Module 1: The Nature of HRM PDF

MODULE 1: The Nature of Human Resource Management F.Sangil | G. Pineda | A. Yutuc | N. Megallon | A. Corpuz | M. Punay Course Instructors LEARNING OUTCOMES 1. Describe contemporary human resource perspectives; 2. Trace the evolution of the human resource function in organizations; 3. Identify an...

MODULE 1: The Nature of Human Resource Management F.Sangil | G. Pineda | A. Yutuc | N. Megallon | A. Corpuz | M. Punay Course Instructors LEARNING OUTCOMES 1. Describe contemporary human resource perspectives; 2. Trace the evolution of the human resource function in organizations; 3. Identify and discuss the goals of human resource management; 4. Discuss the setting for human resource management; and 5. Describe the job of human resource managers from the perspectives of professionalism and careers. 01 THE CONCEPT OF HRM (HUMAN RESOURCE MANAGEMENT) To understand what human resource management is, it’s useful to start with what managers do. A. An organization consists of people with formally assigned roles who work together to achieve the organization’s goals. B. A manager is someone who is responsible for accomplishing the organization’s goals, and who does so by managing the efforts of the organization’s people. In this course, we will focus on one of these functions—the staffing, personnel management, or human resource management function.  HUMAN RESOURCES are the people an organization employs to carry out various jobs, tasks, and functions in exchange for wages, salaries, and other rewards. HUMAN RESOURCE MANAGEMENT refers to the comprehensive set of managerial activities and tasks concerned with attracting, developing, and maintaining a qualified workforce—human resources—in ways that contribute to organizational effectiveness 02 CONTEMPORARY HUMAN RESOURCE MANAGEMENT PERSPECTIVES In most organizations today, the role of HRM has become quite important. This results partly from a growing realization of the importance of people as a source of competitive advantage, but there are also more practical reasons. HRM function also came to require dedicated professionals who could balance legal and ethical concerns with the need of organizations to survive and be profitable. If a firm did not employ qualified managers in these roles, then they faced increased risks of serious financial penalties and legal fees. Managers around the world have come to understand that properly managed human resources can be an important source of competitive advantage in an increasingly competitive world. In fact, as noted earlier, human resources are the organization’s most important resources. Given the shift in competitiveness, top executives in most firms now see that HRM practices and policies significantly affect their ability to formulate and implement strategy in any area and that other strategic decisions significantly affect the firm’s human resources as well. Today, most firms use a term such as human resource management to reflect more accurately the sophistication and maturity of the function. But some people argue that even this term is outdated and does not do justice to the role the HR manager plays. Other companies and industries use other terms such as: HUMAN CAPITAL MANAGEMENT, PEOPLE AND CULTURE, KNOWLEDGE MANAGEMENT, ETC. At the same time that HR managers were taking on a more strategic role, many organizations began shrinking the more traditional roles played by HR managers. Today, many large organizations hire outside firms to handle some business and HR functions. This practice, commonly known as outsourcing. It is the process of hiring outside firms to handle basic HRM functions, presumably more efficiently than the organization could. Other important factors in the contemporary HR perspective: Succession planning, especially for “star” positions in the company. Rights of employees who belong to minority groups such as LGBTQ, PWD, and ethnic and indigenous groups. Employee security against harm and dangers of terrorism. Health care and insurance Immigration 03 EVOLUTION OF HUMAN RESOURCE FUNCTION EVOLUTION OF THE HRM FUNCTION SCIENTIFIC MANAGEMENT MODERN HRM HUMAN RELATIONS ERA  SCIENTIFIC MANAGEMENT It is one of the earliest approaches to management, was concerned with structuring individual jobs to maximize efficiency and productivity. The major proponents of scientific management, such as Frederick Taylor and Frank and Lillian Gilbreth, had backgrounds in engineering and often used time-and-motion studies in which managers used stopwatches to teach workers precisely how to perform each task that made up their jobs. It was also concerned was concerned with every motion a worker made, and there were many examples of how changes in movements or in the placement of some piece of equipment led to increased productivity.  B.F. Goodrich was the first company to establish a corporate employment department to deal with employee concerns in 1900. National Cash Register (NCR) set up a similar department in 1902 to deal with employee grievances, wages and salaries, and record keeping. The need for an employment department at Ford became clear as the company increased its production from 800 cars a day in 1910 to more than 9,000 cars a day by 1925, and increased its workforce from less than 200 to several thousand employees. Office workers were also needed, so people with titles such as office manager hired clerks and secretaries.  As these businesses became more complex and their hiring needs more complicated, most large businesses, including Ford, began hiring new employees through newly created specialized units. Ford, for example, called this unit the employment department. The emergence and growth of large labor unions and the passage of minimum wage made it necessary for businesses to have one or more managers represent the interests of the business to organized labor and to administer the emerging set of laws and regulations that governed labor practices.  HUMAN RELATIONS Another important ingredient in the origins of the HR function during this period was the so- called human relations era, which emerged following the Hawthorne studies. Between 1927 and 1932, the Western Electric Company sponsored a major research program at its Hawthorne plant near Chicago. This research, conducted by Roethlisberger and Mayo, revealed for perhaps the first time that individual and group behavior played an important role in organizations and that human behavior at work was something managers really needed to understand more fully. HIERARCHY OF NEEDS BY ABRAHAM MASLOW MCGREGOR’S THEORY X AND THEORY Y The basic premise of this HR era was that if managers made their employees more satisfied and happier, then they would work harder and be more productive.  PERSONNEL MANAGEMENT We noted earlier that growing organizations began to create specialized units to cope with their increasing hiring needs, deal with government regulations, and provide a mechanism for better dealing with behavioral issues. During the 1930s and 1940s, these units gradually began to be called personnel departments. Personnel management evolved further during World War II. Both the military and its major suppliers became interested in better matching people with jobs. Psychologists were consulted to help develop selection tests, for example, to assess individual skills, interests, and abilities more accurately  PERSONNEL MANAGEMENT Still, from the first days of its inception until the 1970s, personnel management was not seen as a particularly important or critical function in most business organizations. The first real impetus for the increased importance of the HRM role came with the passage of several employee laws and regulations. It quickly became critically important to organizations that those responsible for hiring and promoting employees fully understood the legal context within which they functioned. At the same time, however, HR management is changing in response to new technological innovations, so we must consider how the electronic age has affected the HRM function. 04 HUMAN RESOURCE MANAGEMENT IN THE ELECTRONIC ERA HRM AND THE ELECTRONIC ERA Bigger, faster computers have allowed firms to compile large amounts of data and keep better track of employees, and new approaches to data analysis allow organizations to monitor patterns of behavior and preferences of those employees. HR FUNCTION AND TECHNOLOGY O*NET OnLine system, introduced several years ago, now makes it possible for an organizations to obtain the job analysis information they need from an online database. Organizations have changed the way they advertise jobs to recognize that, today, most potential applicants search for jobs by accessing one of the many job-search websites The use of online testing for selection and interviews being conducted by SKYPE and other new technology, rather than face to face Training programs can now be purchased from vendors and provided to employees online, allowing them to take classes and training at their own pace. Information about benefits and the ability to change benefits are also available to employees online, allowing more flexibility in how benefit plans are administered Computer monitoring allows organizations to collect real-time performance data from employees on various jobs. Have these new applications of technology made HRM easier? Management can now easily deliver information and communicate with employees, but the openness of communication also means that employees can communicate with management, and this presents new challenges to managers. ○ Electronic systems for communication and monitoring also bring up new challenges for the legal system and have led to new discussions about ethics and privacy. Increase in the needs of KNOWLEDGE WORKERS As organizations introduced new technologies for manufacturing, communication, and HRM, they also increased their need for more specialized employees. ○ Knowledge workers are employees whose jobs are primarily concerned with the acquisition and application of knowledge. They contribute to an organization through what they know and how they can apply what they know. 05 EMERGING HUMAN RESOURCE CHALLENGES  Unemployment rates Rights of the LGBTQ individuals #MeToo Movement: Sexual harassment and misconduct at work Corporate social responsibility and green initiatives Conscious capitalism / Triple bottom line - refers to treating social outcomes and financial outcomes as complementary, rather than competing. 06 GOALS OF HUMAN RESOURCE MANAGEMENT  Facilitating organizational competitiveness ○ All organizations have a general set of goals and objectives that they try to accomplish. Regardless of the time horizon or the level of specificity involved in these goals, they are generally intended to promote the organization’s ability to be competitive in fulfilling its purpose or mission. Enhancing overall quality and productivity ○ Productivity is the measure of efficiency that summarizes and reflects the value of the outputs created by an individual, organization, industry, or economic system relative to the value of the inputs used to create them. ○ Quality is the total set of features and characteristics of a product or service that bears on its ability to satisfy stated or implied  Complying with Legal and Social Obligations ○ As noted earlier, beyond the strict legal parameters of compliance, more and more organizations today are assuming some degree of social obligation to the society in which they operate. This obligation goes beyond the minimum activities required to comply with legal regulations and calls for the organization to serve as a contributing “citizen.” Promoting Individual Growth and Development ○ As a starting point, this goal usually includes basic job-related training and development activities. ○ In general, more firms are seeing HRM as part of the psychological contract that they have with employees. A psychological contract is the overall set of expectations held by the employee with regard to what he or she will contribute to the organization and that are held by the organization with regard to what it will provide to the individual in return 07 SETTING FOR HUMAN RESOURCE MANAGEMENT Human Resource Management as a Staff versus Line Function Organizations historically divided their managers into two groups: line management and staff management. Line managers are those directly responsible for creating goods and services. Staff managers are those responsible for an indirect or support function that would have costs but whose bottom-line contributions are less direct. Recent Trends HRM activities are carried out by line managers. Some firms have HR departments structured around centers of excellence. In these cases, the HR department is responsible for providing services only in those cases where it can provide higher-quality services than can be purchased on the outside. When they cannot provide higher-quality services, they are often asked to identify and then manage the outside consultants who are brought in to perform the services. HRM IN SMALLER AND LARGER ORGANIZATIONS Smaller organizations ○ Require line managers to handle their basic HR functions ○ Employees receive less training ○ Exempt from many legal regulations Larger organizations ○ Separate HR unit is a necessity ○ Require one full-time manager and a secretary ○ HR functions have specialized subunits 08 TRENDS SHAPING HUMAN RESOURCE MANAGEMENT WORKPLACE DEMOGRAPHICS The composition of the workforce will continue to become more diverse with more women, minority group members, and older workers in the workforce. TRENDS IN JOBS PEOPLE DO Work has shifted from manufacturing to service: In the next few years, almost all the new jobs added in the world will be in services, not in goods-producing industries. On-demand workers: An on-demand workforce is a group of people that can be hired as and when needed—sometimes even beginning work the same day—and may include temporary employees, day laborers, or freelance workers. Human capital: Finally, more jobs are becoming “high tech.” Some jobs always emphasized knowledge and education. For managers, the challenge here is that they have to manage such workers differently. GLOBALIZATION TRENDS Globalization refers to companies extending their sales, ownership, and/or manufacturing to new markets abroad. More globalization meant more competition, and more competition meant more pressure to be “world class”—to lower costs, to make employees more productive, and to do things better and less expensively. HUMAN RESOURCE MANAGEMENT SYSTEM The modern view of HRM is also a systems-oriented view. A system is an interrelated set of elements functioning as a whole. A human resource management system is an integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed The basic premise of this perspective is that every element of the HRM system must be designed and implemented with full knowledge and understanding of, and integration with, the various other elements. For example, poor recruiting practices will result in a weak pool of applicants. Even if the organization has sophisticated selection techniques available, it will not make much difference without a pool of qualified applicants to choose from. HUMAN RESOURCE MANAGEMENT SYSTEM HRM subsystems affect and are affected by other organizational subsystems ○ Utility analysis: Attempts to measure the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance ECONOMIC TRENDS Unemployment rates Economic performance of the country Labor force trends: Continuous lowering of the labor force growth and labor force participation rate. The unbalanced labor force: In some occupations, unemployment rates are low, while in others unemployment rates are still relatively high. TECHNOLOGY TRENDS Employers use social media for recruiting employees New mobile applications for monitor location Gaming support Cloud computing Data analytics—talent analytics CHARACTERISTICS OF A CONTEMPORARY HR MANAGER Understand the different HR functions Possess general management abilities that reflect conceptual, diagnostic, and analytical skills. CAREERS IN HUMAN RESOURCE MANAGEMENT Obtain a degree in Human Resource Management ○ Provides an entry-level employment opportunity as an HR manager Line management can be used as a route to HRM ○ Enabled via rotation of managers through the HR function  THANKS! CREDITS: This presentation template was created by Slidesgo, and includes icons by Flaticon, and infographics & images by Freepik