The Nature of HRM Evolution of the Human Resource Function HUMAN RESOURCE MANAGEMENT HUMAN RESOURCES (HR): People employed Scientific management: Concerned with to carry out various jobs, tasks, and functions. structuring individual jobs to maximize efficiency (E.g. Remunerated via wages, salaries, and other and productivity rewards) Comprehensive set of managerial activities and Frederick Taylor-father of scientific management tasks that help develop and maintain a qualified Frank and Lilian Gilbreth-time and motion studies workforce. Origin of the Human Resource Function HRM Function Businesses such as GM, Bethlehem Steel (1899), Requires professionals who can balance ethical Ford Motor company (1903), Boeing (1916) grew and legal concerns with organizational needs into big companies Properly managed human resources can provide BF Goodrich was first company to establish a a competitive advantage corporate employment department—employee concerns. Shrinking of the traditional HR National Cash Register 1902—employee manager role grievances, wages and salaries, and record keeping. Outsourcing: Process of hiring external firms to Ford Employment Department handle basic HRM functions ○ Both military and major suppliers became interested in better matching people with jobs.) "Evolution of Human Resource" Hawthorne studies: Instigated the human relations era and helped develop other theories to Early advocates of OB understand employee character (Roethlisberger and 1. Robert Owen (late 1700s) Mayo) Concerned about deplorable working conditions ○ Hierarchy of human needs (Abraham Maslow) Proposed Idealistic workplace ○ Theory X and Theory Y (Douglas McGregor) Argued that money spent improving labor was smart investment. ORIGIN OF THE HUMAN RESOURCE 2. Hugo Munsterberg FUNCTION Pioneer in field of industrial psychology scientific Personnel management: Grew from the study of people at work recognition that human resources needed to be Suggested using psychological tests for employee managed selection, learning theory concepts for employee Personnel departments: Specialized training, and study of human behavior for organizational units for hiring and administering employee motivation human resources Personnel manager-the manager 3. Mary Parker Follet who ran the department. One of the first to recognize that organizations ○ Evolved during World War II 1930’s-1940s could be viewed from perspective of individual Both military and major suppliers became and group behavior interested in better matching people with jobs; Proposed more people-oriented ideas than psychologists were consulted to develop selection scientific management followers tests; Thought organizations should 1950’s-post-war lessons were adapted by private be based on group ethic industry; 4. Chester Barnard Lead to new and more sophisticated techniques in Actual manager who thought organizations were the area of testing, reward and incentive systems; social systems that required cooperation presence of labor unions; Believed manager's job was to communicate and Role of HR Manager has grown into the role of stimulate employees high levels of effort strategic partner in response to new technological First to argue that organizations were open innovations. systems CONTEMPORARY HRM PERSPECTIVES HRM Page 1 HRM Page 2 Human Resource Management in the Electronic Age 1. Electronic systems: Employees use of a digital tool to comment on each other’s work (Washington-based living social) Find candidates directly via LinkedIn Crowdsourcing (glassdoor, careerbliss, careerleak, and JobBite) Enable ease of surveillance and communication Pose legal concerns regarding ethics and privacy 1. Increased need for knowledge workers Employees whose jobs are concerned with the acquisition and application of knowledge; Contribute through specialized knowledge and application of that knowledge. "Emerging Human Resource Challenges" New challenges are faced on a daily basis Determining how and when to initiate layoffs Managing the effect of world events on existing and potential employees Measures taken Adopting corporate social responsibility Indulging in conscious capitalism or triple bottom line Human Resource Management Functions 1. RECRUITMENT and SELECTION Used to attract and hire new employees who have the abilities, skills, and experiences that will help an organization achieve its goal. 2. TRAINING and DEVELOPMENT Ensures that organizational members develop the skills and abilities that will enable them to perform their jobs effectively in the present and the future; Changes in technology and the environment require that organizational members learn new techniques and ways of working. 3. COMPENSATION and BENEFITS Rewarding high performing organizational members with raises, bonuses and recognition. ○ Increased pay provides additional incentive. ○ Benefits, such as health insurance, reward membership in firm. HRM Page 3 4. PERFORMANCE APPRAISAL and FEEDBACK Provides managers with the information they need to make good human resources decisions about how to train, motivate, and reward organizational members; Feedback from performance appraisal serves a developmental purpose for members of an organization. 5. MANAGING LABOR RELATIONS Steps that managers take to develop and maintain good working relationships with the labor unions that may represent their employees’ interests. GOALS OF HUMAN RESOURCE MANAGEMENT Facilitating organizational competitiveness Enhancing productivity and quality Complying with legal and social obligations Promoting individual growth and development ○ HRM is viewed as part of a psychological contract with employees . HRM as a STAFF versus LINE FUNCTION Line managers: Directly responsible for creating goods and services. Staff managers: Responsible for an indirect or support function that would have costs ○ Bottom-line contributions are less direct Recent trend HRM activities are carried out by line managers . Some firms have HR departments structured around centers of excellence HR DEPARTMENTS in SMALLER versus 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 Trends Shaping Human Resource Management Human Resource Management as a Center for Expertise 1. Workforce Demographics and Diversity Trends The composition of the workforce will continue to become more diverse with ○ More women ○ Minority group members ○ Older workers in the workforce CAREERS in HUMAN RESOURCE 2. TRENDS ON HOW PEOPLE WORK MANAGEMENT On-Demand Workers- freelancers and independent contractors who work when they can & what they want Obtain a degree in Human Resource to work on, or when the company needs them. Management Human Capital- employers giving emphasis on their ○ Provides an entry-level employment opportunity as workers’ knowledge, education, training, skills, and an HR manager expertise. Line management can be used as a route to 3. Globalization Trends HRM Free flow of trade among countries increased ○ Enabled via rotation of managers through the international competition; HR function More globalization means more competition; More competition meant pressure to be “world class” 4. ECONOMIC TRENDS Labor force trends The unbalanced labor force 5. TECHNOLOGY TRENDS Employers use social media for recruiting employees New mobile applications for monitor location Gaming support Cloud computing Data analytics—talent analytics HUMAN RESOURCE MANAGEMENT SYSTEM Integrated and interrelated approach to managing human resources ○ Recognizes interdependence among various tasks and functions that must be performed HRM subsystems affect and are affected by other organizational sub-systems ○ Utility analysis: Attempts to measure the impact and effectiveness of HRM practices in terms of metrics such as a firm’s financial performance CHARACTERISTICS of CONTEMPORARY HR MANAGERS Understand different specialized areas such as: ○ Legal environment ○ Process of change management ○ Labor relations Possess general management abilities that reflect conceptual, diagnostic, and analytical skills HRM Page 4
