HRM370-4 Contemporary Issues in Human
Resource Management
Chapter 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 H 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 195os 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.
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
1
, 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.
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:
focus (i.e. short-term and long-term)
activities (managing processes, HR tools and systems, and 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. \
2
Resource Management
Chapter 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 H 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 195os 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.
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
1
, 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.
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:
focus (i.e. short-term and long-term)
activities (managing processes, HR tools and systems, and 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. \
2
