CHAPTER 1
Changing Nature of Human Resource Management
After you have read this chapter, you should be able to:
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Identify four major HR challenges currently facing organizations and managers. List and define each of the seven major categories of HR activities. Identify the three different roles of HR management. Discuss the three dimensions associated with HR management as a strategic business contributor. Explain why HR professionals and operating managers must view HR management as an interface. Discuss why ethical issues and professionalism affect HR management as a career field.
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HR TRANSITIONS
HR Management Contributes to Organizational Success
More effective management of human resources
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Executives believe that their emphasis on HR activities has contributed significantly to the Bank of Montreal’s achieving period profits for seven years in a row. In summary, it is evident that the transition of HR management at GE Fanuc and at Bank of Montreal has enhanced organizational competitiveness and success.1
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Section 1 HR Management—Strategies and Environment
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HR should be defined not by what it does, but by what it delivers.
DAVID ULRICH
Human Resource (HR) management
The design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish the organizational goals.
As human resources have become viewed as more critical to organizational success, many organizations have realized that it is the people in an organization that can provide a competitive advantage.2 Throughout the book it will be emphasized that the people as human resources contribute to and affect the competitive success of the organization. Human Resource (HR) management deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals. In an organization, the management of human resources means that they must be recruited, compensated, trained, and developed.
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HR Management Challenges
The environment faced by HR management is a challenging one; changes are occurring rapidly across a wide range of
In an era of organizational flux due to competition and globalization, companies and employees are faced with constant change. Leaders must be able to adapt to change as the environment shifts. HR has been known as the organizational change agent, administrative expert, and employee advocate. More recently they have been regarded as business strategic partners for many organizations. In order to be successful and remain competitive in today’s market, Human Resources (HR) must be considered a strategic partner if an organization wants to flourish. Top executives today commit significant resources to ensure that their company’s functions are capable of rapid change and achieving their
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,
Indicative Content: Understand key contemporary business issues affecting the HR function within private, public and third sector organisations. Types of organisation; the role of management within them; ways in which HR is delivered; the main functional areas of management; the search for sustained organisational performance, business
The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an
In my role as HR, I need to be prepared for the rapid changes in the business environment; organizations are increasingly looking at human resource as a unique asset that can help provide a sustained competitive advantage., I will ensure the HR strategy is in alignment with the business strategy of the company I am responsible for. Obviously, my ultimate goal is to provide a full-fledged effort to ensure the productive and fruitful integration between HR strategy and Business strategy.
Human Resource Management, was developed in the late 90’s, by R. Wayne Mondy and Judy Bandy Mondy. It was designed to help new students become familiar with human resource management, providing both realistic and practical scenarios of HR’s strategic role in planning and operating organizations. Through various examples from the research of company material, it demonstrates that all managers are necessarily involved with the human resources part of business, which is
In an era of increasing competitiveness, globalization, economic rationalization, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalize on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor.
The role of the human resources (HR) department can play a significant role in the success and achievements of an organization. The department, which has evolved from the
A manager must recognize the employees with knowledge and skills and encourage them to use their abilities. Organization and managers should recognize their successful business which this success depends on human capital and
To work in the Human Resource management field you must maintain and improve the company by planning, implementing, and evaluating employee relations and human resource policies, programs, and practices. It is a challenging and yet rewarding field to work in. However, just like every business field, people who work in the human resource department face many challenges when it comes to discrimination.
Whether an organization consists of five or 25,000 employees, human resources management is vital to the success of the organization. HR is important to all managers because it provides managers with the resources – the employees – necessary to produce the work for the managers and the organization. Beyond this role, HR is capable of becoming a strong strategic partner when it comes to “establishing the overall direction and objectives of key areas of human resource management in order to ensure that they not only are consistent with but also support the achievement of business goals.” (Massey, 1994, p. 27)
The evolution of Human Resource Management has transitioned from a very simple administrative function to a very multifaceted strategic function that still includes administrative, operational, and strategic tasks in the organization. In the beginning of Human Resource Management, the roles of Human Resource personnel was mainly just to hire employees, deal with compensation, benefits, legal issues, and the firing of employees. Today, Human Resources Management has progressed into an imperative involvement in the success of all attributes of an eminent business establishment.
Merely acting in a support role as seen in the older models of the HR function will not lead a business to soar in productivity or reach increased profit margins; in fact, the opposite may be true. An industry may see a decrease as it may find itself on the losing end. “The most effective way we know to change the calculus is to develop a measurement system designed to link people, strategy, and performance” (Becker, Huselid & Ulrich, 2001, p. xii). Strategic HRM works to incorporate all of the traditional roles with
Ultimately, the way HRM has influenced the success of a business has changed overtime. Despite the tendency for companies to resist the new and unfamiliar conditions,
As the world is turning out to be more aggressive and unstable than any other time in recent memory, producing based enterprises are looking to increase upper hand at all cost and are swinging to more inventive sources through HRM practices (Sparrow, Schuler, & Jackson, 1994). HR practices has been defined by (Smallbusiness.chron.com, 2016) as “the means through which your human resources personnel can develop the leadership of your staff.”