Chapter 1: The Environment of HRM
Learning Objective:
After students finished this chapter, they should
be able to:
1. Explain the different functions and roles of HRM in
an organization;
2. Give examples of how an HR department or HR
manager can add value to the organization;
3. Identify appropriate HRM strategies to support the
organization’s strategic initiatives.
4. Design possible HR programs or activities to meet
Introduction
This chapter explains what HRM is, what role it
plays in the organization, and how it has evolved in
response to the changing needs of the organization.
It discusses what makes HRM strategic and how it can
add value & align its programs and activities with the
organization’s goals and objectives. The leaders and
the mission statement of an organization almost
always talk about the primary importance of people,
regardless of whether the organization is labor-
intensive or highly automated, a small business or a
large multinational company.
What is HRM
“HRM IS THE SYSTEMATIC PLANNING, DEVELOPMENT, & CONTROL OF A NETWORK OF
INTERRELATED PROCESSES AFFECTING & INVOLVING ALL MEMBERS OF THE
ORGANIZATION.”-------WENDELL L. FRENCH
Functions & Roles
1. Talent Acquisition includes workforce planning
and employment. Employment includes
recruitment & selection. Recruitment refers to
activities designed to attract qualified applicants
to the organization. Selection is the process of
choosing the best qualified applicants to fill open
positions in the organization.
2. Performance Management refers to the process
of ensuring that employees’ performance
contributes to realizing organization’s goals &
objectives.
Functions & Roles
3. Employee Training and Development. Employee
training refers to the process of providing
employees with a specific knowledge & skills they
need to perform in their present jobs. Employee
development represents activities designed to
improve employee’s capabilities beyond those
required by their current jobs.
4. Compensation Management refers to the
management of financial returns that employees
receive in exchange for services that they provide
to an organization.
Functions & Roles
5. Benefits Management refers to the process by
which employee benefits, generally compensation
outside of basic pay, are designed and given to
employees in accordance with legal as well as
organizational requirements.
6. Employee Relations Management is the process of
ensuring effective management of all interactions
& relations between the organization and its
employees. This term usually refers to roles of HR
practitioners in organizations that do not have
labor unions.
Functions & Roles
7. Labor Management Relations pertains to the
management of employees’ terms & conditions of
employment. HR practitioners provide counsel
and advice to management concerning employee
grievances and discipline issues. They can also
represent the organization in collective
bargaining.
Functions & Roles
HR Roles as described by Ulrich in the multi-role model:
Strategic Partner: Management of strategic HR – this role
makes certain that HR strategies, programs, activities
are delivered in order to support the organization’s
strategies.
Administrative Expert: Management of firm’s
infrastructure – this role focuses on delivering efficient
HR processes.
Employee Champion: Management of employee
contribution – this role of HR practitioners relates to
day-to-day problems and needs of employees. It
ensures employees’ commitment or engagement in
the organization.
Functions & Roles
HR Roles as described by Ulrich in the multi-role
model: (cont.)
Change Agent: Management of transformation and
change – this role enables the HR practitioners to
identify and implement processes for change. Thus,
the HR practitioners build an organization’s capacity
for change.
TRANSITION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT
Beliefs and Assumptions
Dimensions Personnel & Industrial Human Resource
Relations Management
Contract Careful delineation of Aim to go “beyond
written contracts contract”
Rules Importance of devising “Can do” outlook;
clear rules/mutuality impatience with “rules”
Guide to management Procedures/consistency/ “business need”, flexibility
action control & commitment
Behaviour referent Norms/customs and Values/mission
practice
Managerial task vis-à-vis Monitoring Nurturing
labour
Nature of relations Pluralist Unitarist
Conflict Institutionalized De(-emphasized
Standardization High (e.g. parity an issue) Low (e.g. parity not seen as
important
TRANSITION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT
Strategic Aspects
Dimensions Personnel & Industrial Human Resource
Relations Management
Key relation Labour-management Business-customer
Initiative Piecemeal Integrated
Corporate plan Marginal to Central to
Speed of decision Slow Fast
Line Management
Management role Transactional Transformational
Leadership
Key management Personnel/HR Specialist General/business/line
managers
Prized management skills Negotiation Facilitation
TRANSITION FROM PERSONNEL TO HUMAN RESOURCE MANAGEMENT
Key levers
Dimensions Personnel & Industrial Human Resource
Relations Management
Selection Separate marginal task Integrated, key task
Play Job evaluation; multiple Performance related: few, if
fixed grades any, grades
Conditions Separately negotiated Harmonization
Labour-management Collective bargaining Towards individual contract
contracts
Trust of relations with shop Regularized through Marginalized (with
stewards facilities & training exception of some
bargaining for exchange
model)
Communication Restricted flow/indirect Increase flow/direct
Job design Division of labour Teamwork
Conflict handling Reached temporary truces Manage climate & culture
Training and development Control access to courses Learning companies
SUMMARY:
1. Major functions and roles of HRM in the Organization:
-Talent acquisition - Performance management
- Employee training & management development
- Compensation management - Benefits management
- Employee relations management
- Labor management relations
2. Roles of HR Manager/Practitioner (Ulrich Multi-Role
Model)
* Strategic partner * Administrative expert
* Employee champion * Change agent
3. The evolution of Personnel Dept to Human Resource
Department
REFERENCES
Books:
Payos, Ranulfo (2015). Human Resource Management. Rex
Bookstore, Inc. Phils.
Web:
https://www.google.com/search?
q=human+resource+management+&tbm=isch&ved=2ahUKEwjO
qrOS6b7xAhVjGKYKHf1RD28Q2-
cCegQIABAA&oq=human+resource+management+&gs_lcp=CgN
pbWcQAzIECCMQJzICCAAyAggAMgIIADICCAAyAggAMgIIADICCA
AyAggAMgIIADoGCAAQCBAeOgQIABAYUN-
YqwFYksqrAWDm0asBaABwAHgAgAGCAYgBxRySAQQ0Mi4zmAE
AoAEBqgELZ3dzLXdpei1pbWfAAQE&sclient=img&ei=ehvcYM6FK
uOwmAX9o734Bg&authuser=1&bih=667&biw=1366
