TOPIC: Human Resource Management: Present And Future
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1 COURSE CODE: BUS 312 SAMUEL ADEGBOYEGA UNIVERSITY COLLEGE OF MANAGEMENT AND SOCIAL SCIENCES DEPARTMENT OF BUSINESS ADMINISTRATION COURSE TITLE: HUMAN RESOURCE MANAGEMENT CREDIT UNITS: /2018 SESSION. FIRST SEMESTER LECTURER: DR M. OSEMEKE TOPIC: Human Resource Management: Present And Future
2 Introduction This introductory topic gives a synopsis of the theory and practice that are examined in greater detail throughout the rest of the subject. The use of HRM is concerned with all facets of how workers are engaged and controlled in organizations. Hence, the rationale of this section is to present a general introduction to the practice of HRM. It covers the definition of HRM, functions of HRM, the characteristics of HRM, the essence and importance of HRM. The topic engages in a short discussion of the theme of personnel and HRM, and in particular examines to what extent there may be distinguishing features between them. Also discussed are: the scope of HRM, status of HRM in the organizational setting, skills of personnel that should work in HRM offices, changes occurring in Human resource management environments and future of HRM.
3 Learning Objectives After studying this topic, the reader should be able to know about: The meaning of human resource management Difference between HRM and Personnel Management Importance of HRM Human Resource Functions The Role of HRM Objectives of HRM Scope of HRM Skills of HRM Personnel The Environment of HRM Future of HRM Function
4 Meaning of Human Resource Management HRM has been defined as a strategy and articulate approach to the running of organizations most value assets: the individual employees contribute to the attainment of its goals. It deals with the policies, practices and system that influence employees behavior, attitude and performance. Functionally HRM can be defined as organizational function that concerns with issues related to people, such as organizational development, reward management, recruitment and selection, performance appraisal of employees, health and safety, employees motivation, communication, training and development. The varied definitions show the different aspect of HRM function. We can deduce from the definitions above that:
5 Meaning of HRM Cont d Human resource is one of the most valued assets in an organization When the HR of an organization is well managed, it will benefit the workers, the organization and the society at large. HRM function involves activities which are performed by HRM experts and line managers as well as employees. The activities are aimed at exert a pull on and retaining employees to work effectively and efficiently for the organization. HRM function is supposed to be performed by managers of the organization. The function is seen as a philosophy because it is an idea that prevail all strata and aspect of organization HRM activities involve the formulation of policies for the organizations human resource as well as all dealings that relate to the acquisition and utilization. The functions start before and continued after workers are hired. All these definitions indicate that HRM is an exclusive concept with various meaning, deciding on an accepted definition will lead to confusion. Based on this situation, HRM is flexible and it covers a range of functions that fluctuates from books, societies and applications.
6 Personnel Management (PM) Versus Human Resource Management (HRM) HRM is a contemporary concept which was conventionally regarded as personal administration or personnel management. However, synonyms such as personnel management are often used in place of HRM, but experts in HRM have exerted that difference exists between HRM and PM. PM has being defined as sequence of actions which enables workers and their employers to agree to their nature and objectives of their operational relationship and ensure that the contract is fulfilled. The PM concept concerns itself with just the administrative aspect of management of the people at work, whereas HRM encapsulate administrative as well as strategic portion of management of people.
7 Similarities between HRM and PM The similarities between Human Resource Management and Personal Management are: The same range of selected, competence analysis PM, training management and employees development and reward management techniques are used both HRM and personnel management. Both Human Resource Management and Personal Management recognizes that one of their most essential function is that of matching people in ever changing business requirement. The values of Human Resource Management and Personal Management are identical, to facilitate their organization goals or objectives. Personal Management like Human Resource Management attaches substance to the development of community and participation within an employee s relations system. Personal Management strategies akin to Human Source management strategies flow from the industry strategies. PM like HRM identified that line managers is accountable for managing people. The personnel function provides the necessary advice and prop up support services to enable managers to carry out their responsibilities.
8 Differences between HRM and PM Personnel Management (PM) implies; Human Resource Management (HRM) implies; 1. Reactive and servicing role Proactive and innovation role 2. Emphasis on accomplishment of Emphasis on strategy procedures 3. Specialist development General management activities 4. Focus on employees needs in their Focus on employees requirements in the own right light of business needs. 5. Employees seem as cost to be Employees seem as investment to be controlled. nurtured as well as cost to be controlled. 6. presumption of union management conflict Conflict dealt with by team leader with their team 7. Preference for collective bargaining of pay and conditions of service Management lead planning of people, resources and employment conditions 8. Emphasis on settling pay more in term or organizations internal market Emphasis on competitive and conditions to stay ahead of competitors 9. serving other departments/ units Contributing added value to business 10. supporting challenges Stimulating challenges 11. less flexible approach to staff Completely flexible approach to staff departments departments.
9 Importance of HRM The Importance of HRM are: It helps to clarify a firm s HR problems and develops solution to them. It contributes to a firm achieving and sustaining effectiveness through its efficient programs and activities by keying into the goals of the organization. It contributes to an organization s bottom line by recruiting the exact category of staff for a job and training them adequately for their identified job function. HRM in this light is regarded as a profit and not a cost centre. HR assists organization in effectively managing their increasing diverse work force while maintaining the culture of the organization to compete favorably in an increasing multifaceted and aggressive world. It fosters a favorable management climate, produce feelings of confidence in making administrative decisions, expedite decisions, encourage self reliance, growth and development, and the improvement of executive performances. It anticipates future conditions and situations and resolve how they will be dealt with. It influences and controls workers behavior in the company by specifying the prescribed, permitted and prohibited forms of behavior. It establishes a system of incentive and reward for effort which are designed to motivate employees efficiently, cooperatively and peacefully. It guides managers and ensures uniformity of actions in dealing with worker s problems thus maintain a consistent and integrated approach.
10 Human Resource function Human resource functions cover an array of actions that considerably manipulate all areas of an organization. The Society for Human Resource Management (SHRM) has acknowledged six foremost functions of human resource management. These are : Human resource planning, recruitment, and selection. Focus: Determining the Organization s major human resource needs, matching people and their career needs and capabilities with jobs and career paths. Human resource Training & Development. Focus: Identifying, assessing and-through planned learning-helping develop the key competencies (knowledge, skill, attitudes) that enable individuals to perform current or future jobs. Compensation and benefits. Focus: Assuring compensation and benefits fairness and consistency Safety and health. Focus: Nature and various laws relating to OHS in workplace Employee and labour relations. Focus: Assuring health Union organization relationship Human resource research & information systems. Focus: Assuring a personnel Information base.
11 The Role of HRM Today The range of roles that can be exercised by HR practitioners is based on the following features: the characteristics of the viable business environment the nature and extent of other external factors, such as the legal framework the level at which top management is prepared to involve HR experts in the business planning of the organization the degree of professional competence and political skill possessed by the senior HR practitioners the way in which power and authority is dealt with in the organization the level at which change is a consistent feature of organizational life. Ultimately, roles can only be played out in a context that is framed by the strategies and policies adopted by the senior managers of the organization.
12 The Role of HRM Today Cont d In addition, One generally used design to depict the role of HRM was developed by Ulrich (1998) to include: Strategic business partner: To become a strategic partner requires overcoming five challenges such as: avoid strategic plans on shelf (SPOTS) i.e. turning strategic declaration into a set of managerial actions, create a balance scorecard, align HR plans to business plans, watch out for quick fixes, and create a capability focus within the firm. Employee champion: As an employee sponsor or advocate, the HR personnel plays a fundamental role in organizational accomplishment via his awareness about and advocacy of people. Change Agent: To help organizations respond to change initiatives, process changes and culture change, HR professionals must master both the theory and the practice of change, particularly align internal culture to desired market identity, understand the process for creating a shared mindset, have a model of change that is used throughout the business and creating new strategies at the Centre. Administration Expert: To become administrative expects, the HR professionals must learn how to: reengineer HR work through use of technology, process reengineering teams, and quality improvements, define the HR role in creating value for the firm, creating a shared services HR delivery mechanism, and measure HR results in terms of efficiency (cost) and effectiveness (quality).
13 The Role of HRM Today Cont d Employee advocate- focuses on the needs of today s employees through listening, understanding and empathizing. Human capital developer - in the role of managing and developing human capital (individuals as well as and teams), focus on preparing employees to be successful in the future. Functional Expert these concerns with the HR practices that are essential to HR value, acting with approaching on the basis of the body of understanding they possess. Leader leading the HR functions, working together with other functions and provides headship to them, a leader puts and enhances the values for strategic thoughts and ensuring corporate governance.
14 Objectives of HRM The objectives of HRM are to: Assist the organization accomplish its goals, objectives and enhance high productivity Employ the required skills and capability of the employees effectively and efficiently in the execution of their primary tasks. Provide the company with well-trained and well-motivated workforce. Enhance the employee s job satisfaction and self-actualization. Enlarge and retain a quality of work life: Some factors contributing to quality of working life are: Autonomy, Recognition, Sense of Belongingness, Career prospects and self-development, Rewards and Benefits Communication of HR policies to all employees. Be ethically and socially responsive to the needs of society and ensuring legal and ethical standards. Industrial peace, obtain and sustain competitive advantage.
15 Scope of HRM Scope of HRM The array of Human resource management are: (i). Personnel aspect: The personnel aspect concerns manpower planning, recruitment, selection, placement, transfer, promotion, training and development, retrenchment, remuneration, incentives, productivity, etc. (ii). Welfare aspect: This concerns working conditions and other benefits such as leave allowance, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc. (iii).industrial relations aspect: This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
16 Skills for Effective HRM The most important skills for success in managing human Resources are: Change management skill Process re-engineering skill communicating skill Continuous learning skill Creativity skill Delegation skill Flexibility skill Strategic thinking skill Team orientation skill Problem solving skill Analytical and critical skill Statistical skill Negotiating skill
17 Environment of HRM HRM processes take place within the context of the internal and external environment of the organization. HR practitioners should have the ability analyze the impact of external events on company policies and practices. They need to be aware of the fact that what the organization does and what they need to do will depend to a large extent on its external and internal environment such as: The external environmental factors: Economic factors, Political factors, Legal factor, Social and Religions factors, Technological factors. The Internal Environment The following aspects of the internal environment will affect HR policy and practice: The size of the organization; The age of maturity of the organization; The technology of the business will determine how work is organized, managed and carried out; The type of people employed, e.g. professional staff, knowledge workers, technicians, etc The organization s culture the established pattern of values, norms, beliefs, attitudes and assumption that shape the ways in which people behave and things get done.
18 Changing Environments of HRM: Influencing Factors of the Future of HRM: Size of workforce: companies have grown in size considerably in recent times due to global competition. Composition of workforce: The workforce composition is also changing over the years. The rising percentage of women and minorities in the work force has altered workplace equations dramatically. Changes in technology: Increased automation, modernization and computerization have changed the way the traditional jobs are handled. Life-style changes: The life-style model of workers has recently undergone a swift transformation. Unlike before workers are now ready to change jobs where available, reallocate to other areas, and even experiment with untested ideas. Environmental challenges: Privatization efforts could perhaps gather impetus in future, as most public sector organizations are facing continued existence tribulations.
19 HR functions in future: The personnel function in future is going to evolve thus: (i). Job redesign: The center of attention on job redesign will amplify: Flexi-time, job sharing and different work measures will emerge at the center-stage. (ii). Career prospects: Apart from enhance compensation package, personal growth and self- improvement possibly will turn into primary intent for working. The organizational management could restructure work so that workers find expression of their desires for inspiration, sovereignty and entrepreneurship. (iii). Productivity: Productivity, efficiency, growth are going to be the new mantras for corporate survival and growth. (iv). Recruitment and selection: Effective selection devices are likely to be used, giving premium to employee skills, knowledge, experience, ability to get along with people etc. (v). Training and development: As technologies change rapidly, people need to update their skills continuously. A much broader range of abilities is required to keep pace with ever-present changes, forcing companies to spend increasing sums on training and development. (vi). Rewards: Rewards will be tied to performance. Benefits will accrue to those who show merit. Individually designed packages recognizing talent may out-number group compensation plans. Carrot and stick policies may not find a place in the new corporate lexicon in future. (vii). Safety and welfare: Increasing investments may have to be made by companies to improve the work atmosphere, climate and job satisfaction levels of employees
20 Changes in 21st Century Impacting HRM: Some of the current trends that would have significant effects on the way HR practices would get transformed in future are: HR as a spacing board for success Talent hunting, developing and retaining Lean and mean organizations Labour relations: Deregulation, privatization, global competition and the like would in a way, mean the end of the road for trade unions Health care benefits: To attract talented workforce healthier work environments would be an absolute necessity.
21 Human Resource Management Tomorrow Based on challenges of the future, HR departments must be sophisticated than their predecessors. The top firms perceived their HR professionals as employee champions, agents for change, and business partners. If future HR professional is to earn respect of their colleagues and of top management, the professionals must work to overcome negative impressions and biases sometimes associated with human resource management. This can be accomplished in several ways: One, HR experts should turn out to be well-rounded business people and understand the business complexities of the company. The following suggestions are offered to help human resource managers become more familiar with their businesses: Know the company strategy and business plan. Know the industry. Spend more time with the line people. maintain your hand on the pulse of the organization. Learn to determine costs and solutions in hard numbers. Second, human resource experts should become fully knowledgeable about present and future trends and issues. This will help them guard becoming enamored with passing fads or ineffective techniques. Third, human resource professionals should encourage valuable human resource utilization within the organization and to stress the significance of rising profits through effectively using the organization s personnel.
22 Future of HRM Function Today s organizations are undergoing many structural changes that present challenges for the human resource managers. Some of these structural changes are caused by downsizing, out-sourcing, rightsizing, and reengineering. Downsizing is the disengagement of many managerial and other employees of an organization. As a result of downsizing, many firms/organizations outsource services that the HR department earlier employed. Outsourcing refers to farm out job to an external corporation that concentrates in that particular type of labor. Some examples are services being outsourced include: retirement plan administration management development programs implementing reengineering programs etc Reengineering refers to a basic rethinking and fundamental redesign of business development to realize remarkable enhancement in cost, quality, service, and speed.
23 Review and Discussion Questions 1) Explain the concept of Human Resource Management. How is it similar to, or different from personnel management? 2) What are the challenges that are likely to confront Human resources managers in the year 2020 and beyond? 3) Discuss the contextual factors that influence HR policies and practices of the internal and external environments of organizations. 4) Both HR professionals and business unit managers must be aware of the skills required to effectively manage human resources. Discuss these required skills.
24 References for Further Reading. Armstrong, M. (2009), A Handbook of Human Resource Management Practice (11 th Ed.). London: Kogan Page Buhler, P. (2002). Human Resources Management: Street Wise U.S.A. Adams Media Corp. Byars, L. L. & Rue, L. W. (2004). Human Resource Management 7th eds. Irwin McGraw Hill Cole, G. A. (2002) Personnel and Human Resources Management 5 th Ed. U.K. TJ International Fagbohungbe, O.B. (2006). Human Resources Management: The Repository for Human Resources Utilization, Lagos: Redemption Horizon. Igbinomwanhia O.R (2010), Human Resource Management. Benin City, Broadgate Publishers Torrington, D. & Hall, L. (1991) Personnel Management; A New Approach Prentice-Hall Englewood Cliffs, NJ Ulrich, D. (1997). Human Resource Champions. The next agenda for adding value and delivering results. Boston, Mass.: Harvard Business School Press
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