ASSIGNMENT HAND-IN FORM
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committed an assessment offence.
Program Name
:
Master of Science in Management Studies
Year No.
:
1
Module Title
:
MMS 502
Assignment No.
:
1
Assignment Title:
The Evolution of Human Resource Management, and
a reflection on its role as a Strategic function of an
Organization in the Future.
Semester No.
:
1
Student Name.
:
CHRISPINE NDALAMA
Student Registration No.
:
MMS/ LL/ C9/ 46/ 21
Module Tutor
:
Student Date of Submission
:
06/ 11/ 2021
Contents
1.
NTRODUCTION AND BACKGROUND .................................................................................. 3
2.
THE EVOLUTION AND DEVELOPMENT OF HRM POST 1900. ...................................... 3
2.2.1. The Social Responsibility Era ................................................................................................... 4
2.2. Scientific Management Era .......................................................................................................... 4
2.3. Human Relations Resources Era ................................................................................................. 5
2.3. Behaviour Science Era / Social Era............................................................................................. 5
2.4. System and Contingency Approach Era and The cost effective Era ............................................ 5
2.5. HR Management: The Present Era .............................................................................................. 6
3.
THE FUTURE OF HRM ............................................................................................................. 6
3.1. Technological Developments ....................................................................................................... 6
3.2. Globalisation................................................................................................................................ 6
3.3. The Forces of Labour/ Demographics of Workforce ................................................................... 7
3.5. Economic Dynamics and the Need to Control Disruption of Labour .......................................... 7
4.
CONCLUSION ............................................................................................................................. 7
References ............................................................................................................................................... 8
Bibliography ........................................................................................................................................... 8
1. INTRODUCTION AND BACKGROUND
There are few attempts by scholars to define “Human Resource (HR)” while “Human Resource
Management (HRM)” has been extensively defined. In this paper HR is understood to be “the
workforce of an organisation” rather than people. The paper adopts the view by scholars that
discouraged the reference of people as resources, because people ought to be distinguished
from mere factors of production (Drucker, 1954) and (Osterby and Coster, 1992).
Storey (2007) observes that; “in its generic broad and popular sense, HRM, simply refers to
any system of people management. (Watson, 2010), observes that HRM is the managerial
utilisation of the efforts, knowledge, capabilities and committed behaviours which people
contribute to an authoritatively co-ordinated human enterprise as part of an employment
exchange to carry out work tasks in a way which enables the enterprise to continue into the
future. (Armstrong, 2009) Defines HRM as “a strategic, integrated and coherent approach to
the employment, development and well-being of the people working in organizations.” The
paper observes that the key aspects of HRM in the definitions are that there must be some sort
of employer / employee relationship; there must be some manifestation of social responsibility
by the power holder; and there must be some legal or moral norms that regulate the relationship.
This paper thus understands HRM as the management of all forms of employer/ employee
relationships whilst ensuring that there is manifestation of social responsibility by the power
holder at all times; and that all legal and /or moral norms that regulate the relationship are
observed and respected.
HRM has never been static and will change according to changes in the underlining factors
observed above. HRM will also aim at better ways of utilisation of “the workforce”. The paper
discusses the evolution and development HRM post 1900 and addresses the Social
Responsibility Era, the Strategic Management Era, the Human Relations Resources Era, the
Behaviour Science Era, and the System Contingency Approach Era (which includes the Cost
Effective Era). The paper then discusses the present era, and further demonstrates its position
on its future as a strategic function in an organisation by focusing on the impact of Technology,
globalisation, the changing demographics of workforce, and the economic dynamics.
2. THE EVOLUTION AND DEVELOPMENT OF HRM POST 1900.
The Historical evolution of HRM can be seen from different viewpoints. It can be seen from a
professional and scientific discipline; as a political and economic conflict between management
and employees, and as a growing movement of employee influenced by developments in
industrial, organisational and social psychology. The paper has adopted a hybrid approach, and
focuses on the key aspects that were envisaged in the employer/ employee relationship, how
there were attempts to manifest social responsibility from the power holder at each point; and
what legal and /or moral norms were put in place to regulate the relationship. Where necessary,
the paper has demonstrated some of the institutions that were created to protect the treatment
of workers that were perceived as victims during the eras. Although, an attempt has been made
to chronologically present the eras, the development of HR was dynamic and the effects of one
era could be reflected in several other stages of development.
2.2.1. The Social Responsibility Era
This focused on the path taken by HRM in the beginning of the 20th Century to address the
results of Industrial Revolution which had led to the formulation of many Trade Unions as
institutions to protect employees’ rights. The era saw factory owners adopting a humanistic
and “paternalistic approach” towards workers. The industrialists who adopted this approach
offered a number of concessions and facilities to labour force like reduced number of work
hours, and improved facilities at workplace. (C. Manashree)
The Trade unions had given employees so much power that employers had to react to ensure
that production was not repeatedly disrupted due to industrial strikes. Scholars have thus argued
that this HR approach was adopted out of fear and not necessarily as a concern on the welfare
of the employees. The notable institution that developed during this era in the United States of
America (U.S.A) to protect the interests of the employees were the Social welfare departments,
under the Social Security Act, which inter alia, focused on helping injured workers and
families. Company Unions were formed that handled things like social events for workers.
Today, and locally, the presence of institutions and laws for Workers Compensation, and
Occupational Safety, Health and welfare Acts represent ideas developed in this era.
2.2. Scientific Management Era
This was first promulgated by the experiments and writings of Taylor (1911). Who thought
that “there was one best way of doing work, and this was determined through time and motion
studies that investigated the most efficient use of human capabilities.” There was an advocacy
for replacing “rule of thumb with science”. (Check in Historical of Evolution of HR). The HRM
focused much on individual employee effort rather than the entire working team. Emphasis
was put on systematic management and workers performance to reap maximum benefits.
Techniques that were seen relevant to management of workers included functional
foremanship; and differential piece wage system.
The era was promulgated by the need to understand the individual role of an employee and
secure massive production. Notable institutions that the paper notes were developed as an effect
of this era in the U.S.A (1935 to 1950) included the Labour Relations Department that assisted,
inter alia, workers on “Contract Administrations”. In the later years, the views developed
during this era also had an influence in the development of the Industrial Relations Department
that focused on issues like individual benefits of employees. Today, issues of performance
based appraisals reflect ideas of this era. An example is the recent government Circular
(Department of Statutory Corporations) advising all government Boards and Controlling
officers that salary increments to officers on fixed contracts should only be performance based.
2.3. Human Relations Resources Era
This is an era which was a product of psychological researches (Post 1920s) to understand
human factors at work and some other variables of human behaviour that affected production.
The period sometimes referred to as ‘Industrial Psychology Era’. HRM focused on relationship
between employers and workers beyond physical conditions and social factors. Hugo
Munsterberg (1913) promulgated the importance of the use of psychology in recruitment and
teaching of employees. The research works of this era concluded that productivity of workers
depended on social factors at the workplace as such psychology was very vital in production.
The findings revealed the importance and relevance of group formation and group influence;
the importance of understanding and implementing an appropriate nature of leadership and
supervision technique; and the importance of communication at a workplace (See Mayo. E.
The Hawthorne Effect). Today, concepts of effective communication and corporate
governance, can be seen to be a product of ideas emanating from this era.
2.3. Behaviour Science Era / Social Era
The focus on HRM was goal orientation and efficiency. It considered the understanding of
human behaviour to be the major means to achieve efficiency and the goals of an organisation.
The idea was to make sure that the employees are satisfied and motivated to perform well in
their duties. The era led to the development of two way communication, and participation of
employees in decision making processes.
The line of thinking promulgated by the Human Relations Era and the Behaviour Science Era,
had an influence on the development of Institutions like, the Personnel Department (between
1970s and 1990s), in the U.S.A, that oversaw employee relations, and the safety and health of
the employees.
2.4. System and Contingency Approach Era and The cost effective Era
These are the more sophisticated and developed HR eras in the immediate past. The idea in
the System Contingency approach has been that analysis of any object must rely on a method
of analysis involving simultaneous variations of mutually-dependent variables. To put into
context, HR approach requires an analysis of several, but related variables that affect
production. It focuses on Cost effective management and flexible management styles. It seeks
to establish a Multi management style i.e. management done in different styles for different
employees within the same organization. The institutions created during this era focused on
issues like legal compliance.
The Cost Effective Era, which the paper considers to be part of the Strategic Contingency
Approach Era became vibrant from the 1980s to 1990s. The era harnessed the idea that HR
processes ought to be cost effective. This came from a realisation that peoples costs were a
significant part of the company’s budget.
2.5. HR Management: The Present Era
This is an era that regards HRM as a strategic function of an organisation . HRM now considers
itself as the most useful resource of management. However, HRM is already evolving into a
new Era.
3. THE FUTURE OF HRM
The paper observes that the factors that will greatly affect the future of HRM include,
technological developments, globalisation; ethical issues; demographic and work place issues;
as well as economic factors/ the need to control profits.
3.1. Technological Developments
Technology has have had profound effect on HR processes and practices. (Guetal and Stone,
2005), and (Kavanagh Thite and Johnson, 2015) demonstrate how Information Technology
(IT) has transformed the way organisations recruit, select, motivate and retain employees. In
the local setting the manifestation of technology in HR was seen in the transmission and
collation of election results in the disputed 2019 elections whereby a system of Records
Management System (RMS) replaced the physical works of humans in transmitting results.(See
Constitutional case no. 1 of 2019)
It is feared that in future HRM would completely be replaced with machine operators. It is,
however, obvious that even machines will have to be operated by humans and that sophisticated
machines will inevitably also sophisticate human behaviour and actions. Nevertheless, the
future of HRM, remains technological.
3.2. Globalisation
Companies are now becoming more international. Previously HR was narrowly, interested in
the right person for the right job, however in modern times HR ought to align workers to a
business strategy beyond a country. Globalisation has led to a serious conflict of laws issues,
in case of international companies going through corporate agreements or labour disputes. This
is whenever the laws of different countries governing labour issues or contracts are different.
Again, where different countries are involved, issues of moral disparities have to be monitored
and controlled. It is foreseen that HRM will take a more globalised approach in the future.
3.3. The Forces of Labour/ Demographics of Workforce
There is an emerging need to balance between maintaining skilled labour and addressing the
issues of unemployment of the inexperienced who are but youths. Locally, there was an effort
to introduce a law that would allow judges’ to be employed on contract to deal with stagnated
Court cases. The effort was resisted as it was seen to have been a means to reemploy the retired
(but experienced) judges leaving the youthful people without opportunity. (See the
Constitutional Amendment). It is argued by this paper that in the near future, the youth will
move to change the HR issues to focus more on unemployment, and their inclusion, for
example, changes in the age for mandatory retirement. The other dynamic is on gender
inclusion with recent laws and regulations advocating for equal inclusion. The paper argues
therefore that in the future HRM will be a toll to balance the demographics in workforce.
3.5. Economic Dynamics and the Need to Control Disruption of Labour.
The paper argues that unlike in the 1900s, employees are no longer the weaker part in the
employment equation. Modern dynamics in human rights discourse, labour laws, and powers
of unionisms have made employees very powerful. It is observed that, there are now attempts
by the employers to reclaim their control to ensure that economies are not disrupted by failure
of production. This can be seen from the recently passed Labour Relations Act in Malawi that
allows employers to deduct wages after 3 days when employees go on an industrial strike. This
can be seen as a means of employers to control prolonged industrial strikes that may disrupt
economies. In future, HRM may be used more as a tool to control economic dynamics.
4. CONCLUSION
The paper has shown the dynamism from as old as 9000. It has discussed the eras in the
evolution to the present Era. The paper further demonstrates its position on the future of the
HRM as a strategic function in an organisation by focusing on the impact of Technology,
globalisation, the changing demographics of workforce, and the economic dynamics.
References
Armstrong, M. (2009). Armstrong's Handbook of Human resource Management Practice.
London: London; Philadelphia: Kogan Page.
Chilima and another Vs Muntharika and Another. http://malawilii.org/mw/judgment/highcourt-general-division/2020/2
Drucker, P. F. (1954). The Practice of Management . New York : Harper and Row.
Gueutal, H.G, & Stone, D.L. (2005). Introduction to the Brave World of eHER : Human
resource management in the digital age . San Francisco, CA: Jossey-Bass
Kavanagh, M.J., Thite, M.,& Johnson, R.D. (2015). Human Resource Information Systems:
Basics, applications and future directions (3rd edn.) Thousand Oaks, CA: Sage
Munsterberg, H. (1913). Psychology and Industrial Efficiency. Boston, MA: Houghton
Mifflin.
Social Security Act of 1935
Storey, J . (2007). Human Resource Management: A critical Text. London: Thomson
Taylor, F.W. (1911). The Principles of Scientific Management. Harper and Brothers, 1911.
Pp12 & 17
The Labour Relations Act. (2021).
The Occupational Safety, Health and welfare ( Act No. 21of 1997)
Watson, T. J. (2010). Critical Social science, Pragmatism and Realities of HRM. The
International Journal of Human resource Management, 19.
Workers Compensation Act. (Act No.7 of 2000)
Bibliography
Armstrong, M. (2009). Armstrong's Handbook of Human resource Management Practice.
London: London; Philadelphia: Kogan Page.
Drucker, P. F. (1954). The Practice of Management . New York : Harper and Row.
Dyer, L. and Holder, G. (1998). Strategic Human Resource Management and Planning. In:
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Munsterberg, H. (1913). Psychology and Industrial Efficiency. Boston, MA: Houghton
Mifflin.
Storey, J . (2007). Human Resource Management: A critical Text. London: Thomson
Taylor, F.W. (1911). The Principles of Scientific Management. Harper and Brothers, 1911.
Pp12 & 17
The Labour Relations Act. (2021).
The Occupational Safety, Health and welfare ( Act No. 21of 1997)
Watson, T. J. (2010). Critical Social science, Pragmatism and Realities of HRM. The
International Journal of Human resource Management, 19.