HRM3704
Contemporary Issues in Human
Resource Management
2022 SUMMARISED NOTES
,HRM370-4 Contemporary Issues in Human
Resource Management Chapter 1
Human Resource Managements role in the Evolving
Paradigm
The origins of HRM
Formal HR practices evolved only at the beginning of the Industrial Revolution,
The researcher McKee has successfully described these paradigm shifts in business life
and has also identified the evolving role of H HRM function.
The categories of change that McKee has identified within businesses can be group^
into four distinct periods:
The mechanistic period. - Associated with the 1940s and 195os when manufacturing
was the driving force in industry.
Period saw the birth of the personnel/industrial relations profession. The main focus of
the HR function was of an administrative nature. Period also saw the emergence of
benefit programs as an area of interest.
The legalistic period. - 1960s and 1970s saw an unprecedented amount of legislation
in the social and employment areas. Legislation began a trend towards the regulation
of the workforce beyond the union contract and company rules. Training and
development began to emerge as a separate and specialized area of HRM and
continues to play an important and vital role.
1970s, the first HR information systems application (the computerization of the salary
database) was started.
The organistic period. - Tremendous organizational change started to take place in the
1980s - Globalization, mergers, acquisitions, re-engineering, and downsizing
HRM function faced numerous challenges (e.g. an increasingly diverse workforce and
an increase of awareness of work and family issues). Movement towards cost and
profit centers became an important issue for HRM, as did the implementation of more
command-and-control policies and procedures to save the organization from failing to
deal with the turbulent environment.
Period seen as the height of HRM specialization.
The strategic period. - 1990s has become known as the strategic period. Strategic
thinking and planning emerged as the most prominent activity to deal with the
continual change faced by corporate organizations.
Organizations were in flux, with structures ranging from webs to networks and
matrices. The HRM function now became a true strategic partner, reporting to the CEO
and interacting with the Board of Directors
Beyond 2000, McKee called this period the catalytic period.
In this period, following issues would play major roles:
• Increase in cross-border employment
• A workforce comfortable in, and with, other cultures
• Fewer organizations from continued mergers and acquisitions
• Use of just-in-time professional workers
• An increase in outsourcing of administrative functions
• More innovative compensation practices
, • More selective approach by employees regarding their careers
• Telecommuting and other forms of flexible work being widely introduced
Teams playing
The new role of HRM
To be successful, the HR professional will have to:
• Become involved with line managers in strategy formulation and
implementation,
• Become an expert in the way work is organized and executed
• Become involved in reducing costs through administrative efficiency, while
maintaining high quality
• Become a reliable representative for employees when putting their concerns to
management
• Become involved in efforts to increase the employees' contribution to the
organization
• Become an agent for continuous transformation, shaping processes and culture
to help improve capacity for change.
Strategic alliance between management and HR has received substantial attention in
both popular and academic literature.
Ulrich proposes a multiple role model for HRM - addresses these as well as other
issues.
Ulrich: for HR professionals to be successful, they have to play at least four different
roles,
strategic partner,
• administrative expert,
• employee champion
• change agent
Axes of Ulrich's model represent two aspects:
• focus (i.e. short-term and long-term)
• Activities (managing processes, HR tools and systems, and managing people
Top left quadrant (Cell 1). In this cell(management of strategic human
resources) the HR manager works to be a strategic partner by focusing on the
alignment of HR strategies and practice with the overall business strategy
Bottom left quadrant
(Cell 2). This role (management of company infra-structure) requires
HR professionals to design and deliver efficient HR processes,
HR professionals must ensure that these organizational processes are designed and
delivered efficiently.
Top right quadrant
(Cell 3). The third key role to be played by the HR professional is management of
transformation and change. This entails making fundamental cultural changes within
the organization.
Bottom right quadrant
2
, (Cell 4). The employee-contribution role of HR professionals encompasses their
involvement in the day-to-day problems, HR professionals should be active and
aggressive in developing this capital.
By turning the four HRM roles into specific types of behavior and actions, a world-class
HR organization can be created.
See Text book page 5
The new employee- employer relationship
Successful and competitive organizations are able to turn their strategies into action
quickly, manage their processes efficiently and maximize their employees 1
contributions and commitment.
Organizations must abolish the old way of doing things and implement new practices.
This can take place through re-engineering, restructuring, downsizing, and other
activities. The psychological contract - what employees and employers want and
expect from each other will change dramatically in the new work environment.
The psychological contract that is dynamic, voluntary, subjective, and informal
accomplishes two tasks: firstly, it defines the employment relationship, and,
secondly, it manages mutual expectations.
Perhaps the most significant change in die new work environment is the lack of job
security offered to employees.
The flexible, de-layered, slimmer organization is constantly changing to suit volatile
and shifting markets, and can logically no longer sustain secure career progression.
New values, trends, and workplace demographics have resulted in revised
expectations from employees themselves.
Workers also value independence, imagination, tolerance, and responsibility
See text book page 7
