HRM3704 Contemporary Issues in Human Resource Management
STUDY UNIT 1 – HRM’s role in the evolving paradigm
HRM changed dramatically. Having excluded HRM from participating actively in business decisions for most of
its existence, organisations now require HRM to play an active role in the fight to be successful and remain
competitive. They ask the HR function to respond by cutting cost and finding creative ways to add value to the
business.
1.2 Origins of HRM
Formal HR practices evolved only at the beginning of the Industrial Revolution, when factories required large
numbers of employees with specific skills to operate their machines.
Paradigm – can be described as a set of rules and regulations that define boundaries and tell us what to do to
be successful within those boundaries. “particular way of thinking about, seeing and doing things within
one’s environment”
FOUR (4) distinct periods (that McKee identified)
1. Mechanistic period – 1940-1950 manufacturing was the driving force, birth of the personal relations
profession. HR function was administrative. Emergence of benefit programme.
2. Legalistic period – 1960-1970, legislation had major impact on the workplace; training & development
emerge as separate & specialised area of HRM. Period was the starting of the new HR information
system application (computerisation of the salary database)
3. Organic period – Organisational changes started to take place in the 1980s - globalisation, mergers,
acquisitions, re-engineering, and downsizing brought about radical change movement towards cost &
profit centre. There was more command & control, policy & procedure implemented. Period was the
height of HRM specialization.
4. Strategic period – 1990s. Strategic thinking and planning emerged as prominent activity to deal with
the continual change faced by corporate organisations. Organisations were in flux. 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. She argued the following issues will play major
roles:
• Increase in cross-border employment
• Workforce that will be comfortable in, and with, other cultures
• Fewer organisations because of continued mergers and acquisitions
• The use of just-in-time professional workers
• Increase in outsourcing of administrative functions
• More innovative compensation practices
• Telecommuting and other forms of flexible work being widely introduced
• Teams playing a major role
1.3 New Role of HRM
The role of HR professionals has changed dramatically over the last few years. HR professionals are becoming
more involved with decisions in organisations and their role as functional experts is no longer the only role
they should play. They should also share accountability for organising work to be performed as well as where it
is performed. They have made a number of changes in an attempt to become more successful.
To be successful, the HR professional will have to:
1. Become involved with line managers in strategy formulation and implementation,
2. Become an expert in the way work is organised and executed
3. Become involved in reducing costs through administrative efficiency, while maintaining high quality
4. Become a reliable representative for employees
5. Become involved in efforts to increase the employees' contribution
6. Become an agent for continuous transformation
Ulrich proposes a multiple role model for HRM - addresses these as well as other issues. For HR professionals
to be successful, they have to play at least four different roles,
Page 1 of 4
Summary by L Petzer
STUDY UNIT 1 – HRM’s role in the evolving paradigm
HRM changed dramatically. Having excluded HRM from participating actively in business decisions for most of
its existence, organisations now require HRM to play an active role in the fight to be successful and remain
competitive. They ask the HR function to respond by cutting cost and finding creative ways to add value to the
business.
1.2 Origins of HRM
Formal HR practices evolved only at the beginning of the Industrial Revolution, when factories required large
numbers of employees with specific skills to operate their machines.
Paradigm – can be described as a set of rules and regulations that define boundaries and tell us what to do to
be successful within those boundaries. “particular way of thinking about, seeing and doing things within
one’s environment”
FOUR (4) distinct periods (that McKee identified)
1. Mechanistic period – 1940-1950 manufacturing was the driving force, birth of the personal relations
profession. HR function was administrative. Emergence of benefit programme.
2. Legalistic period – 1960-1970, legislation had major impact on the workplace; training & development
emerge as separate & specialised area of HRM. Period was the starting of the new HR information
system application (computerisation of the salary database)
3. Organic period – Organisational changes started to take place in the 1980s - globalisation, mergers,
acquisitions, re-engineering, and downsizing brought about radical change movement towards cost &
profit centre. There was more command & control, policy & procedure implemented. Period was the
height of HRM specialization.
4. Strategic period – 1990s. Strategic thinking and planning emerged as prominent activity to deal with
the continual change faced by corporate organisations. Organisations were in flux. 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. She argued the following issues will play major
roles:
• Increase in cross-border employment
• Workforce that will be comfortable in, and with, other cultures
• Fewer organisations because of continued mergers and acquisitions
• The use of just-in-time professional workers
• Increase in outsourcing of administrative functions
• More innovative compensation practices
• Telecommuting and other forms of flexible work being widely introduced
• Teams playing a major role
1.3 New Role of HRM
The role of HR professionals has changed dramatically over the last few years. HR professionals are becoming
more involved with decisions in organisations and their role as functional experts is no longer the only role
they should play. They should also share accountability for organising work to be performed as well as where it
is performed. They have made a number of changes in an attempt to become more successful.
To be successful, the HR professional will have to:
1. Become involved with line managers in strategy formulation and implementation,
2. Become an expert in the way work is organised and executed
3. Become involved in reducing costs through administrative efficiency, while maintaining high quality
4. Become a reliable representative for employees
5. Become involved in efforts to increase the employees' contribution
6. Become an agent for continuous transformation
Ulrich proposes a multiple role model for HRM - addresses these as well as other issues. For HR professionals
to be successful, they have to play at least four different roles,
Page 1 of 4
Summary by L Petzer
