HR Basics: Human Resource Management Overview

Introduction

• HR Basics: A series of short courses on HR management topics.
• Objective: Define human resource management using a simple model.

Definition of Human Resource Management (HRM)

• Formal Systems: Designed to manage people and organizations effectively.
• Key Aspects:
  • Brief history
  • Roles in organizations
  • A model for organizing HR functional areas

History of Human Resource Management

• Early 1900s: First personnel management department at National Cash Register Company.
• 1920s: Emergence of personnel departments primarily concerned with technical functions.
• 1960s: Changes due to social legislation.
• Late 1970s: Response to competition from deregulation and technological change.
• 1990s: Globalization led HR departments to focus more on costs and strategic planning.

Roles of HR Management in Organizations

• Three Potential Roles:
  1. Strategic Role:
     • Defines business strategy related to human capital.
     • Links HR strategy with organizational mission.
  2. Operational and Employee Advocate Role:
     • Manages HR activities aligned with organizational strategy.
     • Serves as an employee champion.
  3. Administrative Role:
     • Focuses on clerical tasks and compliance with legal requirements.

Evolution of HRM Roles

• Past Role:
  • Administrative and clerical.
  • Emphasized transactional activities like payroll.
  • Strong focus on compliance.
• Present Role:
  • Strategic contributions recognized.
  • Focus on technical expertise and employee advocacy.

Human Resource Management Model: The Pinwheel Model

• Eight Key Functional Areas:
  1. HR Strategy and Planning:
     • Manages current and future organizational needs.
     • Activities: Analysis, planning, effectiveness metrics, technology.
  2. Compliance:
     • Adheres to laws and regulations.
     • Activities: Employment law compliance.
  3. Talent Management:
     • Attracts, motivates, and retains employees.
     • Activities: Recruitment, selection, onboarding.
  4. Training and Development:
     • Enhances people and performance through information.
     • Activities: Training, career planning.
  5. Performance Management:
     • Aligns employee work with organizational mission.
     • Activities: Appraisals, improvement interventions.
  6. Total Rewards:
     • Utilizes financial and non-financial incentives.
     • Activities: Compensation, benefits, recognition.
  7. Employee Safety and Health:
     • Ensures safety and welfare at work.
     • Activities: Safety, security, workers' compensation.
  8. Employee and Labor Relations:
     • Manages relationships within the organization.
     • Activities: Policy management, labor relations.

Conclusion

• Understand the context of HRM’s role in modern organizations.
• The Pinwheel Model provides a comprehensive view of HR functional areas.