Human Resource Management College

Module 1 Part 2 Overview of HRM Logo

MODULE 1

Part 2
Overview of Human
Resource Management

Module Author:
DR. MARIANE D. ATINAJA / PROF. PRESENTACION BOLARIO

Business Management Department

College of Business Administration and Accountancy
De La Salle University - Dasmariñas

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Human Resource Management College
Module 1 Part 2 Overview of HRM Logo

TABLE OF CONTENTS

Title Page

Part 1 Overview of Human Resource Management 3

1.1 Why Organizations Need HRM 3
1.2 Evolution of HRM 6

1.3 Human Resource and Information Technology (IT 7

1.4 Forces Influencing Working and Learning 7
1.5 Some of the Benefits of HRIS Solutions 7

Enabling Assessment 9

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Module 1 Part 2 Overview of HRM Logo

OVERVIEW OF HUMAN RESOURCE MANAGEMENT

Learning Outcomes:
 Understand human resource management and define human capital.
 Identify how human resource management and employees can be core competencies
for organizations.
 Name the seven categories of HR functions.
 Provide an overview of four challenges facing HR today.
 Explain how ethical issues in organizations affect HR management.
 Explain the key competencies needed by HR professionals and why certification is
important.

I. Overview of Human Resource

Management (HRM)

Human resource management: Designing formal systems in an organization to manage

human talent for accomplishing organizational goals

HRM is a process that involves the acquisition, development, maintenance, and

utilization of valuable human resources necessary for organizational success

The objective of HRM is to help make an organization more effective by means of:

1. integrating comprehensive human resource policies with overall organization

plans and strategies; and

2. implementing responsive human resource programs with a growing sensitivity to

the economic and policy needs of the organization as well as responsive to the
changing technology.

II. Why Organizations Need HRM

 Address worker engagement, performance, leadership development, retention
 Manage health care, retirement concerns, hiring, and educating
 Manage a globalized workforce, diversity, sustainability, and social media
 Facilitate the sharing of employee knowledge and expertise
 Why Organizations Need HRM
 Deal with government regulations
 Maintain legal compliance
 Smaller organizations are progressive in HR management

Small organization HR support:

Needed for same reasons as larger organizations

Frees line managers for primary duties

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Core competency: Unique capability that creates high value for a company
 Differentiates an organization from its competitors
 Is a key determinant of competitive advantage
 HR department focus on using people as a core competency

Figure 1-1:
Types of Organizational Assets

Human Capital
Human capital: Collective value of the capabilities, knowledge, skills, life experiences,
and motivation of an organization’s workforce

Called intellectual capital to reflect the contributions of employees:

 Thinking
 Knowledge
 Creativity
 Decision making

Figure 1-2: Areas in Which Employees Can Be Core Competencies Productivity

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Human Resource Management College
Module 1 Part 2 Overview of HRM Logo

1. Productivity: A measure of the quantity and quality of work done, considering the cost
of the resources used.
2. Unit Labor Cost: A measure of HR productivity computed by dividing the average cost
of workers by their average levels of output.

Figure 1-3: HR Approaches to Improving Productivity

Customer Service and
Quality Linked to HR
Affects organizational effectiveness

Human Resource Management

• Customer Service
• Quality
3. Organizational Culture

Organizational culture: Shared values and beliefs that give members of an organization
meaning and pprovide them with rules for behaviour

 Evolves over a period of time

 Is constant and enduring
 Constitutes organizational social environment
 Affects service and quality, organizational productivity, and financial results

HR Management Functions
Influenced by forces of external environment:

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Human Resource Management College
Module 1 Part 2 Overview of HRM Logo

 Global
 Environmental
 Cultural/Geographic
 Political
 Social
 Legal
 Economic
 Technological

Evolution of HRM

 The first serious study of management practice during the early years of the twentieth
century was based on scientific management by Frederick W. Taylor.
 Scientific management was concerned with:
1. standardization of jobs;
2. time and task study;
3. systematic selection and training of workers; and
4. pay incentives of employees to maximize efficiency and productivity.
 The Human Relations Movement era succeeded scientific management as the dominant
approach to management during the 1930s—a concentrated effort by some managers
and their advisors to become more sensitive to the needs of employees or treat them in
a more humanistic manner.

Evolution of the Human Resource Management Function

 As businesses grew bigger, specialized units were created to cope with their
hiring needs to deal with government regulations and behavioral issues of
workers.
 During the 1930s and 1940s, these units gradually began to be called Personnel
Department, and gave rise to a new type of management function: Personnel
Management.
 During the latter part of 1970s, human resource management emerged as a
reaction against the more functional approach embodied in personnel
management.
 Top HR executives today have vice presidential or executive vice presidential
status and are fully contributing member of the firm’s executive committee.
 Management no longer treated employees as costs but assets. Human
resources are the greatest asset of the company.
 In the recent years, treating HR as assets has been assailed by management
experts. “Assets are passive—bought, sold, and replaced at the whim of their
owners. Human capital in reference to workers now takes the place of human
resources” (Davenport 1999).

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Human Resource and Information Technology (IT)

 60s: HR Information Systems (HRIS) and payroll administration were
computerized.
 70s: More powerful databases were introduced.
 80s: HR applications like time and attendance were linked to payroll system.
 90s: As the cost of computerization dropped dramatically, the rise in popularity of
the PCs increased. The advent of the Internet and the Web generated an
explosion of HR systems and applications.
Information Technology (IT) Applications in HR
1. Use of job boards and e-recruitment
2. E-selection
3. Employment kiosk
4. E-learning
5. Electronic Performance Support System (EPSS)
6. Salary and payroll administration
7. Growth of social networking sites (e.g., Facebook and Twitter)
8. Use of email
9. Use of IT to foster customer involvement
10. Telecommuting/teleworking
HRIS Applications
 IBM
IBM Europe utilized HRIS in order to connect their 340,000 global employees through
revolutionary and engaging new company-oriented social media.
  Toshiba America Medical Systems Inc. (TAMS)
By manipulating a streamlined and functional HRIS, Toshiba America Medical Systems Inc.
moved all of their benefit information online.
 
Some of the Benefits of HRIS Solutions
 Salary and payroll administration. Payroll management is often a tedious process that
requires a high level accuracy, timeliness, and effective financial controls.
 HR training. It provides control of internal organizational training from delegating
participants to projecting training budget, course scheduling and enrolment, to training
assessments and individual performance appraisals.
 Self-service benefits transactions. Employees can gain online access to their benefits
package at their own leisure so they can focus on more demanding tasks at hand during
office hours.
 Outsourcing is a proven tool that can help companies improve service and better
manage their operating costs and cash flow.
 The business process outsourcing industry is considered as one of the fastest business
sectors in the world including the Philippines. It is an economic force that propels our
country to be considered as one of the emerging global leaders in the BPO industry.
 While our country produces a lot of graduates annually, most of them do not have the
skills needed in higher-value business processes.

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 Considering the major concerns of BPO, HR department needs to formulate strategies to

control its human resource for BPO.
 With regard to language proficiency, HR needs to design training programs that would
enhance the communication skills of prospective recruits who wish to enter in the field of
business process outsourcing and increase sources of applicants for the job.

 The essential roles and trainer professional competencies;

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Human Resource Management College
Module 1 Part 2 Overview of HRM Logo