HRM370-4 Contemporary Issues in Human Resource Management
STUDY UNIT 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 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 1950s 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 programmes 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 specialised
area of HRM and continues to play an important and vital role.
1970s, the first HR information systems application (the computerisation of the salary database) was
started.
The organistic period. - Tremendous organisational change started to take place in the 1980s -
globalisation, 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 centres became an important
issue for HRM, as did the implementation of more command-and-control policies and procedures to save
the organisation from failing to deal with the turbulent environment.
Period seen as the height of HRM specialization.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 1
,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 organisations.
Organisations 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 organisations 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 organised 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 organisation
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.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 2
,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:
-term and long-
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 organisation.
Bottom right quadrant (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 behaviour and actions, a world-class HR organisation
can be created.
The new employee- employer relationship
Successful and competitive organisations are able to turn their strategies into action quickly, manage their
processes efficiently and maximise their employees1 contributions and commitment.
Organisations must abolish the old way of doing things and implement new practices. This can take place
through re-engineering, restructuring, downsizing, and other activities.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 3
, 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 the new work environment is the lack of job security offered to
employees.
The flexible, de-layered, slimmer organisation 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
Two types of violation of the psychological contract can occur, reneging and incongruence
Reneging occurs when either party to a psychological contract knowingly breaks a promise to the other
Reneging may also occur because one party is unable to fulfil its promise or because one party does not
want to fulfil the terms of the agreement.
Incongruence occurs when the parties have different understandings of their obligations in terms of the
contract. Those different understandings occur because the terms and conditions of psychological contracts
are often perceptual.
Employers who understand and uphold these psychological contracts promote employee trust in
management as well as higher levels of job satisfaction, organizational commitment, and the intention to
remain with the employer - the desired state.
In Self-managed work teams
(SMWT) - Also known as self-directed work teams (SDWT) or as self-maintaining, self-leading and self-
regulating work teams
Have again recently come to the fore as a method of improving employee commitment and thus the general
well-being of the organization.
Resulting in significantly higher profits and productivity gains than those of the average operator.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 4
STUDY UNIT 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 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 1950s 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 programmes 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 specialised
area of HRM and continues to play an important and vital role.
1970s, the first HR information systems application (the computerisation of the salary database) was
started.
The organistic period. - Tremendous organisational change started to take place in the 1980s -
globalisation, 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 centres became an important
issue for HRM, as did the implementation of more command-and-control policies and procedures to save
the organisation from failing to deal with the turbulent environment.
Period seen as the height of HRM specialization.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 1
,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 organisations.
Organisations 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 organisations 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 organised 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 organisation
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.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 2
,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:
-term and long-
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 organisation.
Bottom right quadrant (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 behaviour and actions, a world-class HR organisation
can be created.
The new employee- employer relationship
Successful and competitive organisations are able to turn their strategies into action quickly, manage their
processes efficiently and maximise their employees1 contributions and commitment.
Organisations must abolish the old way of doing things and implement new practices. This can take place
through re-engineering, restructuring, downsizing, and other activities.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 3
, 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 the new work environment is the lack of job security offered to
employees.
The flexible, de-layered, slimmer organisation 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
Two types of violation of the psychological contract can occur, reneging and incongruence
Reneging occurs when either party to a psychological contract knowingly breaks a promise to the other
Reneging may also occur because one party is unable to fulfil its promise or because one party does not
want to fulfil the terms of the agreement.
Incongruence occurs when the parties have different understandings of their obligations in terms of the
contract. Those different understandings occur because the terms and conditions of psychological contracts
are often perceptual.
Employers who understand and uphold these psychological contracts promote employee trust in
management as well as higher levels of job satisfaction, organizational commitment, and the intention to
remain with the employer - the desired state.
In Self-managed work teams
(SMWT) - Also known as self-directed work teams (SDWT) or as self-maintaining, self-leading and self-
regulating work teams
Have again recently come to the fore as a method of improving employee commitment and thus the general
well-being of the organization.
Resulting in significantly higher profits and productivity gains than those of the average operator.
By Prof Tackura Mudyano: MCom HRM (UNISA), BCom Honours Business
Management (UNISA), BCom Human Resource Management (UNISA) _ 2017_
Associate Lecturer: Strategic Management, HR management, Department of
Human Resource management (UNISA)-Contact number: 078 717 3916
Email: Page 4
