HRM1501 - Introduction To Human Resource Management (HRM1501)
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HRM1501 – Introduction to Human Resource Management
TOPIC 1 - Introduction to human resource management (HRM)
WORKBOOK 01 to 03: Defining human resource management
1.1 Introduction
Viewing employees as an expense to valuing employees as income generating assets could create a
competitive advantage for the organisation. Effective organisations are realising that of the varied
factors that contribute to organisational success, the human element is clearly the most critical.
Competent and efficient staff can go a far way and the competitive advantage derived from customer
service has important financial implications. These are not easy to find, and organisations must deploy
specific strategies to staff the organisation with top performers.
1.2 Define the concept of HRM
Effort invested by HR practitioners in ensuring that the skills and abilities, inborn talents, past-
experience and educational qualifications inherent in employees are used to benefit both the
employees and the organisation.
• Employees benefit from utilising their human resources through compensation
• Organisation benefits by realising a return on investment, that is, by maximising profitability,
sustainability, competitiveness and through growth and development.
Bratton and Gold (2007) define HRM as a strategic approach to managing employment relations: able to
leverage employee capabilities is critical for a competitive advantage.
Story (2007) is in support of Bratton and Gold’s definition of HRM by stating that HRM is a distinctive
approach to employment management which seeks to achieve competitive advantage through strategic
development of a highly committed and capable workforce, using an integrated array of cultural,
structural and HR techniques.
Erasmus, Schenk and Tshilongamulenzhe (2014:6) define HRM as the part of management that is
concerned with all aspects related to people who do the work of, in and for all the organisations in
society. In their opinion, HRM is rooted in work as a socio-economic human activity and is performed
mainly in the context of organisations.
• Strategy: A plan of action designed to achieve a long-term or overall aim
An organisation is part of the bigger system and it is influenced by factors in both the internal and the
external environment in many different ways.
Internal organisational environment
• Organisation itself:
1. The mission and vision,
2. Organisational policies and procedures,
3. Goals and objectives,
4. Strategies to achieve the goals and abilities,
5. The management style of managers in that organisation.
External environment
• Direct or Indirect Influence:
Page 1 of 10
HRM1501 Notes by L Petzer (2019 S2)
, 1. Economic factors: rand-dollar relationship, the rate of inflation, the changing prices of goods
and products as well as rising and falling interest rates
2. Social factors: society’s changing tastes in products and services, the affordability of and its
willingness to purchase such products and services.
3. Technological factors make it possible for people to perform tasks faster, produce products of
good quality and render services of an above-average standard
4. Politico-governmental factors are concerned with the management of the employment
relationship in the workplace. The basic relationship is the contract entered into between the
employer and the employee. This relationship often results in conflict with employees,
eventually resorting to strikes or industrial action. When conflict occurs, employees join trade
unions to counter-act the power of the employer, the owner and controller of the economic
resources. The government plays a role in regulating this relationship by promulgating
legislation, policies and procedures
5. Physical or the structural factors: the land and office space where HR practitioners can meet,
and products and services can be produced.
Activity:
1. What the concept “strategy” means?
Strategy is defined as "a plan of action designed to achieve a long-term or overall aim" also a
specific method which is used to ensure success or achieve the desired future. In terms of HRM,
strategy can be explained as the intentional and coordinated approach to all employment relations
consistent with business aims and objectives to ensure both employee satisfaction and improved
business performance.
2. Discuss how important strategy is for HR practitioners in managing human resources:
Strategy is important for HR practitioners when managing human resources because it ensures the
organised incorporation of HRM functions in a holistic manner and provides a platform for improved
cost-effectiveness, legitimacy, flexibility and autonomy. Strategy allows for sound transformation of
an organisation within a constantly changing environment and provides competitive advantage
1.3 Role and place of HRM in ORG
Wärnich, Carrel, Elbert and Hatfield (2015:14), the primary task of the HR department is to ensure that
the organisation’s human resources are utilised and managed as effectively as possible within an ever-
changing work
environment.
HR administrators
o Design and implement policies and programmes that enhance human abilities and improve the
organisation’s overall effectiveness.
HRM plays an important role in ensuring that the organisation has people with the right skills and
abilities to make it effective and successful. HRM is mainly concerned with ensuring that the right mix of
people is available when needed through a process known as HR planning.
HRM as a management function has a direct influence on the success of every organisation.
Wärnich et al (2015:15), successful rapid-growth companies, it was found that these companies were
generally able to use the HR function to solve problems and achieve success in the following ways:
• having HR directors reporting to the general manager
• placing major emphasis on employee recruitment, selection and training
• using teambuilding and creating an environment of rapid decision-making at lower levels
• communicating key company performance objectives through all programmes and linking them to
goals at all levels
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HRM1501 Notes by L Petzer (2019 S2)
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