Chapter 1
Evolution of human resource
management
(Human Resource Management Strategy and Practice, 9th Australian Edition 9e Alan Nankervis, Marian Baird,
Jane Coffey, John Shields )
Instructor Manual, For Complete File, Download link at the end of this File)
© 2017 Cengage Learning Australia Pty Limited 01-1
,Learning objectives
After reading this chapter, you will be able to:
1 define the purposes and scope of human resource management (HRM) in
Australia
2 trace the development of HRM in Australia (and the Asia Pacific region), including
its influences, issues and theories
3 explain the concept of strategic human resource management (SHRM)
4 understand the relationship between SHRM, business strategies and HRM
functions
4 discuss the links between SHRM and organisational strategy, structure, culture
and policy
6 describe the principal roles, functions and outcomes of Australian HRM
professionals
7 define the professional and ethical principles which guide HRM.
Summary
HRM is a complex and rapidly changing field of practice in industry. Despite its
comparatively recent origins, and drawing upon both overseas and local influences,
HRM is a critical factor in the success of all organisations.
Beginning in the 1940s as a series of functions, often neither integrated nor
based upon solid conceptual foundations, modern SHRM is a dynamic specialisation
in the process of refining its philosophies, practices and overall contributions to
organisational effectiveness. In response to external influences, including economic,
demographic, legislative and social changes, as well as its own history, HRM is
adopting a strategic approach to the management of human resources for corporate
benefit. As with other professions, HRM confronts a number of difficult issues and
dilemmas concerning ethics, roles, practices and the nature of its professional
association. Further development of SHRM will eventually resolve these issues in
creative and effective ways.
Key terms
employment relationship, p. 12
globalisation, p. 3
‘hard’ HRM, p. 17
HRM community, p. 37
HRM ethics, p. 40
© 2017 Cengage Learning Australia Pty Limited 01-2
, human resource management (HRM), p. 3
legal contract, p. 12
pluralist, p. 16
psychological contract, p. 12
resource-based model, p. 22
social contract, p. 12
‘soft’ HRM, p. 17
strategic human resource management (SHRM), p. 6
unitarist, p. 16
Chapter outline
Introduction
The authors begin this chapter with a discussion about the importance of HRM for
business. The chapter then provides a historical overview of the development of
SHRM in Australia, demonstrating the parallel development of HRM in the United
Kingdom and the United States. At this point, it is important to emphasise to students
that the discipline of SHRM is still in a state of evolution.
With the history and the foundation of HRM established, the authors also
introduce a number of theoretical concepts and models that have been established
to describe and explain SHRM, such as the Harvard model, unitarist/pluralist
approaches and ‘hard/soft’ HRM.
The chapter concludes with the relationship between organisational structure
and culture and SHRM policy. Finally, it presents an examination of the roles and
functions of HRM and the professional competencies and ethics required of HRM
professionals along with a presentation of their own SHRM model.
Student activity
The introduction of the chapter suggests that developments in business operations
and technology, as well as political, economic and social changes, have begun to
transform the nature of jobs and workplaces. To help the participants realise the
human resource impact of strategic business decisions, the following discussion
topics and activities are offered.
Discussion topics
Either working in groups or individually, ask participants to think about and discuss
the following topics.
1. Ask students to consider and identify the technological developments and
workplace changes that have occurred in a specific industry over the past 10–15
years, for instance, banking and finance, education or retail.
© 2017 Cengage Learning Australia Pty Limited 01-3
Evolution of human resource
management
(Human Resource Management Strategy and Practice, 9th Australian Edition 9e Alan Nankervis, Marian Baird,
Jane Coffey, John Shields )
Instructor Manual, For Complete File, Download link at the end of this File)
© 2017 Cengage Learning Australia Pty Limited 01-1
,Learning objectives
After reading this chapter, you will be able to:
1 define the purposes and scope of human resource management (HRM) in
Australia
2 trace the development of HRM in Australia (and the Asia Pacific region), including
its influences, issues and theories
3 explain the concept of strategic human resource management (SHRM)
4 understand the relationship between SHRM, business strategies and HRM
functions
4 discuss the links between SHRM and organisational strategy, structure, culture
and policy
6 describe the principal roles, functions and outcomes of Australian HRM
professionals
7 define the professional and ethical principles which guide HRM.
Summary
HRM is a complex and rapidly changing field of practice in industry. Despite its
comparatively recent origins, and drawing upon both overseas and local influences,
HRM is a critical factor in the success of all organisations.
Beginning in the 1940s as a series of functions, often neither integrated nor
based upon solid conceptual foundations, modern SHRM is a dynamic specialisation
in the process of refining its philosophies, practices and overall contributions to
organisational effectiveness. In response to external influences, including economic,
demographic, legislative and social changes, as well as its own history, HRM is
adopting a strategic approach to the management of human resources for corporate
benefit. As with other professions, HRM confronts a number of difficult issues and
dilemmas concerning ethics, roles, practices and the nature of its professional
association. Further development of SHRM will eventually resolve these issues in
creative and effective ways.
Key terms
employment relationship, p. 12
globalisation, p. 3
‘hard’ HRM, p. 17
HRM community, p. 37
HRM ethics, p. 40
© 2017 Cengage Learning Australia Pty Limited 01-2
, human resource management (HRM), p. 3
legal contract, p. 12
pluralist, p. 16
psychological contract, p. 12
resource-based model, p. 22
social contract, p. 12
‘soft’ HRM, p. 17
strategic human resource management (SHRM), p. 6
unitarist, p. 16
Chapter outline
Introduction
The authors begin this chapter with a discussion about the importance of HRM for
business. The chapter then provides a historical overview of the development of
SHRM in Australia, demonstrating the parallel development of HRM in the United
Kingdom and the United States. At this point, it is important to emphasise to students
that the discipline of SHRM is still in a state of evolution.
With the history and the foundation of HRM established, the authors also
introduce a number of theoretical concepts and models that have been established
to describe and explain SHRM, such as the Harvard model, unitarist/pluralist
approaches and ‘hard/soft’ HRM.
The chapter concludes with the relationship between organisational structure
and culture and SHRM policy. Finally, it presents an examination of the roles and
functions of HRM and the professional competencies and ethics required of HRM
professionals along with a presentation of their own SHRM model.
Student activity
The introduction of the chapter suggests that developments in business operations
and technology, as well as political, economic and social changes, have begun to
transform the nature of jobs and workplaces. To help the participants realise the
human resource impact of strategic business decisions, the following discussion
topics and activities are offered.
Discussion topics
Either working in groups or individually, ask participants to think about and discuss
the following topics.
1. Ask students to consider and identify the technological developments and
workplace changes that have occurred in a specific industry over the past 10–15
years, for instance, banking and finance, education or retail.
© 2017 Cengage Learning Australia Pty Limited 01-3
