CHAPTER 1

THE STRATEGIC ROLE OF HUMAN RESOURCE

MANAGEMENT (HRM)
OBJECTIVES: To Develop an Understanding of .

The Historical Development of HRM

The Difference between Personnel and HRM
The Role of HRM
The Functions (Areas) of HRM
The Future Challenges of HRM
Environmental Organizational Framework
Macro-Environmental Analysis (MEA)
MEA and the Strategic Linkage to HRM
Business and HR Strategies

Evolution of (Strategic) HRM

Administrative Era (Prior to 1935)
Labor Relations Era (1935 1963)
Federal Involvement (Social Legislation) ERA
(1964 mid 1980s)
Resource Scarcity Era (mid 1980s Present)
Global Dimension Assuming Greater
Recognition in the 1990s

Primary Role of HRM

Help the organization manage its human
resources efficiently and effectively.
Planning, developing and implementing
human resource objectives, policies, and
procedures that enhance employee
contributions to the organization through
increases in productivity, quality of work
life and legal compliance

Primary Role of HRM

Satisfactorily meet societal and employee
needs, demands and expectations
Reconcile conflict between organizational
objectives and employee objectives

Primary Goals of HRM

HRM programs and policies are
implemented to:

attract
select
retain
develop
motivate employees to achieve organizational
goals.

HR Functions

Employment Law
Job Design and Job Analysis
Recruitment
Selection
Training & Development
Performance Appraisal
Compensation - Salary and Benefits

HR Functions
Safety & Health
Employee Rights Discipline/Termination
Labor Relations

Key HR Challenges for Todays

Managers
Environment

Rapid Change
Workforce Diversity
Globalization

Legislation
Evolving Work and Family Roles
Skill Shortages and the Rise
of the Service Sector

Organization
Competitive Position: Cost,
Quality, Distinctive Capabilities
Decentralization
Downsizing
Organizational Restructuring

Fig. 1-1

Self-Managed Work Teams

Small Businesses
Organizational Culture
Technology
Outsourcing

Individual

Matching People and Organization

Ethical Dilemmas and Social Responsibility
Productivity
Empowerment
Brain Drain
Job Insecurity

1998 by Prentice Hall

WHO is Responsible for the

Management of Human Resources?

All managers/supervisors
The HRM department

Impact of the following on HRM

Practices
Aging of the labor force
Shift from a manufacturing to a service
economy
Increasing number of dual-career families
Increasing number of women and minority
workers in the labor force
Increasing number of college graduates and HS
dropout entering labor force
Organizational re-engineering and restructuring

Where the Jobs Are: The Rise of the

Service Sector
Non-farm Employment, 1975-2005

130.2

150
113.3
100

76.7

107.3

89.4

54.1
50

23.9

22.6

1975
Goods-producing

Fig. 1-2a

22.9

1995

2005
(projected)
Service-producing
Total
1998 by Prentice Hall