciﬁc roles within a company are more cri;cal for achieving its goals. Therefore, it's reasonable to have diﬀerent HR approaches for diﬀerent posi;ons. This course focuses on viewing HR as an essen;al part of business opera;ons. Students are expected to learn the language of business to understand HR's role in company success. HRM Summary 2 We'll take the perspec;ve of HR professionals, so the course won't cover advice for job seekers. Instead, it'll concentrate on how HR contributes to value crea;on within organiza;ons. The course won't cover 'soY' HR ac;vi;es like planning events. Instead, it'll explore how strategic HR management can enhance overall company performance. 1.4. Performance and well-being We're not just focusing on how HR aﬀects a company's performance. We're also considering employees as individuals with their own experiences, values, and connec;ons both inside and outside the company. Beyond viewing employees as tools to make a company more successful, we're taking a perspec;ve that values employees themselves. We believe that companies have a social responsibility to care for their employees' well-being, not just because it leads to beIer results (even though it does), but because it's the right thing to do. So, while we're studying how HR impacts a company's success, we're also emphasizing that companies should priori;ze the well-being and development of their employees for ethical reasons, not just for beIer business outcomes. Now, let's delve deeper into the speciﬁc role of the HR manager. 1.5. HR roles and competencies To understand what HR managers do and what makes them successful, we can look at how they work and talk to them about their job. Another way is to ask HR managers about their roles and skills through surveys, then see which ones are linked to success for both individuals and companies. Dave Ulrich and his team began this kind of research in 1987. In 1998, Ulrich introduced the 'HR business partner' model, which shows four main roles for HR professionals: 1. Administra@ve Expert: Handles day-to-day HR tasks like paperwork and systems. 2. Employee Champion: Supports employees' needs and well-being for a posi;ve work environment. 3. Strategic Partner: Aligns HR strategies with overall business goals for long-term success. 4. Change Agent: Drives and manages organiza;onal change, helping with transi;ons and improvements. HRM Summary 3 These roles help us understand what HR managers do and what skills are important for their success in beneﬁ;ng both individual employees and the company as a whole. 1.5.1. HR as Administra0ve Expert In this role, HR aims to make work more eﬃcient and cost-eﬀec;ve without sacriﬁcing quality. Instead of just following rules, HR seeks ways to improve processes using technology and smart strategies. To show their value, HR doesn't just focus on their own tasks. They also look at how work is done in the whole company. By ﬁnding ways to make various HR func;ons more eﬃcient, like hiring, training, and performance reviews, they build credibility. HRM Summary 4 Ulrich's ideas s;ll maIer because when HR proves it can save money, it gets a seat at the table in making big decisions. For instance, an HR Director saved money for a pharmaceu;cal company, which led to HR being involved in planning the company's future strategies. So, as administra;ve experts, HR works to improve eﬃciency in diﬀerent parts of the company. This helps HR earn credibility and be a part of shaping the company's future plans. 1.5.2. HR as Employee Champion In the role of being a champion for employees, HR focuses on speaking up for employees' needs and interests to the higher-ups while also boos;ng employees' dedica;on to their work and the company. HR wants to make sure employees feel engaged because engaged employees are more commiIed and likely to give their best at work. To achieve this, HR needs to oﬀer challenging tasks, chances for growth, and the necessary support for employees to handle their job demands. HR also plays a crucial role in understanding how job design aﬀects how employees feel about their work. Addi;onally, HR acts as a voice for employees, represen;ng their concerns to management. For this to work well, employees must trust that HR genuinely supports them and their rights. In short, as employee champions, HR professionals work to improve employees' skills, mo;va;on, and opportuni;es to contribute eﬀec;vely to the company. This involves working with unions, encouraging employee involvement, good communica;on, building trust, and monitoring job sa;sfac;on and stress levels to managing ‘psychological contracts’. The "psychological contract" is the unwri4en expecta6ons between employers and employees beyond the formal agreement. When these expecta6ons aren't met, it leads to disappointment and reduced trust. HR, as employee champions, must manage these expecta6ons to avoid dissa6sfac6on and employees wan6ng to leave. 1.5.3. HR as Strategic Partner Ulrich emphasizes that HR should partner with senior and line managers in execu;ng strategy, but this doesn't mean HR is solely responsible for crea;ng strategy. The company's execu;ve team is primarily in charge of strategy, with HR as a member. However, HR plays a crucial role in guiding discussions about how the company should be structured to carry out its strategy. This involves understanding the "organiza;onal HRM Summary 5 architecture," which includes goals, strategy, processes, structure, culture, and technology. All these parts work together and inﬂuence each other. To manage human resources eﬀec;vely, HR needs comprehensive knowledge of all aspects of the business, which unfortunately isn't always the case. When HR does have this understanding, it can evaluate how well these organiza;onal components ﬁt together (alignment) and propose changes. Addi;onally, HR should align its own work with the organiza;on's goals and strategy, priori;zing ac;vi;es that directly impact business results. In this role, HR focuses on ac;vi;es such as transla;ng corporate strategy into speciﬁc HR ac;ons, aligning HR processes, and implemen;ng HR informa;on systems like scorecards and dashboards to support the company's strategy. 1.5.4. HR as Change Agent 1. Con@nuous Change: HR helps shape a workplace that's open to ongoing improvements. They guide execu;ves and provide tools for change, but they don't execute the changes themselves. 2. Providing Change Support: HR oﬀers tools and guidance to help the company manage change. They work with the execu;ve team to lead the change process. 3. Change Management Models: Various models advise on how to make changes eﬀec;vely. They suggest forming a team to oversee change, crea;ng a clear vision, empowering employees, and making change part of daily work. 4. HR's Role in Change: HR focuses on preparing people for change, managing the company's culture, resolving conﬂicts, making plans, checking progress, and ensuring changes are las;ng. In short, HR guides and supports the company through changes, working closely with leadership to drive successful and long-las;ng change. HR managers have a challenging job. They must balance the needs of everyone in the company - employees, management, and follow external rules. Their role is like wearing many hats. Some;mes they partner with top execu;ves, other ;mes they represent employees' concerns, ini;ate changes, or focus on saving costs. Not everyone can handle these diverse roles. In bigger companies, diﬀerent HR specialists manage speciﬁc tasks, like employee rela;ons, strategy, change, and opera;ons, to handle these responsibili;es more eﬀec;vely. HRM Summary 6 1.6. HR roles in context 1. Diﬀerent SeKngs, Diﬀerent Emphases: HR roles change based on where and when they work. For example: Strong unions mean HR focuses more on suppor;ng employees. Lots of rules might make HR spend more ;me on paperwork. During mergers or crises, HR shiYs to managing change or boos;ng eﬃciency. 2. Changing HR Focus: HR's role has evolved over ;me—caring about eﬃciency, then employee welfare, becoming a strategic partner due to globaliza;on, and now, being agile as a change agent. 3. Balancing Act: HR handles all roles, but some;mes certain roles become more important. Surveys show HR pros prefer strategic work, yet day-to-day tasks oYen take up most of their ;me, showing the struggle between immediate needs and long-term plans. 1.7. HR competencies 1. Competencies for HR Professionals: Ulrich and colleagues studied what skills HR professionals need. They iden;ﬁed nine competencies: Strategic Posi@oner: Ability to posi;on a business well in its market. Credible Ac@vist: Building trust through proac;ve views and rela;onshipbuilding. Paradox Navigator: Managing conﬂic;ng business aspects like short-term vs. long- term goals. Culture and Change Champion: Making changes and managing organiza;onal culture. Human Capital Curator: Managing talent ﬂow, developing people, and driving performance. Total Reward Steward: Managing employee well-being through rewards. Technology and Media Integrator: Using technology and social media for high performance. Analy@cs Designer and Interpreter: Using analy;cs to improve decisionmaking. Compliance Manager: Managing processes based on regulatory guidelines. HRM Summary 7 2. Key Competencies for HR Roles: Ulrich found that HR professionals need to: Act as Credible Ac@vists to be part of business discussions. Be Strategic Posi@oners to serve customers and investors. Act as Paradox Navigators to deliver business value. Ulrich's ﬁndings highlight that HR professionals need diverse skills to balance their mul;faceted roles eﬀec;vely. 1.8. History of HRM Human Resource Management (HRM) as a concept was ﬁrst introduced by John R. Commons in 1919 in his book 'Industrial Goodwill.' He highlighted the idea that employees are crucial assets for organiza;ons and introduced a framework for diﬀerent sets of HRM prac;ces, selng the groundwork for strategic human resource management. Back then, HRM wasn't formalized. Employee management was a part of general management du;es handled by owners and department heads, oYen without training, wriIen policies, or much planning. It was occasionally harsh and not very eﬀec;ve compared to today's standards. Less than a century ago, there were no modern HR departments in ﬁrms, no formal HR training in universi;es, and no structured HRM prac;ces. However, large companies existed and were growing rapidly by the early 1900s, and while they had organized departments for various func;ons like opera;ons, ﬁnance, and sales, dedicated HR departments didn't exist at that ;me. The evolu;on of HR departments, their structures, programs, and ac;vi;es emerged over ;me. In the next sec;on, we'll take a trip through ;me, star;ng before the industrial revolu;on, highligh;ng major changes in HR prac;ces un;l reaching the present. This will help us understand the journey of HRM development. Addi;onally, we'll explore future predic;ons based on current trends. HRM Summary 8 1.8.1. Pre-industrial revolu0on Before industries like we know today, there were guilds. These were groups of skilled professionals who oversaw various trades or craYs. If you wanted to be an expert like them, you'd start as an appren;ce, then become a journeyman before reaching the level of a master craYsman. Guilds had rules about working hours, who could join, and what skills were taught. Members of guilds were like both entrepreneurs and early HR managers, but they didn't quite ﬁt the modern concept of "personnel." The idea of "personnel" today involves people working for pay under an employer, which wasn't exactly how guilds operated. 1.8.2. Industrial revolu0on The Industrial Revolu;on brought signiﬁcant changes to how people worked. Here's a simpliﬁed explana;on: 1. ShiR to Industrial Society: The Industrial Revolu;on transformed work from skilled craYsmanship to factories and machines. It moved from agricultural to manufacturing industries and created permanent jobs. 2. Factory System and Division of Labour: Factories replaced independent workers with permanent wage earners. Work changed from being skill-based to task-based. Workers became specialized in speciﬁc rou;ne tasks. HRM Summary 9 3. Supervision and Worker Treatment: Large factories required supervision, leading to a hierarchy of managers and foremen. In the early stages, employees received liIle aIen;on and were at the mercy of supervisors who had complete control over them. 4. Social Unrest: Workers faced harsh condi;ons, leading to social upheavals and the rise of unions. There were conﬂicts between management and unions over working condi;ons and workers' rights. 5. The Labour Problem: The term described the conﬂicts between workers and employers over control of work and income distribu;on. It led to strikes, violence, and concerns about socialism, causing ﬁnancial losses for businesses. 6. Evolu@on of Personnel Management: Employers sought solu;ons to labour problems by introducing welfare programs and scien;ﬁc management methods. This led to the Human Rela;ons Movement as a response to improve workplace rela;onships. In essence, the Industrial Revolu;on changed work dynamics, leading to conﬂicts between workers and employers, which in turn sparked eﬀorts to improve management methods and rela;onships at work. 1.8.3 Personnel Management 1.8.3.1. Industrial welfare Welfare work was an early form of prac;ces by employers to enhance workers' lives beyond wages and legal requirements. It involved various ini;a;ves like improving work environments, providing beneﬁts, and oﬀering addi;onal services: 1. Ini@a@ves and Services: Employers oﬀered things like drinking fountains, locker rooms, beIer plant environments, insurance, vaca;ons, sports teams, language classes, and even home visits by nurses. 2. Diverse Mo@ves: Welfare work had diﬀerent aims based on the industry and loca;on. In rural areas or industries with female employees, it was oYen a basic necessity. In urban areas or male-dominated factories, it was seen as an addi;onal beneﬁt. 3. Purpose and Strategy: Employers used welfare work to avoid unions and government interference. While it appeared as a gesture of care and improvement, it was primarily a strategy to foster beIer rela;ons with workers, aiming for coopera;on, eﬃciency, and to maintain peace in the workplace. In essence, welfare work was an early prac;ce where employers provided extra beneﬁts and services to workers, not just to improve their lives, but also as a strategy to maintain harmony and prevent conﬂicts in the workplace. HRM Summary 10 1.8.3.2. Scien@ﬁc management During the industrial revolu;on, new approaches to managing workers emerged: 1. Scien@ﬁc Management Approach: This approach aimed to boost eﬃciency by breaking jobs into small tasks and ﬁnding the 'one best way' to perform each task. Key ﬁgures in this approach were Frederick Taylor, the Gilbreths, and Henry GanI. Taylor's Philosophy: He promoted a scien;ﬁc, fact-based approach to decision- making, encouraging managers to think scien;ﬁcally. He believed that both management and labor shared common interests—higher produc;on, lower costs, and beIer wages—if work was done scien;ﬁcally. 2. Taylor's Techniques: He introduced various methods to improve produc;vity: Time and Mo@on Studies: Analyzed work tasks to eliminate unnecessary movements and set expected produc;on rates. Standardized Tools and Procedures: Advocated for uniform tools and methods to boost eﬃciency. The Task: Deﬁned a speciﬁc amount of work for each worker, akin to selng goals. Financial Incen@ves: Oﬀered higher wages for working according to scien;ﬁc methods. Individual Work: Emphasized individual tasks and rewards over group eﬀorts, believing personal ambi;on mo;vated more than group goals. Management Responsibility for Training: Argued that employees should be trained by management experts, not experienced workers. Scien@ﬁc Selec@on: Advocated selec;ng high-ap;tude workers for higher produc;vity. Shorter Hours and Rest Pauses: Showed that fa;gue decreased and work improved with shorter hours and breaks. 3. Impact: While these methods aimed to improve eﬃciency, they oversimpliﬁed worker mo;va;on and feelings. Workers didn't just want eﬃciency and money. These methods reduced worker autonomy and led to increased conﬂicts between workers and organiza;ons, resul;ng in the growth of unions and labor legisla;on. Personnel departments emerged, focusing on job analysis for various HR tasks like selec;on, training, and compensa;on. HRM Summary 11 In summary, scien;ﬁc management aimed to make work more eﬃcient, but it didn't consider workers' feelings or real mo;va;ons, resul;ng in conﬂicts and the emergence of new labor- related departments and legisla;on. 1.8.3.3. Human rela@ons movement During the 1930s, the Hawthorne studies at the Western Electric Company challenged earlier assump;ons about worker behavior and produc;vity. These experiments led to the rise of the human rela;ons movement in management. 1. The Hawthorne Studies: Illumina;on experiment: Ini;ally aimed to study the eﬀect of ligh;ng on produc;vity, but the results did not support the idea that brighter ligh;ng increased output. Relay-assembly tests: ShiYed focus to examine how rest periods, work hours, and other factors aﬀected produc;vity. Researchers observed that produc;vity increased remarkably when workers were given shorter hours, breaks, and aIen;on, even when condi;ons were reverted to normal. 2. Findings of the Hawthorne Studies: Workers aren't only mo;vated by pay or physical condi;ons but also by social and psychological factors. Informal rela;onships among workers aﬀect performance more than formal organiza;onal structures. Workers perform beIer when they have a say in decisions aﬀec;ng them and when management shows interest in their welfare and treats them respecoully. 3. Hawthorne Eﬀect: This term describes the bias researchers can introduce, inﬂuencing the outcomes of an experiment just by their presence. 4. Cri@cism and Pioneers of the Human Rela@ons Movement: Cri;cized for methodological shortcomings, like lack of objec;vity and small sample sizes. Mary Parker FolleI emphasized the importance of coopera;on between management and employees and the integra;on of power, diﬀering from Taylor's scien;ﬁc management. HRM Summary 12 Chester Barnard stressed eﬀec;ve communica;on systems and staﬀ mo;va;on. Douglas McGregor proposed Theory X (people dislike work and need control) and Theory Y (people are self-mo;vated and responsible). Rensis Likert introduced par;cipa;ve management, promo;ng involvement in decision-making and team-based work. Overall, the human rela;ons movement changed how management saw workers, highligh;ng the importance of social aspects, teamwork, and understanding employees as individuals within a group for job sa;sfac;on and produc;vity. 1.8.3.4. Industrial psychology Industrial psychology, focusing on workers, signiﬁcantly shaped human resource management. Experts like Hugo Münsterberg highlighted psychology's role in tes;ng, selec;ng, and mo;va;ng employees. This ﬁeld studies individual diﬀerences (by personnel psychologists) and work characteris;cs (by work and organiza;onal psychologists). Industrial psychology's impact lies in understanding employees and their behaviors, shaping HR prac;ces. 1.8.4. WWI and WWII During World Wars I and II, the applica;on of psychology in business surged. The wars led to a signiﬁcant labor shortage as many workers joined the military, leaving vacancies in industries. This scarcity forced employers to manage their remaining employees more eﬀec;vely. As a result, separate personnel departments, led by personnel directors, emerged to handle recruitment, dismissals, training, and welfare work. This shiY centralized employee management, moving these responsibili;es away from frontline supervisors. The wars sparked the founda;on of modern human resources management by adap;ng to the need for more organized employee management during ;mes of labor shortages and increased demands for produc;on. 1.8.5. Personnel management aJer WWII Between 1945 and 1970, having a separate personnel department became a standard prac;ce in big companies. Instead of deba;ng whether to have a personnel department, the focus shiYed to organizing these departments eﬀec;vely. During this ;me, two main themes shaped human resources policies. Firstly, there was a signiﬁcant emphasis on labor rela;ons. AYer World War II, more workers joined unions, with about two out of every three workers in the US becoming union HRM Summary 13 members by 1950. Unions gained more power as their consulta;ons became legally recognized. Hence, one of the key responsibili;es of the personnel department was to maintain social peace. Secondly, the quality of work life became a major concern. Organiza;ons realized that employees weren't hindrances but vital assets. Various ini;a;ves were introduced to maximize organiza;onal performance while also enhancing employee well-being. This shiY was inﬂuenced by changing societal norms, par;cularly events like the student revolts in the late 1960s (such as May 1968), which challenged established power structures. Employees were becoming more educated and vocal, seeking more from work than repe;;ve tasks. Personnel departments responded by developing job design and enrichment programs, career planning, and development to improve the psychological aspects of work. The goal was to create more sa;sﬁed employees who would also be more commiIed to their organiza;ons. This shiY in perspec;ve, oYen termed 'revisionism,' moved away from the one-sided views of scien;ﬁc management and human rela;ons. It emphasized that people naturally seek growth and responsibility, and organiza;ons needed to adapt to this inclina;on. Programs focusing on job enrichment and employee par;cipa;on became prevalent during this period. 1.8.6. From personnel management to SHRM Since the 1970s, human resources management has gone through a signiﬁcant evolu;on. It shiYed from focusing on maintaining the status quo, keeping social peace, and managing labor rela;ons to becoming one of the most crucial func;ons for eﬃcient and innova;ve management. This transforma;on was prompted by signiﬁcant changes in the economic and social landscape. These changes encompassed rapid technological advancements, unpredictable market condi;ons, heightened compe;;on due to globalized economic ac;vi;es, and a diverse workforce in terms of gender, race, age, and cultural background. There were also substan;al restructuring and downsizing eﬀorts in organiza;ons aiming for ﬂaIer structures, which subsequently reduced the inﬂuence of unions. Organiza;ons started establishing more direct rela;onships with their employees, reducing the clout of unions to some extent. They began recognizing employees as valuable assets contribu;ng to compe;;ve advantages. The focus shiYed to aIrac;ng top talent, fostering trust with employees, and developing them to gain an edge over compe;tors. Furthermore, companies adopted management concepts like Total Quality Management (TQM) from successful Japanese models. TQM emphasized striving for customer sa;sfac;on through con;nuous improvement in all business processes. This HRM Summary 14 approach encouraged greater employee involvement in improving the organiza;on, typically through small working groups formed to analyze and solve quality issues on the shop ﬂoor. As a result of these changes, the role of the human resources func;on has shiYed from being low proﬁle and reac;ve to becoming a primary and strategic partner in organiza;ons. This evolu;on was reﬂected in the ;tle change from 'personnel oﬃcer' to 'Human Resource Manager.' The terms 'personnel management,' 'personnel work,' and 'personnel administra;on' have largely been replaced by 'Human Resource Management' (HRM). It's essen;al to note that HRM diﬀers signiﬁcantly from tradi;onal personnel management in its focus and approach. In subsequent discussions, the major diﬀerences between tradi;onal and modern HRM will be outlined. 1.9. The future of HRM In the future, Human Resource Management (HRM) might focus more on using data for decisions, collec;ng employee informa;on, and caring about well-being and sustainability. This means making choices based on facts, gathering data about employees, and crea;ng work environments that care about both employees' happiness and the planet's health. These changes could shape how HR works in the years ahead. 1.9.1. Evidence-based HRM The story about the die;;an and diet X highlights a crucial point: just as in healthcare, it's important for managers, including HR managers, to base decisions on solid evidence. Evidence-based HRM involves using various types of informa;on, like research, data from the company, or personal experience, to make informed decisions. It's about being smart with informa;on and making decisions based on what works best, not just on personal experiences or popular ideas. For instance, if we want to know which holiday des;na;on in Ireland is least likely to rain in August, using weather sta;s;cs is more reliable than one person's experience. Similarly, in HRM decisions, using research ﬁndings from a study involving many companies is usually more reliable than relying on the experiences of someone from a small company in a distant place. Some;mes, there might not be scien;ﬁc or organiza;onal evidence available, and in those cases, we might have to rely on colleagues' experiences or test diﬀerent approaches ourselves. There's a balance between diﬀerent types of evidence, like how much we control variables in a study (internal validity) versus how much the results apply to other situa;ons (external validity). Each type of evidence has its strengths and weaknesses. HRM Summary 15 Unfortunately, many HR managers use tools and theories that lack strong evidence. Tools like Myers-Briggs, Enneagram, or Herzberg's theories might be popular, but they lack scien;ﬁc support. People prefer these tools because they're easy to understand, but they can lead to wrong conclusions and bad decisions. The problem isn't just that these theories are outdated; it's that many people s;ll use them without ques;oning their validity. Textbooks might cover these theories for their historical signiﬁcance, but not all theories hold up over ;me. So, the advice to students is to think cri;cally, ques;on what they learn, challenge professors, and seek evidence. It's important to adopt this mindset in all courses, not just HRM, to ensure decisions are based on solid evidence and not just tradi;on or popular beliefs. 1.9.2. Big data and e-HRM HR Informa;on Systems (HRIS) are tools that help Human Resource Management by storing and organizing employee data using computers. These systems, like PeopleSoY or SAP, keep track of informa;on about employees and their work. They're also known as Human Resource Management Systems (HRMS) or e-HRM, which all do similar jobs. e-HRM is about making employee informa;on easily accessible to managers within a company. This allows managers to use HR info for day-to-day opera;ons. It also lets employees take more control of their own growth and careers, such as monitoring their progress or taking online courses. e-HRM also aims to make HR tasks more eﬃcient by using technology, reducing the ;me HR professionals spend on administra;ve work. This gives them more ;me to focus on the company's big-picture goals. Lastly, e-HRM encourages using all available informa;on about employees to make smart decisions that beneﬁt the organiza;on's future. These systems store a lot of informa;on, known as big data. This includes employee history, training scores, recruitment details, leave records, performance reviews, compensa;on, health informa;on, and more. Every organiza;on decides what informa;on is most important to store. But sor;ng through all this data can be a challenge. It's not just about collec;ng informa;on; it's about using it wisely to make decisions. Some systems oﬀer reports on what's already happened (descrip;ve HR metrics), while others use analy;cs and ar;ﬁcial intelligence to predict future trends or behaviors. HRM Summary 16 It's essen;al for organiza;ons to handle this data responsibly and ensure they protect their employees' privacy and keep their informa;on secure. 1.9.3. Sustainable HRM Sustainable Human Resource Management (HRM) is about focusing on posi;ve aspects at work, like job sa;sfac;on and engagement, rather than just ﬁxing problems like stress or turnover. It's a shiY towards emphasizing 'what people can do' rather than 'what they should do'. Instead of solely addressing nega;ves like stress or monotony, sustainable HRM concentrates on crea;ng a posi;ve work environment where employees can thrive. This approach involves various strategies, such as New Ways of Working, which lets employees work ﬂexibly and shape their own jobs. It also encourages informal learning and empowers employees to plan their careers themselves, even beyond their current job. Sustainable HRM isn't only about these ini;a;ves. It also involves a greater focus on environmental concerns within organiza;ons, known as 'green HRM'. This means companies also consider their impact on the environment in their HR prac;ces. Addi;onally, there's an emphasis on the business community contribu;ng posi;vely to society, called 'corporate social performance'. In simple terms, Sustainable HRM aims to create a work environment that supports employees' well-being, encourages personal development, cares about the environment, and contributes posi;vely to society. HRM Summary 17

HRM Chapter 1 Summary PDF

Document Details

Tags

Related

Summary

Full Transcript

Upgrade to continue