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Week 2 : Introduction to HRM Personnel Management v/s HRM HRM Goals and Roles

To outline the origins, evolvement and developments in HRM. To understand the differences between Personnel Management (PM) and HRM. To understand the nature of HRM activities and external forces To understand HRM roles, changes and challenges

Emergence of HRM has provided focus on wide-ranging debates concerning the nature of the contemporary employment relations not only in the US and in the UK, but in many other economies as well. The starting point of this debate is the recognition that the nature of employment relations has experienced a series of important changes and adaptations over the past decades.

A decline in the proportion of employees in trade unions A decline in the proportion of employees whose pay is set by unionized collective bargainings A reduction on the range of employment issues that are handled collectively Restructuring organizations from tiers of hierarchy and stable occupation structures like part-time, contracted or franchised employment (outsourcing)

Post World War recession Need for innovation to sustain competitive edge Emergence and recognition of HRM

Nature of Human Resource Management and its 7 interlinked activities

Employee and labour Strategic HR management relations - employee rights and privacy Health, safety and security - health and wellness - safety - hr policies - employee relations - compliance - diversity - affirmative action -hr planning - hr measurement - hr technology Equal employment

- wlb
- security

HR Development Compensation and - orientation - training - employee development Staffing - job analysis - recruiting - career planning - performance management

- salary / rewards - incentives/benefits

External factors affecting the HR activities:

legal economic global social technological cultural environmental 9 political

- retention

Global forces HR management today is transnational due to global competition. (Outsourcing of US jobs to China, India and Philippines has today made these countries of political concern/SAP company growing globally means consideration of international factors at all levels. Strategic HR Management Due to the fast evolving competitive globalised business environment, HR has to think strategic and focus on sustainability of business, retention and development of talents and increase HRs effectiveness through use of metrics Equal employment opportunity HR Plans must ensure proper compliance to equal opportunities in HR activities (no gender issues on recruitment, equal pay for equal job, respect of global workforce and religious beliefs. Staffing Aim is to provide competent and adequate staffs within the company, that selection is made on fairly and on meritocracy. HR development Induction sessions to familiarize the employee with the company culture. Also, development of competencies, career planning, promotions, succession plans for followers, creating knowledge based company and retaining talents on individual basis and organisational basis. Compensation and benefits pay, incentives, bonuses, gain-sharing/company profit sharing, compensation based on actual market rates to promote fair competition. Health and Safety ensuring physical, mental and emotional health of employees within the organization. Health and Safety Act requirements (location, air conditioning, workstation, seats, psychological assistance to employees. Employee and labour relations HR clinics, close listener on the operations floor, relations management between employees and employers for both to prosper together, IR on decline to promote ER(fairer/more open and accessible/no hierarchy levels). Thus a need to develop and communicate HR policies and procedures.


Administrative clerical jobs and recordkeeping (use of HRIS) Operational and employee advocate managing most HR activities and serving as employee champion (ER, identify issues to remedy, help management and employees to find an agreement in situations of crisis, implement HR policies , improvements and counseling where needed) Strategic contributing to the direction (mission and vision) of the company. Described as having a seat at the management tables.


Strategic 20%

Administrative 10%

Operational and employee advocate 30%

HR transformation

Strategic 50%

Administrative 50%

Operational and employee advocate 30%

The administrative role has till today been the predominant role in HR. The HR pyramid is to be turned upside down, so that significant transformations occur in HR, lesser time in administration and more in strategic.